How to Start an LLC in Vermont (2025 Guide)

Wondering how to start a limited liability company (LLC) in Vermont? We’ve got you covered.

To get started, you’ll need to pick a suitable business name, choose a registered agent, and file your Articles of Organization with the Vermont Secretary of State. The cost to form an LLC in Vermont is $155.

You can do this independently, consult with a business attorney for specialized legal guidance, or join the other 65% of our readers and hire a specialized Vermont LLC formation service (recommended).

Northwest ($29 + State Fees)

LegalZoom ($249 + State Fees)

Cost to Start an LLC in Vermont

How to Form an LLC in Vermont in 5 Steps

In order to form your LLC in Vermont, there are certain steps you’ll need to complete:

Name Your Vermont LLC
Choose a Vermont Registered Agent
File the Vermont LLC Articles of Organization
Create an Operating Agreement
Get an EIN

Step 1: Name Your Vermont LLC

Before you get started, you will need to pick a suitable name for your Vermont LLC.

This will need to comply with all applicable naming requirements under Vermont law and be both succinct and memorable, as this will make it easily searchable by your potential clients.

1. Vermont LLC 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
Your name cannot include indecent, discriminatory, or obscene language (e.g. terms that are sexually explicit, offensive, or insulting to individuals or groups).

We recommend checking out the Business Naming Rules guidelines for a complete list of naming rules in this state.

2. Vermont Name Availability Search

To check whether your desired name has already been taken by another business entity in Vermont, you can perform a business entity name search on the Vermont Secretary of State website.

If you’re not going to start your LLC right away, it might be a good idea to consider reserving your name for up to 120 days ($20 processing fee).

For more information, you can have a look at our Vermont LLC Name Search guide.

3. Finding the Right Domain

You should check online to see if your business name is available as a web domain. Even if you don’t plan to make a business website right away, this is an extremely important step as it will prevent others from acquiring it, potentially saving you both time and money in the long term.

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

FAQ: Naming a Vermont LLC

LLC is short for “limited liability company.” It is a simple business structure that offers more flexibility than a traditional corporation while still providing legal protection for your personal assets. Read our What is a Limited Liability Company guide for more information.

Or, watch our two-minute video: What is an 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.).
A professional limited liability company (PLLC) must 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.

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.

Step 2: Choose a Registered Agent in Vermont

After you find the right name for your LLC, you will need to nominate a Vermont registered agent. This is a necessary step in your Articles of Organization (i.e., the document used to file and register your LLC with the Secretary of State).

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. You can think of your registered agent as your business’s primary 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 transact business in the state of Vermont. You can choose to elect an individual within the company (e.g., yourself, etc.), use an attorney (not recommended due to the high cost), or go with a registered agent service.

Get Free Registered Agent Services

Form an LLC with Northwest Registered Agent to get one year of registered agent services free of charge.

FAQ: Nominating a Registered Agent

Yes. You can choose to act as your own registered agent, appoint a member of your LLC, work with a business attorney, or hire a professional registered agent service (recommended).

Read more about being your own registered agent.

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 service significantly outweigh the annual costs.

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

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. You can do this online, by mail, or in person.

Before filing, make sure you have completed your Articles of Organization correctly. You will need to have filled in the following sections:

Your LLC’s entity name
A description of your business
The initial designated office of your LLC
The name and address of your LLC’s registered agent
The names of your LLC’s officers or directors (if applicable)

File the Articles of Organization

OPTION 1: File Online With the Vermont Secretary of State

– OR –

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

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

State Filing Cost: $155, 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.

Note: If you’re expanding your existing business to the state of Vermont, you’ll need to register as a foreign limited liability company (LLC).

FAQ: Filing Vermont LLC Documents

According to the Vermont Secretary of State’s Business Services Division, online filings are usually processed in less than a day (at no extra cost), while filings submitted by mail typically take between 7 and 10 business days.

