There are a few different options when it comes to starting a business in Vermont. From a legal perspective, there are three main types of Vermont for-profit business entities: LLCs, S Corporations or C Corporations. For most entrepreneurs, we believe an LLC provides the right mix of liability protection and ease of administration.
In order to formally create an LLC in the state of Vermont, there are some minimum requirements you must meet. These are a completed set of Articles of Organization, a business name and a fee you pay to the Vermont Secretary of State Corporations Division. We recommend taking some other steps before formally starting your LLC:
- Research your target market to make sure there’s a demand for the products and services you provide.
- Read industry guides to give you a starting point in your niche.
- Create a comprehensive business plan that defines the most important aspects of your Vermont business.
- Write an Operating Agreement that covers how you will run your LLC.
After you’ve formed your Vermont LLC, you will also need to review your business license requirements, understand ongoing filing needs, set up a separate business bank account and get an accountant.
In Vermont, you register a business by completing and filing your Articles of Organization with the Vermont Secretary of State Corporations Division. You will need to gather information about your business, fill out the form and send it to the Secretary of State with your filing fee. This will officially create your LLC in Vermont.
You can file your Articles of Organization on the VT Secretary of State website or mail it in. Alternatively, Incfile can guide you through every step of the process by getting details from you and filing the form on your behalf — for free! There’s no additional charge for our basic LLC filing service, so all you need to do is pay the Vermont state filing fee.
At the time of writing the fee charged by the Vermont Secretary of State Corporations Division is $125. You can always check the latest Vermont filing fees here. You may also be able to pay an additional amount for expedited filing through Incfile, which will create your LLC faster. The amount of the expedited fee may be dependent on how quickly you want your filing processed. Some LLC filing services do charge you extra to prepare and submit your filing documents, but at Incfile, we do this for free — so you only pay the state fee.
Once you’ve gathered all of your information together and filed your Articles of Organization (or had Incfile do it for you), it can take from 7-10 business days for the Vermont Secretary of State to legally create your LLC. Alternatively, if you file online, it may be processed within 1 business day. If you file by mail and pay an additional expedited fee, your LLC can be formed in as little as 3 business days.
There are a few ways to register your Vermont LLC name.
- If you’re creating a new business and your business name is unique in Vermont and meets state naming rules, you simply include it in your Article of Organization.
- If you want to change the legal name of your business, file your Article of Amendment with the Secretary of State.
- If you just want to do business under a different name, file an Assumed Business Name Registration with the Secretary of State, or we can do that on your behalf.
If you want to prevent people from using your business name across the U.S., you can file a trademark for the name. We can help.
In other states, the formal documents that you file to form a corporation or LLC might be known as Articles of Incorporation. In Vermont, this document is called your Articles of Organization, and it performs the same functions as the Articles of Incorporation.
No, the State of Vermont does not permit the formation of a Series LLC. A Series LLC is a special type of LLC where you create one “overall” business and then have individual, series LLCs within it, each counted as separate legal entities.
If you wish to change your Vermont Registered Agent you can do so by filing a Certificate of Change with the Secretary of State. Here at Incfile, we provide a free Vermont Registered Agent service for the first year if you file through us. If you’ve been using a different Registered Agent and want to switch to us, we’ll file the Certificate of Change on your behalf.
If you need to know the Registered Agent of a specific Vermont business, you can perform a Vermont Registered Agent search within the state's business database.
As an LLC, any business profits you earn will be reported on your personal 1040 filing and reported and taxed as “pass-through” income. You will typically need to pay:
- Self-employment or payroll tax on all business profits
- Federal income tax on profits after you meet your tax-free allowance
- Sales tax for selling taxable products and services
Vermont charges a 6 percent state sales and use tax on all retail sales, leases and rentals of most goods. You will also need to pay sales tax if you provide a taxable service. You can find a full list of taxable services here.
You will need to register for a Vermont Business Tax account with the Vermont Department of Taxes. You can complete this process online.
The base rate for Vermont sales tax is 6 percent, and there may be additional sales tax depending on your region, county or city. Once you know your overall sales tax amount, calculate the value of all your taxable products and services. Then, multiply that by your sales tax rate to understand how much you will need to pay.
Once your LLC’s sales tax application is approved, you will receive notice or information with instructions on how often you must file a sales tax return and pay sales taxes. Returns and payments may be due monthly, quarterly or annually.
Some businesses will need to pay corporate income tax in Vermont, however it does not apply to LLCs unless your LLC is treated as a C Corporation for tax purposes. If you haven't elected to be taxed as a C Corp, your LLC will still be subject to the Business Entity Income tax, which you can read about in detail here.
If you're forming a business in Vermont, you may need a business license to operate. The types of business licenses you need will vary depending on your type of business, industry, location and various other factors. We can research the types of business licenses you might need for you.