Last Updated: July 30, 2025 by TRUiC Team


Vermont Business License: Who Needs One & How to Apply (2025)

As of 2025, Vermont does not impose a general business license requirement; instead, business licensing is regulated on a local, state, and federal level. 

This means that whether you need a Vermont business license or not will depend on your business’s location and industry. 

This article will cover:

Woman holding open sign after getting her business license

What Is a Business License in Vermont?

A business license is a permit issued by a local, state, or federal body in order to allow businesses to perform a specific business activity and/or operate legitimately. 

So, if there isn’t a “general business license” in Vermont, what exactly is there?

Well, Vermont — like the vast majority of states — imposes different requirements depending on where you’re located and what you actually do. 

For example:

It all depends on what you do, and where you’re located. There is no “business license” that you will need to obtain just to operate no matter what, and while most businesses will need some form of business license to operate, this will not be the case for everyone. 

Do I Need a Vermont Business License? 

Well, the answer to this will ultimately depend on your business’s situation. You can have a look at our table below in order to get a general idea:

Vermont Business Licensing at a Glance

JurisdictionBusiness LicensesWho Needs It & Where to Apply
Local
    Health Permits, Zoning Permits, Occupancy Certificates, Industry-Specific Permits, etc.
Varies by location.

Contact your city clerk to determine local requirements.
StateSales Tax LicenseBusinesses selling taxable goods or services. 

Apply via the Vermont Department of Taxes.
Professional LicensesRequired for professions (e.g., insurance agents, contractors, barbers, etc).

Apply via the Vermont Secretary of State Office of Professional Regulation.
Industry-Specific State LicensesBusinesses in regulated industries (e.g., food, liquor, environmental, vehicle dealers). 

Apply through the relevant Vermont agency.
FederalIndustry-Specific LicensesBusinesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife.

Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS)

*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney.

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Figuring out your licensing needs can be complicated and time-consuming, taking focus away from running and growing your business. We recommend using an affordable service instead for just $150.

How to Get a Business License in Vermont

The process of obtaining a business license in Vermont will depend on the permit in question, but generally involves completing the following steps:

1. Form a Business Structure & Obtain an EIN

We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line. 

This also gives other benefits depending on the business model, such as:

  • Personal liability protection
  • Improved legitimacy 
  • Larger access to loans and corporate finance
How to Start an LLC Tip Icon

Recommended Business Structure

We generally recommend almost all small business owners to form an LLC. This offers personal liability protection, is extremely affordable, and offers a ton of flexibility when it comes to how it can be taxed and managed. 

You can use a formation service for just $29 (excluding the $155 state fee).

Note: You should obtain an Employer Identification Number (EIN) after forming your LLC. You can have a look at our How to Get an EIN overview for more information. 

2. Apply for the Right Business License in Vermont

This step will depend on the business license in question.

Vermont Local Business Licenses

Many Vermont cities and counties require local business licenses or permits to be obtained. This can be in addition to the common state-wide licenses talked about above.

Here are some common local permits you may need:

  • General Business License: Some Vermont municipalities require all businesses to obtain a general business license. This is a basic permit that allows you to operate within city limits (e.g., if your business is based in Brattleboro, you would need to obtain a business license from the Town of Brattleboro Assessor’s Office).
  • Health Permits: Required for restaurants, food trucks, cafes, and any business handling or serving food to the public. These permits ensure your establishment meets local health and safety standards (e.g., if your business is based in Burlington, you would apply through the Burlington Department of Permitting & Inspections).
  • Zoning Permits: Required to ensure your business location complies with local zoning ordinances and is properly zoned for your type of business activity. This includes permits for changes of use, new construction, or significant alterations (e.g., if your business is based in Montpelier, you would apply at the Montpelier Planning Department).
  • Sign Permits: Required before installing any exterior business signage, including wall signs, freestanding signs, or awnings with text. These permits ensure signs meet local size, placement, and safety requirements (e.g., if your business is based in Stowe, you would apply through the Town of Stowe Planning & Zoning Office).
  • Certificate of Occupancy: Required for most businesses before they can legally occupy a building or space. This certificate verifies that the structure meets all building codes and is safe for its intended use (e.g., if your business is based in Burlington, you would obtain this through the Burlington Department of Permitting & Inspections).
  • Home-Based Business Permits: Required if you’re operating a business from your residence. These permits ensure home businesses don’t negatively impact residential neighborhoods through excessive traffic, noise, or commercial activity (e.g., if your business is based in Brattleboro, you would apply for a Home Business Permit through the Town of Brattleboro).

You can have a look at the Vermont Secretary of State’s Town Clerks Directory in order to obtain your local county or city’s official contact information.

Vermont State Business Licenses

Below we’ve included the most common business licenses that are required on a state level. 

Vermont Sales Tax License

You can register for a Vermont sales tax license online or by mail. If you have not yet registered your business in Vermont, you can also complete the sales tax registration at the same time as formation using the Secretary of State (SOS) website.

OPTION 1: Apply Online With MyVTax

Apply Online

– OR –

OPTION 2: Apply by Mail, by Fax, or in Person

Download Form

Fee: None

Mailing Address:
Vermont Department of Taxes
P.O. Box 547
Montpelier, VT 05601-0547

Keep in mind that you’ll need a NAICS code in order to apply. For more information on this, you can have a look at our Vermont Sales Tax guide.

