The LLC State fee in Vermont is $155 for filing the articles of organization. If you’re planning on forming a limited liability company it’s best to learn about the possible costs in advance, like additional registrations, business licenses, and more. Read this post to understand what is relevant for your business and plan your budget accordingly.
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Hard to keep everything straight? We don鈥檛 blame you. Here鈥檚 a handy table of costs, so make sure to bookmark this page in your browser for future reference.
LLC filing fees (Articles of Organization) | $155 |
LLC name reservation | $20 per 120-day holding period, up to 3 times |
DBA filing fee | $50 per DBA, unlimited |
DBA renewal fee | $40 |
Registered agent (optional) | $100-250 |
Operating agreement (optional) | $0 to $2,500 |
Annual report | $35 |
Foreign LLC annual report | $140 |
Business license (cost varies widely by municipality; see examples) | Brattleboro business license: $50 Montpelier street vendor license: $250 Burlington business license: $100 in most locations, $300 in some |
LLC termination filing fee | $20 |
You鈥檝e got a killer business idea. Maybe you鈥檝e been working at it for a while. Possibly you even have a few sales under your belt.
Either way, you鈥檙e ready to start making real money, but there鈥檚 just one problem. You haven鈥檛 set up your LLC (limited liability company) yet.
Well, good news: It鈥檚 pretty easy to start an LLC in Vermont. All you need is the right know-how, and that begins with the monetary side.
So, just how much does an LLC in Vermont cost?
We鈥檝e got more good news for you: Just as it鈥檚 not that difficult to launch your biz, it鈥檚 not that expensive either. Granted, the cost can vary depending on how you go about it, but Vermont has straightforward rules that streamline the whole process.
Plus, for a minimal extra fee, you can always use an LLC formation service to minimize your research and get you going faster.
In this article, we鈥檒l go through the basic costs of LLC formation in Vermont, such as various filing fees and annual fees. We鈥檒l also provide a handy table breaking down the costs by category, so you can make sure you鈥檙e fiscally ready to make the jump.
Lastly, we鈥檒l give you a rundown of the general logistics, the better to get you organized and ready to take on the market.
First, let鈥檚 take a quick look at the steps involved in forming your LLC in Vermont. And seriously, the good news never ends, because there aren鈥檛 that many.
While they may seem daunting at first, the following steps are relatively uncomplicated. Just take them one at a time and you鈥檒l be fine.
Before you get into the nitty gritty, you鈥檝e got to pick a name.
As we鈥檝e discussed before, you should spend some time on naming your LLC. This doesn鈥檛 cost anything if you name it at the time you file your Articles of Organization (more on that in a second).
However, if you want to reserve your business name ahead of time, you can do so for 120 days for a cost of $20. You can do this 3 times consecutively.
Before you commit, make sure your name is:
In some cases, you might reserve both an LLC name and a DBA (doing business as) name, sometimes referred to as an assumed name.
The former is the name by which your account and the government will know you. The latter is the name by which your clients and customers will know you, usually having higher brand awareness and expansion potential.
Having a DBA incurs an extra cost of $50 per DBA, of which you can have as many as you want related to your LLC.
In Vermont, it costs $125 to file your Articles of Organization with the Secretary of State. This is necessary at the time you form your LLC. Once you submit your articles, you may consider your business officially formed.
You do not need to file a statement of information (a document that includes important information about the business鈥檚 employees and activities) at the time of filing. However, you must file one in the form of an annual report within 3 months of the end of every business year.
A registered agent is not necessary. If you want to take care of all LLC formation paperwork yourself, you don鈥檛 need one and therefore shouldn鈥檛 worry about this cost.
However, many business owners choose to go the registered agent route because they worry about forgetting important details. A registered agent service can cost between $100 and $250 in Vermont, depending on whom you use.
While purely optional, it’s recommended you create an operating agreement.
Depending on whether you do it yourself, hire a lawyer, or use an operating agreement service such as 91吃瓜, this can range from $0 to $2,500 in Vermont.
There are a few other annual or otherwise additional costs of operating an LLC in Vermont. Make yourself aware of them now and you won鈥檛 have to pay the price later!
Please note that fees do change along with state legislation. If you want to stay completely up to date, a registered agent can help.
The state of Vermont does not charge an annual franchise tax. This is a fee, levied by some states, that is incurred whether or not the business makes a profit in that filing year.
Instead, Vermont charges income tax, which is typically at least $250. It correlates to the amount that the business makes in profits, so a successful biz can expect to pay more.
Your state income tax is due on the same day as federal income tax: April 15th. If you extend your filing deadline (which involves paperwork, BTW), then you have 30 days longer than the IRS gives you. While the federal extension deadline is October 15th, Vermont allows until November 15th.
