How to Start a Vermont Corporation
Forming a Vermont Corporation
To create a corporation in Vermont, you need to submit Articles of Incorporation to the Vermont Secretary of State Corporations & Business Services Division. The next steps may vary, depending on the individual needs of your corporation. For example, some businesses will need licenses, and others may need to open a bank account.
Common steps to incorporate in Vermont include:
- Filing Vermont Articles of Incorporation
- Holding an organizational meeting and creating bylaws
- Obtaining an EIN from the IRS
- Applying for licenses and permits
- Opening a Vermont corporate bank account
Starting a business is a huge undertaking, but you don’t have to do it alone. At Vermont Registered Agent LLC, we help people form businesses every day.
We’ll create and submit your Vermont Articles of Incorporation and provide you with all the formation materials your business needs: custom bylaws and initial resolutions, registered agent service, and more—all for just $274, including state filing fees.
Vermont Articles of Incorporation
So, what are Vermont Articles of Incorporation? This is a document, divided into sections called Articles, that you submit to form and register your corporation in Vermont. For each Article, you provide important information about your business, starting with your corporation’s name.
Article 1: Corporate Name
The name of your Vermont corporation must include one of the following words or abbreviations: Corporation (Corp), Incorporated (Inc), Company (Co), or Limited (Ltd). Unless it’s a cooperative corporation, the word “cooperative” is not permitted. Check your name’s availability with a Corporations & Business Services Division Business Search.
Article 2: Business Information
- Corporation Type: If your corporation is a professional, cooperative, or benefit corporation, you’ll need to designate this type in your Articles. Most corporations are not any of these types. Each special type of corporation has specific state guidelines to follow, but generally:
– Professional corporations are incorporated to provide the service of licensed professionals, such as architects or social workers.
– Cooperative corporations are owned and controlled by members.
– Benefit corporations include consideration of their impact on society as part of their legally-defined goals.
- Fiscal Year End Month: If your company doesn’t follow a typical calendar year, designate the month your fiscal year ends.
- Business Description (NAICS Code): North American Industry Classification System (NAICS) codes are six-digit numbers that classify business activity. Online, you can choose from a drop-down menu. If filing a paper form, you can find codes on the NAICS website. Select the code that best matches what your business does.
Article 3: Initial Principal Office
Your Vermont corporation’s initial principal office is your main business office, which must be a street address (no PO Boxes).
Article 4: Initial Registered Agent
A Vermont registered agent accepts service of process and legal notifications for your Vermont corporation. Registered agents must be regularly available at a designated physical address in Vermont.
Article 5: Capital Stock Provisions
Your Vermont corporation must authorize (create) at least one share of stock and include the total par value of your corporation’s stock. Par value is the initial price of a share; add the par value of all your shares together to get the total par value.
You must also decide if all your shares are one class, or if you’ll divide your stock into different classes, such as common and preferred stock. Different classes of stock have different rights, such as a voting rights.
Article 6: Incorporator
An incorporator signs and delivers your Vermont Articles of Incorporation to the Secretary of State Corporations & Business Services Division. Your incorporator doesn’t need to be a director, officer, shareholder, or anyone with ownership interest in your corporation. If you hire us, we’ll be your incorporator.
You must include the name and address of your incorporator. A PO Box is sufficient for the address.
Article 7: Initial Directors
Your corporation will need at least one initial director. Include the names and addresses of all initial directors. You don’t need to use a street address; a PO Box is fine.
If your corporation hasn’t appointed directors yet, you can skip this section for now. You will, however, have to provide this information in your first annual report.
Article 8: Effective Date
The effective date is when your Vermont corporation begins its existence. If you want to delay your effective date beyond approval of your filing, you can choose a future date within 90 days.
Article 9: Certification
Your incorporator signs and dates your Vermont Articles of Incorporation, certifying the information is accurate.
Submit Your Vermont Articles of Incorporation
Your Vermont Articles of Incorporation can be submitted online, by mail or in person. The filing fee is $125.
Use the Vermont Secretary of State Online portal to submit online. To create an account, provide your name, address, and email, along with a user ID and password.
Online processing is typically one business day. Payment can be made by eCheck or credit card (Visa, MasterCard, American Express or Discover).
