Last Updated on February 4, 2022
Costs to Form a Vermont LLC
To form a Limited Liability Company in Vermont, file the Vermont Articles of Organization with the Vermont Secretary of State. The LLC filing fee is $125.
Approval for the LLC is typically around two weeks when filing by mail or 1 day when filing online.
Steps to Form a Vermont LLC
The steps for filing online or by mail are largely the same. The screenshots show how to file online.
Step 1: Create an Account
Begin by creating a user account on the Vermont Secretary of State’s website. If you prefer to fill out and mail the application, download the PDF of the Articles of Organization Form LLC-3(D).
- Click on “VT Secretary of State Online Services” on the left menu and then “Start or Register Your Business.”
Step 2: Create the Business
Most people on this site will be forming their first LLC, and it will likely be located in the state. If that is the case, select “I am Creating a New Domestic Business.” If it originally formed the LLC in another state and wants to do business in Vermont, select “I am Registering a Foreign Business” (commonly called a Foreign Entity or Foreign LLC. Other common choices include a professional LLC (PLLC) which is reserved for services that require state licensing (like accountants, architects, attorneys, etc). Additionally, the low-profit LLC can be selected which is a for-profit business but has a charitable focus. The formation process for each is relatively similar to the domestic LLC in this guide.
A new menu will then appear for “Business Entity,” where you would select “Limited Liability Company.”
From the next menu, select “Limited Liability Company” to start forming your LLC.
Step 3: Register the Business Name
Enter the name you want for the LLC. The LLC’s name has to be different from other entity names registered with the Secretary of State. You can also run a Vermont LLC name search with the Secretary of State before going through the filing process to ensure the one you want is available.
The name of the LLC must also include a designator at the end of the business name and describes what type of business entity it is. Available designators can use the following words or abbreviations:
- Limited Liability Company
- Limited Company
The words “Limited” can be abbreviated as “Ltd.” and “Company” can be abbreviated as “Co.”
You have the option of entering two alternate names in case the one you enter is rejected.
Step 4: Business Description
This section is asking for information regarding the activities of the business. To do that, there is a number called NAICS (North American Industrial Classification System). This code is a six-digit number that classifies and categorizes the different business industries. This information is used in reporting statistical data for each of the industries in the U.S. Remember this number as you will need it when filing annual tax returns. You can do a more in-depth search for your NAICS number here.
If the activities of your business aren’t specifically listed, choose one that is close.
Step 5: Domestic Jurisdiction
“Vermont is automatically chosen as the domestic jurisdiction and can’t be changed.
Step 6: Designated Office Information
Physical Address – In this section, enter the street address, city, state, and zip code of the initial principal office. This address can be the LLC’s physical address, or it can be the address where the business records are stored. You may not use a PO Box for the designated office.
Mailing Address – A mailing address is required, and it can be the same as the Principal Address. If the LLC records will be sent to a different address, enter that information in the Mailing Address Section. If the address is the same as the principal office, click on the “Use this address as the Mailing Address also” box to copy the Principal Address address.
Any address is acceptable regardless of location or PO Box.
Step 7: Business Email Address
Enter a preferred address where the Secretary of State should send correspondence regarding the LLC formation.
Step 8: Fiscal Year End (Month)
Select the preferred ending month for the LLC’s fiscal year. Single-Member LLCs and LLCs taxed as a partnership should choose December.
The default end month is December by the state.
Step 9: Registered Agent
To have an LLC in Vermont, a Registered Agent must be identified. The Registered Agent can either be a Vermont resident, a business entity, or a Registered Agent service. The agent must have a physical street address in the state (Post Office Boxes are not allowed) and act as a point of contact to receive legal documents, tax notices, summons, subpoenas, etc., on behalf of the LLC.
Even though the business owner can be the registered agent, their name and address become public record, and with that comes a loss of privacy. This is more important for some entrepreneurs, especially when they are doing business from home.
If you are using a Registered Agent service, enter their name and select “Search”, otherwise select “Create Agent” to add a new record.
Step 10: Manager/Member Information
This section asks about the management choice of the LLC.
- Member-Managed LLCs have an active involvement in the management and have the authority to act on behalf of the LLC.
- Manager-Managed LLCs are hired by the members to run the LLC, similar to a CEO of a corporation. This is generally used when there are passive members in the LLC, and the members do not actively manage or operate in the affairs of the business.
Most LLCs are member-managed.
The next question asks if the LLC has members at the time of filing. Select “Yes” or “No.”
The next section asking for the members/managers address is optional. Some filers won’t want to include their names because those names become part of public record. The downside of not include their names is it can make it more difficult to show ownership and do things like get licenses and open a bank account for the LLC.
Step 11: Other Provisions
This is an optional section and not used by most LLCs. Here you would include additional rules for the operation of the LLC.
Step 12: Certify
An organizer will need to certify the information being submitted is correct. An organizer is someone involved with the formation of the Articles of Organization. The Organizer may or may not become a member, such as a mentor, attorney, or accountant, but any of the initial members can be listed as an organizer.
If you want the LLC to start immediately, choose “This statement will be effective as of the date of this filing.” If you want the LLC to start later, choose “the effective date requested for this statement will be the date” where you can enter a date less than 90 days in the future. The main reason for delaying the LLC start date is when the filing is being done close to the end of a calendar year, and the business isn’t going to have any activity until the start of the year. By delaying until the following year, they will reduce the number of end-of-year filings.
Step 13: Review
Review that all the information is correct. If there are no corrections, click “Proceed to Pay.”
Step 14: Pay and File
Pay and file the Articles of Organization.