How Much Does an LLC Cost in Vermont
It costs at least $125 to form an LLC in Vermont. But these additional expenses could increase the total to over $3,000.
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Here are the following fees to consider:
- Articles of Organization: $125
- Certificate of Authority: $125
- Annual Report: $35 to $140
- Business Permits and Licenses: at least $40
- Business Taxes: 3.35% to 8.75% of taxable income
- Registered Agent: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Other Optional Fees: Up to $3,000+
Ben and Jerry's ice cream, maple syrup, and its elusive resident—the moose! With so many things to love about the Green Mountain State, you must be excited to set up shop.
But how much does it cost to form an LLC in Vermont? Plan your budget with this in-depth guide.
Limited time: Get 10% off LLC plans
- Pro package includes: Articles of organization, name check service, operating agreement, federal tax ID, bookkeeping tools, customizable legal documents, unlimited eSignatures for online agreements, and a customizable website.
- Premium package includes: Everything included in pro, plus business attorney guidance, unlimited 30-minute attorney consultations on new topics, LLC formation document changes within 30 days.
Articles of Organization
One-Time Fee: $125[1]
To form an LLC in Vermont, you must file the Articles of Organization with the Secretary of State. Once the documents are approved, your LLC will be recognized as a separate legal entity.
A Vermont LLC's Articles of Organization contains the following information, among other details:
- Limited liability company name
- Registered agent name and address
- Business mailing address
- Business description
You can file the Articles of Organization online, by mail, or in person. Filings received by mail are typically processed within 7 to 10 business days after receipt. Meanwhile, online filings normally take less than 1 business day.[2]
No, you don't need an attorney to form an LLC in Vermont. However, the Secretary of State recommends consulting with a professional about which business structure is best for you.[2]
Application for Certificate of Authority
One-Time Fee: $125[1]
If you already have an LLC in another state and want to expand your business to Vermont, register it as a foreign LLC.
To create a foreign LLC in Vermont, file an Application for a Certificate of Authority with the Secretary of State. Don't forget to attach a Certificate of Good Standing from your domestic state
.
No, it's not possible to form an LLC in Vermont for free. You need at least $125 to file either the Articles of Organization for a domestic LLC or a Certificate of Authority for a foreign LLC.
Annual Report
Annual Fee: $35 (domestic) | $140 (foreign)[1]
All LLCs in Vermont must file annual reports with the Secretary of State. It lets the government, banks, and anyone who can access public records know that your business is still active.
In Vermont, annual reports are due within three months after your LLC's fiscal year ends.[3] So if your LLC's fiscal year ends on December 31st, your deadline would be March 31st.
Otherwise, your LLC may be tagged as delinquent, a business status that is publicly available to potential investors and anyone else who looks up your business. The Secretary of State may also administratively close your business.
Business Permits and Licenses
Cost: Typically at least $50
Vermont doesn't have a state-level general business license. Instead, the state prefers to leave business licensing requirements to local jurisdictions and specific industries.
For example, in Brattleboro, a new business license costs $50 and must be registered within 30 days of forming your LLC.[4]
The number of permits and licenses your LLC needs depends on its business purpose. Some businesses may be regulated by various governmental offices simultaneously and could renew yearly.
Business Taxes
Cost: 3.35% to 8.75% of taxable income[5]
LLCs are generally considered "pass-through" entities for tax purposes. This means the LLC's profits and losses pass through to the owners and are reported on individual tax returns.
Vermont's current personal income tax rate is up to 8.75% of taxable income.[5] Most will owe a minimum of $250 on their business income tax return even if they have little or no income. On top of that, you must also pay federal income taxes.[6]
2024 Federal Income Tax Rates:[7]
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 to $11,600 |
| 12% | $11,601 to $47,150 |
| 22% | $47,151 to $100,525 |
| 24% | $100,526 to $191,950 |
| 32% | $191,951 to $243,725 |
| 35% | $243,726 to $609,350 |
| 37% | Over $609,350 |
Don't forget the 15.3% federal self-employment tax.[8]
The fees that you'll incur when forming an LLC can be claimed as tax deductions. You can write off the following expenses:
Optional Fees
While the fees below are generally optional, some are unavoidable depending on your business needs.
For example, obtaining a Certificate of Good Standing is often necessary when opening an LLC bank account.
| Vermont LLC Optional Fees | Cost |
|---|---|
| Registered Agent Services | Up to $300+ |
| Registered Agent or Office Change | $25 |
| Operating Agreement | Up to $500+ |
| Employer Identification Number | $0 to $99 |
| BOI Report | $0 to $149 |
| LLC Name Reservation | $20 |
| Assumed Business Name | $40 to $50 |
| Articles of Correction | $25 |
| Articles of Amendment | $25 |
| Certificate of Good Standing | $25 |
| Certified Copy of Documents | $25 |
| Website Domain | $10 to $20 |
| Business Insurance Premiums | Varies |
Vermont's Secretary of State does not offer expedited services for business entity formation. You will likely not need one because online filings are typically processed in less than 1 business day.[2]
Registered Agent Services
Annual Cost: $0, or $100-$300/yr
In Vermont, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.
You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Vermont. You must also be available to receive documents during business hours.
However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.
Registered Agent or Office Change
Cost: $25[1]
You can change your registered agent's details by filing a form with the Secretary of State. Changes include the registered agent's name and office address.
Some registered agents will shoulder this bill if you switch to their services.
In Vermont, the amended articles are used to change the business name, management structure, and other details. The statement of change form is focused solely on changes regarding the registered agent.
Operating Agreement
Cost: $0, or up to $500+
LLCs in Vermont are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.
