Utah vs Vermont LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026Utah charges $59 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, Utah runs about $177 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, Utah typically clears standard online filings faster than Vermont. 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.
Key differences at a glance
- Utah costs $96 less to form ($59 vs $155).
- Utah is $27 per year cheaper to maintain ($118 vs $145).
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.
What each state offers that the other does not
Only Utah
- Paid expedited tier
Both states
- Online filing
- No entity-level franchise or LLC tax
- No publication requirement
- Operating agreement not statutorily required
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.
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 Utah, business operates there No foreign LLC registration needed. You pay Utah fees only. | $177 | $118 | $413 |
| You live in Vermont, business operates there No foreign LLC registration needed. You pay Vermont fees only. | $300 | $145 | $590 |
| Non-resident forming in Utah with operations elsewhere You pay Utah's fees plus a typical home-state foreign LLC registration of about $200 per year. | $377 | $318 | $1,013 |
| 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 |
Utah vs Vermont: full comparison
| Dimension | Utah | Vermont |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 2 business days | 3 business days |
| Expedited option Paid fast-track filing | $75 | Not offered |
| Annual report Required in addition to tax | Required, $18 | 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 | $59 | $155 |
| State sales tax General statewide rate | 4.8% | 6.0% |
Taxes in Utah 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.
Utah tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 4.5%.
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.
Utah
Annual report $18, due on your anniversary month. Registered agent required in Utah.
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.
Utah
- Check business-name availability on the Utah entity search.
- Appoint a registered agent with a physical Utah street address.
- File Certificate of Organization, Domestic Limited Liability Company for $59.
- Wait for approval. Online typically 2 business days. Paid expedite from $75.
- Adopt an operating agreement (recommended, not required by Utah 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 $18 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 Utah 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 Utah 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
Utah Division of Corporations and Commercial Code (Utah Department of Commerce)
- Website
- commerce.utah.gov/corporations
- Phone
- (801) 530-4849
- corpucc@utah.gov
- Utah Division of Corporations and Commercial Code, P.O. Box 146705, Salt Lake City, UT 84114-6705
- Office
- 160 East 300 South, 2nd Floor, Salt Lake City, UT 84111
- Hours
- 8:00 AM to 5:00 PM Mountain, Monday to Friday
Vermont Secretary of State, Corporations Division
- Website
- sos.vermont.gov/corporations
- Phone
- (802) 828-2386
- SOS.CorporationsSupport@vermont.gov
- 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
Utah State Tax Commission
- Website
- tax.utah.gov
- Phone
- (801) 297-2200
- Utah State Tax Commission, 210 North 1950 West, Salt Lake City, UT 84134-0266
- Office
- 210 North 1950 West, Salt Lake City, UT 84134
- Hours
- 8:00 AM to 5:00 PM Mountain, Monday to Friday
Vermont Department of Taxes
- Website
- tax.vermont.gov
- Phone
- (802) 828-2505
- tax.business@vermont.gov
- 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 Utah or Vermont?
Utah is cheaper at formation ($59) than Vermont ($155). Ongoing costs are also different: $118 vs $145 per year. Total over three years: $413 vs $590.
-
Can I form an LLC in Utah 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 Utah 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 Utah vs Vermont?
Utah online: 2 business days; Vermont online: 3 business days. Utah offers paid expedite from $75. Vermont does not offer paid expedite.
-
Which state has lower taxes for an LLC, Utah or Vermont?
Utah: 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. Utah 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 Utah 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
More Utah and Vermont comparisons
More Utah vs ...
Sources
- Filing fee: corporations.utah.gov/wp-content/uploads/2023/04/currentfees.pdf · verified April 21, 2026
Utah Division of Corporations and Commercial Code Fiscal Year 2026 Fee Schedule, effective July 1, 2025. Domestic limited liability company (LLC) certificate of organization filing fee = $59.00. Same fee online and by mail. - Expedited filing: corporations.utah.gov/wp-content/uploads/2023/04/currentfees.pdf · verified April 21, 2026
Utah FY2026 fee schedule, Section 11 (Other Filings and Fees): Expedited processing fee = $75.00 per filing. Expedited filings are typically processed within one business day. - Foreign LLC registration fee: corporations.utah.gov/wp-content/uploads/2023/04/currentfees.pdf · verified April 21, 2026
Utah FY2026 fee schedule: Foreign limited liability company (LLC) registration filing fee = $59.00. - Annual report fee: corporations.utah.gov/wp-content/uploads/2023/04/currentfees.pdf · verified April 21, 2026
Utah FY2026 fee schedule, Section 3 (Renewal/Annual Report Filings): Limited liability company (LLC) renewal = $18.00, which includes a $5 State of Utah single sign-on portal surcharge. Late renewal fee = $10.00. Statutory deadline confirmed by Utah Code 48-3a-212 as the anniversary month of formation. - Operating agreement requirement: le.utah.gov/xcode/Title48/Chapter3a/48-3a.html · verified April 21, 2026
Utah Revised Uniform Limited Liability Company Act (Utah Code Title 48 Chapter 3a) does not require a written operating agreement. Operating agreements may be oral, in a record, implied, or any combination. - Franchise tax: le.utah.gov/xcode/Title59/Chapter7/59-7-S104.html · verified April 21, 2026
Utah Code 59-7-104 imposes a 4.5% corporate franchise and income tax with a $100 minimum on corporations. The tax applies to LLCs that elect corporate tax treatment, not to default pass-through LLCs. Because the default LLC owes no Utah franchise tax, we record applies as false. The 4.5% rate and $100 minimum are noted in taxes.notes for context. - Corporate income tax rate: le.utah.gov/xcode/Title59/Chapter7/59-7-S104.html · verified April 21, 2026
Utah Code 59-7-104(2): Corporate franchise and income tax rate = 4.5% of Utah taxable income (effective January 1, 2025). 59-7-104(3): minimum tax $100. - Sales tax rate: tax.utah.gov/business/sales-tax/sales/rates/ · verified April 21, 2026
Utah State Tax Commission combined sales and use tax rate charts effective January 1, 2026: state-only sales tax rate = 4.85%. Local option, county option, mass transit, and other local add-ons raise the combined rate to approximately 6.1% to 9.5% depending on jurisdiction. - Business name search: businessregistration.utah.gov/ · verified April 21, 2026
Utah Business Registration portal (formerly secure.utah.gov/bes) hosts the business entity search and online formation filings. The legacy bes.utah.gov URL now redirects to businessregistration.utah.gov. - Online filing portal: businessregistration.utah.gov/ · verified April 21, 2026
Utah Division of Corporations online filing portal. Filers must log in with a UtahID account to file a Certificate of Organization for a new domestic LLC. - Certificate of Formation form: commerce.utah.gov/corporations/business-entities/domestic-limited-liab… · verified April 21, 2026
Utah no longer distributes a fillable Certificate of Organization PDF for domestic LLCs. The Division moved to an online-only filing flow through businessregistration.utah.gov; filers complete the certificate through the portal. Paper filings are accepted via a general Submit a Paper Filing upload path but there is no numbered form. - Naming rules: commerce.utah.gov/corporations/policies-and-procedures-for-administeri… · verified April 21, 2026
Utah Division of Corporations policy page covering business entity name availability and standards. Published by the Utah Department of Commerce at commerce.utah.gov. - 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.