Vermont is known for its bed and breakfasts, skiing, holiday movies, and maple syrup but it offers much more than that for business owners. To start a business in Vermont, you need a business name. Vermont, like all states, has its own rules and ways of choosing a proper business name.
Here is a guide that helps you find the right business name in Vermont, along with other tips for growing a business in the state of Vermont.
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How to check business name availability in Vermont
As mentioned, you can’t just pick any name for a Vermont business, it must be unique and available. How do you find out if a certain name is available? Here’s how:
1. Go to the Vermont Secretary of State website
First, you will need to use the search tool available on the state website.
2. Type in the business name or keywords.
You will see a form where it asks for the business name. You may also type in keywords to see which businesses are using words you are considering. You may also use the advanced search to see what types of businesses are plentiful in the state and their names.
3. Hit search
A list of names will pop up that includes all names you are considering.
4. Consider reserving a name
After running a Vermont business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
Vermont allows business owners to reserve a name for 120 days for $20.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Vermont, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
5. Check domain name availability
We created a tool that makes it easy.
How to name your Vermont business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Vermont company?
As you research available business names in Vermont, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Vermont business
Ready to set up your business in VT? Here’s what you do:
1. File your Articles of Organization
Visit the Vermont Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information. You’ll start by clicking the “acknowledge” button on the Vermont Secretary of State’s website. That will lead you to a login page. If you don’t have an account yet, go ahead and make one. Once you’ve created your account and logged in, you’ll have access to the Articles of Organization form.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Vermont, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Vermont, the cost is $125.
4. Wait for approval
Vermont will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Vermont small business facts
Before you start considering business name availability in Vermont, take a look at these small business statistics from the U.S. Business Administration:
- Vermont small businesses employed 157,322 people, or 60.8% of the private workforce, in 2017.
- The number of proprietors increased in 2018 by 2.5% relative to the previous year.
- Firms with fewer than 20 employees have the largest share of small business employment.
- Small businesses created 1,635 net jobs in 2019. Firms employing fewer than 20 employees experienced the largest gains, adding 1,537 net jobs. The largest losses were in firms employing 100 to 499 employees, which lost 24 net jobs.
- In the fourth quarter of 2019, Vermont grew at an annual rate of 2.3%, which was faster than the overall US growth rate of 2.1%. Vermont’s 2019 overall growth rate of 2.5% was up from the 2018 rate of 1.2%.
- Private-sector employment decreased 25.4% during the 12-month period ending in April 2020. This was below the increase of 0.4% during the prior 12-month period.
- In April 2020, the unemployment rate was 15.6%, up from 2.3% in April 2019. This was above the April 2020 national unemployment rate of 14.7%.
- The median income for self–employed individuals at their own incorporated businesses was $45,819 in 2018. For self–employed individuals at their own unincorporated firms, median income was $22,935.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Vermont:
Why is it so important to check on business name availability?
Vermont will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
Is Vermont a good place to start a business?
While Vermont is a great place for tourists, it can be tricky to launch a business in the state. The biggest hurdle facing business owners is cost. The state has high taxes, a high cost of living, and high startup business costs.
Do I need a business license in Vermont?
While the state doesn’t require a general business license to start a business, your local governments might. Check with local officials and also ask if there are additional professional licenses required to operate.
Do you need a Vermont business tax account?
The majority of businesses in Vermont must register with the Vermont Department of Taxes. There are several types of taxes required for businesses to pay including sales and use of meals and rooms and withholding. Each requires a separate business tax account.
What are Vermont’s main sources of income?
Industries that provide most of the state’s income include hotels and ski resorts, law firms, private health care, and repair shows. Also ranking high is insurance, finance, and real estate services that are based on home sales.
Is every business in Vermont required to withhold state income tax?
Every employer in Vermont must withhold state income tax. The state department has a guide on how much to withhold and instructions for doing so. It includes tables and charts and answers all questions business owners have about withholding state income tax.
What is the top industry in Vermont?
The largest industry in Vermont is outpatient medical services. It generated $1.3 billion in 2016.
Does Vermont export any goods?
Yes, Vermont has a large export industry for its size. The largest manufacturing export industry is a computer and electronic products. That industry totaled. $1.9 billion of the state’s total exported goods in 2018.
What are some natural resources in Vermont that are good for the industry?
Vermont has a lot of natural resources including soil and forests that cover most of the state. There are also hardwood trees, birches, maples, and poplars as well as softwood trees which are used for various wood and paper industries.
Is Vermont business-friendly?
State legislators are concerned about the state’s reputation with businesses. They say the state needs to improve its business atmosphere by considering several types of legislation to improve the state’s economy. Vermont currently ranks 48 in the nation for business friendliness.
Is Vermont a wealthy state?
Vermont ranks in the middle of the national per capita income in the United States. The latest figures publicly available show its personal per capita income is $30,740 according to 2003 figures.
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