How Much Is an LLC in Vermont?
Vermont LLC Filing Fee: $125
To form an LLC in Vermont, you'll need to file the Articles of Organization with the Vermont Secretary of State. The Vermont Secretary of State charges a $125 fee to process and record this document online, by mail, or in person.
Registered Agent Fee
Every Vermont LLC must appoint a registered agent. Your Vermont registered agent must be a resident of Vermont and must be available to receive service of process during normal business hours at a designated street address.
You can be your own registered agent in Vermont, or you can use a registered agent service for a minimal cost.
Recommended: Get free registered agent services for one year when you form an LLC with Northwest ($39 plus state fees).
Vermont Annual Report Fee: $35
Vermont requires LLCs to file an annual report with the Secretary of State and pay a $35 filing fee each year.
Vermont Business Entity Tax: $250+
Each LLC member will also need to file a Business Entity Income Tax return with the Vermont Commissioner of Taxes. A minimum amount of $250 a year needs to be paid, although certain entities are exempt from this. Single-member LLCs treated as disregarded entities and report their activity to the IRS through Form 1040 or Form 1120 do not need to file this form.
Cost to Form a Foreign LLC in Vermont: $125
LLCs registered in another state that want to expand into the state of Vermont must register as a foreign LLC in Vermont.
The cost for registering a Vermont foreign LLC is $125. You can register as a foreign LLC in Vermont by filing an Application for Certificate of Authority.
Business Licenses and Permits
Your business might need federal, state, and local permits/licenses to legally operate in Vermont, depending on your industry and geographical location. This is true whether you form an LLC or any other type of business structure.
Learn more about state and local licensing in our Vermont business license guide.
Other Vermont Business Filing Fees
There are fees associated with other, optional business filings in Vermont.
LLC Name Reservation
You can reserve a business name for your Vermont LLC for up to 120 days by filing an LLC Name Reservation online with the Vermont Secretary of State and paying a $20 fee.
‘Doing Business As’ (DBA) Name
When an LLC is registered with the state, the LLC’s name is also officially registered. Some business owners choose to also file for a DBA name, known as an assumed business name in Vermont.
You can file for assumed business name registration online through the Vermont Secretary of State’s website. A $50 filing fee is required for this service.
Learn more in our Vermont DBA guide.
Certified Document Copies
You can get certified copies of your Vermont business documents by ordering through the Secretary of State and paying $25.
Certificate of Good Standing
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 lenders.
How to Start an LLC in Vermont
Forming an LLC yourself is easy; just follow the five steps below.
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:
- Is available for use in the state of Vermont
- Meets Vermont’s naming requirements
- Is available as a web domain
Check web domain (URL) availability with GoDaddy:
Find a Domain Now
Not sure what to name your business? Check out our free LLC name generator.
Step 2: Choose a Registered Agent
Vermont LLCs are required to appoint a registered agent to receive service of process.
Business owners can hire a registered agent service or appoint any Vermont resident that is 18 years or older and is available during normal business hours at a specified address to receive service of process.
Recommended: Northwest offers one full year of registered agent services with their $39 (plus state fees) LLC formation package.
Step 3: File Vermont Articles of Organization
To form an LLC in Vermont, you must file your Articles of Organization with the Vermont Secretary of State and pay a $125 fee. This can be done online or by requesting Form LLC-1(D) to file by mail or in person.
For a closer look at the filing process, check out our Vermont Articles of Organization guide.
Step 4: Create an LLC Operating Agreement
Operating agreements are not required for Vermont LLCs, but it’s a good practice to have one.
An operating agreement outlines the ownership and operating procedures of an LLC, ensuring that all members are on the same page and reducing the risk of conflict down the line.
Learn more in our Vermont LLC Operating Agreement guide.
Step 5: Get an EIN
An Employer Identification Number (EIN) is a nine-digit number issued by the IRS to identify businesses for tax purposes. Think of an EIN as a Social Security number for your LLC.
To learn how to get an EIN for free, visit our How to Get an EIN Number guide.
LLC Cost in Vermont FAQ
What is the cheapest way to start an LLC in Vermont?
The cheapest way to start an LLC in Vermont is to handle the registration process individually. In order to do this, you will need to follow these steps:
- Name your LLC
- Choose a registered agent: This can be a registered agent service or an individual.
- File the Vermont Articles of Organization: The filing fee for this is $125 and can be done online, by mail, or in person.
- Create an LLC operating agreement: This is usually not a legal requirement, but it is highly recommended.
- Get an EIN: This is basically your business’s Social Security number (SSN).
How much does an LLC cost per year in Vermont?
All Vermont LLCs are required to pay an annual report fee of $35. There is also a minimum business entity income tax of $250 per year, although certain exceptions do apply to this.
For a more in-depth analysis, see our How Much Does an LLC Cost? article.
How much does an LLC license cost in Vermont?
An LLC is not a business license, but a business entity. Forming an LLC in Vermont costs $125 when filing your Articles of Organization. There is also an annual report fee of $35, and a minimum business income tax fee of $250 per year, although certain entities can be exempt from this.
You may be required to pay additional fees if you choose to pay for a registered agent service, an LLC formation service, or an LLC attorney.
See our How to Start an LLC in Vermont for more information on registering your business as an LLC.
Do LLCs pay taxes in Vermont?
Yes, LLCs are a “pass-through” tax entity. This means that the LLCs profits are “passed through” directly to its owner(s), who then pay income taxes independently.
This is advantageous compared to a corporation’s tax structure because it means that LLC members are not taxed twice.
Having said that, readers should keep in mind that LLCs are very flexible when it comes to how they can be taxed, and — depending on the specifics — they can choose to be taxed as a pass-through entity, a C corp, and an S corp.
For more information, see our How Is an LLC Taxed guide.
What are the tax benefits of an LLC?
The tax benefits of an LLC will depend on how you choose to be taxed, as well as on whether you are operating as a single or multi-member LLC.
Generally speaking, LLCs can choose to be taxed in several different ways, including:
- As a sole proprietorship or general partnership
- As a C corporation
- As an S corporation
See our Single-Member LLC Taxes guide for a detailed overview of the tax benefits of having an LLC as a small business.
Do I need to open a business bank account for my LLC?
Even though you do not necessarily “need” to open a bank account for your LLC, this is generally highly recommended for several reasons.
For one, having a separate bank account can allow you to maintain your LLC’s corporate veil — meaning that you will not risk losing your limited personal liability under the law. A business bank account also offers financial benefits, including the ability to build business credit more quickly and access to larger business loans.
Interested in opening a business bank account? See our review of the best banks for startups in 2022.