How to Form an LLC in Vermont

If this seems like a lot, don’t worry! Our Vermont LLC Formation Package is the best deal in the state and covers everything you need to get up and running. For $149 plus state fees we’ll form your LLC and provide instant registered agent service, with the option to add BOI and EIN filings. Plus, to help launch your business immediately, you’ll receive a custom domain name, secure website, email address, and a local phone number, all for no additional upfront fees. Our one-time fee gets everything you need ASAP, and you can cancel anytime.

Best of all? You’ll have lifetime client support for all your business needs from our local agents in Shelburne, all of whom are experts when it comes to Vermont business regulations.

Start a Vermont LLC

Registering a Vermont LLC is a good idea if you’re looking for liability protection. Filing your LLC’s Articles of Organization with the Vermont Secretary of State offers liability protection and further separates you and your business.

Name Your Business

The first step you need to take is to name your Vermont LLC. Whether you already have a name in mind or have just begun to brainstorm, there are some state requirements you will need to consider when naming your business. Vermont law (11 V.S.A. § 4005) states your business’s name:

• Should indicate your business is an LLC by including an indicator such as “limited liability company,” “LLC,” or “L.L.C.”
• Needs to be a unique name that is not shared by any other active business in Vermont
• Cannot include an indicator that implies it is a different type of entity, like “LP” or “Corp”

Once you’ve created a business name that complies with state requirements, you’ll want to use the Vermont Secretary of State’s Express Search to look up the name and make sure it’s available.

How do I reserve a name for my Vermont business?

If you already have a great business name in mind, but aren’t ready to file your paperwork, you can reserve the name for up to 120 days. You’ll just need to file a Vermont Business Name Reservation form with the Vermont Secretary of State and pay the $20 filing fee.

Can I get an Assumed Business Name in Vermont?

Vermont allows businesses to register for an assumed business name. Registering for an assumed business name means your LLC will be allowed to conduct business under a name other than the one listed on your Articles of Organization. If you want to register for an assumed name, you’ll need to complete a Vermont Assumed Business Name Registration form and pay the $50 fee.

Pick a Registered Agent

Vermont, like most states, requires businesses to designate a registered agent when they file Articles of Organization with the Secretary of State. A registered agent is a person or business who is appointed to accept service of process on behalf of your business. According to 11 V.S.A. § 4007, your registered agent must be a:

• Vermont resident
• Domestic corporation or LLC
• Foreign corporation or LLC authorized to do business in Vermont

Whether you choose to hire a commercial registered agent (like us) or your next-door neighbor, know that whoever you designate must be available at the same physical location during regular business hours. If this doesn’t work for you, hiring a registered agent may be a good option.

Can I be my own Vermont Registered Agent?

You absolutely can be your own registered agent, but in order to do so you’ll need to be available in the same location during regular business hours. If this isn’t possible, designating a different person or company to be your registered agent is a good choice. Hiring a commercial registered agent (like us!) means you can run your business from where you need to, rather than being tied down to the same location day after day.

File Vermont Articles of Organization

In order to officially form your LLC, you’ll need to complete and submit the Vermont Articles of Organization to the Vermont Secretary of State and pay the $125 filing fee.

The state of Vermont prefers for filings to be completed and submitted via the state’s Online Business Service Center. However, they do have an option if you prefer to mail in or hand deliver a paper copy of your articles. You will need to request the correct forms via the Secretary of State’s website. If you choose to submit a physical copy, the state requires that each form must be filed in duplicate (1 original and 1 copy, or 2 originals). You can either mail or submit your articles in person at:

Vermont Secretary of State
Corporations Division
128 State Street
Montpelier, VT 05633-1104

Articles of Organization requirements:

Vermont requires the following information to be included in your Articles of Organization:

• LLC type (Limited Liability Company, Professional Limited Liability Company, or a Low-profit Limited Liability Company)
• Business name (must include an identifier like “LLC”) and two alternate business names. (If you’ve already reserved your business name, provide the same alternate names you listed on your name reservation application)
• NAICS code and NAICS sub code (You can find more info on the NAICS Association’s website)
• Jurisdiction (If done online, this is auto-filled with Vermont)
• Both the physical and mailing address of your business
• Business e-mail address
• Fiscal year end month (You have the option to choose when your fiscal year ends. If you don’t choose, it will default to December)
• Your registered agent’s name, physical and mailing address, and email address
• Management type ( You’ll need to check yes or no if your LLC has members. You can also provide member information, but it’s not required)
• Additional provisions (optional)
• Organizer signature, name, and address

Once complete, you can submit your articles and the $125 filing fee online, through the mail, or in person.

How much will it cost to start my Vermont LLC?

The cost of forming an LLC in Vermont is $125, but keep in mind that you’ll need to pay an additional $35 fee every year when you file your Vermont annual report. You’ll also want to budget for other business costs like worker’s compensation insurance, business licenses, and reserving your business name (if you choose to do so).

How long will it take to start my Vermont LLC?

If you file online, your Vermont LLC will be formed in less than 1 business day. The filing time for Articles submitted via mail is much longer: 7-10 business days.

What happens if I don’t file Articles of Organization for my Vermont LLC?

If you decide not to file Articles of Organization for your Vermont business, you’re still allowed to conduct business in Vermont, but not as an LLC. Depending on how many other people you’re working with, your business will be considered either a sole proprietorship or general partnership.

