Updated on: July 19th, 2024

Vermont LLC Cost: Is It Expensive? How Much To Form a Vermont LLC?

Hire Professionals to Create a Vermont LLC (from $0 + state fees)

Establishing an LLC in Vermont may come with more expenses than filing the starting paperwork. Fortunately, creating your own business doesn’t have to break the bank! We’ll reveal every cost associated with forming and maintaining Vermont LLCs.

Want to start your own LLC? But you don’t know where to begin? Take a look at our easy step-by-step guide on how to start an LLC.

If you want to skip the hassle of starting a Vermont LLC yourself, consider using professional help for the best price in the market:

Quick Costs for Vermont LLC Breakdown & Best Options

Who forms the LLC?Total fees



You form the LLC in Vermont Yourself
$430 = ($125 Articles of Organization + $35 Annual fee + $250 Income Tax + $20 Name reservation) 
by using ZenBusiness$0 + state fees
by using Northwest Registered Agent$39 + state fees
see our other best-rated LLC service providersvaries

Pros and Cons of Forming Your LLC in Vermont

Here are some Pros and Cons that would help you make up your mind about starting your own LLC in Vermont.

PROS

Forming your LLC in Vermont has a lot of distinct advantages.

  • Firstly, the paperwork can be done online with the help of the Secretary of State.
  • This ensures that the process is relatively trouble-free and streamlined for businesses and entrepreneurs setting up their LLCs in Vermont.
  • Secondly, there are no state residency requirements for filing in Vermont, giving businesses more flexibility when it comes to who is included in their LLC.
  • Lastly, the fee for filing is quite affordable; the initial fees are covered by just one flat fee charging both articles of organization and an annual report filing fee.
  • Overall, forming your LLC in Vermont is certainly worth considering due to its plentiful benefits.

CONS

Forming a Limited Liability Company (LLC) in Vermont offers many advantages for businesses, but there are also certain drawbacks that need to be taken into account.

  • One of the main drawbacks of forming an LLC in Vermont is the cost associated with it. The registration fee for an LLC in Vermont is higher than that of other states, and some may question whether this added expense is justified.
  • Additionally, if you choose to form your LLC in Vermont and use it to conduct business out-of-state, then you may also incur additional fees, such as filing fees in each state where you conduct business.

Thus, before deciding to form your LLC in Vermont, consider the potential financial costs involved and how they might impact your bottom line.

How Much Does an LLC Cost in Vermont?

Here are the main costs and fees involved in forming a Vermont LLC.

Vermont LLC Online Filing Fee (Articles of Organization) ($125)

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The primary expenditure to establish an LLC is a mere $125 to electronically file your Articles of Organization with the Vermont Secretary of State.


Vermont Annual Report Fee ($35)

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Vermont requires LLCs to file an annual report with the Secretary of State within two-and-a-half months after the closure of your fiscal year, which is conveniently achievable through their website. The inability to abide by this deadline will result in a $25 financial penalty as mandated by state laws. File timely and enjoy peace of mind!


Vermont Foreign LLC Cost ($125)

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Are you looking to expand your LLC business into Vermont? If so, it’s time to register as a foreign LLC with the Secretary of State website. It’s an easy process that typically costs only $125 and can help propel your company forward! Don’t miss out on this amazing opportunity for growth – start registering today!


Vermont Registered Agent Fee ($39 or $125/year)

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If you’re forming an LLC in Vermont, it’s mandated by law that you select a Registered Agent. This is someone or a company who accepts legal notifications and state updates on your behalf. Your appointed Registered Agent must possess a valid street address within the jurisdiction of Vermont and should be available during normal business hours for communication purposes.

Luckily, there are no added expenses if you decide to serve as your own Registered agent or appoint somebody from your circle instead!

Here are our recommended Registered Agent service providers:

  • Northwest Registered Agent services is the perfect choice for those seeking to establish a new business and gain access to a registered agent, with a full LLC creation package starting at only $39 + state fees.

