Is it cheaper to form an LLC in North Dakota or Vermont?

North Dakota is cheaper at formation ($135) than Vermont ($155). Ongoing costs are also different: $150 vs $145 per year. Total over three years: $585 vs $590.

Can I form an LLC in North Dakota if I live in Vermont?

Yes, but your Vermont business will almost certainly need to register as a foreign LLC in Vermont too, which means paying Vermont's foreign registration fee and any ongoing Vermont obligations on top of the North Dakota ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

How long does it take to form an LLC in North Dakota vs Vermont?

North Dakota online: 5 business days; Vermont online: 3 business days. North Dakota does not offer paid expedite. Vermont does not offer paid expedite.

Which state has lower taxes for an LLC, North Dakota or Vermont?

North Dakota: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Vermont: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.

Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. North Dakota and Vermont both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in North Dakota or Vermont to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

North Dakota vs Vermont LLC comparison

North Dakota charges $135 to form an LLC; Vermont charges $155. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, North Dakota runs about $5 less in total state fees than Vermont. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

On speed, Vermont typically clears standard online filings faster than North Dakota. Both states offer expedited tiers at an additional cost for filers on tight timelines.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee

North Dakota $135

Vermont $155

North Dakota saves $20

Year 1 total estimate

North Dakota $285

Vermont $300

North Dakota saves $15

Ongoing per year

North Dakota $150

Vermont $145

Vermont saves $5

3-year total

North Dakota $585

Vermont $590

North Dakota saves $5

Key differences at a glance

North Dakota costs $20 less to form ($135 vs $155).
Vermont is $5 per year cheaper to maintain ($145 vs $150).

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

North Dakota Vermont

Year 1

$285

$300

Year 2

$435

$445

Year 3

$585

$590

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario	Year 1	Each year after	3-year total
You live in North Dakota, business operates there No foreign LLC registration needed. You pay North Dakota fees only.	$285	$150	$585
You live in Vermont, business operates there No foreign LLC registration needed. You pay Vermont fees only.	$300	$145	$590
Non-resident forming in North Dakota with operations elsewhere You pay North Dakota's fees plus a typical home-state foreign LLC registration of about $200 per year.	$485	$350	$1,185
Non-resident forming in Vermont with operations elsewhere You pay Vermont's fees plus a typical home-state foreign LLC registration of about $200 per year.	$500	$345	$1,190

North Dakota vs Vermont: full comparison

Dimension	North Dakota	Vermont
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	5 business days	3 business days
Expedited option Neither state offers paid expedite	Not offered	Not offered
Annual report Required in addition to tax	Required, $50	Required, $45
State-imposed annual tax Franchise, privilege, or LLC tax minimum	None	None
State income tax On pass-through LLC income at member level	Yes	Yes
Publication requirement Newspaper publication after formation	No	No
Operating agreement Required by state statute	Recommended, not required	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$135	$155
State sales tax General statewide rate	5.0%	6.0%

Taxes in North Dakota and Vermont

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

North Dakota tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 4.3%.

Vermont tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 8.5%.

Ongoing compliance

The recurring filings each state requires after formation.

North Dakota

Annual report $50, due 11/15 each year. Registered agent required in North Dakota.

Vermont

Annual report $45, due on your anniversary month. Registered agent required in Vermont.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

North Dakota

Check business-name availability on the North Dakota entity search.
Appoint a registered agent with a physical North Dakota street address.
File Articles of Organization (Limited Liability Company) for $135.
Wait for approval. Online typically 5 business days. No paid expedite offered.
Adopt an operating agreement (recommended, not required by North Dakota statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $50 when it comes due.

Vermont

Check business-name availability on the Vermont entity search.
Appoint a registered agent with a physical Vermont street address.
File Articles of Organization for $155.
Wait for approval. Online typically 3 business days. No paid expedite offered.
Adopt an operating agreement (recommended, not required by Vermont statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $45 when it comes due.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both North Dakota and Vermont (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in North Dakota or Vermont does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

North Dakota Secretary of State - Business Services

Website: sos.nd.gov
Phone: (701) 328-2900
Email: sosbir@nd.gov
Mail: 600 E Boulevard Avenue, Dept 108, Bismarck, ND 58505-0500
Hours: 8:00 AM to 5:00 PM Central, Monday to Friday