Unfortunately, being a sole proprietor or part of a general partnership means you’re operating without liability protection. This means that there is no separation between you and your business. If your business is sued, you’re being sued, and your personal assets are considered up for grabs. If you want liability protection, forming an LLC is a good idea.

Register for an EIN from the IRS

Once you’ve formed your LLC with the state, you’ll also likely need to register for an EIN (or employer identification number) with the IRS. An EIN acts like a social security number for your business. If you plan on hiring employees, they’ll use your EIN to identify your business when filing taxes. You may also need an EIN to open a business bank account.

Filing for an EIN is free. You can complete and submit the Application for Employer Identification Number (Form SS-4) to the IRS online, over the phone, by mail or by fax. Or, for an additional $50, we’ll get your EIN for you when you sign up for our Vermont LLC formation service.

What to Do After Forming a Vermont LLC

Once your LLC is formed with the state of Vermont, you’ll probably still need to take a couple more steps to make sure your business stays compliant with the state.

File an Annual Report

The state of Vermont requires all businesses to file an annual report. This report is due three months after your fiscal year end. So, if your business’s fiscal year end is December, your annual report would be due by the end of March.

You can file an annual report online via the state’s Online Business Service Center, or you can request a paper copy that you can either mail in or deliver by hand. Either way, you’ll need to pay the $35 filing fee when you submit your annual report.

Pay Taxes

LLCs are taxed as pass-through entities. This means that any profit generated by the company will “pass through” the LLC to its members, who are then responsible for reporting this income on their personal tax returns and paying the 15.3% federal self-employment tax.

Members will also need to pay Vermont state income tax, too. The state’s tax rates vary, ranging from 3.35% to 8.75%, depending on how much income you report. For example, if you’re single/unmarried and your taxable income is under $38,700, you’ll pay 3.35%. If you report income over $38,700, but less than 93,700, you’ll pay $1296 plus 6.6% of any income over $38,700.

Open a Business Bank Account

Although it’s not required that you open a separate bank account for your business, it’s a good idea. Forming an LLC means forming a separate business entity, and this is what creates the limited liability protection for your LLC. If you don’t separate your personal finances from your business’s, you may risk losing your liability protection.

In order to open a bank account for your LLC, the bank will require some additional documentation from your business. More than likely, the bank will want to see your Articles of Organization, your EIN, and your LLC’s operating agreement. Make sure you bring these along when opening your business bank account.

Write an Operating Agreement

The state of Vermont does not require LLCs to create or submit an operating agreement, but it’s still important that you create one for your business. Your operating agreement will establish company rules and procedures, and having these guidelines in writing provides better legal protection.

If you’re not sure where to start, we’ve got you covered! Our LLC Formation package includes free operating agreement templates specifically customized depending on the structure of your LLC. We also provide other business document templates such as, initial resolutions and membership certificates.

Set Up a Vermont Business Presence

Most businesses are going to need an online platform to start shaping their business presence. It’s part of your branding and business relationships to have a domain, website, and professional email address. When you hire us, we include everything to put your business on the map today: a custom domain name with a matching email address, an open-source website, an SSL service to keep that website secure, and a Vermont phone number to help keep your personal number private.

There’s no additional upfront cost and you can cancel anytime you like! The business domain is free for a year and the rest is free for 90 days. All is available to you INSTANTLY when you sign up, allowing you to dive right into building that professional profile for your company.

Other Vermont LLC FAQs

Does my Vermont LLC need a business license?

There is no general business license issued by the state of Vermont, but that doesn’t mean your business won’t need to apply for a business license (or licenses). Depending on what type of business you’re conducting, you may need to apply for a license through an agency or board that oversees professional state licenses (like if you’re opening your own dental office). You may also need to apply for additional licenses from the city or town where you’re operating. For example, if you’re opening an Indoor Skating Rink in Montpelier, you’ll have to apply for a Skating Rink license and pay the $25 fee.

Does my Vermont LLC need an assumed business name (DBA)?

Many LLCs in Vermont operate under an assumed name (commonly called a DBA) because it allows for more franchising and branding opportunities. To register an assumed business name for your LLC, select our Trade Name Service inside your account after signing up for our business formation service. We will register your company’s assumed business name for $125 plus state fees.

Does my Vermont LLC need insurance?

There are a variety of different types of insurance to choose from when it comes to protecting your LLC, but Vermont law only requires LLCs purchase worker’s compensation insurance for their employees and members. Worker’s compensation insurance covers anything your business may be liable for if an employee is hurt on the job. And failing to purchase worker’s compensation insurance for your LLC can be costly.

The state will send you a notice If you fail to purchase worker’s compensation insurance. You will be fined $50 for every day you operate without coverage, and if you still refuse to purchase insurance within 5 days, the state will up the fee to $150 a day.

Ready to Start Your Vermont LLC?

Our agents in Shelburne are experienced locals and their expertise with Vermont business regulations is unmatched! We’ll be happy to walk you through the process of forming your LLC, and once hired we’ll do what we can to safeguard your privacy by listing our name and address on your Articles of Organization, keeping your personal information off public record.

Our LLC formation package includes 1 day LLC processing, instant registered agent service, and free templates for your business’s operating agreement, membership certificates, initial resolutions, and more—all for just $149 plus state fees!