Vermont's filing fee is fairly standard, but multi-member LLCs face a separate minimum tax on top of the usual annual report, one that single-member LLCs taxed as disregarded entities generally don't owe. It's worth knowing which bucket your LLC falls into before you budget. Here's what it takes to start a business in Vermont in 2026.
1. Which business structure fits you?
Before you file anything, it helps to know what you're actually choosing between.
- Sole proprietorship. No filing required to start, and you and the business are legally the same entity. Simple, but you're personally liable for whatever the business owes.
- Partnership. Two or more people running a business together, with the same liability exposure as a sole proprietorship, just split across partners.
- LLC. The most common structure for small businesses in Vermont. It separates your personal assets from the business's debts and lawsuits. Vermont also allows anonymous LLC formation, where member and manager names are optional on the public filing.
- Corporation, either S-corp or C-corp. More paperwork and more formality, usually worth it once you're bringing on investors or multiple shareholders.
For a deeper comparison, see our guide on choosing a business structure.
LLCs and corporations register with the Vermont Secretary of State, Corporations Division, the agency that handles business filings statewide. Sole proprietorships and general partnerships don't register there.
2. Register your business
Forming an LLC
You form an LLC in Vermont by filing Articles of Organization online through the Secretary of State's Online Business Service Center. The filing fee is $155, and online filings typically process quickly.
Every LLC needs a registered agent with a physical Vermont address, available during business hours. You can act as your own agent, or hire a commercial service.
Vermont doesn't require an operating agreement by law, but it's still worth writing one, particularly for multi-member LLCs, to spell out how decisions and profits get split.
Sole proprietorships and DBAs
Sole proprietorships don't file Articles of Organization. If you're operating under a trade name, you'll register it with the Secretary of State for a separate fee.
3. Get an EIN
An Employer Identification Number is free straight from the IRS and takes about 15 minutes online. You'll need one to open a business bank account, hire anyone, or file most business tax forms, even if you're a single-member LLC with no employees.
4. Check licenses and permits
Vermont doesn't issue a single general statewide business license either. What you need depends on your industry and city: professional licensing for regulated fields, local permits in some municipalities, and registration with the Department of Taxes for sales and use tax if you sell taxable goods or services. Our guides on professional licensing by industry and zoning laws for home businesses cover more of this.
5. Understand Vermont taxes
Vermont has a progressive personal income tax, from 3.35% up to 8.75%. Single-member LLCs taxed as disregarded entities generally don't owe a separate entity-level tax, but LLCs taxed as partnerships or that elect S-corp status owe Vermont's Business Entity Tax (BET), with a $250 minimum even at zero income, calculated on a graduated schedule above that floor.
Sales tax is a 6% state base, with some municipalities adding up to 1% locally. Vermont also has a separate 9% meals and rooms tax that applies to restaurant food and lodging.
6. Stay compliant
Every Vermont LLC files an Annual Report with the Secretary of State, due within about 2.5 to 3 months after your fiscal year ends, typically by mid-to-late March for calendar-year filers. The fee runs $35 to $45 depending on the current fee schedule. If your LLC owes the Business Entity Tax, that return (Form BI-471) is generally due around the same time, separately, with the Department of Taxes.
Vermont business costs at a glance
| Item | Cost |
|---|---|
| Articles of Organization (LLC) | $155 |
| Annual Report (every year, ~3 months after fiscal year end) | $35 to $45 |
| Business Entity Tax (multi-member / S-corp LLCs) | $250 minimum |
| Registered agent service (optional) | $99 to $300/year |
| EIN | Free (IRS) |
| State income tax | 3.35% to 8.75% (progressive) |
| State sales tax | 6% + up to 1% local |
Frequently asked questions
Do all Vermont LLCs owe the Business Entity Tax?
No, single-member LLCs taxed as disregarded entities generally don't owe it, but LLCs taxed as partnerships or electing S-corp status owe a $250 minimum.
How much does it cost to form an LLC in Vermont?
$155 for Articles of Organization, filed online through the Secretary of State's portal.
Does Vermont allow anonymous LLC formation?
Yes, member and manager names are optional on the public filing.
When is Vermont's Annual Report due?
Within about 2.5 to 3 months after your fiscal year ends, typically by mid-to-late March for calendar-year filers, for $35 to $45.
What's Vermont's meals and rooms tax?
A separate 9% tax that applies to restaurant food and lodging, on top of the standard 6% sales tax.
Fees and rates above come from the Vermont Secretary of State and Department of Taxes as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Vermont-licensed attorney or CPA about your specific situation.