Vermont Secretary of State, Corporations Division

Website: sos.vermont.gov/corporations
Phone: (802) 828-2386
Email: SOS.CorporationsSupport@vermont.gov
Mail: Vermont Secretary of State, Corporations Division, 128 State Street, Montpelier, VT 05633-1104
Office: 128 State Street, Montpelier, VT 05633-1104
Hours: 7:45 AM to 4:30 PM Eastern, Monday to Friday

North Dakota Office of State Tax Commissioner

Website: www.tax.nd.gov
Phone: (701) 328-7088
Mail: 600 E. Boulevard Ave., Dept. 127, Bismarck, ND 58505-0599
Hours: 8:00 AM to 5:00 PM Central, Monday to Friday

Vermont Department of Taxes

Website: tax.vermont.gov
Phone: (802) 828-2505
Email: tax.business@vermont.gov
Mail: Vermont Department of Taxes, 133 State Street, 1st Floor, Montpelier, VT 05633-1401
Office: 133 State Street, Montpelier, VT 05633-1401
Hours: 7:45 AM to 4:30 PM Eastern, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in North Dakota or Vermont?

North Dakota is cheaper at formation ($135) than Vermont ($155). Ongoing costs are also different: $150 vs $145 per year. Total over three years: $585 vs $590.
Can I form an LLC in North Dakota if I live in Vermont?

Yes, but your Vermont business will almost certainly need to register as a foreign LLC in Vermont too, which means paying Vermont's foreign registration fee and any ongoing Vermont obligations on top of the North Dakota ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
How long does it take to form an LLC in North Dakota vs Vermont?

North Dakota online: 5 business days; Vermont online: 3 business days. North Dakota does not offer paid expedite. Vermont does not offer paid expedite.
Which state has lower taxes for an LLC, North Dakota or Vermont?

North Dakota: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Vermont: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. North Dakota and Vermont both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in North Dakota or Vermont to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

North DakotaOpen North Dakota LLC guide →
VermontOpen Vermont LLC guide →

More North Dakota and Vermont comparisons

More North Dakota vs ...

More Vermont vs ...

