Start Your LLC In
Vermont with One IBC
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Basic
$199
Fees for filing legal documents to register or maintain a business.
02 weeks processing
Agent fee
Registered Address
Document filing with the Secretary of State
Standard
$499
Fees for filing legal documents to register or maintain a business.
05 days processing
Includes everything in basic package
Comprehensive name check
Preparation of Articles of Incorporation
Lifetime customer support (phone & email)
Federal Tax ID (EIN) Obtainment Service
Premium
$599
Fees for filing legal documents to register or maintain a business.
01 day processing
Includes everything in standard package
2 hours of free tax consultation
Key Points for Vermont LLCs
Progressive Legal Framework
Strong commitment to sustainability, innovation, and local businesses, supported by state-level resources and incentive programs.
Strong Asset Protection
Vermont LLC provide limited liability protection for owners and flexible management options, ideal for both single-member and multi-member setups.
Transparent Tax Environment
Vermont offers predictable tax treatment with clear rules on income, sales, and local tax obligations for LLCs.
Understanding Vermont LLCs
A Vermont LLC provides limited liability protection along with management and tax flexibility, making it a suitable choice for entrepreneurs looking for security and affordability.
What is a Vermont LLC?
It’s a legal business entity formed by filing Articles of Organization with the Vermont Secretary of State. It must maintain a registered agent with a physical address in Vermont and meet reporting obligations.
A Vermont LLC offers several benefits, including:
Limited liability for members. Affordable filing and annual reporting fees. Default pass-through taxation. Flexible management options.
Why choose an LLC in Vermont?
Business owners choose Vermont because it combines liability protection with low annual fees and a clear regulatory framework, providing an attractive environment for small and medium-sized businesses.
Key Benefits Include:
Privacy Protection
Predictable Taxes
No Double Taxation
Legal Environment
Business Credibility
Clear Guidelines
Pros and Cons of an LLC in Vermont
Starting a Vermont LLC: Benefits
Vermont offers affordable formation and maintenance fees, strong liability protection, and simple compliance requirements. Pass-through taxation reduces administrative burdens.
Taxation of a Vermont LLC
By default, Vermont LLCs are taxed as pass-through entities. Members report earnings on personal tax returns. Vermont has a state income tax (3.35%–8.75%) but no separate franchise tax for LLCs.
Starting a Vermont LLC: Drawbacks
Annual Reports are mandatory. Missing deadlines may lead to late penalties and dissolution. Business licenses or permits may also be required depending on activity.
Who Can Form an LLC in Vermont?
Any individual or business entity (including non-residents and foreign LLCs) may form or register to operate an LLC in Vermont.
Types of LLCs in Vermont
Domestic LLC (Vermont-based LLC)
Formed under Vermont law and operating within the state. Requires Articles of Organization and compliance with state reporting.
Foreign LLC (Out-of-state LLC registering in Vermont)
LLCs formed in another state must register with Vermont to do business locally, including appointing a Vermont registered agent.
Professional LLC (PLLC)
Licensed professionals may form an LLC in Vermont but must comply with professional licensing requirements. No separate PLLC statute exists.
L3C (Low-Profit Limited Liability Company)
Vermont was the first state to authorize L3Cs, a hybrid entity designed for socially beneficial and charitable purposes while operating as a for-profit business.
How to Start an LLC in Vermont
Choose a Business Name
Select a unique name that includes "LLC" or "L.L.C." and ensure it’s distinguishable from existing entities in Vermont. Use the Secretary of State’s name search tool to verify availability.
Appoint a Registered Agent
Designate a registered agent to accept legal documents. This can be an individual or a registered service company with a physical address in Vermont.
File the Articles of Organization
Submit Form LLC to the Vermont Secretary of State, providing LLC name, principal office address, and registered agent details.
Create an Operating Agreement
Though not required, it’s recommended to draft an Operating Agreement outlining ownership, governance, and profit distribution to reinforce liability protection and support tax compliance.
Vermont LLC Requirements
Age and Residency
Number of Members
Management Structure
Registered Agent and Office
Name Compliance
Vermont LLC Application
To form an LLC in Vermont, you must file Articles of Organization with the Secretary of State.
Required Information
- LLC name (must include “LLC” or equivalent).
- Registered agent with a physical Vermont address.
- Principal office and mailing address.
- Management structure (member- or manager-managed).
- Duration of LLC (perpetual or limited).
Filing Options
- Online through the Vermont Secretary of State Corporations Division portal.
- Filing fee is US$125.
Post-Filing Requirements
- Annual Report due each year by March 31.
- Maintain a Vermont registered agent.
- Draft an Operating Agreement.
Vermont LLC Taxation
Pass-Through Taxation
By default, profits/losses pass through to members’ personal tax returns.
State Income Tax
Vermont imposes personal income tax on LLC members’ earnings (rates from 3.35% to 8.75%).
Other Taxes
Sales tax (6%) applies on taxable goods/services. Payroll and employer taxes apply if the LLC hires employees.
Vermont LLC Annual Filing (Annual Report)
What to File
The Annual Report must include LLC name, principal office, registered agent details, member/manager information, and business description.
Filing Deadlines
Due annually by March 31.
Penalties & Consequences
Late filings result in penalties and risk of administrative dissolution, which removes liability protections and legal standing.
Expanding Your Vermont LLC
Registering a Foreign LLC in Vermont
LLCs formed outside Vermont must register with the Secretary of State to conduct business in Vermont, appoint a registered agent, and comply with local requirements.
Doing Business in Other States
To expand outside Vermont, an LLC must foreign-qualify in those states, file annual reports, and comply with tax and licensing obligations there, while keeping good standing in Vermont.
Find The Right State To
Form An LLC
Every state has different rules, costs, and considerations for LLC formation.
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Doing Business in Vermont
Frequently Asked Questions
Yes, most states require you to have a registered agent to handle legal documents and notices during business hours.
While not always required by law, having an operating agreement is a smart move to outline your LLC’s rules and avoid disputes down the road.
An EIN is a federal tax ID; most LLCs need one to open a business bank account, file taxes, or hire employees.