OR:


Vermont Business Entity Income Tax: Varies ($250)

Vermont requires LLCs to submit a business entity tax return with the Vermont Department of Taxes no later than the 15th day following the end of their fiscal year. For companies owned exclusively by Vermonters, they must pay at least $250 in taxes.

If your LLC has owners who live outside of Vermont or if you choose to file a composite tax return, please refer to the instructions provided on the state’s website for further details.


LLC Operating Agreement Fee ($0)

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A Vermont LLC Operating Agreement is a legally binding contract between the individual members that compose an LLC. The agreement lays out ownership details and how it will be managed, as well as how profits are to be divided among those involved. No matter if your business consists of one or many people, all should come together to write this document, keep it with their records so they can access it at any time, and also offer every member a copy for reference purposes.

Many websites may charge up to 200 dollars in order to construct such an agreement but you’ll find our services highly valuable yet affordable!


LLC EIN Number Fee ($0)

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An Employer Identification Number (EIN) or Federal Employer Identification Number (FEIN), otherwise known as an EIN number, is required for various purposes such as filing income taxes, setting up a LLC bank account and hiring employees.

Despite the existence of websites that charge a service fee to obtain this important number for your LLC, it can be acquired from the Internal Revenue Service (IRS) without cost in just a few brief minutes with their convenient online application process.


Other LLC Filing Costs (Optional)

There are optional fees associated with LLC formation:

LLC Name Reservation ($20)

Guard your LLC name and secure it for up to four months before submitting the official filing forms with the Secretary of State. All you have to do is file an online LLC Name Reservation, pay a $20 fee, and you’re all set!

“Doing Business As” (DBA) Name ($50)

Create a distinct identity for your LLC by filing an Assumed Business Name Registration online. This process is simple and convenient, only costing you $50 in registration fees! This will ensure that you have a distinct name other than your legal business name.

This will ensure that you have a distinct name other than your legal business name.

Certified Document Copies ($25)

Take the hassle out of obtaining Certified Copies of your Vermont business documents – quickly and easily order through the Secretary of State for only $25!

Certificate of Fact ($25)

If you need to obtain a Vermont Certificate of Good Standing for your business, simply order one through the Secretary of State and pay the $25 fee. This certificate is often required by banks and lenders in order to continue doing business with them. With this document, you can rest assured that your company remains compliant and in good standing!


Limited Liability Company Taxes (varies)

Depending on the type of Vermont LLC taxes you need to pay, your annual costs can be quite high. Be sure to explore all available options when determining which taxes are required for your business.

Some of the taxes LLC owners pay include:

  • Federal taxes
  • Income Tax
  • Business Insurance tax
  • Self-employment taxes
  • Sales and use tax
  • Property tax (if the LLC owns the property)

The taxes your Vermont LLC is subject to depend on the type of industry you are in as well as the amount of activity going on within your business. Therefore, we cannot provide an exact estimate of what it may be. Every business has its own unique circumstances that factor into which taxes apply, so consulting with the Vermont Department of Revenue will give you more information about these specifics like which tax forms need filing and whether sales tax needs to be collected by your LLC.


Cost of Filing Formation Certificates

VermontDomestic LLCForeign LLC
Online Filing $125 $125
Annual Report$35$35
Name Reservation fee $20$20
By MailBy Mail: Request and fill out the application form. Send the form to Vermont Secretary of State Corporations Division 128 State St. Montpelier, VT 05633. Costs $125.



By Mail: Request and fill out the application form. Send the form to Vermont Secretary of State Corporations Division 128 State St. Montpelier, VT 05633. Costs $125.



Cost Changes Often? Where Can I Find the Most Up-to-date Cost & Tax Info?

If you’re considering establishing a limited liability company in Vermont, the first step is to understand how much it will cost. Rather than searching through endless FAQs and unreliable sources, why not reach out directly? The Vermont Secretary of State Website is an excellent place to start – they have a dedicated team who are more than happy to answer any queries you may have about setting up an LLC in the state. At the end of the day, this service is completely free of charge and will enable you to make informed decisions regarding your business venture.

Are you uncertain about the cost of setting up a Vermont LLC? Reach out to the Vermont Secretary of State Website – they’ll be more than happy to answer all your queries.


