How Much Does It Cost to Start an LLC in Vermont?

Vermont LLC Online Filing Fee: $125

The main cost to start an LLC is the $125 fee to file your LLC's Articles of Organization online with the Vermont Secretary of State.

For a look at LLC cost in every state, read our other Cost to Start an LLC and How to Form an LLC guides.

Vermont Annual Report Fee: $35

Vermont requires LLCs to file an annual report with the Secretary of State.

You can submit this form through the Vermont Secretary of State website. It is due within two-and-a-half months of the end of your LLC's fiscal year. Vermont charges a $25 penalty for failure to file on time.

Registered Agent Fee

In Vermont you can be your own registered agent, but using a registered agent service helps keep your company in compliance and reminds you of important filing deadlines and avoid late fees.

• If you need to form a new business and get a registered agent, the best package is by Northwest Registered Agent $29 + state fees

OR:

• If only a registered agent is required, Northwest Registered Agent provides an excellent service: $125

Read our guide to learn more about Vermont Registered Agents. You can also read our full guide on the best registered agent services.

Vermont Business Entity Income Tax: Varies

Vermont requires LLCs to file a business entity income tax with the Vermont Department of Taxes. It is due the 15th day of the third month following the close of the tax year.

For LLCs owned by only Vermont residents, the minimum tax is $250. Out-of-state owners and other owners that file composite returns can follow the instructions listed on the Vermont Department of Taxes website.

Cost to Form a Foreign LLC in Vermont

If you already have an LLC that is registered in another state and you’d like to expand your business into Vermont, you’ll need to register your LLC as a foreign LLC in Vermont.

The cost for registering a Vermont foreign LLC is $125. You can register a foreign LLC through the Secretary of State website.

Business Permits and Licenses

Depending on your industry and geographical location, your business might need federal, state, and local permits/licenses to legally operate in Vermont. This is true whether you form an LLC or any other type of business structure.

Learn more about state and local licensing with our guide to getting a Vermont business license.

Other LLC Filing Costs

There are optional fees associated with LLC formation:

LLC Name Reservation:
Reserve your name for up to 120 days prior to LLC formation by filing an LLC Name Reservation online with the Secretary of State and paying the $20 filing fee.

“Doing Business As” (DBA) Name:
File an Assumed Business Name Registration online and pay the $50 filing fee to create a name other than your legal LLC business name.

Certified Document Copies:
Obtain certified copies of your Vermont business documents by ordering through the Secretary of State and paying $25.

Certificate of Fact:
You can obtain a Vermont certificate of good standing by ordering through the Secretary of State and paying the $25 fee. A certificate of good standing is often required by banks and lending institutions.

Five Basic Steps to Start an LLC in Vermont

Step 1: Name Your Vermont LLC
Step 2: Choose a Registered Agent
Step 3: File the Articles of Organization
Step 4: Create an Operating Agreement
Step 5: Get an EIN

Step 1: Name Your Vermont LLC

When you name your Vermont LLC, you’ll need to choose a name that:

1. Is available for use in the state of Vermont
2. Meets Vermont naming requirements
3. Is available as a web domain

Recommended: Visit our Start an LLC in Vermont guide for detailed naming rules and instructions for registering a business name in Vermont.

Not sure what to name your business? Check out our How to Name a Business guide and free LLC Name Generator.

We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Step 2: Choose a Registered Agent

All LLCs in Vermont must appoint a registered agent. A registered agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for accepting service of process in the event your business is sued.

Your Vermont registered agent must:

• Be at least 18 years or older
• Have a physical address in Vermont
• Be available during normal business hours to accept service of process

Step 3: File the Articles of Organization

Vermont Form LLC-1(D) - Articles of Organization is a document that is filed with the Vermont Secretary of State to form an LLC. The fee for filing the Articles of Organization is $125 online.

For detailed instructions for completing the Articles of Organization, visit our How to File the Vermont Articles of Organization guide.

Step 4: Create an Operating Agreement

An operating agreement isn't required for Vermont LLCs, but it's a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Vermont LLC operating agreement guide.

Step 5: Get an EIN

What is an EIN? An EIN or Employer Identification Number is a nine-digit number issued by the Internal Revenue System (IRS) to identify a business for tax reporting purposes. An EIN is essentially a Social Security number (SSN) for your company.

Why do I need an EIN? An EIN number is required for the following:

• Opening a business bank account
• Hiring employees