If you're looking to start a Vermont LLC, you may be wondering about the costs involved with the business formation.
To save you time and effort to focus on your business entity, we have spent months researching the costs of forming an LLC in Vermont.
In this article, we will review everything you need to know about all fees necessary to build a Vermont LLC.
Quick Summary
- The Vermont LLC state filing fee is $125 for filing your Articles Of Organization.
- For a limited liability company in Vermont, you will need to file a $35 annual report fee every year between January 1st and April 1st.
- Your Vermont registered agent services must have a physical Vermont address and be available during normal business hours.
How Much Does An LLC Cost In Vermont?
A Vermont LLCÂ filing fee is $125 and is registered through the Vermont Secretary Of State.
This fee registers your LLC in Vermont and files your Vermont LLC Articles of Organization. You can file online, via mail, or in person [1].
Online filing with the Vermont Secretary of State usually takes less than one business day. By mail, they suggest allowing 7 to 10 business days for processing.
Vermont LLC Filing Fee
The Vermont LLC filing fee is $125. This fee only applies when you first create your LLC with the Vermont Secretary Of State.
For Vermont LLCs, there is a $35 Vermont annual report fee that must be filed with the Vermont Secretary of State.
You can submit this through the online Business Service Center. The fee is due within the first three months of the year between January 1st and April 1st [2].
Vermont Registered Agent Service Fee
When you file your Vermont LLC, you must list a registered agent on your paperwork. However, their only qualification to be a registered agent is that the agent has a physical Vermont address and can either be an individual or a business.
The registered agent needs to be available during normal business hours every week of every year and must have their information registered with the Vermont Department of State.
Hiring a professional registered agent for your Vermont LLC will vary in cost based on which registered agent service you choose, but it will be around $90 and up.
Vermont Business/ License Tax
If you plan to sell tangible property, rent rooms, sell food or alcohol, or hire employees, you must apply for a business tax account for your Vermont LLC, and each type of tax requires a different account.
Before you register your Vermont LLC, you will need the following information to apply for a business tax account:
- Business type (Sole Proprietorship, LLC, etc.)
- Vermont LLC name
- Federal Employer Identification Number
- Names and Social Security Numbers
- Person to contact for the company
- Mailing address
- Physical address
- Phone number and fax number
- Email address
- Date authorized to form LLC in Vermont by Secretary of State
- Business activities such as Manufacturer, Wholesale, Retail, Construction, etc.
Additional taxes that may apply to your business include [3]:
- Sales Tax Or Use Tax: Applies to purchases and sales
- Meals and Rooms Tax: This applies to charges for meals and rooms.
- Alcoholic Beverage Tax: This applies to charges for alcoholic beverages.
- Local Option Tax: This applies to doing business in or delivering products to a municipality with a 1 percent local option tax.Â
- Corporate and Business Income Tax: This applies to businesses that earn an income doing business in Vermont.
Other Vermont LLC Costs
There are other various factors included in the entire Vermont LLC cost, including:
1. Name Reservation
The first step is to look up an LLC in Vermont and check for name availability.
To reserve a business name in Vermont, you must submit an application and a $20 fee. Name reservation prevents another business from using your assumed business name before you start a Vermont LLC.
Your name will be reserved up to 120 days prior to filing your LLC. You can submit your name registration on the online business service center.
2. DBA Name
If you plan on doing business under any name other than your legal Vermont business name, you must register a Doing Business As Name, which costs $50.
You can register as many names as you want but must file a separate registration for each DBA name.
3. Certified Copies
You can order any certified copies of your LLC documents, including your annual report, Articles Of Organization, Operating Agreement, and more, for $25.
Certified copies can be ordered through the State Corporations Division.
4. LLC Certificate Of Good Standing
You can order an LLC certificate of Good Standing from the Secretary Of State for $25.
A Good Standing certificate shows that your LLC complies with Vermont LLC and state fees to obtain a business bank account or other services [4].
5. Statement Of Conversion
Conversion is the process by which a business is incorporated, organized, or formed as one type of business entity and then becomes a different type of business entity. The cost for a statement of conversion is $20.
6. Business Insurance
If you have one or more employees, your business must purchase workers' compensation insurance. Workers' compensation insurance covers medical and other costs for employees who have suffered injuries in the workplace.
7. Employer Identification Number
An EIN costs $0 to file and can be done online, via mail, or by phone. You will need all LLC members' full legal names, addresses, social security numbers, business names, and more.
Vermont Foreign LLC Registration
When creating foreign LLCs in Vermont, you will need to pay the $125 LLC filing fee.
Paying the fee and filing an application for the registration of a foreign LLC will legally allow you to do business in Vermont.
Filing is available by mail, in person, or online with the Secretary Of State.
You will also need to register and pay for all business taxes and licenses before performing any business in Vermont.
FAQs
Do I Need An Operating Agreement For My LLC In Vermont?
No, you don’t need to have an operating agreement for your LLC in Vermont, but it is important to have one. The operating agreement will protect your LLC status, prevent financial misunderstandings, protect your personal assets, and more.
Can I Create A Professional Vermont LLC?
Yes, you can create a professional LLC in Vermont. If you provide a licensed professional service and want to create an LLC, you will be required to perform a professional LLC.
Examples include dentists, accountants, attorneys, and more.
Do I Need A Vermont Business License?
You may or may not need a Vermont business license. Depending on the type of business and where your limited liability company is located, you may need a local or state business license. To research if you need a state license use the Vermont Business Startup Guide. For any local licenses, check with the city clerk.
How Does Vermont Tax LLCs?
Vermont taxes LLCs either at the individual or corporate tax rate.The income of LLs in Vermont passes through shareholders and partners.
What Is The Tax Rate Of Small Business In Vermont?
The tax rate for a small business in Vermont is 6 percent for a net income between $0 and $10,000. Between $10,000 and $25,000, the tax is $600 plus 7 percent.
Does Vermont Require Business Licenses?
No, Vermont doesn't have a statewide business license. A business may need to register for business, sales, or payroll taxes.
How Long Will It Take To Start An LLC In Vermont?
It will usually take 7 to 10 business days to create an LLC in Vermont. However, if you file online, your application may be processed within a business day. If you file by mail and pay an expedited fee, your LLC can be formed within 3 days.
Do You Need Professional Help With Your Vermont LLC?
Vermont is an excellent state for forming an LLC because you don't need a state business license or operating agreement, and their filing fee is relatively affordable.
If starting and registering an LLC in Vermont looks too hard, the best Vermont LLC formation services are available to help you by being your registered agent and guiding you through the process.
The LLC formation service can manage filing your Articles Of Organization, annual reports, operating agreements, and more to start an LLC.
References:
- https://sos.vermont.gov/corporations/registration/domestic-registration/llc/
- https://sos.vermont.gov/corporations/renewals-updates/reports-renewals/annual-biennial-reports/
- https://tax.vermont.gov/business
- https://sos.vermont.gov/corporations/copies-certificates/good-standings-or-status/
