How to Start a Business in Vermont
Everything you need to form your Vermont LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
Forming an LLC in Vermont costs $155, the same as forming a corporation. Vermont has no franchise tax, but pass-through entities including LLCs owe a minimum annual entity tax of $250. Online filings process in under 1 business day, and there is no general statewide business license requirement, so most startups complete formation with entity registration alone.
This guide walks you through every step from choosing your business structure to registering for licenses and tax accounts.
Choosing Your Vermont Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most Vermont small businesses.
| Entity Type | Liability Protection | Taxation | Vermont Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $155 | $45 Annual Report | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $155 | $60 Annual Report | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your Vermont Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the Vermont Secretary of State, Business Services Division database. Reserve for $25 (120 days, renewable).
- 3
Appoint a registered agent
Must have a physical Vermont street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Articles of Organization ($155) or Articles of Incorporation ($155) with the Vermont Secretary of State, Business Services Division.
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the Vermont Department of Taxes. State sales tax rate: 6%.
- 7
Get required licenses and permits
Vermont has no general statewide business license.
- 8
Register for Vermont taxes
Personal income tax: Graduated, four brackets from 3.35% to 8.75% for tax year 2025.
How Much Does It Cost to Start a Business in Vermont?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (Vermont Secretary of State, Business Services Division) Required | $155 | Online filings are normally processed in less than 1 business day; |
| Corporation filing fee Required | $155 | If forming a corporation instead |
| Annual Report Required | $45 | Within three months following the fiscal year end on record, so by March 31 for a calendar-year LLC. |
| Name reservation | $25 | 120 days, renewable |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | Vermont has no general statewide business license. |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $155 to $500 |
Start a Specific Business in Vermont
Vermont Business Guides
- How to Start an LLC in Vermont
- How to Start a Corporation in Vermont
- Sole Proprietorship in Vermont: How to Start One
- Vermont Business License: What You Need and How to Get It
- Vermont Home-Based Business Laws: Zoning, Permits and Rules
- How to Get an EIN in Vermont
- Vermont Business Name Search: How to Check and Reserve a Name
- How to Get a Resale Certificate in Vermont
- Vermont Registered Agent: Requirements and How to Choose One
- Best LLC Services in Vermont
- Vermont Business Taxes Explained for New Owners
- How Much Does It Cost to Start a Business in Vermont
Why Start a Business in Vermont?
- Forming either an LLC or a corporation costs $155, the same flat filing fee for both entity types.
- Online filings are normally processed in less than 1 business day, versus 7 to 10 business days by mail, at no extra charge.
- Vermont has no general statewide business license, so most businesses need only entity registration plus any industry-specific permit.
- The state sales tax rate is 6%, with a 1% local option tax only in municipalities that have voted to adopt it.
- Ongoing state paperwork is light: a $45 LLC annual report or a $60 corporate annual report, plus a $250 minimum entity tax for pass-through entities.
- Vermont is the smallest state economy by total GDP, roughly $48 billion, serving a population of about 644,700 concentrated around Burlington and Chittenden County.
Vermont Business Resources
Frequently Asked Questions
- How long does it take to form an LLC in Vermont?
- Online filings are normally processed in less than 1 business day. If you file by mail, allow 7 to 10 business days.
- What does it cost to start an LLC in Vermont in year one?
- The LLC filing fee is $155. LLCs owe a minimum annual entity tax of $250 each year. Your annual report of $45 is first due within three months following your fiscal year end.
- Can a non-resident form an LLC in Vermont?
- Yes. You can file your Articles of Organization through the Online Business Service Center at https://bizfilings.vermont.gov/homepage from anywhere, with processing in less than 1 business day.
- What's the cheapest way to start a business in Vermont?
- An LLC and a corporation both cost $155 to form. Vermont has no general statewide business license requirement, so most businesses need only entity registration plus any industry-specific permit.
- Is an operating agreement required for a Vermont LLC?
- Vermont law does not require an operating agreement for LLCs; you only need to file your Articles of Organization. This guide covers operating agreements and other governance documents for your LLC.