Sources

Filing fee: www.sos.nd.gov/business/business-services/business-structures/limited-… · verified April 21, 2026
North Dakota SoS LLC page lists Registration (Articles of Organization) filing fee as $135 for both domestic and foreign LLCs. Same fee whether filed online via FirstStop or by mail.
Expedited filing: firststop.sos.nd.gov/ · verified April 21, 2026
North Dakota does not offer a state-level expedited processing tier. All filings go through the FirstStop online portal, which the SoS reports processes LLC formations in approximately 5 business days.
Foreign LLC registration fee: www.sos.nd.gov/business/business-services/business-structures/limited-… · verified April 21, 2026
Foreign LLC registration fee matches the domestic Articles of Organization fee at $135, per the ND SoS LLC fee listing.
Operating agreement requirement: www.ndlegis.gov/cencode/t10c32-1.pdf · verified April 21, 2026
N.D.C.C. 10-32.1-02(36) defines 'operating agreement' to include agreements that are oral, in a record, implied, or any combination thereof. The North Dakota Uniform LLC Act does not require a written operating agreement.
Publication requirement: www.ndlegis.gov/cencode/t10c32-1.pdf · verified April 21, 2026
Chapter 10-32.1 (Uniform Limited Liability Company Act) contains no newspaper publication requirement for LLC formation. Only NY, AZ, and NE require publication.
Annual report fee: www.sos.nd.gov/business/business-services/business-structures/limited-… · verified April 21, 2026
ND SoS LLC page lists the annual report fee as $50 for Business LLC, PLLC, and foreign LLC. Business LLCs and PLLCs are due November 15 each year; Farming/Ranching and Authorized Livestock Farm LLCs due April 15.
Corporate income tax rate: www.tax.nd.gov/business/corporate-income-tax · verified April 21, 2026
ND Office of State Tax Commissioner corporate income tax page: top bracket is taxable income over $50,000, taxed at $1,240 plus 4.31% of the amount over $50,000. Graduated rates 1.41% to 4.31%. Applies to C-corps; LLCs taxed as C-corps would use these rates.
Sales tax rate: www.tax.nd.gov/business/sales-and-use-tax · verified April 21, 2026
ND Office of State Tax Commissioner: statewide general sales and use tax rate is 5%. Cities and counties levy additional local option taxes on top of the state rate.
Business name search: firststop.sos.nd.gov/search/business · verified April 21, 2026
FirstStop business entity search, used to confirm name availability before filing Articles of Organization.
Online filing portal: firststop.sos.nd.gov/ · verified April 21, 2026
FirstStop is the North Dakota SoS online business filing portal. The SoS directs all LLC filings through FirstStop; online filings are typically approved within 5 business days.
Filing fee: legislature.vermont.gov/statutes/section/11/025/04012 · verified April 21, 2026
11 V.S.A. §4012(a)(1): Articles of organization filing fee is $155.00. The fee was raised from $125 to $155 by 2023 Act 77 §37, effective June 20, 2023. Domestic LLC formation is filed through the Vermont Business Services Division online portal or by paper delivered to the Secretary of State.
Expedited filing: sos.vermont.gov/corporations/ · verified April 21, 2026
Vermont does not publish a formal expedited service tier for LLC filings. Online submissions through bizfilings.vermont.gov are generally processed within a few business days. The Secretary of State's Corporations Division has not promulgated fee rules for 24-hour or same-day expedited service comparable to Maine or Delaware. Recorded as not offered.
Annual report fee: legislature.vermont.gov/statutes/section/11/025/04012 · verified April 21, 2026
11 V.S.A. §4012(a)(15): Annual report of a domestic limited liability company fee is $45.00 (raised from $35 by 2023 Act 77 §37, effective June 20, 2023). §4012(a)(16): Annual report of a foreign LLC is $170.00. Report due date is set by 11 V.S.A. §4033(c): within three months after expiration of the company's fiscal year.
Foreign LLC registration fee: legislature.vermont.gov/statutes/section/11/025/04012 · verified April 21, 2026
11 V.S.A. §4012(a)(2): Application for certificate of authority (foreign LLC registration) filing fee is $155.00, raised from $125 by 2023 Act 77 §37. Same fee as domestic formation.
Operating agreement requirement: legislature.vermont.gov/statutes/section/11/025/04003 · verified April 21, 2026
11 V.S.A. §4003 governs the effect of the operating agreement. The operating agreement regulates the affairs of the LLC and may be stored or depicted in any tangible or electronic medium per §4001(20). Vermont statute does not require LLCs to adopt a written operating agreement; default chapter rules apply when no operating agreement exists.
Publication requirement: legislature.vermont.gov/statutes/chapter/11/025 · verified April 21, 2026
11 V.S.A. Chapter 25 (Vermont Limited Liability Company Act) contains no newspaper publication requirement for LLC formation. Not required.
Corporate income tax rate: tax.vermont.gov/business/corporate-income-tax · verified April 21, 2026
Vermont Department of Taxes Corporate Income Tax: graduated rate of 6.00% on the first $10,000 of Vermont net income; 7.00% on the next bracket to $25,000; 8.50% on income above $25,000. Top marginal corporate rate is 8.5%. Applies to C-corporations and to LLCs that elect C-corp treatment.
Sales tax rate: tax.vermont.gov/business/sales-and-use-tax · verified April 21, 2026
Vermont Department of Taxes Sales and Use Tax: statewide sales tax rate is 6.0% on retail sales of tangible personal property unless exempted. Local option sales tax of 1% applies in select municipalities but is not included in the statewide rate. Meals and rooms tax and alcoholic beverages tax are separate.
Franchise tax: tax.vermont.gov/business/corporate-income-tax · verified April 21, 2026
Vermont does not impose a franchise tax on LLCs. A $250 corporate minimum tax applies under 32 V.S.A. §5832 to C-corporations (and to LLCs that elect C-corp tax treatment), not to pass-through LLCs. Recorded as applies: false with nuance in taxes.notes.
Business name search: bizfilings.vermont.gov/online/BusinessInquire · verified April 21, 2026
Vermont Business Services Division business inquiry portal. Use to confirm name availability before filing Articles of Organization.
Online filing portal: bizfilings.vermont.gov/online/Account · verified April 21, 2026
Vermont Business Services Division online filing portal (Corporations Online Filing System, COFS). Most filings can be completed online with credit card payment. Paper filings accepted at 128 State Street, Montpelier. Typical online approval is 1 to 3 business days.

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