1. Vermont LLC Overview

If you operate a business in Vermont, forming a local LLC offers liability protection and pass-through taxation. The state makes ongoing compliance very affordable with one of the lowest annual report fees in New England.

  • Reasonable formation fee — $125 to file Articles of Organization
  • Low annual fee — Just $35 per year
  • No franchise tax — Standard LLCs don't pay a corporate franchise tax

2. Vermont LLC Requirements

  • Name must contain "Limited Liability Company" or "LLC"
  • Appoint a registered agent with a Vermont physical address
  • File Articles of Organization with the Secretary of State ($125)
  • File an Annual Report within three months of your fiscal year-end ($35)

3. Vermont LLC Costs and Fees (2026)

Cost Item Amount Notes
Articles of Organization$125One-time state filing fee
Annual Report$35/yearDue by March 31 (for calendar year LLCs)
Registered Agent$50–$150/yearRequired VT physical address
EINFreeApply at IRS.gov
Operating Agreement$0–$1,000Recommended, not legally required

4. How to Start a Vermont LLC (Step by Step)

  1. 1 Choose your LLC name (must include "Limited Liability Company" or "LLC")
  2. 2 Appoint a registered agent with a Vermont physical address
  3. 3 File Articles of Organization with the VT Secretary of State ($125)
  4. 4 Obtain an EIN from the IRS (free at IRS.gov)
  5. 5 Draft an Operating Agreement (not filed, but legally binding)
  6. 6 File an Annual Report each year ($35)
  7. 7 Open a business bank account

5. Vermont Annual Report

Vermont LLCs must file an Annual Report to maintain their active status.

  • Due Date: Due within three months after the end of your LLC's fiscal year. Since most LLCs use the calendar year (ending Dec 31), the deadline is typically March 31.
  • Fee: $35.
  • Filing: Filed online via the Secretary of State's portal.

6. Vermont LLC Taxes (2026)

  • State income tax — 3.35% to 8.75% graduated rate on pass-through profits
  • Federal income tax — Pass-through to personal return
  • Self-employment tax — 15.3% on net earnings
  • Sales tax — 6% state base rate + local county/city additions (often 1% max)

7. Best For / Not Best For

Best For

  • Entrepreneurs living and operating in Vermont
  • Founders wanting low ongoing compliance fees ($35/year)

Not Best For

  • Out-of-state owners without Vermont nexus
  • Businesses highly sensitive to state income taxes