An LLC operating agreement contains the following:
- The roles and responsibilities of each member
- How new or departing members will be treated
- How business profits and losses will be divided
Ideally, you should already have a signed Operating Agreement before forming an LLC in Vermont. But if your LLC is already formed, you can always draft it yourself after.
Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.
Employer Identification Number
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in Vermont don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
Beneficial Ownership Information Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.[9]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
Name Reservation
Cost: $20[1]
If you already have a business name but aren't ready to form an LLC, you can reserve your desired name first. This will prevent others from using that name for 120 days.
Remember to review Vermont's naming regulations. For example, an LLC name must include LLC, Ltd., or similar.
Check online to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL to prevent others from acquiring it.
Assumed Business Name
Cost: $50 (registration) | $40 (renewal)[1]
An assumed business name (also known as "Doing Business As" or DBA) allows your LLC to operate under a name different from its legal name registered with the state. Some LLCs use a DBA for branding purposes, like using a name without "LLC" at the end.
Assumed business names in Vermont must be renewed every five years for $40.[1] However, it can only be renewed within the two months before it expires.[10]
Articles of Correction
Cost: $25[1]
After your Vermont LLC application is approved, review all the details of the Articles of Organization carefully.
If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing the Articles of Correction.
Articles of Amendment
Cost: $25[1]
Your Vermont LLC's Articles of Organization contains specific details about your business. Should these details change, you must file an amendment to the Secretary of State.
File an amendment if you:
- Change the LLC name
- Move to a new location
- Update the business description
You must also file a statement of change with the $25 filing fee if you update your registered agent's details.
The Articles of Correction are for fixing mistakes in initial filings. Meanwhile, the Articles of Amendment update key details as the LLC evolves.
Certificate of Good Standing
Cost: $25[1]
A Certificate of Good Standing is an official document by the Secretary of State. It verifies that your LLC is updated with all state filings and has paid all its fees and taxes.
You might need a Certificate of Good Standing to:
- Open a bank account
- Apply for business loans
- Qualify for business insurance
- Conduct business as a foreign LLC
Contact the Secretary of State to ask why your LLC is in bad standing. The most common reasons include:
- Failure to file the annual report
- Failure to renew business permits and licenses
- Not having a registered agent in Vermont
Certified Copies
Cost: $25 per page[1]
Certified copies of documents verify that your LLC is legitimate and that its details are accurate.
You might need these for circumstances like opening a business bank account or expanding your LLC in another state.
Additionally, some LLCs keep certified copies of their initial Articles of Organization and amendments (if any) for recordkeeping purposes.
Business Website Domain
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Business Insurance Premiums
Cost: Varies
Vermont law requires nearly all employers to have workers' compensation insurance.[11] This supports employees who suffer work-related injuries or illnesses.
Vermont doesn't have a state-run workers' compensation fund. So, you can shop from a private insurance carrier authorized to do business in the state.
Additionally, consider protecting your LLC's assets with other types of insurance:
- General liability insurance
- Commercial property insurance
- Professional liability insurance
- Cyber liability insurance
The cost depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.
If you're an employer in Vermont and don't provide workers' compensation insurance, you could face fines of $50 per day (up to $5,000) until you receive a notice from the Commissioner of Labor. After that, the fine increases to $150 per day if you still haven't obtained coverage within 5 days.[12]
Bottom Line
You need at least $125 to form an LLC in Vermont. You may also have to pay for the $20 business name reservation and $50 assumed business name registration.
Limited time: Get 10% off LLC plans
- Pro package includes: Articles of organization, name check service, operating agreement, federal tax ID, bookkeeping tools, customizable legal documents, unlimited eSignatures for online agreements, and a customizable website.
- Premium package includes: Everything included in pro, plus business attorney guidance, unlimited 30-minute attorney consultations on new topics, LLC formation document changes within 30 days.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Business Formation Service - $39 + State Fees
- Form Your LLC, Corporation, or Nonprofit Today
- A Fully-Formed Business
- Registered Agent Service
- Business Address
- Mail Forwarding
- Privacy by Default
Starter - $0 + State Filing Fees
- Includes 1 optional free year of Worry-Free Compliance that renews at $199/year
- Standard filing speed
- 100% accuracy guaranteed
- Other services are available with additional costs
That said, the total cost of forming an LLC in Vermont will increase depending on the additional services, documents, and licenses you need. Ultimately, it's never a bad idea to set aside an extra budget for unexpected fees.
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References
- ^ Vermont Secretary of State. Fees, Retrieved 10/15/2024
- ^ Vermont Secretary of State. Limited Liability Company (LLC), Retrieved 10/15/2024
- ^ Vermont Secretary of State. Annual/Biennial Report Filing, Retrieved 10/15/2024
- ^ Town of Brattleboro, Vermont. Business/Entertainment License, Retrieved 10/15/2024
- ^ State of Vermont Department of Taxes. 2023 Vermont Tax Rates, Retrieved 10/15/2024
- ^ State of Vermont Department of Taxes. Business Entity Income Tax, Retrieved 10/15/2024
- ^ IRS. Federal income tax rates and brackets, Retrieved 10/15/2024
- ^ IRS. Self-employment tax (Social Security and Medicare taxes), Retrieved 10/15/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 10/02/2024
- ^ Vermont Secretary of State. Renewals, Retrieved 11/23/2024
- ^ Vermont Department of Labor. Fact Sheet for Employers, Retrieved 10/15/2024
- ^ Vermont Department of Labor. A Guide for Vermont Business Owners: Workers' Compensation Insurance, Retrieved 10/15/2024
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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