Why Create a Vermont LLC?

The state of Vermont offers numerous funding and incentive opportunities, provided that your LLC meets specific criteria. For example, if you start a business in specific Vermont industries, you may qualify for the Vermont Training Program. This program may enable some companies to qualify for grants of up to 50% of their training costs, supporting their employees with quality training either in-house or through an external organization.

Creating a Vermont limited liability company (LLC) is typically the fastest and easiest way to start a business. Ideal for startups and small to medium-sized businesses, an LLC is a business entity capable of granting you the advantages and protections that larger Vermont corporations benefit from, but with more simplified rules and regulations.

Benefits of starting a Vermont LLC:

  • Quick and simple creation, management, regulation, administration and compliance

  • File your taxes easily and discover potential advantages for tax treatment

  • Protect your personal assets from your business liability and debts

  • Low cost to file ($125)

Learn more about the benefits of the LLC business structure.

In this in-depth guide, you’ll find information on naming your LLC, the fees you’ll need to pay, getting a Registered Agent, Vermont business taxes and much more. We’ll also go over what information you'll need to register and file your LLC and how you'll correspond with the Vermont Secretary of State (SOS).

 

How to Form an LLC in Vermont Yourself in 6 Steps

1

Complete a Vermont LLC Search and Choose a Unique Business Name

You’ll need a name for your LLC that is not used by any other business in the state, but still remains distinctive and original. You can brainstorm name ideas using Incfile’s Business Name Generator if you’re having trouble coming up with a name. You'll also need to follow a few naming rules, which you can read about in detail on the Vermont Business Names page.

Once you’ve chosen a name, you’ll need to make sure it’s available in Vermont. To find out whether another company in the state is using your chosen business name, use our tool to do a business name search. You can also discover this information from the state by carrying out a name search on the Vermont Secretary of State online database.

We can search the state of Vermont business registry for you

2

Provide an Official Business Address for Your LLC

Whether it’s an office building, a home (if the company is run from a residence) or any other physical location, every LLC in Vermont must have a designated street address. It can be outside the state, but it cannot be a P.O. Box.

3

Assign a Registered Agent

Someone who receives official legal and tax correspondence and is responsible for filing reports with the Vermont Secretary of State is called a Registered Agent. Every LLC in Vermont is required to have a Registered Agent.

This position can be filled by you, another manager in your business or a dedicated Registered Agent service. If your Vermont Registered Agent is a person, they must have a physical street address in Vermont and must be present during business hours to receive important documents on behalf of your company. In Vermont, you appoint your Registered Agent when you file your Articles of Organization and formally create your business.

All of Incfile’s packages include a Registered Agent service. It’s free for the first year and just $119 per year after that. You can also log in to our dashboard and easily view any document we've received on your behalf.

4

File Your Articles of Organization with the Vermont Secretary of State

Once you've gathered all the information for your Vermont LLC, you’ll need to file articles of organization with the Vermont SOS.

The articles must include:

  • The name of the company
  • The address of the initial designated office
  • The name and street address of the initial agent for service of process
  • If the company has no members at the time of filing, a statement to that effect
  • Names of managers or members of the LLC at the time of filing
  • Addresses of managers or members of the LLC at the time of filing
  • Whether the LLC will be member-managed or manager-managed
  • Whether the company is an L3C
  • Name of the organizer
  • Signature of the organizer

Your Articles of Organization can be filed online with the Vermont Secretary of State Corporations Division, you can mail them to the Office of the Secretary of State, or you can have Incfile do it on your behalf. Online filing is the preferred method of the Vermont SOS, and the turnaround time for creating your LLC is much quicker. To file by postal mail, you must complete the online filing process and then select this option. The Vermont LLC filing fee is $125.

File by Mail

Vermont Secretary of State
Corporations Division
128 State Street
Montpelier, VT 05633-1104

You only need to file your Articles of Organization once, but every year after, you must file an annual report online. The fee for this, set by the Vermont SOS, is $35. Incfile can either remind you to do it, or we can do it for you.

Let Incfile Handle All the Paperwork for You for $0 + the Vermont State Fee

What are the fees and requirements to form a business in Vermont?

State Fee State Filing Time Expedited Filing Time
$125 3 Weeks 3 Business Days
State Fee $125
State Filing Time 3 Weeks
Expedited Filing Time 3 Business Days

Annual Report

Frequency

Annually

Due Date

Calendar Year: March 31
Finansal Year: Within 2½ months after end of fiscal year.

Filing Fee

$35

5

Get an Employer Identification Number (EIN) from the Internal Revenue Service

You’ll need an EIN to identify your business to the IRS. You use this number when filing and paying taxes or when submitting payroll information and payments for your employees. An EIN is also required to open a business bank account. You can obtain one directly from the IRS, or Incfile can get one for you as part of the Vermont LLC formation process.

6

Create an Operating Agreement

An LLC Operating Agreement is a kind of “instruction manual” that explains how you’ll run your business and details how decisions will be made, how the business is divided among members and what will happen if a member leaves the company.

Some states require that a company have this document in place. You're not legally required to have a Vermont LLC Operating Agreement, but it’s a good idea to have one regardless.

Receive a personalized Operating Agreement when you select Incfile’s Gold or Platinum package

Other Vermont LLC Types

Professional LLC

Different from professional corporations, Professional Limited Liability Companies (PLLCs) typically have licensing requirements applicable to certain fields, such as law and medicine. In order to form a PLLC, you may need a state license to practice.

The state doesn't make a distinction between a Vermont PLLC and a standard LLC. Instead, they'll allow an LLC that renders professional services to register as a standard LLC.

Learn more about PLLC vs. LLC and which one is right for your business.

Foreign LLC

If your business is already operating in another state and expanding to Vermont—or vice versa—you’ll need to form a Foreign LLC.

Learn more about Vermont Foreign LLC registration.

Helpful Resources from the State of Vermont

More Information in This Guide

You’ll find plenty more insight and guidance on the other pages of this guide, including:

How to Name Your Vermont LLC

How to search the Vermont Secretary of State’s business registry and find the right name. Includes information on naming rules, assumed names, reserving a Vermont LLC name and more.

Vermont Registered Agents

How to appoint, change and search for Registered Agents. Also includes the rules they’re required to follow.

Vermont LLC Fees and Requirements

How to understand the various fees you’ll need to pay and the state and federal requirements you’ll need to meet. Includes details of Employer Identification Numbers (EINs), state and federal business licenses, annual reports and more.

Vermont Business Tax Rules

How to understand the various taxes you will need to pay to the state and federal governments. Includes details of state taxes such as sales and income, and federal taxes such as income and self-employment.

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