By Mail or In Person
Processing for paper submissions is 7-10 business days. Payment can be made by check or money order.
Or, let us handle your formation paperwork! We can form and file your Vermont Articles of Incorporation and much more with our comprehensive formation package.
At Vermont Registered Agent LLC, we’ve developed a formation package that gives you everything you need for a fully functional corporation—and we’d love to form your new business!
Why choose us?
Our company does two things: form Vermont businesses and provide expert registered agent service in Vermont. Our focus is on being the best at what we do every day.
A Comprehensive Package
What does your Vermont corporation really need to launch? Articles of Incorporation, a Vermont registered agent, organizing documents like bylaws…we know what new corporations need, and we do it all and more.
- A Full Year of Registered Agent Service
- Instant Access to Services Through Our Secure Online Portal
- Electronic Delivery of Your Documents
- Expert Customer Service Support
- Annual Report Reminders and Compliance Notifications
- Custom Documents: Bylaws, Initial Resolutions and More!
An Affordable Price
Our $274 price includes state filing fees and everything you need to get started. We don’t pad our package with unnecessary services to charge more. We don’t have hidden fees. We tell you exactly what we charge and what you get.
1 Year of Registered Agent Service
Our Business Formation Service Fee
Vermont State Filing Fees
FAQ for Vermont Corporations
Registered agents, organizational meetings, annual reports—corporate requirements can be overwhelming for new business owners. Common questions about these topics and more are answered below.
VERMONT REGISTERED AGENTS
Why does my Vermont corporation need a registered agent?
It’s a legal requirement—per Vermont Statute 11A V.S.A. §5.01, Vermont corporations must continuously maintain a registered agent in the state.
However, maintaining a Vermont registered agent does more than just fulfill a legal obligation. Commercial registered agent services, like ours, can help you maintain privacy. When you list our address on public documents like the Vermont Articles of Incorporation, you can keep your own address private. Let us deal with the spam and solicitors that come with a public address. We sort and scan documents daily so you’ll never miss a critical notification.
For only $49 a year, we can provide your Vermont corporation expert registered agent service.
What is an organizational meeting?
An organizational meeting is typically the first official meeting of your corporation. At this meeting, your Vermont corporation can appoint officers, issue shares of stock, and adopt bylaws.
At Vermont Registered Agent LLC, we can help you prepare for your organizational meeting by providing custom bylaws—included free in our formation services package.
Does my organizational meeting have to be in Vermont?
No, your Vermont corporation’s organizational meeting can be held in or out of state.
FEDERAL TAX ID
Do I need a federal tax ID?
Yes, corporations are required to obtain a federal tax ID (also called an Employer Identification Number or EIN).
How does my Vermont corporation get a federal tax ID?
Federal tax IDs are issued by the IRS. You can apply for one directly from the IRS website at no cost.
VERMONT LICENSES AND PERMITS
Do I need a business license in Vermont?
While Vermont doesn’t have a general business license, there are other licenses and permits your business may need. For example, some businesses will need a sales tax permit, liquor license, or an air pollution control permit.
The Vermont.gov’s Business Portal has information on state permits and licenses. The Vermont Office of Professional Regulation also has a list of occupations requiring professional licenses, such as accountants and pharmacists.
VERMONT ANNUAL REPORT
What is a Vermont Annual Report?
The Vermont Annual Report is an update of your corporation’s ownership and contact information. This report is submitted yearly to the Vermont Secretary of State.
When is the Vermont Annual Report due?
If your Vermont corporation operates on a calendar year, your report is due March 31st. For corporations using a fiscal year, your report is due 3 months after the close of your fiscal year.
What is the Vermont Annual Report filing fee?
The fee is $45 for domestic profit corporations.
How do I submit my annual report?
All annual reports must be submitted online through the Corporations & Business Services Division’s Annual Report Filing. An online account is not required, and payment can be made by eCheck or credit card (Visa, MasterCard, American Express or Discover).
* * *
At Vermont Registered Agent LLC, we offer a comprehensive formation services package at an affordable price. From custom documents to a full year of registered agent service, we do it all for only $274! Incorporate your Vermont business today!