Last Updated: September 10, 2024, 9:13 am by TRUiC Team


Vermont LLC Cost

The minimum Vermont LLC cost is $125, which covers the processing fee for filing your LLC formation document (known as the Articles of Organization).

However, the total cost of establishing a Vermont LLC can vary based on your business needs and unique preferences.

In our Vermont LLC Cost article, we provide a detailed overview of the costs associated with starting and maintaining an LLC in the state.

More than 84% of our readers form their LLC through a professional service to save time and avoid mistakes.

Northwest ($29 + State Fees)

How Much Does a Vermont LLC Cost 

Below is a summary of the primary requirements and associated fees for forming a Vermont LLC.

LLC Cost Summary

Requirement Fee
Articles of Organization $125+
Registered Agent $0-$130+
LLC Name $0-$70

Vermont LLC Filing Fee ($125+)

To legally form an LLC in Vermont, you must submit the right formation document to the Secretary of State. 

For domestic entities (i.e., those operating within Vermont) this is the Articles of Organization, while for foreign entities (i.e., those operating outside of Vermont) a Certificate of Authority must be filed instead.

The filing fee for both domestic and foreign LLCs is $125, and this can be submitted in-person, by mail, or online through the Vermont Secretary of State’s Business Service Center.

If you opt to use an LLC formation service, the cost will be slightly higher as there will be a small service fee on top of the state’s fees. 

The price of an LLC formation service is generally around $29, although this can be a lot more or a lot less depending on the provider you choose. 

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Have a look at our in-depth review of the best and most affordable LLC Formation Services in 2024. 

Vermont Registered Agent ($0-$130+)

As part of the LLC formation process, you’ll need to appoint a registered agent. This individual or entity in Vermont will accept legal documents and government correspondence on behalf of your LLC.

While you can act as your own registered agent at no cost, many business owners prefer to hire a professional service in order to avoid penalties for non-compliance and keep their personal information private.

The cost for registered agent services in Vermont typically starts at around $130 per year, but can go well above $300 per year depending on the choice of features and provider. 

Get a Free Registered Agent Service

Form an LLC with Northwest Registered Agent to get one year of registered agent services free of charge ($29 + State Fees).

Vermont LLC Name ($0-$70)

While registering a name itself is free, there are two potential costs involved with the overall process. 

Reserving a Name

If you’ve chosen a name but aren’t ready to form your LLC yet, you can reserve it for 120 days by filing an Entity Name Reservation form with the Vermont Secretary of State’s Corporation Division. 

This costs $20. After the reservation period expires, you can renew it twice, each time for another $20.

We recommend performing a Business Entity Name Search on the Vermont Secretary of State’s website to confirm that your desired name is available before attempting to reserve it. 

You should also ensure that the name’s corresponding domain is available, as you’ll need this for your business website.

Find a Domain Now

Doing Business As (DBA) Name

If you plan to operate your business under a different name, you’ll need to register a DBA (Doing Business As) name. 

In Vermont, you can register a DBA name online or by mail — both for a $50 filing fee. Electronic filing typically takes less than one business day, while paper filing can take seven to ten business days.

Note: DBAs in Vermont need to be renewed every five years to remain valid.

Optional Vermont LLC Formation Costs

In addition to the standard fees, you may be subject to a few additional costs depending on your unique circumstances and needs.

Vermont LLC Operating Agreement

While not legally required, it’s advisable for Vermont LLCs to have an operating agreement. This document outlines the roles and responsibilities of LLC members or managers and helps prevent disputes.

You can create an operating agreement yourself at no cost, or hire an online service or attorney, which typically costs several hundred dollars. This document is for internal use only and does not need to be filed with the state.

Local Business Licenses

Depending on your LLC’s location and activities, you may need local business licenses. For example, a Peddler License in Burlington can cost anywhere between $100 and $300, depending on the district.

This is generally reflective of the licensing situation in most Vermont municipalities, with business licenses typically ranging from $50 to several hundred dollars. 

You can find the relevant contact information for your local city on the Towns & Cities page of the Vermont Government website.

Certificate of Good Standing

A Certificate of Good Standing may be required to open a business bank account or secure loans. This certificate can be obtained online through the Vermont Secretary of State’s Business Service Center for $25.

Note: You’ll need to create an account with the Vermont Secretary of State’s Online Business Service Center if you haven’t done so already.

Ongoing Costs to Maintain a Vermont LLC

In addition to the initial costs of forming an LLC in Vermont, there are ongoing expenses that you must account for to maintain your business.

Annual Report

Your Vermont LLC must file an Annual Report with the Secretary of State, which costs $35. This can either be done online or via mail by submitting a form request. 

This report is due within three months of the close of the previous fiscal year.

Note: Failure to submit the Annual Report on time will result in a $25 reinstatement fee.

Registered Agent Maintenance

If you choose to use a professional registered agent to handle your legal documents, you’ll need to pay an annual fee for their services. 

The cost of this service varies, typically ranging from $125 to $300 per year, depending on the provider and the features you select. 

Even though this is undoubtedly not mandatory, it is generally highly recommended for most new business owners.

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Ready to Get Started?

Have a look at our LLC Vermont Guide (DIY Approach)

Let Northwest Registered Agent handle it for you ($29 + State Fees) 

Vermont LLC vs Other States

While Vermont’s $125 initial filing fee and $35 annual report fee make it more expensive than some states, it’s still relatively affordable.

For example, California imposes an $800 annual franchise tax, making Vermont a more affordable option in comparison. However, states like Texas, which has a $300 filing fee but no ongoing costs, might be cheaper in the long run.

Regardless, the best state to form your LLC in is usually where you plan to operate your business from, as this can ensure that you do not end up having to pay maintenance and registration fees in more than one state.

Vermont LLC Cost FAQ

To start an LLC in Vermont, you need to file the Articles of Organization with the Secretary of State. You can file this document online or by mail, and the filing fee is $125.

A registered agent for a Vermont LLC is a person or entity that is designated to receive important tax and legal documents on behalf of the business. In Vermont, the registered agent doesn't need to provide official consent when they are initially assigned or if the role is changed later on.

Yes, a Vermont LLC can operate under an assumed business name. This can be beneficial for marketing purposes or if the original name of the LLC changes over time. This is also referred to as a DBA or "doing business as" name.

Every year, Vermont LLCs must file an annual report. The fee for this report is $35. Additionally, Vermont LLCs must pay an annual Business Entity Income Tax, which starts at $250.

An LLC formation service can offer several benefits for a Vermont LLC. It can provide assistance with filing the Articles of Organization, help maintain compliance with annual reporting requirements, and often offer Registered Agent services. This can make the process of starting and maintaining an LLC easier and more efficient.

In Vermont, you can use the Business Entity Search tool on the Secretary of State's website to check if a business name is already in use. This tool lets you search the database of registered Vermont businesses to ensure your desired name isn't already taken.

A Certificate of Good Standing in Vermont is a document that shows an LLC is legally registered in the state and has fulfilled all its state requirements. This certificate is often necessary when applying for business loans or when the business is engaging in transactions with other businesses or government entities.

Article Sources

Vermont Department of Taxes:
https://tax.vermont.gov/

IRS - Employer ID Number:
https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

Vermont Secretary of State Corporations Division:
https://bizfilings.vermont.gov/online

SBA - Applying for licenses and permits
https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits

Chamber of Commerce - Vermont Chamber of Commerce List:
http://www.officialusa.com/stateguides/chambers/Vermont.html