How Much Does It Cost to Start an LLC in Vermont?
Legal business registration — and keeping your business in good standing — involves some necessary expenses. Some of these costs are payable to the VT Secretary of State, while others are due to additional state entities or the federal government. Here are some common requirements and fees.
Please note that Vermont business license and permit fees may need to be paid when you first form your business, on an ongoing schedule or on an ad hoc basis. Find more details below.
Initial Vermont LLC Fees
You’ll need to file as an LLC with the Secretary of State and pay a filing fee when you first incorporate your business. Here are the current Vermont LLC fees and filing times:
When you form through Incfile, we charge you this fee and forward it to the Vermont Secretary of State when we file your formation paperwork.
Employer Identification Number
Every LLC in the U.S. should obtain a unique Employer Identification Number (EIN) provided by the Internal Revenue Service. You'll use it when you open a business bank account, file taxes and pay employees. It's available at no cost from the IRS, or you can have Incfile get an EIN for you.
When you want to do business in a state other than the one where your business is based, you must create a foreign LLC.
Vermont Foreign LLC Registration
Before you can bring an arm of your business from another state into Vermont, you must need to obtain a Certificate of Authority from the Office of the Secretary of State. This means the state gives you permission to conduct business there.
To request registration of a Vermont Foreign LLC, you must complete an Application for Certificate of Authority and pay a processing fee of $125. The state may have additional requirements so contact the Vermont Secretary of State for more information.
Foreign Qualification to Operate in Another State
If you plan to expand your Vermont LLC into another state, you’ll first need Foreign Qualification or a Certificate of Authority from that state. This is necessary if you'll have a physical presence, employees or banking in that state.
This process will likely entail completing an application and paying a filing fee, but each state has its own requirements. Contact the state government entity that administers business (usually the Secretary of State) for specific instructions.
If you need assistance, Incfile provides complete Foreign Qualification service for all states.
Annual Report Requirements
Most states — including Vermont — require businesses to file an annual (or other periodic) report with the Secretary of State. When you file your annual report, you’ll need to pay a fee of $35. Here are the Vermont annual report filing requirements:
Calendar Year: March 31
Finansal Year: Within 21/2 months after end of fiscal year.
Vermont Business License and Permit Requirements
It’s your responsibility to make sure you have the proper state, federal or local business licenses to operate your business. Some of the associated fees only need to be paid once, while others are ongoing charges.
Permits and licenses vary based on:
The state of Vermont does not require you to have an LLC Operating Agreement in place.
An Operating Agreement is a document that covers how the business will be run, how managers and members are chosen, rights and duties of members and several other key areas. It's usually filed along with your Articles of Organization.
This document can be extremely helpful in making sure you’re organized and prepared for any future events that may affect your business.
Other Potential Vermont LLC Fees or Requirements
You may need to pay and meet several other fees and requirements during the life of your Vermont LLC. These ad hoc fees will only be payable in specific circumstances, as listed below.
Reserving a Name for Your LLC
If you don’t want to form your LLC right away, you can reserve a business name for 120 days with the Vermont Secretary of State by filing online and paying a fee of $20. First, perform a Vermont business search and learn about business name rules to ensure you choose a name that meets state requirements.
Amending Certain Facts About Your LLC
Your business formation documents state certain facts about your Vermont business at the time that it’s formed. Over time, these facts may change. If they do, you'll need to file Articles of Amendment with the Vermont Secretary of State for a filing fee of $25. You can do this yourself or have Incfile file it on your behalf.
Getting a Vermont Certificate of Good Standing
Some organizations will request that you prove that your Vermont LLC complies with laws and tax requirements. If you need to prove you have met your commitments, you’ll need a “Certificate of Good Standing or Status” from the Vermont Secretary of State. You can obtain one by filing a Request for Certificate and paying a fee of $25.
The fees listed above detail many of the charges a standard LLC will be required to pay in Vermont. In some unusual circumstances, there may be other one-off, periodic or ad hoc fees not listed above.
Of course, your LLC will also probably need to pay self-employment, payroll, federal, state and sales taxes. More information about taxes can be found on the Vermont Business Tax page.