How to Start an LLC in Vermont?

After Reading through the prices and costs of LLC formation in Vermont if you decide to go on with it, here are the basic steps that you can take to form your LLC with ease.
And if you want to know all the steps broken down in detail — see our Vermont LLC formation guide here.

Choose a Name for Your LLC

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When forming an LLC in Vermont, the name must include either “Limited Liability Company,” “LLC” or any of their respective abbreviations. Plus, your business entity’s title has to be different than other companies on file with the Secretary of State. You can ascertain availability by inspecting the Vermont Secretary of State company database for potential matches.

Captivate customers with a memorable name for your business! With the Vermont Secretary of State, you can easily reserve that special name for up to 120 days. All you have to do is complete an Application to Reserve a Specified Business Name and file it either online or through postal mail. If choosing the latter option, simply finish the entire online filing process before selecting “postal mail with traditional paper check” as your payment method at checkout.


Appoint a Registered Agent

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Every Vermont LLC is legally obligated to designate an individual or business entity as its Agent for Service of Process in the state, who agrees to accept any pertinent legal documents and other papers on behalf of the company should it be subject to litigation.

This registered agent may either be a resident living within the borders of Vermont, or a legitimate corporation/LLC that has been officially registered to conduct business activities there. Moreover, this representative must have a valid physical address located inside the state’s boundaries itself.


 File Articles of Organization

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To form a Vermont LLC, you must submit Articles of Organization to the Vermont Secretary of State. This task is accompanied by a nominal fee of $125.


Prepare an Operating Agreement

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Although an LLC operating agreement is not compulsory in Vermont, it’s strongly advised. This document outlines the privileges and obligations of members as well as managers, including how your LLC will be managed. It also helps protect limited liability by illustrating that your business truly functions independently from you as a separate entity. Without this paperwork, state law takes precedence when managing your operations.

Furthermore, the agreement does not need to accompany the Articles of Organization for submission purposes.


Obtain an EIN

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If your LLC has more than one member, it must obtain its own IRS Employer Identification Number (EIN), even if you don’t have any employees. Single-member LLCs only need to acquire an EIN when they hire staff or elect to be taxed as a corporation instead of a sole proprietorship (disregarded entity). You can securely and swiftly get an EIN by completing the online application on the Internal Revenue Service website; there’s no fee for it!

EIN number is also essential for your business bank account.


File Vermont Annual Reports

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All LLCs based in Vermont and those licensed to operate within the state must submit an annual report to the Secretary of State Corporations Division. The due date is set as three months after your fiscal year ends, for example: if you’re bookkeeping follows the calendar year (finishes in December), then your annual report needs to be filed between January 1st and March 31st.

You can either file online or through postal mail – just continue with our online process & select ‘mail’ when prompted; there’s a fee of $35 per filing for Vermont-based businesses & $140 for foreign LLCs.


Get Professional Help in Forming an LLC in Vermont

It can be difficult and time-consuming to form a Vermont LLC all by yourself.
That’s why we decided to give you a few of the best options for professional services that can help you start an LLC in no time & with 0 effort!

#1 – Create an LLC in Vermont Using Northwest Registered Agent

Northwest has vast experience in creating LLCs and Corporations. They by far have the best support and client satisfaction rate. We’ve used and tested them ourselves and can guarantee that they’ll do an exceptional job for you.
You can read our full & extensive Northwest review here.

$39+State Fees

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Rating: 4.9/5
Review count: 4850+

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Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!


#2 – ZenBusiness Will Start an LLC in Vermont for You

ZenBusiness is one of our top-rated LLC services as well. They have a super value-to-price ratio. And it’s perfect for those who are looking for the cheapest option to form their LLCs. When we tested their service — they’ve done a great job, so we can honestly recommend them.
To know more about them — read our full ZenBusiness review here.

$0 + State Fees

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Rating: 4.8/5
Review count: 4830+

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Form an LLC today with ZenBusiness for only $0 + State fees. They Have 98% customer satisfaction rating and over 4830+ verified reviews.


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