Vermont Professional Licenses

If you’re interested in a professional license, you’ll need to head over to the relevant state commission, as this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:

  • Vermont SOS Office of Professional Regulation: Oversees licensing for over 50 professions including accountants, architects, engineers, land surveyors, tattoo artists, barbers, cosmetologists, nursing home administrators, opticians, private investigators, and many others.
  • Vermont Real Estate Brokers & Salespersons: Regulates real estate brokers, salespersons, and firms operating in Vermont.
  • Division of Fire Safety: Licenses electrical, plumbing, and other trade professionals including electricians (master, journeyman, specialist), plumbers (master, journeyman, specialist), gas technicians, oil burner technicians, and elevator mechanics.
  • Board of Medical Practice: Licenses physicians, physician assistants, podiatrists, and certifies anesthesiologist assistants and radiologist assistants.
  • Board of Bar Examiners: Oversees attorney licensing and bar admissions in Vermont.
  • Vermont Board of Nursing: Regulates registered nurses, licensed practical nurses, advanced practice registered nurses, and nursing assistants.

For more information on how to go about getting licensed, you can have a look at StateRequirement’s in-depth licensing guides. 

Industry-Specific State Licenses

Some Vermont businesses require additional licenses based on the particular industry they operate in. These licenses are issued by specific state agencies and must be obtained before the business can legally operate.

Here are some common examples of industry-specific state licenses in Vermont:

  • Motor Vehicle Dealer License: Required for businesses buying, selling, or exchanging 12 or more vehicles annually. Regulated by the Vermont Department of Motor Vehicles. Initial license fee is $503 plus a $35,000 surety bond requirement.
  • Child Care License: Required for facilities caring for children outside a private home, or home-based care exceeding 6 children under age 6. Regulated by the Vermont Department for Children and Families.
  • Food Processor License: Required for businesses manufacturing food products like sauces, jams, baked goods, or maple products for retail/wholesale. Regulated by the Vermont Department of Health.
  • Liquor License: Required for businesses that manufacture, distribute, or sell alcoholic beverages. Regulated by the Vermont Department of Liquor & Lottery. License types include First Class (restaurants), Second Class (retail stores), Third Class (hotels/inns), and manufacturer licenses.
  • Lodging License: Required for hotels, motels, bed & breakfasts, and short-term rentals offering three or more guest rooms. Regulated by the Vermont Department of Health.

Note: This is not a complete list. Licensing requirements vary by industry and business model. For more, consult the relevant state agency.

Vermont Environmental Permits

If your business activities could negatively impact the environment, there’s a good chance you’ll need some sort of license or permit from the Vermont Department of Environmental Conservation (DEC).

Examples of industries regulated here include:

  • Air Quality Permits: Required for facilities with emissions that could impact air quality, including manufacturing plants, power generation facilities, and operations using volatile organic compounds. Includes both construction and operating permits for major and minor sources.
  • Stormwater Discharge Permits: Required for construction activities disturbing one acre or more of land, and for facilities with impervious surfaces that discharge stormwater. Covered under General Permit 3-9050 for operational stormwater and Construction General Permit for construction sites.
  • Wastewater Discharge Permits: Required for any facility discharging wastewater or process water into state waters. Includes industrial facilities, wastewater treatment plants, and certain remediation activities.
  • Underground Storage Tank Registration: Required for facilities with underground tanks storing petroleum products or hazardous substances over 1,100 gallons. Includes gas stations, heating oil tanks at commercial facilities, and industrial storage.
  • Hazardous Waste Generator ID: Required for businesses that generate, store, or dispose of hazardous waste. Different requirements apply based on generator category (very small quantity, small quantity, or large quantity generator).
  • Wetlands Permits: Required for any activity that impacts Vermont wetlands, including filling, dredging, or altering wetland areas. Applies to construction projects, land development, and infrastructure improvements.
  • Septic System/Wastewater Permits: Required for installation or modification of on-site wastewater treatment systems. Includes new construction, system replacements, and expansions of existing systems.
  • Solid Waste Facility Certification: Required for facilities that manage, process, or dispose of solid waste, including transfer stations, composting facilities, and recycling operations.
  • Water Supply Permits: Required for new or modified public water systems, including wells serving commercial facilities, subdivisions, or any system serving 25+ people or 15+ connections.
  • Lake Encroachment Permits: Required for any work below the mean water level of public waters, including docks, marinas, shoreline stabilization, and dredging projects.

Recommended Solution

Business licensing can be complicated and time-consuming, taking focus away from running and growing your business. We recommend using an affordable legal service to handle your licensing needs instead.

Federal Business Licenses for Vermont LLCs

If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate. 

A full list of industries regulated at a federal level can be found below:

Vermont Business License Renewal

Depending on your business license, you may need to renew it periodically — usually within one or two years. 

This is not required for a sales tax license, but is required for practically all professional licenses. 

Several of the local permits will also need to be renewed annually; this includes health department permits, signage permits, and fire department permits, which generally all need to be renewed annually.

Having said that, this will depend on both your location and the license in question.

Vermont Business License FAQs

A business license is a formal authorization issued by a local, county, or state government that allows a person or entity to legally operate a business within a specific jurisdiction. Most businesses need at least one license or permit to operate legally, but the exact requirements vary by location and business type.

Vermont doesn’t require a general business license that applies to all businesses. However, depending on your location and industry, you’ll likely need a number of specific permits or licenses at the local, state, or federal level.

This depends on your business type and location. Common requirements include: a Sales Tax Account (free to obtain), local permits (health, zoning, occupancy), professional licenses (for regulated professions), and industry-specific licenses (liquor, childcare, environmental permits).

No, an EIN (Employer Identification Number) is not the same as a business license. An EIN is a federal tax ID issued by the IRS to identify your business for tax purposes, while a business license is a permit issued by a local, state, or federal agency that authorizes you to operate and conduct business legally in a specific jurisdiction.