An LLC is referred to as a “domestic LLC” when it conducts business in the state where it was formed. A foreign limited liability company 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.

It costs $125 to file your LLC’s Articles of Organization with the Secretary of State, though the total cost of starting your Vermont LLC may vary depending on whether you hire a professional service.

To learn more, read our guide on the cost to form a Vermont 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 LLC members are on the same page and reduces the risk of future conflict.

You can use the free tool in our Business Center to create a custom operating agreement in minutes — or download our free templates:

FAQ: Creating a Vermont LLC Operating Agreement

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

Step 5: Get an EIN for Your Vermont LLC

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 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

– OR –

Option 2: Apply for an EIN by Mail or Fax

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

Fax: (855) 641-6935

Fee: Free

FAQ: Getting an EIN

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.

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.

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.

Best LLC Services in Vermont Compared

* Total costs include Vermont state filing fee on top of each service’s initial filing fee
Service	Total Cost*	Filing	Registered Agent	EIN	Operating Agreement
Northwest TOP PICK 25% TRUiC Discount	$234	$29	Free 1st Year $125/yr after	$50	Free
Tailor Brands 35% TRUiC Discount	$482	$0	$199/yr	$99	$29
ZenBusiness	$452	$0	$99 1st Year $199/yr after	$99	$99
LegalZoom	$582	$0	$249/yr	$79	$99

For a comprehensive comparison, read our Best LLC Service guide. We reviewed and ranked the top LLC formation services to help you determine the best fit for your new business.

Important Next Steps to Protect Your Vermont LLC

After you’ve formed your LLC, you’ll need to complete several key steps in order to:

Separate your personal and business assets
Stay compliant with state and federal laws

1. Get a Business Bank Account and Credit Card

Getting a dedicated business bank account is an essential part of operating legitimately because it keeps your personal and business assets separate and, therefore, helps shield your personal limited liability.

Skipping this step can often lead to:

Courts determining that you haven’t been treating your LLC as a separate entity
Your “corporate veil” being pierced, meaning you’ll no longer benefit from limited liability in law.

Recommended: Check out our Best Business Bank Accounts for LLCs in 2025 review.

You also can choose to acquire a corporate credit card if you’re interested in building your credit and potentially raising capital down the line.

2. Check If You Need a Vermont Business License

Vermont doesn’t require LLCs to hold a “general” business license in order to operate.

However, some business licensing is regulated at a local, state, and federal level. That means your licensing needs will ultimately depend on your exact location and industry.

Local Licenses: Check with your city or county clerk’s office to identify any local licensing requirements, such as zoning permits or health department approvals, that your LLC will need.
State-Level Licenses: Visit Vermont’s Licenses and Permits page to find out if your LLC needs any professional, trade, or environmental licenses at the state level.
Federal Licenses: While most Vermont LLCs won’t be subject to federal regulation, those involved in heavily regulated industries (e.g., agriculture, alcohol, and firearms) will. Visit the U.S. Small Business Administration’s website for the relevant federal agency you’ll need to contact.

A few questions to ask yourself when deciding whether or not you need a license include:

Will you sell, lease, or rent taxable goods or services? If so, you’ll need to register for a Business Tax Account (called a sales tax permit in other states) through the Vermont Department of Taxes. You can find more information on this in our Vermont Sales Tax guide.
Will you work as a licensed professional? If your LLC will focus on regulated fields, such as medicine, law, insurance, or real estate, you’ll need to ensure you or a member of your LLC is appropriately licensed.
Will your LLC’s activities negatively impact the environment? If so, you might need to obtain a business license or permit from the Vermont Department of Environmental Conservation.

For more information, see our Vermont Business License guide. If you’d rather have a service handle this step for you, we recommend checking out LegalZoom’s Business License service.