Licensing and permitting are normal parts of many businesses. Depending on what you do, you may need licenses or permits to:
These vary by profession, so make sure to get the correct permits for you and seek expert advice where needed.
Your annual report tells the state of Vermont what you鈥檝e been up to over the last year. It includes business activities, important members of your organization, and financial performance.
It costs $35 to file your annual report, which you can do online or by mail.
For a foreign LLC operating in Vermont, the cost is $140 annually.
Filing your annual report is a critical business activity. If you do not file on time (usually March 31st, assuming your fiscal year ends on December 31st), Vermont will penalize you by removing your good standing status.
If you still have not filed within 6 months, they will revoke your LLC entirely. If that happens, it becomes illegal for you to do business in Vermont until you rectify the situation.
A certificate of good standing proves that you are in complete compliance with Vermont law concerning business operations. It also proves that you have the right to do business under your LLC name.
You may find that a certificate of good standing is necessary to apply for loans, open a bank account, get investment funds, or otherwise conduct financial activities in Vermont.
A certificate of good standing costs $25. Note that if you do not file your annual report on time, you will lose this certificate.
The good news is that some of the LLC formation costs are tax deductible for federal years.
Among the costs that are not eligible are your Articles of Organization, the cost of reserving an LLC name, or your annual filing fees. Neither can you write off tax prep expenses if your business has employees.
You can write off the following, however.
As long as you only employ yourself, you can write off the cost of all tax prep activities, such as software or engaging a tax preparer.
Paying an accountant is a deductible expense in Vermont. If you feel you need help with the ol鈥� books, this can help you offset the cost.
Likewise, you can deduct paying a registered agent, which makes it more affordable.
Typically, your legal fees are deductible. They have to be considered ordinary and necessary for the business. No conducting personal biz on the same dime!
The following fees are taken from the :
Filing Title | Filing Fee |
Domestic LLCs | 听 |
Application for Reserved Name | $25.00 |
Application to Renew Reserved Name | $25.00 |
Notice of Assignment of Reserved Name | $20.00 |
Notice of Withdrawal of Reserved Name | $20.00 |
Statement of Change | $35.00 |
Statement of Resignation | $0.00 |
Service of Process | $35.00 |
Articles of Organization | $155.00 |
Articles of Amendment | $35.00 |
Restated Articles of Organization | $25.00 |
Articles of Correction | $35.00 |
Application for Certificate of Existence | $35.00 |
Annual Report | $45.00 |
Reinstatement | $35.00 |
Articles of Termination | $20.00 |
Statement of Abandonment | $20.00 |
Statement of Conversion | $20.00 |
Articles of Merger | $55.00 |
Articles of Domestication | $20.00 |
Any other document permitted or required to be filed under 11 V.S.A. chapter 25 | $20.00 |
Foreign LLCs | 听 |
Application for Certificate of Authorization | $35.00 |
Annual Report | $170.00 |
Application for Certificate of Authority | $155.00 |
Amended Certificate of Authority | $35.00 |
Certificate of Cancellation | $25.00 |
Vermont LLC formation costs are, as you can see, quite reasonable. The greater concern is making sure you fill out all your paperwork correctly and, in the case of annual reports and renewals, on time.
If you鈥檙e not sure that鈥檚 your bailiwick, don鈥檛 fret. Just hire an expert to help you out. That way, you can make sure you鈥檙e always above board, and go back to focusing on what you do best.
Your name should be relevant to your business or easily branded. You may either use it for all business activities or only in official capacity. If you choose the latter, you will also need a DBA (doing business as) as your customer-facing name.
If you want to reserve a name but aren鈥檛 ready to file your Articles of Organization, you can pay $20 to park your name for 120 days. You can do this 3 times.
Assuming you do everything yourself, don鈥檛 reserve a name, and use no DBAs, the basic cost of incorporating in Vermont is $125.
It doesn鈥檛 take long to form an LLC. Once you have your documents ready, it only takes as long as is needed for Vermont to receive your Articles of Organization paperwork and the attached $125 fee.
If you aren鈥檛 sure how to get those documents ready or feel overwhelmed by them, you can cut down your prep time by hiring a registered agent. They will do the legwork for you.
If you plan to have employees, you need an EIN or employee identification number. The IRS will give you an EIN for free.
Your annual report effectively renews your LLC. You must renew all DBAs every 5 years, and you can only do so within the 2-month window before the end of the 5-year period.
To dissolve your LLC, file a termination form with the Secretary of State for a cost of $20.
This portion of our website is for informational or educational purposes only. 91吃瓜 is not a law firm, and the information on this website does not constitute legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, 91吃瓜 is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between 91吃瓜 and any other brands, services or logos on this page.
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