How to Start an LLC in Vermont
To start an LLC in Vermont you must file Articles of Organization with the Vermont Corporations Division, pay a $125 filing fee, and get an EIN from the IRS. The complete steps to forming a Vermont LLC are as follows:
- File Vermont LLC Articles of Organization
- Pay the Vermont Secretary of State Corporations Division $125
- Wait to receive your approved Articles
- Get a Federal EIN tax ID for the LLC
- Create a Vermont LLC Operating Agreement
- Take these documents to the bank and get a Vermont LLC bank account
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Vermont LLC Articles of Organization free download. When you're done filling out the form, submit it to your state.
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1 Day Vermont LLC For $350 Total
How to File Vermont LLC Articles of OrganizationTo form a Vermont LLC, you file the LLC Articles of Organization in the following steps:
What is the Cost of a Vermont LLC?
The Vermont Corporations Division charges a $125 fee to file Articles of Organization. Hire Northwest and your total, out-the-door cost is $350, including state fees.Get Started
How much does an LLC in Vermont cost each year?
There’s a $35 fee to file the mandatory Vermont LLC Annual Report.Get Started
What are the Vermont LLC taxes?
The Vermont personal net income tax rates are:
3.55%: $0 to $37,949
6.80%: $37,950 to $91,899
7.80%: $91,900 to $191,649
8.80%: $191,650 to $416,699
8.95%: $416,700 +
The state sales tax rate is 6%, and cities can add on up to 1% more, making the highest possible sales tax rate total 7%.
Vermont also has a Business Entity Tax, an income tax that affects most LLCs. If your LLC is taxed as a partnership or S corporation, you have to file. There’s a minimum tax of $250.
Property taxes in Vermont are pretty high—at an average of 1.78%, property taxes are the eighth highest in the country. High property taxes, however, doesn’t mean that investment properties are off the table, particularly with the high rate of seasonal tourism (thank you leaf peepers). Considering investing in Vermont real estate? Your accountant will likely suggest setting up an LLC. An LLC limits your liability and can help you maintain your privacy by keeping your name out of public records. At Northwest, we can form your Vermont LLC for just $350.
Is a Vermont LLC Registered Agent Required?
Your Vermont LLC is required to have a Vermont registered agent. You could always appoint yourself as your LLC’s registered agent, but this job is more involved than it appears and can seriously affect both your privacy and your freedom to run your business how you please. Registered agents have to list the address where they’ll be regularly available in their Articles of Organization. Your Articles and other business entity filings are public documents, so any information you list becomes a hot commodity for data sellers and solicitors. At best, you’ll end up with a mailbox full of junk. Registered agents also have to be available at the address listed during business hours. When you’re stuck in the office, it becomes a whole lot harder to attend meetings, run errands and just run your business in general.
A better option? Consider hiring a commercial registered agent like Northwest. When you sign up for our services, you can use our address and information throughout your Articles of Organization. No need to worry about junk mail or unwanted visitors on your doorstep. We’ll also accept, scan and send you any service of process the same day, so you can stay on top of your business, wherever you are.Get Started
Vermont LLC Versus Vermont Corporation:
The filing fee to form a Vermont LLC or corporation is the same: $125. Maintaining an LLC is slightly cheaper—the Annual Report is only $35 versus a corporation’s $45. Tax obligations are pretty similar as well. Unless you’re a single-member LLC taxed as a disregarded entity, you’ll have to pay some kind of entity-level tax on income: either the Business Entity Tax or a corporate income tax.
Because the Vermont LLC and corporation are so similar, that likely tips the hand in favor of the Vermont LLC. LLCs tend to be much easier to operate. There’s no need for directors, officers, or even managers—members can do all the decision-making themselves. Corporations have their own advantages as well and are common choices for larger businesses. Thinking about a corporation in the Green Mountain State? Here’s more information on Vermont incorporation.
Do I Need a Tax ID Number (EIN) for a Vermont LLC?
Most likely—on the federal level, you’re required to get an EIN if you plan to hire employees, be taxed as S corporation, or file certain federal excise returns. On the state and local levels, there’s also plenty of reasons you might need an EIN. Just about every bank requires your EIN to open a business account. If you want to register for Vermont’s myVTax tax payment portal, you’ll need an EIN. If you want to establish credit with a vendor, you’ll be asked for your EIN again. For some of these situations, you could use your personal social security number instead, but that just puts your private data at risk. Getting an EIN is fairly simple and free from the IRS. Or, make it even easier and skip this application entirely—hire Northwest to get your EIN for you when sign up for our services.
Does a Vermont LLC Need a Business License?
Vermont doesn’t have a general, statewide business license, but cities and counties may have their own requirements for business licenses. For example, all businesses in Brattleboro must obtain a business license ($50) and renew it each year.
What is a Vermont LLC Annual Report?
Your Vermont LLC Annual Report is a form you file each year to update the state on your ownership and contact information. The $35 fee and report are due within the three month window after the end of your fiscal year (by March 31st for most businesses). The odd due date is tough to remember, but if you forget to file, you’ll lose your good standing. Fail to file for three months, and your LLC will be dissolved. Not to worry, Northwest has your back. When you sign up for our services, we send you reminder notifications for your reports. Want one less item on your “to do” list? Hire Northwest to file your Annual Reports for you each year.
Vermont LLC Articles of Organization Requirements:
Your name must end with “Limited Liability Company,” “Limited Company” or an abbreviation. Tip: Most businesses keep it short and sweet with “LLC.”
Vermont LLC Type
You have to choose what kind of LLC you’re creating: a regular LLC, a professional LLC or a low-profit LLC. A professional LLC offers the services of licensed professionals (think doctors and lawyers). A low-profit LLC can make some money but is similar to a non-profit. Low-profit LLCs are organized for an educational or charitable purpose—not for “income production.” Tip: Most LLCs are just regular LLCs (not professional or low-profit LLCs).
Fiscal Year End
Skip this section if you follow a typical calendar year. If your fiscal year ends in a month other than December, list that month in your Articles. Tip: Most LLCs skip this section.
A huge list of possible business activities were translated into these 6-digit codes to make statistics easier for government agencies. Online, just choose the code from the drop down menus that best matches your primary business activity. Filing with a paper form? Go to the NAICS website to browse codes. It’s okay if your code’s not a 100% perfect match.
This is optional on the paper form, so most businesses skip it. Online, you have to put an email so the state can send you your approved Articles. Don’t want to list your email on this public document? At Northwest, we allow our clients to use our email address.
Initial Designated Office
This is the official street address of your Vermont LLC. Hire us as your registered agent and you can use our Vermont address as your initial designated office address.
The registered agent can either be a business (but not your own) or an individual Vermont resident. The registered address must be a physical address and will be a permanent public record for your Vermont LLC. Tip: We recommend Northwest Registered Agent for expert registered agent service.
Select whether or not your LLC has members at the time of filing and if members or managers will run the company. Most LLCs are member-managed, so members make all the decisions. If you don’t run the day-to-day operations, you can turn over decision-making powers to managers (just note that once you turn over this power, you have no right as the member to make decisions for the LLC; your only right is to remove the manager and vote on who the next manager should be). You can also include the names and addresses of initial members or managers, but it’s optional so most businesses skip this section.
Skip this section and your Vermont LLC will begin upon filing. Prefer to push out your start date (maybe the next tax period is right around the corner)? You can list an effective date up to 90 days in the future.
Vermont LLC Organizer
This is just the person filing the LLC and has no real significance. Organizers don’t have to be members or managers, but they do have to include their name, address, and signature. We’ll be your organizer when you hire Northwest.