(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.
History of Section.
P.L. 1992, ch. 280, § 1.