Rhode Island § 7-16-73 - The Rhode Island Limited Liability Company Act

§ 7-16-73. Construction with other laws.

(a) Unless the provisions of this chapter or the context indicate otherwise, each reference in the general laws to a “person” is deemed to include a limited liability company, and each reference to a “corporation”, except for references in the Rhode Island Business and Nonprofit Corporation Acts, and except with respect to taxation, is deemed to include a limited liability company.

(b) As to taxation, a domestic or foreign limited liability company shall be treated in the same manner as it is treated under federal income tax law.

(c) If a domestic or foreign limited liability company is treated as a partnership for purposes of federal income taxation:

(1) Any member of the limited liability company during any part of the limited liability company’s taxable year shall file a Rhode Island income tax return and shall include in Rhode Island gross income that portion of the limited liability company’s Rhode Island income allocable to the member’s interest in the limited liability company.

(2) Any member of the limited liability company who is a non-resident shall execute and forward to the limited liability company before the original due date of the Rhode Island limited liability company return an agreement that states that the member will file a Rhode Island income tax return and pay income tax on the non-resident member’s share of the limited liability company’s income that was derived from or attributable to sources within this state, and the agreement shall be attached to the limited liability company’s Rhode Island return for the taxable year.

(3) In the event that the non-resident member’s executed agreement is not attached to the Rhode Island limited liability company return or the agreement set forth above is attached to the limited liability company return and subsequently the non-resident member fails to file a timely income tax return, then within thirty (30) days of the date of notice by the Tax Administrator to the limited liability company, the limited liability company shall remit to the Tax Administrator the non-resident member’s tax on the member’s share of the limited liability company’s income that was derived from or attributable to sources within this state, which tax shall be computed at the statutory rate applicable to corporations.

(4) A non-resident member is required to file a Rhode Island income tax return even though the member’s only source of Rhode Island income was that member’s share of the limited liability company’s income that was derived from or attributable to sources within this state, and the amount of remittance by the limited liability company on behalf of the non-resident member shall be allowed as a credit against that member’s Rhode Island income tax liability.