Can I offer a freemium version of my product or service in Rhode Island? What are the requirements?

Offering Freemium Version of Product or Service in Rhode Island

Rhode Island does not have any specific laws or regulations regarding the offering of freemium versions of products or services. However, businesses offering freemium versions of their products or services must comply with general business regulations in Rhode Island.

Business Registration

All businesses operating in Rhode Island must register with the Rhode Island Secretary of State. This includes businesses that offer freemium versions of their products or services. ^[5.1]

Sales and Use Tax

Businesses offering freemium versions of their products or services may be subject to Rhode Island sales and use tax. The Rhode Island Division of Taxation provides guidance on sales and use tax for businesses. ^[6.1]

Advertising Materials

If the freemium version of the product or service includes advertising materials, such as brochures or displays, the business may be subject to Rhode Island sales and use tax on those materials. ^[2.2]

Conclusion

To offer a freemium version of a product or service in Rhode Island, businesses must register with the Rhode Island Secretary of State and comply with Rhode Island sales and use tax regulations.

Source(s):

• [5.1] Qualifying Business Entity (QBE)
• [2.2] Advertising Materials
• [6.1] Purpose

Jurisdiction

Rhode Island

• General