How to Start an LLC in Vermont (Step-by-Step Guide)

Forming an LLC in Vermont requires filing Articles of Organization with the Vermont Secretary of State and paying a $155 filing fee. Online filings are typically processed within 1 business day.

Vermont is a business-friendly state with a straightforward LLC formation process. Follow these steps to start your Vermont LLC in 2026.

How to Start an LLC in Vermont (6 Steps)

Step 1: Name Your Vermont LLC

Your LLC name must be distinguishable from other business names registered in Vermont. The name must include “Limited Liability Company,” “LLC,” or “L.L.C.”

Search the Vermont Secretary of State business name database to check availability. Vermont does not charge a separate fee for name reservation when it is included with your Articles of Organization filing.

Vermont naming rules:

• Must be distinguishable from any existing business entity registered in Vermont
• Cannot include words implying the LLC is a bank, insurance company, or government entity without proper authorization
• Must contain an LLC designator (“Limited Liability Company,” “LLC,” or “L.L.C.”)
• Cannot use restricted words without meeting additional licensing or approval requirements

Step 2: Choose a Registered Agent

Vermont requires every LLC to have a registered agent with a physical street address in Vermont. The registered agent receives legal documents, service of process, and official state correspondence on behalf of your LLC.

You can serve as your own registered agent (if you have a Vermont address), or hire a professional service. Our top recommendation is Northwest Registered Agent ($39/year), which also handles LLC formation for $39 + the $155 state fee.

Step 3: File Your Articles of Organization

File your Articles of Organization with the Vermont Secretary of State. You can file online through the Vermont Secretary of State’s online filing portal or by mail.

Filing details:

• Filing fee: $155
• Online filing: Vermont Secretary of State’s online portal (recommended — faster processing)
• Processing time: 1 business day or less (online), 7-10 business days (mail)

Information required:

• LLC name
• Registered agent name and address
• Principal office address
• Organizer name and address
• Whether the LLC is member-managed or manager-managed
• Duration (perpetual is standard)

Step 4: Create an Operating Agreement

Vermont doesn’t legally require an operating agreement, but having one is strongly recommended. An operating agreement establishes ownership percentages, profit distribution, management responsibilities, and procedures for adding or removing members.

Without an operating agreement, Vermont’s default LLC rules will govern your business — and those defaults may not align with your intentions. Most banks also require an operating agreement to open a business bank account.

Step 5: Get an EIN

Apply for an Employer Identification Number (EIN) through the IRS website. It’s free and takes about 15 minutes online. You need an EIN to open a business bank account, hire employees, and file taxes.

Even single-member LLCs should obtain an EIN for better privacy and separation between personal and business finances.

Step 6: Register for Vermont Taxes and File Annual Report

After forming your LLC, you’ll need to register with the Vermont Department of Taxes and stay on top of your annual filing requirements.

Key requirements:

• Annual report: Due within 2.5 months after the end of your fiscal year (by March 15 for calendar-year filers). Filing fee is $35.
• Business entity tax (BET): LLCs taxed as partnerships or S corporations must pay a minimum $250 per year
• Sales tax registration: Required if you sell taxable goods or services in Vermont

Register online through the Vermont Department of Taxes website.

Vermont LLC Costs

Total first-year cost: $440-$739 (including the minimum business entity tax and depending on registered agent service). See our complete guide to LLC costs by state.

Vermont LLC Taxes

Vermont has a progressive income tax and a unique business entity tax that applies to pass-through entities.

• State income tax: Progressive rates from 3.35% to 8.75% (LLC profits pass through to members’ personal returns)
• Business entity tax (BET): LLCs taxed as partnerships or S corporations pay a separate BET — 6% on the first $10,000 of net income, 7% on $10,001-$25,000, and 8.5% on income over $25,000, with a $250 minimum
• Corporate income tax: 6% to 8.5% (if LLC elects corporate taxation)
• Sales tax: 6% state rate, plus up to 1% local option tax in some municipalities
• Federal taxes: Standard pass-through taxation — profits pass to members’ personal federal returns

The minimum $250 business entity tax means even LLCs with no income will owe at least $250 per year to the state (in addition to the annual report fee).

Annual Requirements for Vermont LLCs

• Annual report: Due within 2.5 months after the end of your LLC’s fiscal year. For calendar-year filers, that means by March 15 each year. The filing fee is $35 ($25 late penalty if not filed on time).
• Business entity tax return: File Form BI-471 by the 15th day of the 3rd month after the end of your tax year (March 15 for calendar-year filers). Minimum tax of $250.
• Maintain a registered agent: Must have a registered agent with a physical Vermont address at all times.
• Sales tax filing: If applicable, collect and remit Vermont sales tax according to your assigned filing frequency.

Frequently Asked Questions

How long does it take to form an LLC in Vermont?

Online filings are typically processed within 1 business day or less. Mail filings take 7-10 business days. Online filing is the recommended method for the fastest processing.

What is the Vermont business entity tax?

Vermont imposes a Business Entity Tax (BET) on LLCs taxed as partnerships or S corporations. The minimum annual BET is $250, regardless of income. Rates range from 6% to 8.5% depending on net income levels.

Can I form a Vermont LLC if I live in another state?

Yes. You can form a Vermont LLC regardless of where you live. You’ll need a registered agent with a physical address in Vermont. If you primarily do business in another state, you may need to register as a foreign LLC there. See our how to start an LLC guide for more information.

Does Vermont require an operating agreement?

No, Vermont does not legally require an operating agreement. However, we strongly recommend creating one to define ownership, management, and profit distribution. It also strengthens your liability protection and is typically needed to open a business bank account.

When is the Vermont LLC annual report due?

The annual report is due within 2.5 months after the end of your LLC’s fiscal year. For LLCs that use a calendar year (January-December), the annual report is due by March 15 each year. The filing fee is $35.

Start an LLC in Another State

Click your state below for a step-by-step formation guide with filing fees, requirements, and timelines.