How to Register an LLC in Vermont: A Step-by-Step Guide

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By: Michaela Dale Updated on: June 13, 2024

Many emerging businesses have chosen to set up shop in Vermont. If you’re one of them, you’ve come to the right place. This guide has everything you need to know to register an LLC in Vermont and get your business up and running. 

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Vermont LLC Quick Facts 

  • Forming an LLC provides tax flexibility and personal asset protection. 
  • To register an LLC in Vermont, you must file Articles of Organization.
  • The filing fee to start an LLC in Vermont is $125 by mail or online.
  • In Vermont, all LLCs must submit an Annual Report every year. 

6 Steps to Forming an LLC in Vermont

Starting an LLC in Vermont only requires six straightforward steps. 

To register an LLC in Vermont, follow these six steps:

  1. Name Your Vermont LLC
  2. Designate a Registered Agent
  3. File the Articles of Organization 
  4. Create an Operating Agreement
  5. Obtain an EIN and Handle Taxes
  6. File a Beneficial Ownership Information Report

Step 1: Name Your Vermont LLC

The first step toward forming an LLC in Vermont is choosing a business name.

Vermont LLC names must adhere to the following guidelines:

  • Include Limited Liability Company, LLC, or Limited Company in the name
  • Ensure the name is unique and distinguishable from any other business entity in the state
  • Avoid using terms that imply government affiliation or falsify your business’s purpose
  • Cannot include discriminatory, indecent, or obscene language 

We recommend that you review Vermont’s naming guidelines in their entirety before selecting a business name. 

To confirm the availability of your chosen business name, you can conduct a name search on the Vermont Secretary of State website

Before you land on an LLC name, make sure the matching domain is available. Find your LLC domain name on GoDaddy today. 

Step 2: Designate a Registered Agent

To register an LLC in Vermont, you must appoint a registered agent. A registered agent in Vermont must have a physical address within the state and be available during normal business hours to receive legal documents and important notifications on behalf of the LLC. 

The registered agent can be an individual or a business entity, but they cannot be the LLC itself. It is typically recommended to choose a registered agent who is reliable and who can fulfill the responsibilities effectively.

Who is Eligible to Serve as a Registered Agent?

A registered agent can be the LLC owner, an employee of the company, a friend, a family member, or a registered agent service. 

Step 3: File the Articles of Organization

To officially register an LLC in Vermont, you must submit Articles of Organization to the Secretary of State. This document officially establishes your LLC in the state. You can complete this filing process online or by requesting Form LLC-1(D) to submit by mail or in person. 

The filing fee is $125

Quick Note: If your LLC is already formed in another state, you will need to register as a Vermont foreign LLC. You can complete your registration online along with a $125 filing fee. 

Step 4: Create an Operating Agreement

LLCs in Vermont are not required to create an operating agreement. However, it is still strongly recommended. This document outlines the internal procedures and ownership details of your company, ensuring that all LLC members are in alignment and helping to prevent future conflicts. 

An operating agreement will serve as a guide for how your LLC will be operated and managed, and will also help clarify the roles and responsibilities of each member within the organization. 

Step 5: Obtain an EIN and Handle Taxes

To obtain an Employer Identification Number (EIN) for your LLC in Vermont, visit the IRS website to receive your EIN for free. An EIN is necessary for tax reporting, hiring employees, and opening a business bank account.

Additionally, it is important to identify any additional tax obligations your LLC may have. Visit the Vermont Department of Taxes website to ensure that you comply with all state tax requirements for your business.

Step 6: File a Beneficial Ownership Information Report 

Once you’ve registered you LLC, you need to file a Beneficial Ownership Information (BOI) Report with the US Financial Crimes Enforcement Network (FinCEN). 

New LLCs must file this report within 90 days of formation, while existing LLCs must complete the filing between specific dates. Failing to do so can result in a fine of $500 per day.

You can file online for free on the FinCEN website

Next Steps 

  • Set up a business bank account to keep your personal and business assets separate. With Lili Banking and Accounting Services, you can set up your LLC business bank account in minutes. 

Lili is a financial technology company, not a bank. Banking services provided by Sunrise Banks N.A., Member FDIC.

  • Apply for any licenses and permits required for your business on the state and federal level. Visit the Vermont state website for more information on licensing requirements. 
  • File an Annual Report to maintain your LLC’s good standing. You can do so on the Secretary of State’s website between January 1 and April 1 of each year. 
  • Get business insurance to protect your business. Most new businesses start with general liability, workers’ compensation, and personal liability insurance. You can obtain quick, affordable coverage with NEXT Insurance

Additional Tips for Success

  • Research the requirements: Before registering your LLC in Vermont, it is important to research and understand the specific requirements and regulations that apply to your business type and industry in the state.
  • Register for taxes: Register for federal, state, and local taxes, including income tax, sales tax, and employment taxes. Understanding and fulfilling your tax obligations is essential for maintaining compliance and avoiding penalties.
  • Stay informed and seek professional advice: Keep abreast of any changes in Vermont’s LLC regulations and seek guidance from legal and financial advisors to ensure a successful LLC registration and operation.

Conclusion

Vermont is a great state to register your LLC. By following the necessary steps and completing the required paperwork, you can set up your business for success. Make sure to conduct thorough research and follow the process diligently to ensure a smooth registration experience.