How to Start an LLC in Vermont

The first step you’ll need to take is choosing a name for your LLC. Vermont’s rules for naming your LLC are listed in 11 V.S.A. § 4005. Here’s the gist. Your LLC’s name must:

• Include an indicator such as “limited liability company,” “L.L.C.,” or “LLC.”
• Not include words or abbreviations like “corp” or “incorporated” or “limited partnership”—anything suggesting your LLC is a different type of entity.
• Be unique among businesses in Vermont.

Already have a business name? Check to see if it’s available.

Next, you’ll need to choose a Vermont registered agent—an individual or business that accepts legal and state documents on behalf of your LLC. Vermont requires all LLCs to have a registered agent. In addition, you’ll need to have your registered agent’s name and address before filing your Articles of Organization.

Learn why the pros use a registered agent service.

You’ll need to file Articles of Organization with the Secretary of State, Corporations Division, and pay the $125 filing fee to form your LLC. You can submit this form online, by mail, or in person. If you file a paper form, you must also include a self-addressed envelope so the state can send you your entity’s approval notice. The state will process online filings within one day of receipt. Mail and in-person submissions will be processed within 7-10 days of being received.

Note: All of the information on this form will become part of the public record.

To complete the form, you’ll need to provide the following information:

• Company name. Include an indicator like “LLC.”
• LLC type. Check the box to choose your LLC type—professional LLC, L3C, blockchain-based LLC, or just a traditional LLC. Tip: most people select LLC.
• Fiscal year end. The month your fiscal year ends. For businesses operating on a normal calendar year, this is December.
• Business description. Briefly describe your business activity or provide a NAICS (North American Industry Classification System) code—a five digit number used to identify the type of services your business provides.
• Principal address. This must be a physical Vermont address, not a PO box.
• Mailing address. You may use a PO box.
• Business email. Include an email address for your LLC.
• Registered agent name. This is the person or business that accepts legal and state mail on behalf of your LLC.
• Registered agent business address. This must be a physical Vermont address—not a PO box.
• Registered agent mailing address. This can be a PO box.
• Registered agent email. Enter your registered agent’s email address.
• LLC management (optional): you may indicate whether your LLC will be manager-managed or member-managed. If you choose to indicate a specific management type in your Articles of Organization, then your operating agreement must align with that structure, and any change to the management structure would require an amendment to your LLC Articles. If you do not indicate the management structure here, your LLC will be presumed “member-managed”, but that presumption can be privately amended by your LLC’s operating agreement.
• Number of members. The number of members (owners) your LLC has at the time of filing.
• Member/manager information (optional). You may include each member’s name and address.
• Effective date (optional). You can delay the start of your LLC by up to 90 days or choose “Date of Receipt” for the earliest possible formation date.
• Organizer signature and address. This is the person who prepares and files your Articles of Organization.

An operating agreement is a legally binding document that outlines the rules and provisions all members of your LLC must follow. In addition, it explains how your LLC will handle major events such as potential mergers, votes, conversions, and internal disputes.

Check out our attorney-drafted Vermont LLC Operating Agreement.

An EIN—or employer identification number—is like a social security number for your LLC. The IRS assigns the unique number for tax purposes. You can apply through the IRS website or use a paper form to obtain an EIN. There is no fee.

Learn How to get an EIN for your LLC.

Your business needs a bank account. Why? LLCs are considered separate, distinct entities from their owners. It’s this separation that gives you limited liability protection. If you mix personal and business finances, you risk losing that protection.

To open a bank account for your Vermont LLC, you’ll need to bring the following to the bank:

• Vermont LLC Articles of Organization (a copy is fine)
• the LLC’s operating agreement
• the LLC’s EIN
• an LLC Resolution to Open a Bank Account (if your LLC has more than one member).

If your LLC has more than one member, use our free LLC Resolution to Open a Bank Account.

You successfully formed your LLC and opened a bank account. Now, it’s time to fund it. Traditionally, members make initial contributions by writing a check or depositing cash into the company’s bank account to pay for their membership interest. Members can also make contributions via property or services. But, these types of contributions can trigger tax events. So, if you or another member decide to go that route, you may want to seek professional advice.

Your Vermont LLC must file an annual report with the Secretary of State, Corporations Division. This yearly report ensures the state has the most current information on your LLC. The Vermont annual report costs $35 to file.

Tired of paperwork? Let us file your annual report for you.