Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 10 - Withholding Tax
Part 1 - Withholding Tax on the Sale of Real Property by Nonresidents (280-RICR-20-10-1)
Section 280-RICR-20-10-1.25 - Limited Liability Companies
Universal Citation: 280 RI Code of Rules 20 10 1.25
Current through September 18, 2024
A. A limited liability company is required by law to declare in its articles of organization whether it is to be treated as a corporation or as a partnership for purposes of taxation.
1. Taxed as Corporation: If a
limited liability company has declared to be taxed as a corporation, and either
a. the limited liability company is formed
pursuant to R.I. Gen. Laws Chapter 7-16; or
b. the limited liability company is
registered with this state as a foreign limited liability company pursuant to
R.I. Gen. Laws §
7-16-49,
the limited liability is considered a resident limited liability company and no
withholding is required and a buyer may accept a residency affidavit from the
limited liability company.
c. If a
limited liability company is deemed to be a nonresident the buyer must withhold
at seven percent (7%) unless the nonresident limited liability company produces
a letter of good standing issued by the Division of Taxation for purposes of
the sale. See §
1.7(B) of
this Part.
2. Taxed as
Partnership: If a limited liability company has declared to be taxed as a
partnership, the provisions of §
1.7(C) of
this Part applies whether or not the limited liability company is formed
pursuant to R.I. Gen. Laws Chapter 7-16 Laws or is registered with this state
pursuant to R.I. Gen. Laws §
7-16-49.
3. Single Member Limited Liability Company
(SMLLC) is a disregarded entity and the withholding requirements apply to the
single member of such an entity.
Disclaimer: These regulations may not be the most recent version. Rhode Island may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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