How Much Does an LLC Cost in Vermont?
Filing the Articles of Organization with the Vermont Secretary of State costs $155. That's the one required charge to legally form the business.
Costs don't stop there, though. A domestic LLC also owes a $45 Annual Report every year, due three months after the fiscal year closes. Add a registered agent, and depending on the industry, maybe a business license too. How much all of that adds up to depends on the business itself.
A single-member LLC pays far less over time. A multi-member company pays more, since it often needs licenses and files a partnership tax return. The cost breakdown below sorts every Vermont charge by when it comes due. It starts with the one you can't skip.
Quick Summary
- Mailing your filing in costs no extra fee in Vermont. It just takes about a week longer than filing online.
- Your Annual Report deadline follows your LLC's own fiscal year rather than one fixed date. Mark it near your formation date.
- Multi-member LLCs should budget for a separate state minimum tax that most single-member LLCs never owe.
| Cost Item | Amount | Frequency | Required? |
|---|---|---|---|
| Articles of Organization | $155 | One-time | Yes |
| Registered Agent Service | $0 self / $80-$300 hired | Every year | Yes (self-serve allowed) |
| Name Reservation | $25 | One-time, optional | No |
| Annual Report | $45 domestic / $170 foreign | Every year, within 3 months of fiscal year end | Yes |
| Business/Professional License | Varies | Varies | If applicable |
| Operating Agreement | $0-$200+ | One-time | No |
| Business Entity Income Tax (minimum) | $250 | Every year, if taxed as partnership/S-corp | If applicable |
| DBA / Assumed Business Name | $70 | One-time | No |
| Certified Copies | $25 | As needed | No |
| Certificate of Existence (Good Standing) | $35 | As needed | No |
| EIN | $0 | One-time | Yes for multi-member, if applicable for single-member |
Cost to Start a Vermont LLC
Two things stand between an idea and an active Vermont LLC. One is a required filing. The other is a standing duty to keep an agent on file. A third item only matters for someone who wants a name locked in early.
1. LLC Formation Filing Fee ($155 - Required)
Every Vermont LLC starts with Articles of Organization. You file them through the Secretary of State's Online Business Service Center. The fee is $155. There's no extra charge for filing online [1].
Processing often finishes in under a business day once the state receives it. Paper submissions take longer, typically 7 to 10 business days. A staff member has to key each one in by hand.
Vermont doesn't offer a paid expedite option for LLC formation. Filing online is simply the quicker of the two routes.
2. Registered Agent Service ($0 Self / $80-$300 Hired - Required to Have)
State law requires every Vermont LLC to keep an agent for service of process on file [2]. That agent needs a Vermont address. It gets filed right on the Articles of Organization. Legal notices and state mail go there.
An owner or a fellow LLC member can fill that role for free. The only rule is a real Vermont street address on file. Some businesses don't want to publish a home address. Others don't have a Vermont address at all.
Either way, hiring a registered agent service in Vermont often runs $80 to $300 a year. Changing the agent later costs $35. That's filed as a Statement of Change.
3. Name Reservation ($25 - Optional)
Someone who isn't ready to start a Vermont LLC yet can still lock in a name early. A $25 application reserves it for 120 days. The state only grants the hold if the name clears a "distinguishable in the records" standard. That standard checks the name against every other business already on file.
Skipping this step costs nothing extra. The Vermont business name search tool checks availability the moment the Articles of Organization get filed. That happens whether or not the name was reserved first.
Costs After Your Vermont LLC Is Approved
Getting approved is only the entry fee. A handful of recurring and situational costs follow. Some apply every year without fail. Others apply only if the business needs them.
1. Annual Report Fee ($45 Domestic / $170 Foreign - Required)
A domestic Vermont LLC files an Annual Report and pays $45 within three months of its fiscal year end [3]. Most LLCs run on a calendar fiscal year. That puts the window between January and April.
The deadline itself follows whatever fiscal year end is on file with the state. An LLC with a different fiscal year sees a different three-month window. A foreign LLC pays $170 for the same filing.
