How to Start an LLC in Vermont

Last Updated: by TRUiC Team

To form a Vermont LLC, you'll need to file your Articles of Organization with the Vermont Secretary of State, which costs $125. You can apply online, in person, or by mail.

Follow our step-by-step How to Start an LLC in Vermont guide to get started today.

  1. Name Your Vermont LLC
  2. Choose a Registered Agent in Vermont
  3. File the Vermont LLC Articles of Organization
  4. Create an Operating Agreement
  5. Get an EIN
  6. File the Annual Report
  7. Keep Your Company Compliant

Or Simply use a professional service:

four point eight out of five Northwest ($29 + State Fees)

three point nine out of five LegalZoom ($249 + State Fees)

Learn more about LLCs and their benefits in our What is an LLC guide. To form an LLC in any state, visit our How to Set Up an LLC guide.

Vermont State map icon with filing cost

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Step 1: Name Your Vermont LLC

Choosing a company name is the first and most important step in forming your Vermont LLC. Be sure to choose a name that complies with Vermont naming requirements and is easily searchable by potential business clients.

1. Follow the naming guidelines:

  • Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
  • Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
  • Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.

For a complete list of naming rules in Vermont, you can read the Business Naming Rules guidelines.

2. Is the name available in Vermont? Make sure the name you want isn't already taken by doing a Vermont LLC search on the Vermont Secretary of State website.

To learn more about searching for a Vermont LLC name, read our full guide.

3. Is the URL available? We recommend that you check to see if your business name is available as a web domain. Even if you don't plan to create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Find a Domain Now

Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.

We reviewed and ranked the best LLC services. Find out which is best for you.

Step 2: Choose a Registered Agent in Vermont

You are required to appoint a Vermont registered agent for your LLC.

What is a registered agent? A registered agent is an individual or business entity responsible for receiving important tax forms, legal documents, notice of lawsuits, and official government correspondence on behalf of your business. Think of your registered agent as your business's point of contact with the state.

Who can be a registered agent? A registered agent must be a full-time resident of Vermont or a corporation, such as a registered agent service, authorized to conduct business in the state of Vermont. You may elect an individual within the company including yourself.

Recommended: Check out these best registered agent services.

Step 3: File the Vermont LLC Articles of Organization

To register your Vermont LLC, you'll need to file Form LLC-1(D): Articles of Organization with the Vermont Secretary of State. This can be done online, by mail, or in person.

Now is a good time to determine whether your LLC will be member-managed vs. manager-managed.

File the Articles of Organization

OPTION 1: File Online With the Vermont Secretary of State

File Online

- OR -

OPTION 2: File Form LLC-1(D) by Mail or In Person

Request Form

After requesting the Articles of Organization, the Secretary of State will email you a PDF form.

State Filing Cost: $125, payable to the VT SOS. (Nonrefundable)

Filing Address:
Vermont Secretary of State
Corporations Division
128 State St.
Montpelier, VT 05633

For help with completing the form, visit our Vermont Articles of Organization guide.

Vermont LLC Formation Document

If you’re expanding your existing LLC to the state of Vermont, you will need to form a foreign LLC.

Step 4: Create a Vermont LLC Operating Agreement

An operating agreement is not required for an LLC in Vermont, but it's a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Vermont LLC operating agreement guide.

Recommended: Download a template or create a free operating agreement using our tool.

Step 5: Get a Vermont LLC EIN

You can get an Employer Identification Number (EIN) from the IRS for free. It is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a Social Security number (SSN) for the company.

Why do I need an EIN? An EIN number is required for the following:

  • To open a business bank account for the company
  • For federal and state tax purposes
  • To hire employees for the company

Where do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.

FOR INTERNATIONAL APPLICANTS: You do not need an SSN to get an EIN. Learn more here.

Get an EIN

Option 1: Request an EIN from the IRS

Apply Online

- OR -

Option 2: Apply for an EIN by Mail or Fax

Download Form

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

Step 6: File the Annual Report

Vermont requires LLCs to file an annual report online within 2.5 months of the end of their fiscal year. The report fee is $35.

The Secretary of State charges a $25 reinstatement fee for reports submitted after the filing deadline. In addition, Vermont can revoke an LLC’s registration for failure to file an annual report.

Steps After LLC Formation

Read all the steps you’ll need to maintain your LLC’s personal liability protection, open a business bank account, get business insurance, and stay up to date with state reporting requirements.

Visit our After Forming an LLC guide to learn more.

Step 7: Keep Your Company Compliant

Vermont Business Licenses & Permits

To operate your LLC, you must comply with federal, state, and local government regulations. Fees and requirements for licenses and permits will vary depending on what sort of business license you need.

Find out how to get the necessary business licenses and permits for your LLC with our Vermont Business License guide.

Recommended: Consider having a professional service research your business’s licensing requirements. Read our best business license services review.

Vermont LLC Tax Filing Requirements

In order to keep your business in good standing, it's important to stay up to date on your Vermont LLC taxes.

