Pros and Cons of Doing Business in Vietnam: Is It Right for You?
Explore the benefits and drawbacks of doing business in Vietnam, from costs to regulatory considerations.
How to Start an LLC in Vermont | 2025
Over 76,000 small businesses are operating in the state of Vermont, making it appealing for entrepreneurs looking to launch or grow their company.
For entrepreneurs launching or relocating a business in Vermont, the state offers a clear and relatively quick process. This guide walks you through how to start a limited liability company in Vermont, including the steps to register your company, meet state requirements, and maintain long-term compliance.
In this article, we'll also talk about Wise Business, an international business account that could help you save on business payments.
Make International Payments with Ease
Wise Trustpilot Score: Excellent 4.3 out of 5 stars
No minimum balance requirement and no monthly fees
Integrates with QuickBooks, Xero, Sage, and more
How to Start an LLC in Vermont (Step-by-Step)
To legally form and operate an LLC in Vermont, you’ll need to complete a series of steps with the Vermont Secretary of State and the Internal Revenue Service (IRS). Here’s a breakdown of the entire process.
Step 1: Name Your Vermont LLC
The first step is choosing a name that meets Vermont’s legal standards. Your LLC name must be unique, distinguishable from existing business entities on record with the state, and must include one of the following designators: “Limited Liability Company,” “LLC,” or “L.L.C.”
Before moving forward, check name availability using the Vermont Business Name Search Tool. If you’re not quite ready to file, you can reserve your name for 120 days by submitting a name reservation form online with a $20 filing fee.
Step 2: Appoint a Vermont Registered Agent
All Vermont LLCs must appoint a registered agent—a person or business entity with a physical street address in Vermont that agrees to accept legal documents on behalf of the company. This is a legal requirement, not a formality. Your Vermont registered agent plays a critical role in ensuring that your business stays informed of tax notices, lawsuits, and other important documents.
You can act as your agent if you meet the residency and availability requirements, or you can hire a professional service for added privacy and compliance support.
Step 3: File the Articles of Organization
To officially create your limited liability company in Vermont, you must file Articles of Organization with the Secretary of State. This document includes key information about your business, such as:
- LLC name and business address
- Registered agent details
- Type of LLC (member-managed or manager-managed)
- Optional purpose statement
Filing method: Online (preferred for speed)
Filing fee: $125
Processing time: Typically 1 business day for online submissions
You’ll file through Vermont’s Online Business Service Center.
Step 4: Create an LLC Operating Agreement
Although Vermont does not legally require an LLC operating agreement, it is highly recommended—especially if your business has multiple members. This internal document defines the ownership structure, management roles, voting procedures, profit distribution, and what happens if a member leaves the company.
A clear operating agreement not only helps prevent internal disputes but also reinforces the separation between your personal and business finances, which is essential for preserving liability protection.
Step 5: Apply for a Federal Employer Identification Number (EIN)
An EIN, or Federal Employer Identification Number, is essentially your LLC’s Social Security Number. Issued by the IRS, it’s required if you plan to hire employees, open a business bank account, or elect corporate taxation.
Even single-member LLCs often benefit from having an EIN, especially if you want your personal and business finances separate. You can apply online at the IRS website at no cost.
Step 6: Register for State Taxes (If Applicable)
Depending on the nature of your Vermont business, you may need to register with the Vermont Department of Taxes. Common registrations include:
- Sales and Use Tax
- Meals and Rooms Tax
- Employee Withholding Tax
Use myVTax to register your business online. Consult a tax professional if unsure which obligations apply to your LLC.
Step 7: File Your Annual Report
Every Vermont LLC must file an Annual Report to remain in good standing. This keeps your business information current with the state and confirms your compliance.
The report is due annually by March 15 and must be submitted online through the Vermont Secretary of State’s website. There is a $35 filing fee at the time of submission. Missing this deadline could lead to the administrative dissolution of your company, so it’s important to mark your calendar or set a recurring reminder to stay compliant.
What Are the Business Requirements for a Vermont LLC?
To maintain a legally compliant LLC in Vermont, you’ll need to meet the following requirements:
- File Articles of Organization with the state.
- Maintain a registered agent in Vermont.
- Create and retain an LLC operating agreement.
- Obtain an EIN from the IRS.
- Register for any applicable Vermont state taxes.
- File your annual report on time.
- Secure any necessary business licenses or permits.
Note: Licensing requirements vary depending on industry and municipality. You can check with the Vermont Secretary of State and local city or county offices to confirm which permits apply to your business.
How to open a business account for my LLC (US and non-US residents)
If you want to open a business account, there are a few options available. However, it can be tricky getting US account details as a non-US resident. You can read the full guide on how to open a business bank account for LLC for the best tips.
One option to consider is the Wise Business account. Wise provides convenient business accounts that can be a great option for resident and non-US resident LLCs.
Open a Wise Business account today:
Easy to set up, easy to use
Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. You can open an account online and get US account details to receive payments like a local.
Moreover, the Wise Business account enables you to send, receive, and hold non-US currencies with ease. All in one place.
| Some key features of Wise Business include: |
|---|
|
What Are the Benefits of Starting an LLC in Vermont?
Forming a limited liability company in Vermont offers several advantages for small business owners:
- Limited liability protection: Your assets are shielded from business debts and lawsuits.
- Flexible taxation: You can choose to be taxed as a sole proprietor, partnership, or corporation.
- Reputation and simplicity: Vermont offers a streamlined, online-friendly formation process.
- Competitive tax rates: Vermont’s corporate tax starts at 6% on net income below $10,000.
