How to Start an LLC in Vermont
Ready to start your LLC in Vermont? This manual will walk you through the entire process, including filing your Articles of Organization, selecting a registered agent, and taking other essential steps to launch your business.
Create a VT LLC in 5 Steps:
Step 1: Name Your Vermont LLC
Your LLC name is the answer to the first question on the Vermont LLC Articles of Organization application. While you are free to be creative, there are a few state requirements to follow:
What are Vermont’s business name requirements?
- Vermont’s LLC law 11 V.S.A. § 4005 lays out the rules for naming your LLC. Basically, your LLC name must use an entity identifier (LLC, L.L.C., Ltd. Liability Co., etc.). The name must NOT contain any words or abbreviations that would suggest it is any other kind of entity (incorporated, Inc., Association, etc.). Lastly, the name you choose must be unique in the state.
How do I know if my LLC name is unique in the state?
- You can check the state’s list of business registrations to see if your LLC’s name is unique in Vermont. Search for the LLC name you want in the Vermont Corporations Division Express Search site. If no search results are found, the name should be available.
Are others using the name online?
- Once you know your business name is available in the state, check to see if anyone is using it online as a domain name or social media handle. Using the same or similar name across various media and advertising channels gives you a consistent brand identity that can help you grow your client base.
- When we form your Vermont LLC for you, we can register your business domain for free and give you three free months of website and email services (they’re just $9/month after that).
Can you register the name as a trademark?
- Want to safeguard the uniqueness of your business name nationwide? You can apply to have your business federally trademarked, and we can help! When we form your LLC, you can order a trademark registration at the same time. Our trademark team will work with you through the application process, and our trademark attorneys will provide recommendations if any obstacles to its registration are found.
Step 2: Choose a Vermont Registered Agent
Vermont requires all active business entities to list and maintain a VT registered agent and designated registered office address throughout the life of the business. Your appointed registered agent must be a Vermont resident over the age of 18 who has a physical Vermont address. The agent must be present at this address during normal business hours (9am-5pm) to accept legal mail in person.
A registered agent can also be another entity authorized to do business in Vermont. Businesses that offer this service professionally, like Registered Agents Inc, are referred to as commercial registered agents.
Step 3: File Vermont Articles of Organization
Submitting the Vermont Articles of Organization is the filing required to officially form your LLC in the state. You can submit this filing to the VT Secretary of State in person, by mail, or online for $125. If you want to submit a hardcopy application in person or by mail, you’ll need to go online and request the application form. Below is the information you’ll need to complete the LLC application:
1
Business name
Enter the business name you want and include the entity identifying language (LLC, L.L.C., etc.). Also enter two alternative names just in case your first name choice is not available.
2
LLC type
Check the box for the LLC type you want to form (LLC, PLLC, or Low-Profit LLC).
3
Fiscal year end
Most businesses use the calendar year, so this would be December.
4
Business description
Provide a brief description of your company products/services, or enter an NAICS code that most closely describes your business. You can use the NAICS Association website to search for your code.
5
Jurisdiction
This section is auto-filled online with Vermont.
6
Business address
Enter both a physical and mailing address for your business
7
Business email address
The state will use this email to send you notices.
8
Registered agent info
Enter the name, physical Vermont address, mailing address, and email address of your chosen agent.
9
Management type (optional)
Check yes or no if your LLC has members, then choose member-managed (most common) or manager-managed.
10
Number of members
Enter the number of members your business will have at the time of formation.
11
Member info (optional)
You can list the names and addresses of your LLC members, but it’s not required. This information will become public record. Listing members on pubic record makes proving LLC ownership easier when opening a bank account.
12
Additional provisions (optional)
You can add more clauses or statements you want included in your original Articles of Organization here.
13
Effective date
If you want your LLC to become active on a specific day, enter it here. Leave it blank if the day the state approves your LLC application is acceptable.
14
Organizer signature
The person authorized to complete and submit this application to the state must sign their name, and provide their mailing address.
How long does it take for an LLC to be approved in Vermont?
If you submitted the LLC application online, your Articles of Organization will be approved in less than one business day! If you submitted it in person or by mail, the state can take up to 10 business days to approve it.
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Step 4: Set Up Business Operations
Forming your LLC with the Vermont Secretary of State is the first big step. Now it’s time to build the management structure your business needs to run smoothly.
Create an operating agreement.
Your LLC operating agreement outlines the management structure and member rights and responsibilities. It describes member roles, profit and loss sharing, and processes for adding or removing members. This document provides clear rules for managing the business that can help prevent misunderstandings and resolve disputes.
Get an EIN.
An Employer Identification Number (EIN) acts like your LLC’s social security number. You can apply for it online for free directly from the IRS and use it when it comes time to pay your taxes. If you plan on hiring employees or opening a business bank account, you’ll need an EIN.
Manage your company’s money.
Your Vermont LLC comes with limited liability protections for your personal assets. A good way to keep those protections in place is to separate your business income from your personal income into different bank accounts. Shop around for a bank that offers a business bank account package that fits your needs.
Obtain licenses and permits.
Vermont does not require a general license to do business there. However, your Vermont LLC may need to apply for additional permits and/or licenses depending on the kind of products or services it offers. Check in with the VT Licenses & Permits site to see if your business needs further permitting to operate legally in your county or city.
Step 5: File BOI Report
The Beneficial Ownership Information (BOI) Report is a federal filing most businesses will have to complete after registration. This report asks for details about your company, owners who have more than 25% share of the business or substantial control over the business. The BOI Report is kept private and is submitted to the Financial Crimes Enforcement Network (FinCEN). These reports are meant to help this bureau prevent money laundering and other business criminal activities.
LLCs formed in 2024 have 90 days from registration to file the BOI Report. LLCs formed in 2025 or later will have just 30 days to file.
We can take care of this federal filing for you when you hire us to form your Vermont LLC.
Frequently Asked Questions
What is needed to start an LLC in Vermont?
To start an LLC in Vermont, you’ll need to choose an LLC name that is unique in the state. You’ll also need to appoint a Vermont registered agent that has a physical address in the state. The application that officially forms your LLC in Vermont is the Articles of Organization, which can be submitted to the Secretary of State in person, by mail, or online for $125.
How much does it cost to start an LLC in Vermont?
The filing fee for the Vermont Articles of Organization is $125. This is a one-time fee. If you choose to hire a registered agent service, they typically have a monthly or annual fee that varies. For example, Registered Agents Inc is $200 per year and includes many extra services.
Do LLCs pay taxes in Vermont?
Vermont LLCs do not pay taxes as an entity. Instead, they are taxed as “pass-through entities” where the members pay taxes on the profits (income) they assign themselves. For more information on how to pay your LLC income taxes, connect with the Vermont Department of Taxes. You can schedule an appointment with a Vermont tax examiner to discuss the details of your business taxes.
When is the Vermont Annual Report due?
The Vermont LLC Annual Report is due three months after your fiscal year end. For most businesses, this is typically around the end of March. The fee is $35 and can be filed in person, by mail, or online. You can look up your business on the Vermont business search site to find out the specific day your report will be due.
Our Vermont Registered Agent Service includes the annual report filing. We’ll get this filed for you on-time for free (you pay only the state fee).
How do I contact the Vermont Secretary of State?
If you have questions about state filings or business in general, here’s how you can contact the Vermont Secretary of State:
Phone: 802-828-2386
Fax: 802-828-2853
Physical & Mailing address:
81 River Street
Montpelier, VT 05609-1104