How Much Does It Cost to Start an LLC in Vermont?

Vermont LLC Online Filing Fee: $125

The main cost to start an LLC in Vermont is the $125 fee to file your LLC's Articles of Organization online with the Vermont Secretary of State.

For a look at LLC costs in every state, read our other Cost to Start an LLC and How to Form an LLC guides.

Cost to Form a Foreign LLC in Vermont

If you already have an LLC that is registered in another state and you’d like to expand your business into Vermont, you’ll need to register your LLC as a foreign LLC in Vermont.

The cost for registering a Vermont foreign LLC is $125. You can register a foreign LLC through the Secretary of State website.

Optional LLC Formation Costs

There are optional fees associated with LLC formation:

LLC Name Reservation

Reserve your name for up to 120 days prior to LLC formation by filing an LLC Name Reservation online with the Secretary of State and paying the $20 filing fee.

Assumed Business Name

File an Assumed Business Name Registration online and pay the $50 filing fee to create a name other than your legal LLC business name.

Seven Basic Steps to Start an LLC in Vermont

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

Step 1: Name Your Vermont LLC

When you name your Vermont LLC, you’ll need to choose a name that:

1. Is available for use in the state of Vermont
2. Meets Vermont naming requirements
3. Is available as a web domain

Recommended: Visit our Start an LLC in Vermont guide for detailed naming rules and instructions for registering a business name in Vermont.

Not sure what to name your business? Check out our How to Name a Business guide and free LLC Name Generator.

We recommend that you check online 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.

Step 2: Choose a Registered Agent

All LLCs in Vermont must appoint a registered agent. A registered agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for accepting service of process in the event your business is sued.

Your Vermont registered agent must:

• Be at least 18 years or older
• Have a physical address in Vermont
• Be available during normal business hours to accept service of process

Step 3: File the Articles of Organization

Vermont Form LLC-1(D) - Articles of Organization is a document that is filed with the Vermont Secretary of State to form an LLC. The fee for filing the Articles of Organization is $125 online.

For detailed instructions for completing the Articles of Organization, visit our How to File the Vermont Articles of Organization guide.

Step 4: Create an Operating Agreement

An operating agreement isn't required for Vermont LLCs, 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.

Step 5: Get an EIN

What is an EIN? An EIN or Employer Identification Number is a nine-digit number issued by the Internal Revenue System (IRS) to identify a business for tax reporting purposes. An EIN is essentially a Social Security number (SSN) for your company.

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

• Opening a business bank account
• Hiring employees

Step 6: File the Annual Report

Vermont requires LLCs to file an annual report each year. This form can be submitted online along with the $35 fee within 2.5 months of the end of your LLC's fiscal year.

Vermont 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.

Step 7: Keep Your Company Compliant

For an LLC in Vermont, it is essential to abide by various federal, state, and local government rules and regulations. 

These involve obtaining required business licenses and permits, complying with tax obligations, and adhering to legal guidelines while hiring employees. 

Here is a summary:

• Procure necessary business licenses and permits. These depend on your business type and may include health permits, building permits, and signage permits. Note that licensing requirements will also vary by location.
• Stay up-to-date with your Vermont LLC taxes. If your business sells physical products, register for a seller's permit online through the Vermont Department of Taxes to collect sales tax. If you employ staff, register for Unemployment Insurance Tax and sign up for Employee Withholding Tax.
• Federal tax filings need to be made annually to the IRS. Multi-member LLCs typically use Form 1065 (Partnership Return), while single-member LLCs commonly use Form 1040 Schedule C. The method by which you pay yourself as an owner also influences your federal taxes.
• Vermont LLCs are required to file a business entity income tax with the Vermont Department of Taxes. This can be done online or via mail. It's due on the 15th day of the third month following the close of the tax year, with a penalty of 5% per month on unpaid tax.
• If hiring employees, ensure you:
• Verify their eligibility to work in the US.
• Report them as "new hires" to the state
• Provide workers' compensation insurance
• Withhold employee taxes
• Display workplace compliance posters at your workspace