Deal alert! Northwest will form your LLC for $39 (60% discount). See details.
To start an LLC in Vermont, file Articles of Organization with the Vermont Secretary of State. This costs $125 and takes 1 day for approval.
There are 5 steps to follow:
- Choose an LLC Name
- Select a Registered Agent
- File Articles of Organization
- Create an Operating Agreement
- Get an EIN
If you want to form your LLC yourself, follow our free guide below.
If you want someone to take care of it for you, we recommend hiring Northwest Registered Agent
Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
(We recommend Northwest. We've reviewed all the top companies in the industry. And Northwest is our #1 pick for prices, customer support, and address privacy. Check out Northwest vs LegalZoom to learn more.)
How much does it cost to start an LLC in Vermont?
It costs $125 to start an LLC. And then it costs $35 per year.
What are these fees for?
- The $125 is to file the Articles of Organization – the document that creates an LLC.
- The $35 per year is for your Annual Report – a mandatory filing that keeps your LLC in good standing.
To learn more about LLC Costs, see LLC Costs in Vermont.
How long does it take to get an LLC in Vermont?
If you file your LLC by mail, it will be approved in 5-7 business days (plus mail time).
But if you file online, your LLC will be approved 1 business day.
Please see How long does it take to get an LLC in Vermont to check for any delays.
Here are the steps to forming an LLC
1. Search your LLC Name
Search your LLC Name to make sure it’s available in the state.
You need to do this because two businesses in the state can’t have the same name.
First, search your business name and compare it to existing businesses in the state. You can make sure the LLC Name you want is unique from existing businesses using the Vermont Corporation Division’s Business Search.
Second, familiarize yourself with the state’s naming rules (so your LLC gets approved).
We’ll explain both in more detail here: Vermont LLC Name.
2. Choose a Registered Agent
The next step is to choose a Registered Agent.
A Vermont Registered Agent is a person or company who accepts legal mail and state notices on behalf of your Limited Liability Company.
Who can be an LLC Registered Agent?
You have 3 options for who can be the Registered Agent:
- You
- A friend or family member
- A Registered Agent Service
The Registered Agent for your LLC must have a physical street address in Vermont. PO Boxes aren’t allowed.
And the Registered Agent’s name and address will be listed on public records.
If you don’t have an address in Vermont, or you want more privacy, you can hire a Registered Agent Service for your LLC.
We recommend Northwest Registered Agent
Our favorite feature about Northwest is they’ll let you use their office address throughout your LLC filing. This way, you can keep your address off public records.
They’ll also scan any mail sent to your LLC and upload it to your online account.
Northwest has excellent customer service, and they’re who we trust to be our own Registered Agent.
Special offer: Hire Northwest to form your LLC ($39 + state fee), and you'll get a free year of Registered Agent service.
(Why is Northwest the best? Read our Northwest Registered Agent review)
3. File Articles of Organization
To start an LLC, you need to file Articles of Organization. This is the document that, once filed with the Vermont Secretary of State, creates your LLC.
The Vermont Articles of Organization costs $125 if you file online.
This is a one-time fee to create your LLC.
If you want to file this yourself, see our step-by-step guide: Vermont Articles of Organization.
Or, you can hire a company to do it for you.
Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
(Learn why Northwest is #1 in Northwest vs LegalZoom)
4. Create an Operating Agreement
An Operating Agreement serves as a “companion” document to the Articles of Organization.
The Articles of Organization creates your LLC, and the Operating Agreement shows who owns the LLC.
Additionally, some banks require an Operating Agreement when you open an LLC bank account.
And having an Operating Agreement will be very helpful if you ever end up in court. Reason being, it helps prove that your LLC is being run properly.
That’s why we recommend that all LLCs have an Operating Agreement – including Single-Member LLCs.
Furthermore, an Operating Agreement is an “internal document“. Meaning, you don’t need to file it with the state or the IRS (Internal Revenue Service). Just keep a copy with your business records.
You can download a free template below.
Then, learn how to fill it out by watching our step-by-step Vermont Operating Agreement video.
5. Get an EIN for your LLC
The next step is to get a Vermont EIN Number from the IRS for your LLC.
Note: An EIN Number is also called a Federal Tax ID Number or Federal Employer Identification Number.
An EIN Number is used to:
- identify your LLC for tax purposes
- open a business bank account
- apply for business licenses and permits
How much does an EIN cost?
Getting an EIN Number from the IRS is completely free.
How long does it take to get an EIN?
If you apply online, it takes 15 minutes.
If you apply by mail or fax, it can take 1-3 months.
How can I get an EIN?
US Citizens/US Residents: If you have an SSN or ITIN, you can apply for an EIN online. Follow these instructions: Apply for an EIN online.
Non-US Residents: You can’t get an EIN online, but you can still get one by fax or by mail. Follow these instructions: How to get an EIN without an SSN or ITIN.
What do I do after my LLC is approved?
After your LLC is approved, there are some additional steps.
Open an LLC business bank account
You’ll want to open a business bank account for your LLC.
This makes accounting and record-keeping much easier for your business finances.
Having a separate business bank account also maintains your personal liability protection. This is because it keeps your business finances separate from your personal finances.
