Form an LLC in Vermont
Starting an LLC in Vermont
The first step to launching a Vermont LLC is filing Articles of Organization with the Vermont Secretary of State Corporations & Business Services Division. Your next few steps depend on the nature of your business, but many businesses follow the formation process below:
- File Vermont LLC Articles of Organization
- Write an operating agreement
- Apply for licenses and permits
- Get a federal tax ID
- Open a Vermont LLC business bank account
The formation process can be daunting, but at Vermont Registered Agent LLC, we can help. We offer a total formation package that gives you everything you need to launch your new business!
Why us? We are:
We know Vermont business. We provide expert Vermont registered agent service and form Vermont businesses daily.
We do more than simply submit your formation paperwork—we give you everything your new business needs to start, from custom documents to a full year of registered agent service.
Our total formation package includes state filing fees and provides you with a ready-in-hand Vermont LLC—all for only $274.
Vermont Articles of Organization Requirements
For your Vermont LLC Articles of Organization, you’ll need to provide essential information about your company, such as your Vermont LLC’s name and registered agent. The information requested in the Articles is described below.
Article 1: Business Name
Your Vermont LLC’s name must include one of the following words or abbreviations: Limited Liability Company, Limited Company, LLC, or LC. “Limited” and “Company” can also be shortened to “Ltd” and “Co.” Check your name’s availability with a Corporations & Business Services Division Business Search.
Article 2: Business Information
- LLC Type: You can designate if your company is a standard LLC or a professional or low-profit LLC. Professional LLCs are organized to provide the services of licensed professionals, such as accountants or dentists. Low-profit LLCs are organized for charitable or educational purposes. While low-profit LLCs can make profit, income production can’t be a “significant purpose” of the entity. Most Vermont LLCs are neither professional nor low-profit LLCs.
- Fiscal Year End Month: Most LLCs use a calendar year, but if you’d like your fiscal year to end in any month other than December, you’ll need to enter the month in this section.
- Business Description: You can enter a North American Industry Classification System (NAICS) code, which is a six-digit number that classifies 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.
- Business Email: A business email is optional on the paper form, but required when filing online (your approved Articles will be emailed to this address).
Article 3: Initial Designated Office
The initial designated office is the main office of your business—where you keep your business files. You are required to provide a street address, but the address doesn’t have to be in Vermont.
Article 4: Initial Registered Agent
A Vermont registered agent accepts service of process and legal notifications for your Vermont LLC. The registered agent must be regularly available at a physical address in Vermont.
Article 5: Initial Principal Information
You must declare whether or not the LLC has members at the time of filing. You also have the option of selecting whether your company will be Member or Manager-Managed. In a Member-Managed LLC, members themselves make all decisions for the company. In a Manager-Managed LLC, managers are either appointed or hired to run the company.
In the Articles, you can also opt to list the names and addresses of members or managers. Vermont LLC Articles of Organization are public, so if privacy is a concern, note that this section isn’t required.
Article 6: Effective Date
The effective date is when your LLC will begin its existence. Most LLCs are formed upon filing; you only need to complete this section if you would like a future effective date within 90 days of filing.
Article 7: Organizer
Your organizer signs and submits your Vermont LLC Articles of Organization. The organizer has to include their name and address as well. The organizer doesn’t have to be a member, manager, or anyone with ownership rights in your LLC. If you hire us, we’ll be your organizer.
Submit Your Vermont LLC Articles of Organization
It’s possible to submit your Vermont LLC Articles of Organization online, by mail or in person. The filing fee is $125.
You can apply online using the Vermont Secretary of State Online portal. To create an account, provide your name, address, and email, along with a user ID and password.
Online processing is typically 1-3 business days. The filing fee is payable by eCheck or credit card (Visa, MasterCard, American Express or Discover).
By Mail or In Person
You can download a paper Vermont LLC Articles of Organization form from the Secretary of State’s Corporations & Business Services page. Paper submissions have some specific requirements:
- You must submit two copies of your Articles.
- You must include a self-addressed stamped envelope.
- You can only pay with check or money order.
Processing for paper submissions is 7-10 business days.
Prefer to skip all these steps? Hire us, and let us form and file your Vermont LLC Articles of Organization!
At Vermont Registered Agent LLC, we’ve worked to develop a comprehensive formation package that gives you everything you need—and nothing you don’t. In addition to filing your Articles, we give you a year of our expert registered agent service, the custom documents you need to open a business bank account, and much more.
