What makes Rhode Island different for a new cleaner?
Three things. Trade names moved from town halls to the state in 2025. An LLC carries a $400 yearly charge that surprises many owners. And the minimum wage is one of the highest in New England. On the plus side, cleaning isn’t taxed, and the state doesn’t license house cleaners.
Rhode Island is small, which helps: a Warwick-based cleaner can reach Providence, Cranston and East Greenwich in a short drive, and one set of state rules covers all of it. The trade-off is that most of what you owe goes to the state, and some of it arrives every year whether you earn much or not.
In order
- Decide between a sole proprietorship with a trade name and an LLC. The yearly cost difference is about $450.
- File the trade name or the Articles of Organization with the Secretary of State.
- Get an EIN from the IRS if you will hire or want a business bank account.
- Buy general liability insurance, and ask your town about zoning if you will store supplies or meet staff at home.
- Price your cleans without a sales tax line, then open your booking calendar.
- Before your first hire: workers’ comp, employer registration with the Division of Taxation and DLT, and a sick leave policy.
This page covers what is specific to Rhode Island. For the general steps (choosing services, supplies, first quotes), read our guide on how to start a cleaning business.
Why do Rhode Island trade names now go to the Secretary of State?
Because the law changed on January 1, 2025. A sole proprietor trading under any name other than their own real name now files a trade name certificate with the Secretary of State for $20, and renews it every year. Many older guides still send you to the city or town clerk; that is out of date.
What the law says
Rhode Island’s trade name statute (§ 6-1-1) says no one may do business under a name other than the real names of the people running it unless they file an application with the Secretary of State. The application lists the trade name, your full name, mailing and email addresses, the municipality where the business is located and the NAICS code for your work. For house cleaning, that code is usually 561720 (janitorial services).
- Fee: $20 for the certificate under § 6-1-2.
- Renewal: § 6-1-7 requires an annual renewal, under a process the Secretary of State sets. A canceled trade name can be restored for $25.
- Why bother: the penalty for not filing can reach a $500 fine, and you can’t bring a lawsuit in a Rhode Island court (to collect an unpaid invoice, say) until the name is registered.
“Joana Pereira” cleaning under her own name files nothing. “Ocean State Sparkle” does. The name also has to be distinguishable from trade names already registered in your municipality, so search the state registry first, and try our cleaning business name generator if yours is taken.
LLCs use a different form
The trade name chapter doesn’t apply to LLCs or corporations. An LLC that wants a second name files a fictitious business name statement instead, which costs $50 under the LLC fee schedule (§ 7-16-65).
What does a Rhode Island LLC really cost each year?
About $450 a year after the $150 filing: $50 for the annual report and a $400 annual charge paid to the Division of Taxation. The $400 is due even if the LLC has a single owner and makes no profit.
Forming it
The Secretary of State’s Articles of Organization (Form 400), revised March 2026, lists a $150 filing fee, which matches § 7-16-65.
The annual report
Under § 7-16-66, an LLC files its annual report between February 1 and May 1 of each year after the year it was formed. The fee is $50, and a report more than 30 days late draws a $25 penalty. An LLC formed in November 2026 files its first report between February 1 and May 1, 2027.
The $400 annual charge
This is the cost most new owners miss. § 7-16-67 says an LLC that is not taxed as a corporation pays a fee equal to the minimum corporate tax, and § 44-11-2(e) sets that minimum at $400. It is filed with the Division of Taxation on the date the LLC’s federal return is due. A single-member LLC, ignored for federal income tax, still owes it.
| Year | Sole proprietor with trade name | LLC |
|---|---|---|
| Year 1 | $20 | $150 to form, plus the $400 charge for the first tax year |
| Each later year | Trade name renewal | $50 report + $400 charge = $450 |
So, LLC or not?
For a part-time cleaner earning $20,000, $450 a year is real money. For a company with three employees and commercial contracts, it is cheap protection for your personal assets. Many owners start with a trade name and liability insurance, then form the LLC when they hire. Our guide on LLCs for cleaning businesses covers the trade-offs.
Is house cleaning taxable in Rhode Island?
No. Rhode Island’s 7% sales tax applies to goods and to a short, named list of services, and cleaning isn’t on that list. That holds for homes, offices and move-out cleans alike.
The list of taxable services
The 7% rate comes from § 44-18-18. Which services it reaches is set by § 44-18-7.3, and the list is short:
- Taxi, limousine and other road transportation services.
- Pet care services (other than veterinary).
- Room resellers and travel packages.
- Investigation, guard and armored car services.
- Parking services.
Building and residential cleaning (NAICS 5617) do not appear. Rhode Island has proposed taxing more services in past budget debates, so check the statute each January; for now, your quote is your price.
Where tax still touches you
- You pay 7% on the supplies and equipment you buy, because you are the final consumer.
- If you start selling products (cleaning kits, gift cards for products), you would need a sales tax permit for those sales.
- A pet-sitting or dog-walking add-on is a different service with its own tax treatment; ask the Division of Taxation before you bundle one.
Compare Rhode Island with neighbors that tax cleaning, such as Pennsylvania, and the difference shows up on every invoice. Use our house cleaning price calculator to set a price with no tax line.
Hiring in Rhode Island: $16 now, $17 in 2027, and sick leave at 18 employees
Pay at least $16.00 an hour in 2026 and $17.00 from January 1, 2027. Paid sick and safe leave becomes mandatory once you employ 18 or more people in the state.