- Low annual maintenance: With a $35 report fee and few state-level taxes, ongoing costs are manageable.
These benefits make Vermont especially attractive to small teams and mission-driven startups looking for legal protection and operational flexibility.
How Much Does It Cost to Start an LLC in Vermont?
The cost to form and maintain a Vermont LLC is relatively affordable. Here’s what to expect:
| Item | Cost |
|---|---|
| Articles of Organization | $125 |
| Name reservation (optional) | $20 |
| Annual report | $35/year |
| Registered agent service (optional) | $100–$300/year |
| EIN (IRS) | Free |
| Business licenses | Vary by industry |
Estimated startup cost: $125–$500+, depending on optional services and licensing requirements.
Can I Open an LLC in Vermont Without Living There?
Yes, you can form an LLC in Vermont even if you don’t live in the Green Mountain State. Residency is not a requirement for LLC ownership. However, if you're starting a Vermont LLC from out of state, you are still required to appoint a Vermont registered agent, provide a valid physical address in Vermont for service of process, and follow all applicable state regulations.
Can a Nonresident Open a Company in Vermont?
Yes, non-U.S. residents can legally form an LLC in Vermont. The state does not impose any citizenship or residency restrictions on business ownership.
To get started, you’ll need to designate a registered agent with a physical address in Vermont, obtain a Federal Employer Identification Number (EIN)—which you can apply for using IRS Form SS-4 even without a Social Security Number—and meet all relevant U.S. tax obligations.
If you’re a nonresident planning to operate a business in the United States, it’s highly recommended that you seek professional guidance. Consult with a tax attorney or accountant who specializes in cross-border compliance to ensure you meet all legal and tax obligations.
Vermont LLC vs.Other States: How It Compares
Choosing the right state to form your limited liability company (LLC) depends on your business goals, privacy needs, and tax strategy. Here’s how Vermont compares to three commonly considered states: Delaware, Wyoming, and New Hampshire.
| Feature | Vermont | Delaware | Wyoming | New Hampshire |
|---|---|---|---|---|
| Filing Fee | $125 | $110 | $100 | $102 |
| Annual Report Fee | $35 | $300 | $60 | $100 |
| Privacy | Moderate | High | High | Moderate |
| Tax Environment | No franchise tax; low ongoing costs | No state income tax but $300 franchise tax | No income or franchise tax | No sales tax; business profits tax applies |
| Best For | Small businesses & ethical brands | Venture-backed startups | Asset protection & anonymity | Local businesses seeking simplicity |
Delaware is ideal for companies planning to raise capital, thanks to its business-friendly legal system—but the flat $300 franchise tax can add up for smaller operations. Wyoming appeals to founders who prioritize privacy and minimal taxation. New Hampshire offers a no-sales-tax environment, but its business profits tax may affect margins.
Vermont remains a strong contender for small to midsize businesses. With affordable fees, no franchise tax, and a focus on sustainability and local entrepreneurship, it strikes a balance between ease of formation and long-term operational value.
Send Business Cross-currency Payments at Low Cost
FAQ: Vermont LLC
Privacy Protections for Vermont LLCs
Vermont requires LLCs to list member or manager names in their filings. This means the state doesn’t offer the same level of owner anonymity as Delaware or Wyoming. However, using a third-party registered agent can offer privacy by shielding your home address from public records.
Why Do People Use Vermont for LLCs?
Entrepreneurs choose Vermont LLCs for their simplicity, fast filing process, low maintenance costs, and reputation for ethical business. It’s especially appealing for mission-driven or sustainability-focused startups.
Is a Vermont LLC Tax-Free?
No. While Vermont doesn’t impose a franchise tax like some states, your LLC will still be subject to:
- Federal income taxes (based on your tax classification)
- Vermont corporate or personal income taxes (if applicable)
- Sales tax or meals & rooms tax, depending on your business type
What Are the Disadvantages of a Vermont LLC?
There are some disadvantages of forming an LLC in Vermont, including:
- Less privacy than in states like Wyoming.
- Slightly higher filing fee compared to Delaware.
- Fewer startup-specific perks or legal precedents than Delaware.
Conclusion
If you're building a team, safeguarding personal assets, or establishing a professional business structure, forming a limited liability company in Vermont is a smart move. The process is accessible to both residents and nonresidents, and the ongoing compliance requirements are minimal.
Now that you know exactly how to start an LLC in Vermont, you’re well-positioned to take the next step—filing your Articles of Organization, applying for an EIN, or opening a business bank account to separate your personal and business finances.
If you're ready to get started, visit the Vermont Secretary of State’s website to get started.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
Money without borders
Find out more
Outsourcing to Mexico: Costs, Benefits, and Best Practices
Discover the benefits of outsourcing to Mexico, from cost savings to skilled labor, and how to get started.
Company Formation in Hungary for US Entrepreneurs
Company formation in Hungary offers access to the EU market, low taxes, and residency options. Learn about the steps, costs, and compliance rules.
Company Formation in Romania: Guide for US Entrepreneurs
Company formation in Romania is a strong option for Americans looking to enter the European market at low costs and low tax rates.
Company Formation in Poland: Guide for US Entrepreneurs in 2025
Learn how U.S. entrepreneurs can navigate company formation in Poland, from registration costs to tax benefits, and start doing business in Europe.
Company Formation in Bulgaria: A Path to the EU for US Entrepreneurs
Learn how company formation in Bulgaria works, from costs and benefits to registration steps. A full guide for U.S. entrepreneurs entering the EU market.