What don’t we give you? Hidden fees. Mystery charges. Hassle and headaches.
What We Provide
- 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: Operating Agreement, Membership Certificates, Initial Resolutions and More!
What We Charge
1 Year of Registered Agent Service
Our Business Formation Service Fee
Vermont State Filing Fees
FAQ for Vermont LLCs
Have more questions? We have answers. Below are common questions on topics such as registered agents, taxes, and annual reports.
VERMONT REGISTERED AGENT
Why do I need a Vermont registered agent?
Vermont Statute 11 V.S.A. § 4007 requires LLCs to designate and maintain an agent for service of process (commonly called a registered agent) in Vermont. Registered agents ensure that the state is able to easily and reliably communicate with Vermont businesses.
Having a registered agent also benefits you. When you use a commercial registered agent (like us!), you can keep your address off of public documents, like your Articles of Organization. Avoid all the junk mail and hassle of a publicly-listed address and let us sort through the spam. We scan documents daily to ensure you never miss an important notice.
At Vermont Registered Agent LLC, we can service your LLC for just $49 a year.
What is an operating agreement?
An operating agreement explains how your Vermont LLC operates. Your operating agreement might list your initial member contributions, responsibilities of members and managers, voting rights, and allocations of profits and losses.
- Does my Vermont LLC need an operating agreement?
You’re not legally required to have a written operating agreement. Clearly outlining policies and procedures, however, can help your business run more smoothly and prevent potential miscommunication and member disputes.As part of our formation services package, we include a free, custom operating agreement for your Vermont LLC.
VERMONT LICENSES AND PERMITS
Does Vermont require a business license?
Vermont doesn’t have a general business license, but there are other licenses and permits your business may need, such as a sales tax permit, liquor license, or an air pollution control permit. For information on Vermont permits, visit Vermont.gov’s Business Portal. Vermont cities may have their own licensing requirements as well.
The Vermont Office of Professional Regulation also has a list of occupations requiring professional licenses, such as dietitians and property inspectors.
VERMONT BUSINESS ENTITY TAX
What is the Vermont Business Entity Tax?
The Vermont Business Entity Tax is an income tax that applies to businesses, such as LLCs, that elect to be taxed as partnerships or S-corporations.
Do all Vermont LLCs have to file this tax return?
No. Only LLCs taxed as partnerships or S-corporations have to file this return. Single-member LLCs that elect to be disregarded entities do not have to file, and LLCs taxed as C-Corporations file a corporate income tax return.
How do I file the Vermont Business Entity Tax?
To file, submit Form BI-471: Business Income Tax Return to the Vermont Department of Taxes.
Is there a minimum tax?
Yes. The minimum tax payment for Vermont’s Business Entity Income Tax is $250.
FEDERAL TAX ID
What is a federal tax ID?
A federal tax ID (also known as an Employer Identification Number or EIN) is a unique number issued to your business by the IRS to identify your business on tax filings. States frequently use this number as well for state tax filings.
Do I need an EIN for my Vermont LLC?
Because the vast majority of LLCs have to file a Business Income Tax Return (which requests a federal tax ID number), you’ll almost certainly need an EIN. Even you aren’t required to file a Business Income Tax Return, there are other reasons you may need an EIN, such as if you have employees. EINs are also often requested when opening a business bank account.
- How do I get an EIN?
Applying for an EIN is free from the IRS. If you’d rather we complete the application for you, however, you can add EIN service on to our formation package for $50.
VERMONT ANNUAL REPORT
What is a Vermont Annual Report?
The Vermont Annual Report is a yearly report your LLC is required to submit to the Vermont Secretary of State Corporations & Business Services Division. This report updates the state on your current ownership and contact information.
When is the Vermont Annual Report due?
For most LLCs, annual reports are due by the end of March each year. However, if your LLC uses a fiscal year instead of a calendar year, the report is due 3 months after the end of your LLC’s fiscal year.
How do I submit my annual report?
Vermont Annual Reports must be completed online using the Corporations Division’s Annual Report Filing. An online account is not required.
What is the fee for the Vermont Annual Report?
$35. Payment can be made by eCheck or credit card (Visa, MasterCard, American Express or Discover).
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Our comprehensive formation package is designed to get your Vermont LLC up and running fast! We give you everything you need, from custom documents to registered agent service for just $274! Form your Vermont LLC today!