The minimum wage
Rhode Island’s minimum wage statute (§ 28-12-3) sets $16.00 from January 1, 2026 and $17.00 from January 1, 2027. The rate is statewide; Providence and Newport don’t set their own.
Here is what that does to a typical visit. A cleaner spends 3 hours in a home and 30 minutes driving. In 2026 that is 3.5 × $16.00 = $56.00 in wages; in 2027, 3.5 × $17.00 = $59.50. Add employer payroll taxes and workers’ comp, and a $150 clean leaves far less than it seems. Plan a price increase for January 2027 and tell recurring clients in November.
Paid sick and safe leave
Under § 28-57-5, employees of an employer with 18 or more employees in Rhode Island earn at least 1 hour of paid sick and safe leave for every 35 hours worked, up to 40 hours a year. You can front-load the year’s hours instead, make new hires wait up to 90 days before using leave, and either carry unused hours over or pay them out at year end.
Most new cleaning companies are far below 18 employees. Still, tracking hours from day one makes the switch painless, and offering some paid time off helps you keep good cleaners in a tight labor market. For hiring itself, see our guide on hiring cleaners for your cleaning business.
Workers’ comp, TDI and unemployment: what Rhode Island payroll adds
Workers’ comp from the first employee, a temporary disability insurance (TDI) withholding of 1.1% from employees’ pay, and unemployment tax paid by you. Here are the 2026 numbers.
Workers’ comp
The Department of Labor and Training’s employer workers’ compensation page says that, with limited exceptions, employers with one or more employees must carry workers’ compensation insurance. Sole proprietors themselves are exempt, but your first part-time cleaner is not. DLT can fine an uninsured employer and close the business, so buy the policy before the first shift. Our guide to insurance for cleaners covers liability and bonding too.
Temporary disability insurance
Rhode Island is one of the few states with its own disability insurance program. DLT’s 2026 rate announcement sets the TDI rate at 1.1% on the first $100,000 of wages, a maximum of $1,100 per employee. It is withheld from the employee’s pay, not paid by you, but you must withhold and remit it.
Unemployment insurance
The same announcement sets the 2026 taxable wage base at $30,800 for most employers and the new employer rate at 1.21%. For a cleaner earning $30,800 or more, that is about $373 for the year. Employers at the highest rate have a $32,300 wage base.
Payroll checklist
- Register as an employer with the Division of Taxation (withholding) and DLT (unemployment and TDI).
- Collect an I-9 and a W-4 from each new hire, and report the hire to the state’s new hire registry.
- Track hours from clock-in to clock-out, including drive time between homes.
- Keep cleaners as W-2 employees unless an accountant confirms they qualify as contractors.
What does it cost to start cleaning houses in Rhode Island?
A sole proprietor can be registered for $20. An LLC costs $150 plus about $450 every year after. Insurance, supplies and wages are the costs that grow.
State figures were checked on official pages on October 9, 2026. Rows marked “estimate” are our ranges, not quotes.
| Item | Cost | Notes |
|---|---|---|
| Trade name certificate (sole proprietor) | $20 | Filed with the Secretary of State. Annual renewal required. |
| LLC Articles of Organization | $150 | Optional. Form 400. |
| LLC annual report | $50 a year | February 1 to May 1. $25 penalty if over 30 days late. |
| LLC annual charge | $400 a year | Paid to the Division of Taxation, even with one owner. |
| Sales tax permit | Not needed for cleaning | Only if you sell taxable products. |
| Unemployment tax (new employer) | About $373 per employee per year | 1.21% of the first $30,800 in 2026. |
| Workers’ comp | Get quotes | Required from the first employee. |
| General liability insurance | Get quotes | Compare equal limits across insurers. |
| Starter supplies | $250 to $600 (estimate) | Includes 7% sales tax on what you buy. |
| Scheduling and booking software | $0 to $60 a month (estimate) | BroomBook starts at $29 a month. |
Two quick budgets. Solo in Cranston with a trade name: $20, a few hundred dollars of supplies and the first insurance payment. LLC with two part-time employees: $150 to form, $450 a year in state charges, workers’ comp, and wages of at least $16 an hour. Run both through our cleaning business profit calculator before you commit.
Winning Rhode Island clients, and where BroomBook fits
Rhode Island runs on word of mouth. Neighborhood Facebook groups, Nextdoor and referrals from realtors and property managers fill a schedule faster than ads in a state this size. Summer rentals in Newport, Narragansett and Westerly add turnover work if you want it.
- Lead with recurring biweekly cleans; they make wages predictable.
- Cluster your days by town so a $16 hourly wage isn’t spent sitting on Route 95.
- Send a written quote and policy (cancellation, keys, pets) with every new booking.
Our guide on how to get clients for a cleaning business has scripts, and the Airbnb cleaning guide covers turnover work.
We build BroomBook, booking and scheduling software for residential cleaning companies. For a Rhode Island business the fit is simple: clients book online at a price with no tax line, the card on file is charged through Stripe after the clean (tips included), and each cleaner’s private link shows the day’s jobs, checklists and clock-in. Hours, tips and commission export to CSV for your payroll provider, which handles TDI and unemployment. BroomBook doesn’t file state taxes or track the $400 LLC charge for you. Plans are $29 a month on Solo (up to 2 cleaners) or $59 a month on Team, with a 14-day free trial. See the cleaning booking software page for how online booking works.