Falling behind carries real consequences. An LLC that misses even one Annual Report gets its Articles of Organization terminated. Reinstating it means filing every missed report and paying that report's $45 fee. On top of that, the state charges a separate $35 reinstatement fee for each skipped year [4].
2. Business License ($0-Varies - If Applicable)
Vermont doesn't require a general statewide business license just to operate an LLC. Certain regulated industries need one anyway. Each one is licensed by its own state board instead of the Secretary of State. Check with the relevant board directly, since fees and renewal schedules vary by profession.
3. Taxes Payable (Varies - Required Where Applicable)
An LLC is a pass-through entity by default. Profits flow to the members instead of the business. Each member then pays personal Vermont income tax on their share. Rates run from 3.35% up to 8.75%. That depends on total taxable income.
Multi-member LLCs face one more layer. An LLC taxed as a partnership, or one that elects S-corporation treatment, must file a Business Income Tax return [5]. That return carries a $250 minimum entity tax each year, due even with no profit. A single-member LLC taxed as a disregarded entity skips that separate return.
4. Operating Agreement ($0-$200+ - Optional but Recommended)
An operating agreement is optional in Vermont. Nothing requires filing one with the state. Going without one just leaves ownership splits and decision-making rules undocumented. That gap turns into a real problem the first time members disagree about money or control.
A free single-member template, linked in the cost table above, covers the basics for a solo owner. Multiple owners generally need something more detailed. Hiring an attorney or buying a template through a formation service often runs $100 to $200 or more.
5. DBA / Assumed Business Name ($70 - Optional)
Operating under a name other than the LLC's legal one takes an Assumed Business Name filing, sometimes called a DBA. It costs $70 to register in Vermont.
6. Certified Copies ($25 - Optional)
A certified copy of anything on file with the Secretary of State costs $25 flat. That covers the Articles of Organization, an Annual Report, or any other filed document. Banks and out-of-state agencies often ask for one before approving a loan or a foreign registration.
7. Certificate of Existence ($35 - Optional)
Also called a Certificate of Good Standing, this document confirms the LLC is current on its filings. It shows the business hasn't been dissolved. It costs $35 to order from the Secretary of State. Lenders, landlords, and other states commonly request one as proof the business is legitimate.
8. Employer Identification Number ($0 - Required for Multi-Member LLCs, Recommended for Others)
An EIN is free straight from the IRS, and it often takes only a few minutes to get online. Most banks require one to open a business account, and any LLC with employees or more than one member needs one regardless. No formation service should charge extra just to fill out this form, and for a side-by-side look at what other states charge, see the full LLC cost breakdown.
FAQs
How Do I Pay My Vermont LLC Filing Costs?
You pay Vermont LLC filing costs through the Online Business Service Center, by credit card or electronic check at checkout. Paper filings mailed in instead require a check or money order made out to the Vermont Secretary of State.
What Happens If I Pay My Vermont Business Taxes Late?
The Vermont Department of Taxes charges a penalty for a late-filed return, on top of any tax still owed. Paying by the due date on the Business Income Tax return avoids that extra cost. Check the current penalty schedule on the Department of Taxes site before filing late.
Is the $250 Minimum Entity Tax the Same as the Annual Report Fee?
No, they're two separate payments to two different agencies. The $45 Annual Report goes to the Secretary of State to keep the LLC's registration active. The $250 minimum tax, where it applies, goes to the Department of Taxes with the Business Income Tax return and funds a different obligation entirely.
Can a Reserved Vermont LLC Name Be Transferred to Someone Else?
Yes. The person who reserved the name can transfer it to another person or business by filing a notice of transfer with the Secretary of State before the 120-day hold runs out. The application itself doesn't have to be refiled from scratch.
References:
- https://sos.vermont.gov/business-services/fees-statutes
- https://legislature.vermont.gov/statutes/section/11/025/04007
- https://sos.vermont.gov/business-services/business-filings/annualbiennial-reports/
- https://legislature.vermont.gov/statutes/section/11/025/04034
- https://tax.vermont.gov/business/business-entity-income-tax