Get business licenses and permits
Good news, Vermont doesn’t have a state general business license.
However, depending on where your LLC is located, you may need a local business license or permit.
For example, if you want to start a daycare, you may need a business license from the city or county.
You can learn more on our Vermont Business License page.
File your LLC Annual Report
All Vermont LLCs must file an Annual Report every year.
The Annual Report keeps your LLC in good standing with the state.
How much does a Vermont Annual Report cost?
The LLC Annual Report filing fee is $35 per year.
When is the Annual Report due?
The state uses a fiscal year system to determine the due date for your report.
Note: Most Vermont LLCs follow the normal calendar year for their fiscal year – (which is January to December).
If your LLC uses the normal calendar year, then your Annual Report will be due between January 1st and March 31st.
If your LLC uses a different fiscal calendar, then your Annual Report will be due during a different 3-month period. It can be a little confusing, so we made this table to help:
| Fiscal Year End (Month) | Filing Period (between) |
|---|---|
| December | January 1st and March 31st |
| January | February 1st and April 30th |
| February | March 1st and May 31st |
| March | April 1st and June 30th |
| April | May 1st and July 31st |
| May | June 1st and August 31st |
| June | July 1st and September 30th |
| July | August 1st and October 31st |
| August | September 1st and November 30th |
| September | October 1st and December 31st |
| October | November 1st and January 31st |
| November | December 1st and February 28th |
When is my first Annual Report due?
Your first Annual Report is due the year after your LLC was approved.
For example, if your LLC uses the normal calendar year and was approved on February 15, 2025, your first Annual Report is due by March 31, 2026.
How do I file my LLC Annual Report?
You can file your LLC’s Annual Report online or by mail. We recommend the online filing because it’s easier to complete.
Follow our step-by-step guide here: Vermont LLC Annual Report.
File and pay taxes
LLCs don’t pay federal income tax. Instead, the LLC Members pay the taxes for the LLC.
Said another way, the owners pay taxes for the LLC as a part of their personal tax return.
How will my LLC be taxed?
By default, an LLC is taxed by the IRS based on the number of owners your LLC has:
- A Single-Member LLC is taxed like a Sole Proprietorship.
- A Multi-Member LLC is taxed like a Partnership.
Alternatively, you can ask the IRS to tax your LLC like a C-Corporation or S-Corporation.
Besides federal taxes, there are also state and local income taxes – and sales tax. Learn more in Vermont LLC Taxes.
Vermont State Agency Contact Info
Vermont Secretary of State (Business Services Division)
Phone: 802-828-2386
Hours: 7:45am to 4:30pm, Monday – Friday
Vermont Secretary of State: Business Services Division
Vermont Department of Taxes
Phone: 802-828-5723
Hours: 7:45am to 4:30pm, Monday – Friday
Vermont Department of Taxes
Vermont Department of Taxes: Help
How to Start an LLC in Vermont FAQs
Can I start an LLC online in Vermont?
Yes, you can file your LLC online. The Articles of Organization filing fee is $125.
When you start your LLC online, it will be approved 1 business day.
What are the benefits of an LLC?
The first benefit of an LLC is protecting your personal assets. Meaning, if your business is sued, your personal assets – like your home, cars, and bank accounts – are protected.
This protection applies to all LLC owners (called LLC Members). It doesn’t matter if you have a Single-Member LLC or Multi-Member LLC. All of the LLC owners are protected from the business debts and liabilities.
This type of protection wouldn’t apply if you operate as a Sole Proprietorship or Partnership. With these types of informal business structures, the owners aren’t protected in the event of a lawsuit. For that reason, Limited Liability Companies (LLCs) are a much more popular business structure.
Another benefit is LLC pass-through taxation. This means the LLC itself doesn’t pay federal income taxes. Instead, the profits “pass through” to the LLC Members. And the Members pay the taxes on their personal tax return.
And Vermont state income taxes are very similar, since the state honors the federal tax treatment of your LLC.
To learn more, please see How are LLCs taxed.
Is Vermont a good state to start an LLC?
Whether Vermont is a good state to start an LLC depends on where you live – and where you’re doing business.
Meaning, if you live in or do business in Vermont, then you should start your LLC there. While many websites talk about tax rates and advantages of certain states, none of that applies if it’s not the state where you live and do business.
For example, if you form an LLC in Delaware, but live in and conduct business in Vermont, you’ll also need to register your Delaware LLC in Vermont (and pay extra fees). And you’ll end up paying Vermont taxes anyway. This ends up leading to more costs and more headaches with no advantages.
In summary, if you live in and conduct business in Vermont, then yes, it’s a good state to start a business. If you don’t live in and do business in Vermont, then no, it isn’t a good state to start a business.
Real estate exception: If you’re purchasing real estate outside of Vermont, you should form your LLC in the state where the property is located.
For more information, please see Best State to Form an LLC.
References
Vermont LLC Act
Vermont Secretary of State: Registration Fees
Vermont Department of Taxes: Business & Corporate Taxes
Vermont Secretary of State: Limited Liability Company (LLC)
Vermont Office of Professional Regulation: Licenses and Permits
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.
