Do I Need a Business License in Rhode Island?

Rhode Island doesn’t have a general business license at the state level. Your business may need a state-level occupational license or municipal-level license or permit to operate.
Businesses in Rhode Island are required to obtain licenses and permits at the local, state, and federal levels.

Businesses making retail sales or providing taxable services need a Sales Tax Permit from the Division of Taxation to collect sales tax from customers.

Many professions in Rhode Island have additional, specific licensing requirements.

Rhode Island business licenses ensure businesses comply with laws, regulations, and standards in their industries.
Acquiring a business license involves registering the business, paying fees, and meeting requirements or qualifications.
In Rhode Island, businesses typically need general state and federal licenses and professional licenses.
Renew general state and federal licenses automatically if the business is in good standing. Once expired, pay annual fees to renew them.

Register online for a sales tax permit or mail the Business Form to the Division of Taxation with the $10 fee.
Most starting businesses selling products or services need a sales tax permit. This is also called a seller’s permit, sales tax license, sales tax number, or sales tax registration.
The Department of Business Regulation issues liquor licenses. Submit the application, pay fees, and meet requirements. The Secretary of State issues business licenses to ensure legal compliance.
Knowing sales tax liability is important. This guide tells you what you need to know and directs you to resources for handling any responsibility. Services are taxable in Rhode Island.
Use this guide to start a business in Rhode Island. The economy, environment, and funding opportunities make it attractive.
Download the Starting a Business Workbook for comprehensive guidance.

The Department of Business Regulation issues state licenses, including loan broker, check casher, auto body shop, real estate, and liquor. Obtaining these licenses requires a sales tax permit first.
Rhode Island’s sales tax for businesses is collected from customers on certain goods, paid by sellers to regulatory bodies. As an agent, collect tax from customers and forward it to the Division of Taxation.
The state owns the sales tax, not you. Keep records to comply with regulations, or risk penalties and interest charges.
The sales tax rate is 7%.