How to Start a Business in Vermont (2026 Guide)

Starting a business in Vermont takes four core filings: Articles of Organization or Incorporation with the Vermont Secretary of State ($155 for an LLC or corporation as of October 2026), an EIN from the IRS, a business tax account with the Department of Taxes through myVTax, and employer accounts if you hire. Sole proprietors who trade under a name other than their own register an assumed business name for $70 instead of forming an entity.

Budget for the yearly costs too. Vermont LLCs file a $45 annual report, and most pass-through entities pay a $250 minimum business entity income tax even in a slow year.

Updated October 2026.

Best Business Formation Services in Vermont (2026)

If you’d rather not handle forming a business in Vermont yourself, these are the services we recommend, in order. The table compares price and what’s included.

1. Mainstay Filing

Mainstay Filing is our top pick in Vermont. It costs $199/year + state fee at cost and covers lLC formation filing, registered agent for the year, EIN application, annual report preparation and filing. The price stays the same every year, with no add-on menu.

2. VT Registered Agent.org

VT Registered Agent.org is a Vermont registered agent service at $99/year. It provides $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.

3. Vermont Registered Agent.co

Vermont Registered Agent.co is a Vermont registered agent service at $99/year. It provides in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.

Vermont at a glance (October 2026)

Fees are from the Secretary of State’s fee schedule. Mainstay Filing also lays out Vermont LLC costs for first-year planning.

Which structure should a Vermont business use?

Small Vermont businesses typically choose one of four structures:

• Sole proprietorship. The simplest start. Nothing to file with the state unless you use a business name that does not include your full legal name, in which case you register an assumed business name. You carry personal liability for business debts.
• General partnership. Two or more people in business together. Partnerships also register an assumed business name if they operate under a trade name, and partners share personal liability.
• LLC. Liability protection with flexible management and federal tax options. Vermont also offers specialized versions, including low-profit LLCs (L3Cs) and blockchain-based LLCs. For the full filing walkthrough, see how to start an LLC in Vermont.
• Corporation. Suited to businesses that will issue shares or seek investors. Vermont also allows benefit corporations for mission-driven companies.

For most owners, an LLC is the practical default. Keep in mind that LLCs and S corporations owe the $250 minimum entity tax each year, which a sole proprietor does not.

How do I name my business in Vermont?

Vermont uses a “distinguishable on the record” standard: if your name is too similar to one already registered, the Secretary of State will reject it. Search the Vermont business name database first, or follow our step-by-step Vermont business name search guide. An LLC name must include a designator such as “Limited Liability Company” or “LLC”.

The Secretary of State advises against buying signs, cards or a website until your name is confirmed. You can check the online side in seconds, though: Namechk shows whether the matching domain and social handles are free. If you need ideas, start with the business name generator.

Reserving a name or registering a DBA

An LLC name reservation costs $25, and a corporate name reservation costs $40. An assumed business name registration costs $70 and must be renewed every five years. Individuals who do business under a name that includes their full legal name, such as “Jane Smith Carpentry”, are exempt from registering, but many banks and vendors still ask for the registration. An assumed name cannot include words such as “LLC”, “Inc.” or “Corporation” that suggest it is a separate entity.

Who can serve as a registered agent in Vermont?

Every Vermont LLC and corporation needs a registered agent with a physical address in Vermont. The Secretary of State counts an up-to-date registered agent, registered office and agent mailing address as part of staying in good standing.

You can act as your own agent if you have a Vermont address and are reliably there during business hours. Owners who live out of state, or who would rather not publish a home address, often hire a commercial service. Mainstay Filing provides a Vermont registered agent for the first year as part of its formation package. Changing an LLC’s agent later costs $35.

How to file your Vermont formation documents

Vermont handles most filings electronically through the Online Business Service Center. Paper forms are available only on request.

1. Create an account in the Online Business Service Center.
2. Choose Articles of Organization (LLC) or Articles of Incorporation (corporation).
3. Enter the name, registered agent, principal office, and the organizers or incorporators.
4. Set your fiscal year end. This matters later, because your annual report deadline is tied to it.
5. Pay the $155 filing fee.

After approval, write an operating agreement for an LLC, or adopt bylaws for a corporation. Vermont does not collect these documents, but they govern ownership and decision-making, and banks often request them.

Apply for an EIN

The IRS issues Employer Identification Numbers for free through its online application. You need one to register most Vermont tax accounts, hire employees and open a business bank account.

Register with the Vermont Department of Taxes

Vermont business taxes are managed in myVTax, where you register for a business tax account. Common accounts for new businesses:

• Sales and use tax. Vermont charges 6% on retail sales of tangible personal property unless exempt, per the Department of Taxes. Some towns add a local option tax, and sellers with local option sales must file electronically.
• Meals and rooms tax. Restaurants, bars and lodging businesses collect this separate tax.
• Withholding. Required once you pay employees.
• Business entity income tax. LLCs taxed as partnerships, partnerships and S corporations file Form BI-471 and generally pay a $250 minimum tax, according to the business entity income tax page. C corporations file Vermont corporate income tax instead.

Hiring in Vermont

Register with the Vermont Department of Labor for unemployment insurance before you pay wages, and carry workers’ compensation insurance for your employees. Vermont’s minimum wage is $14.42 per hour as of January 1, 2026, and $7.21 per hour for tipped employees, per the Department of Labor. The department also offers guidance on employee classification, which matters if you plan to use independent contractors.

Licenses and permits

Vermont does not issue a general state business license. Instead, look at:

• Professional licenses from the Office of Professional Regulation, part of the Secretary of State’s office, which licenses dozens of occupations from cosmetology to engineering.
• Health and food licenses for restaurants, caterers and lodging, through the Department of Health.
• Alcohol and tobacco licenses through the Division of Liquor Control and your town.
• Local permits such as zoning, building and sign permits from your town or city. Larger development projects may also need an Act 250 land use permit.

Call your town clerk or zoning administrator early, especially for home-based or food businesses.

Banking and insurance

With your approved Articles, EIN and operating agreement, open a business checking account and keep business spending separate. That separation protects your liability shield and makes the BI-471 and federal returns easier. Insurance worth comparing includes general liability, professional liability, commercial property and commercial auto, plus workers’ compensation once you hire.

When are Vermont annual reports due?

Vermont ties the annual report to your fiscal year end, not a single statewide date. According to the Secretary of State, LLCs file within three months after the fiscal year end on record, and profit corporations file within two and a half months. For a calendar-year LLC, that means filing by the end of March.

The fee is $45 for a domestic LLC and $60 for a domestic corporation. You can look up your fiscal year end by searching your business in the online database. Staying current on reports and your registered agent keeps the business in good standing.

A website for your Vermont business

Register a domain that matches your business name, then publish a simple site with what you sell, where you are and how to reach you. These builders make that straightforward:

An easy-to-use website builder that lets users create attractive online stores.

Visit Square Online

Easy-to-use, no-code, hosted website builder. Great for beginners.

Visit Wix

Create, sell, and market your business from one place.

Visit Squarespace

FAQs

Disclosure: We may earn a commission from services recommended on this page.