Vermont's filing fee sits right around the national average, but there's a wrinkle multi-member LLCs need to plan for: a separate minimum tax layered on top of the usual annual report, one that single-member LLCs taxed as disregarded entities typically avoid. Figuring out which bucket your LLC falls into matters before you budget. This is what starting and running a Vermont business looks like in 2026.
1. Which business structure fits you?
Here's what's on the table before you file anything:
- Sole proprietorship. No filing needed to get started, since the business and you are one and the same legally. It's simple, but every debt the business incurs lands on you personally.
- Partnership. Two or more people running a business jointly, exposed to the same liability as a sole proprietor, just shared across everyone involved.
- LLC. The most popular structure for small Vermont businesses, since it keeps your personal assets walled off from the company's debts and lawsuits. Vermont also permits anonymous LLC formation, meaning member and manager names don't have to appear on the public filing.
- Corporation, S-corp or C-corp. Involves more paperwork and formal governance, generally worthwhile once investors or multiple shareholders come aboard.
Our guide on choosing a business structure covers the tradeoffs in more depth.
Registration is only required for LLCs and corporations, filed with the Vermont Secretary of State, Corporations Division, the agency responsible for statewide business filings. Sole proprietorships and general partnerships don't need to register there.
2. Register your business
Forming an LLC
You bring a Vermont LLC into existence by filing Articles of Organization through the Secretary of State's Online Business Service Center. The fee is $155, and online submissions tend to move through processing quickly.
A registered agent with a physical Vermont address, reachable during business hours, is required for every LLC. You can take on that role yourself or hire a commercial service to do it.
Nothing in state law makes an operating agreement mandatory, but it's still worth drafting one, especially for a multi-member LLC, since it lays out how decisions and profits actually get divided.
Sole proprietorships and DBAs
Sole proprietorships skip filing Articles of Organization entirely. Operating under a trade name means registering it separately with the Secretary of State for its own fee.
3. Get an EIN
An Employer Identification Number is free through the IRS and takes about 15 minutes to get online. You'll need one to open a business bank account, hire anyone, or file most business tax forms, even running a single-member LLC with no employees.
4. Check licenses and permits
Vermont has no single statewide business license covering every activity. What applies depends on your industry and city: professional licensing exists for regulated fields, some municipalities require local permits, and selling taxable goods or services means registering with the Department of Taxes for sales and use tax. Our guides on professional licensing by industry and zoning laws for home businesses cover both in more detail.
5. Understand Vermont taxes
Vermont's personal income tax is progressive, running from 3.35% up to 8.75%. Single-member LLCs taxed as disregarded entities generally skip a separate entity-level tax, but LLCs taxed as partnerships, or that elect S-corp status, owe Vermont's Business Entity Tax (BET). That comes with a $250 minimum even at zero income, calculated on a graduated schedule once you're above that floor.
Sales tax is a 6% state base, and some municipalities tack on up to 1% locally. Separately, Vermont charges a 9% meals and rooms tax on restaurant food and lodging.
6. Stay compliant
Vermont LLCs file an Annual Report with the Secretary of State within about 2.5 to 3 months of the fiscal year ending, which lands around mid-to-late March for calendar-year filers. The fee runs $35 to $45 depending on the current schedule. LLCs that owe the Business Entity Tax file that return, Form BI-471, separately and around the same time, 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, while 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 aren't required to appear on the public filing.
When is Vermont's Annual Report due?
Roughly 2.5 to 3 months after your fiscal year ends, typically mid-to-late March for calendar-year filers, and it costs $35 to $45.
What's Vermont's meals and rooms tax?
A separate 9% tax on restaurant food and lodging, charged in addition to the standard 6% sales tax.
Figures above come from the Vermont Secretary of State and Department of Taxes as of 2026, and they're subject to change, so confirm before filing. Nothing here is legal or tax advice. Talk to a Vermont-licensed attorney or CPA about your specific situation.