3. Understand Your Vermont LLC Tax Obligations

Vermont LLCs aren’t all taxed in the same way. Most LLCs are taxed as pass-through entities by default, meaning they’re largely taxed similarly to sole proprietors — the business gets paid, the profits pass to you as the owner, and you get taxed. There’s no “corporate” tax involved.

Federal Tax Implications

You’ll need to submit personal income tax returns using either Form 1040 (for single member LLCs) or Form 1065 (for multi-member LLCs). If you have employees, you’ll also be subject to federal income tax withholding.

State Tax Implications

Your LLC may need to pay Vermont’s business entity income tax, which starts at $250 and applies to most active LLCs — even if there’s no income. In addition, you may owe state income tax on your share of the profits if your LLC is taxed as a pass-through entity. If your LLC is instead taxed as a C corporation, you’ll owe corporate income tax (6% to 8.5%).

You also must register for employer withholding through the Vermont Department of Taxes if your LLC has — or plans to hire — employees.

Local Tax Implications

Vermont municipalities can impose a 1% local option tax on sales, meals, rooms, and alcoholic beverages, which your LLC may need to collect and remit. If your LLC will own real estate or business equipment, you also may need to pay annual property taxes.

For more information on the Vermont-specific LLC tax obligations that may apply to you, we recommend having a look at our in-depth Vermont LLC Taxes guide. Alternatively, you can schedule a free online consultation with 1800-Accountant for all your tax-related questions.

4. Get Business Insurance for Your LLC in Vermont

Even though an LLC offers limited liability, you’ll still likely need to purchase some form of business insurance to protect your LLC’s assets.

This is because an LLC’s default limited liability protects your personal assets, not the business’s. Some of the most common types of business insurance include:

General Liability Insurance: This is a broad insurance policy that protects your business from lawsuits. Most small businesses end up getting general liability insurance.
Professional Liability Insurance: This is a business insurance policy for professional service providers (consultants, accountants, etc.) that covers your LLC against claims of malpractice and other business errors.
Workers’ Compensation Insurance: This insurance covers medical costs and lost wages if an employee is injured on the job. It’s legally required for all businesses with one or more employees in Vermont.

What This Means:

Without insurance: If a fire starts in your food trailer due to a faulty propane connection and causes $82,000 in property damage and injury claims, your LLC’s trailer, cooking equipment, and the $12,000 in your catering deposits could be at risk — though your personal savings and home would still be protected.

With insurance: Your general liability policy could cover the full $82,000 claim, meaning both your personal assets and business property would remain protected.

That’s why many small business owners turn to providers like Next Insurance for affordable, tailored coverage. Get a free quote today.

Want to learn exactly what coverage your business may need? Read our full Vermont Business Insurance guide.

5. Learn How to Properly Sign Your LLC’s Legal Documents

Improperly signing a document as yourself and not as a representative of the business can leave you open to personal liability.

When signing legal documents on behalf of your company, you we recommend following this formula to avoid any problems:

Formal name of your business
Your signature
Your name
Your position in the business as its authorized representative

It’s important to be consistent and sign all official documents using this format. This will help protect your personal assets by clearly showing that the agreement is with the LLC, not you as an individual.

6. Submit an Annual Report for Your Vermont LLC

All LLCs based in Vermont must renew their business registration each year by submitting an annual report online. The report is intended to keep the state up-to-date with important information regarding your LLC, including its:

Legal name.
Business ID (which can be found on the Vermont Business Database).
Principal and mailing address.
Business email address.

This report is due within three months of the end of the previous fiscal year, alongside a filing fee of $45. Take care not to miss the deadline, as failing to do so incurs a $25 reinstatement fee or even a revocation of your LLC’s registration.

To stay on top of this deadline and other important compliance tasks, we recommend hiring a professional registered agent service — they can help ensure you never miss a filing.

Vermont Business Resources

Business Center

Check out our business center for regular updates, vetted reviews, free downloadable documents, and video guides that aim to help you start and grow your business.

Local Resources

Have a look at Vermont’s local business resources:

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