Section 280-RICR-20-10-1.25 - Limited Liability CompaniesA. 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; orb. 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.280 R.I. Code R. § 280-RICR-20-10-1.25