Start a Business in Vermont
Starting a business in Vermont is easy. All you need to do is file a few forms with the Vermont Secretary of State and start running your business. Below, we show you how to get started and walk you through some of your options.
One option is, of course, to stop reading and just hire us to start your business for you. At Northwest, we form businesses and provide registered agent service throughout the US. That’s our business, and obviously we recommend starting your business in a certain way. We call it “Starting a Business the Right Way."
Starting your business the right way means hiring a registered agent to form your LLC or corporation so you can protect your privacy and receive the care your business needs to stay active. If you hire us to start your Vermont business, we’ll be your registered agent, provide Privacy by Default®, a business address, mail forwarding and local Corporate Guide® service for life.
How to Start a Business in Vermont
You file articles of incorporation for a Vermont corporation or articles of organization for a Vermont LLC with the VT Corporations Commission.
You obtain a federal tax ID number (FEIN or EIN) with the IRS after you have confirmation and filed articles from the State of Vermont showing your approved Vermont business.
Opening a business banking account under your new Vermont business name should be easy with these two items.
If you’re going to have employees or need to withhold sales tax, you will probably need to register with the VT Department of Taxes. We provide all these links in your online account.
If your business trade requires a license, you’ll have to apply for a license with the Vermont licensing board. (Most businesses don’t.) But if you do, these quick links and contact details are in your online account. Some local cities or counties have a general license, but most don’t. You obtain a local trade license if the city or county you’re going to be working in requires it.
If you’re going to have an office or shop you might need an approval from the city zoning for your type of business in that location.
If you get overwhelmed, just get your business pulling in money and worry about regulations later.
Are You A Do-It-Yourselfer? You Can Save Some Money:
If you want to start a business in Vermont yourself, you can just hire us as your Vermont registered agent, and you’ll instantly have the Vermont LLC or corporation forms to file along with filing instructions on the quickest, cheapest, and most efficient way to incorporate a Vermont corporation or form a Vermont LLC. You’ll get the ongoing support of our online tools, reminders and the support of a professional Vermont statutory agent service.START YOUR VERMONT BUSINESS TODAY
Vermont LLC vs Corporation
LLCs are popular for small business owners. With fewer annual requirements and flexible management options, LLCs are easier to maintain. Corporations are suited for large or fast-growing companies and have the ability to offer stocks —which, in turn, can attract wealthy investors. Plus, corporations have an established power and management structure.
But, what about Vermont? Any pros and cons of starting a Vermont LLC vs a Vermont corporation?
In terms of filing fees, Vermont LLCs have a slight advantage over Vermont corporations.” The Articles of Incorporation or Organization will cost $125 to file, and both entities are required to file an annual report each year with the Vermont Secretary of State. However, LLCs will only pay $35 compared to $45 for corporations.
During tax season, both entities could get hit fairly hard. Traditional Vermont corporations will be subject to a corporate income tax, which is based on your gross receipts and carries a $300 minimum fee. In addition, businesses taxed as S corporations and partnerships that do business within the state must pay an annual Business Entity Income Tax (minimum $250). Personal income rates range between 3.35% and 8.75%. Definitely, something to consider when starting a business in Vermont.
If you want a corporation, you file Vermont Articles of Incorporation:
To form a Vermont corporation, you must file articles of incorporation. The Vermont articles of incorporation cost $125 with the Vermont SOS Corporations Division. We custom draft your Vermont articles of incorporation when you hire Northwest to start your Vermont business.
The basic requirements of Vermont corporations are:
- Name needs corporate ending such as Inc, corporation, or incorporated
- A corporate purpose
- The number of shares you would like to authorize
- The classes of shares
- A principal address
- Your corporation’s fiscal year end
- The names and addresses of the Vermont corporation directors
- The effective date of incorporation
- The name, address, and signature of the Vermont incorporator
- The Vermont corporations registered agent and office
Vermont requires original signatures on filings. The stamped form will be mailed to the address on the envelope you should include when filing.
Start Your Vermont Business!GET STARTED
If you want a LLC, you file Vermont Articles of Organization:
The basic requirements of Vermont LLC filings are:
- The business name must have a limited liability company ending or variation of it such as LLC, L.L.C.
- The Vermont business name must be different than already registered Vermont businesses.
- The duration of the Vermont LLC, (usually perpetual.)
- Vermont limited liability companies must state a purpose.
- The Vermont registered agent and the physical address.
- The names and addresses of the initial member(s), and organizer, if any.
- If the VT limited liability company is to be managed by one or more managers, you must list the names and addresses of the VT LLC managers.
- Someone must sign as the VT LLC organizer.
- Name, address and phone number of the person that prepared the form
Vermont does require original signatures on filings. If you include two copies of the articles and a self addressed stamped envelope when filing, the Vermont SOS will send one copy back to you.