Depending on the nature of your business, you may be required to register for one or more forms of tax.

Sales Tax

If you are selling a physical product, you’ll typically need to register for a seller's permit online through the Vermont Department of Taxes website.

Vermont's sales and use tax rate is 6%. Local jurisdictions can choose to add an additional 1% sales tax.

Employer Taxes

If you have employees in Vermont, you will need to register for Unemployment Insurance Tax through the Vermont Department of Labor. You will also need to sign up for Employee Withholding Tax online through the Vermont Department of Taxes.

Business Entity Income Tax

Vermont requires LLCs to file a business entity income tax return with the Vermont Department of Taxes. The typical minimum tax is $250, but ultimately varies.

Individual Income Tax

Vermont's individual income tax ranges from 3.35% to 8.75%. Your bracket will depend on your LLC's income. 

State tax returns are due each year by April 18. To calculate your tax or determine your tax bracket, visit the Vermont Department of Taxes website

You’ll also need to report your federal income tax using either Form 1065 (multi-member LLC) or Form 1040 Schedule C (single-member LLC).

Hiring Employees

If you plan to hire employees for your business, stay compliant with the law by following these steps:

Find more information at the Vermont Department of Labor

Recommended: Check out our Hiring for Your Small Business Guide for resources like sample job descriptions, payroll service reviews, and more.

Common Questions About Vermont LLCs

What is an LLC?

LLC is short for “limited liability company.” It is a simple business structure that offers more flexibility than a traditional corporation while providing many of the same benefits. Read our What is a Limited Liability Company guide for more information.

Or, watch our two-minute video: What is an LLC?

How do I name my Vermont LLC?

You must follow the Vermont LLC naming guidelines when choosing a name for your LLC:

  • Include the phrase "limited liability company" or one of its abbreviations (LLC or L.L.C.).
  • Do not use words that could confuse your business with a government agency (FBI, State Department, CIA, etc.).
  • Receive the proper licensing when using the words such as lawyer or doctor.

If you are having trouble coming up with a name for your LLC, use our LLC Name Generator. That will not only find a unique name for your business but an available URL to match.

After you get your business name, get a unique logo using our Free Logo Generator.

Do I need to get a DBA or assumed business name for my business?

Most LLCs do not need a DBA, known in Vermont as an assumed business name. The name of the LLC can serve as your company’s brand name and you can accept checks and other payments under that name as well. However, you may wish to register a DBA if you would like to conduct business under another name.

To learn more about DBAs in your state, read our How to File a DBA guide.

Can I be my own registered agent?

Yes. You or anyone else in your company can serve as the registered agent for your LLC.

Read more about being your own registered agent.

Is a registered agent service worth it?

Using a professional registered agent service is an affordable way to manage government filings for your LLC. For most businesses, the advantages of using a professional registered agent service significantly outweigh the annual costs.

For more information, read our article on Vermont registered agents.

What is the processing time to form my Vermont LLC?

The state processes formation documents in one to two business days online and 7 to 10 business days by mail. 

What is the difference between a domestic Vermont LLC and foreign LLC?

An LLC is referred to as a "domestic LLC" when it conducts business in the state where it was formed. A foreign LLC must be formed when an existing LLC wishes to expand its business to another state.

Read our What Is a Foreign LLC article to learn more.

How much does it cost to start a Vermont LLC?

The cost to start a Vermont LLC is $125.

To learn more, read our guide on the cost to form a Vermont LLC.

Do I need to file my operating agreement with the state?

No. The operating agreement is an internal document that you should keep on file for future reference. However, many states do legally require LLCs to have an operating agreement in place.

How do I get an EIN if I don’t have a Social Security number?

A Social Security number is not required to get an EIN. You can simply fill out IRS Form SS-4 and leave section 7b blank. Then call the IRS at (267) 941-1099 to complete your application. Learn more about applying as an international applicant.

What tax structure should I choose for my Vermont LLC?

When you get an EIN, you will be informed of the different tax classification options that are available. Most LLCs elect the default tax status.

However, some LLCs can reduce their federal tax obligation by choosing the S corporation (S corp) status. To learn more, read our LLC vs. S Corp guide.

Do I need an EIN for my LLC?

All LLCs with employees, or any LLC with more than one member, must have an EIN. This is required by the IRS.

Learn why we recommend always getting an EIN and how to get one for free in our Do I Need an EIN for an LLC guide.

What is the Vermont Business Entity Income Tax?

The Business Entity Income Tax is a state tax on S corporations, LLCs, and general partnerships.

What is the fee for the Business Entity Income Tax?

For LLCs owned by only Vermont residents, the minimum tax is $250. Out-of-state owners and other owners that file composite returns can follow the instructions listed on the Vermont Department of Taxes website.

What is the minimum wage in Vermont?

The minimum wage in Vermont is $13.18 per hour.

How often do I need to pay employees?

Vermont requires employers to pay employees weekly, but they may also institute biweekly or semi-monthly payment schedules with written permission.

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