How much does it cost to form an LLC in Vermont in 2026?

The filing fee for Articles of Organization is $155, paid once to the Vermont Secretary of State. Plan another $50 to $125 per year for a commercial registered agent if you are not serving as your own. First-year totals for a typical Vermont LLC land in the $200 to $280 range. The fee was raised from $125 to $155 by Act 77 of 2023, so older guides that quote $125 are out of date.

Does Vermont have an annual report for LLCs?

Yes. Vermont LLCs file an annual report within three months after the end of their fiscal year under 11 V.S.A. §4033(c). For calendar-year LLCs (the default), the window runs January 1 to March 31 every year, and the fee is $45. Foreign LLCs registered in Vermont pay $170 for the same filing.

Do Vermont LLCs pay state income tax?

Vermont has no franchise tax on pass-through LLCs, so a default single-member or multi-member LLC owes no entity-level Vermont tax. Members report their distributive share on Vermont Form IN-111 under graduated personal rates from 3.35% to 8.75%. An LLC that elects C-corp treatment pays the 8.5% top corporate rate (graduated from 6%) with a $250 minimum.

How long does it take to form a Vermont LLC?

Online filings through bizfilings.vermont.gov typically clear in 3 business days. Paper filings mailed to Montpelier take closer to 10 business days. Vermont does not offer paid expedited service at any tier, so online filing is the fastest available option. Plan a business day of margin if you need a firm effective date.

Should I form my LLC in Vermont instead of my home state?

Only if you live or operate in Vermont. The Vermont LLC still has to foreign-qualify in any state where you actually do business, which means paying that state's filing fee, annual report, and any applicable income or franchise tax. For a non-resident online business, Wyoming is cheaper to maintain. For anyone living in Vermont, forming locally is the correct answer.

Does Vermont require an operating agreement?

No. Under 11 V.S.A. §4003, a Vermont LLC's operating agreement can be written, oral, or implied, and nothing needs to be filed with the Secretary of State. Any multi-member LLC should still have a written agreement to override the statutory defaults on management, voting, and distributions. Banks typically want to see one when you open the business account.

Did Vermont raise its LLC fees recently?

Yes. Vermont Act 77 of 2023 raised the formation fee from $125 to $155 and the annual report fee from $35 to $45, effective June 20, 2023. The foreign LLC registration fee was also raised to $155, with the foreign annual report at $170. If a guide or calculator quotes the older numbers, treat the rest of its Vermont information as stale.

Does Vermont charge sales tax on services?

Not broadly. Vermont's 6.0% sales and use tax applies to tangible personal property, not most services, so a consulting or professional services LLC usually has no sales tax to collect. A 1% local option tax applies in certain municipalities (Burlington, Brattleboro, and others). Restaurants, bars, and short-term lodging collect the 9% meals and rooms tax and 10% alcoholic beverages tax separately.

Vermont LLC: fees, filing steps, and 2026 costs

$155 Filing fee Online filing available

$300 Year 1 estimate Filing + first year tax + RA

3 days Approval Mail ~10d

$45 annual report Ongoing

Where Vermont fits, and where it doesn't

Good fit for Vermont

You live in Vermont and run a trades, retail, hospitality, or consulting business out of a Vermont address. You own Vermont rental property and want a simple holding entity for it. You are a remote worker with a Vermont residence who wants a clean home-state LLC without chasing out-of-state savings. You have a seasonal business (ski rentals, maple, short-term lodging) and want an entity that handles both the meals-and-rooms piece and the federal pass-through cleanly.

Skip Vermont when

You live in Massachusetts or New York and picked Vermont because the fees looked low; once your business operates from your home state, the Vermont LLC has to foreign-qualify back in your state and the math stops working. You want an anonymous LLC with no member disclosure. Vermont's filings name managers and members by design. You need 24-hour or same-day expedited filing, because Vermont does not sell one. You want a no-income-tax headline state. Vermont has a real personal income tax that tops out at 8.75% and it applies to your distributive share as an LLC member.

What a Vermont LLC actually costs

Formation filing fee Paid once at formation $155
Commercial registered agent Annual, estimate $100
Annual report fee Annual $45
Year 1 total estimate Formation plus first-year ongoing $300

Registered agent estimate uses a $100 midpoint. Specialist agents start around $50 per year. Full-service formation companies bundle RA for $125 to $200.

Cost across the first three years

Year 1 $300

Year 2 $145

Year 3 $145

How Vermont compares on the basics

Online filing File through state portal

Yes

Expedited processing Not offered

Annual report required Separate report on top of tax

Yes

State-imposed annual tax None beyond income tax

Written operating agreement required Recommended, not statutorily required

Recommended

Newspaper publication requirement Not required in this state

State sales tax 6% state rate

How to apply for an LLC in Vermont

Pick a compliant LLC name
The name must end in "Limited Liability Company," "LLC," or an approved abbreviation, and must be distinguishable from every other entity on the Vermont Secretary of State record. Check availability at the Vermont entity search.
Designate a registered agent
Every Vermont LLC is required to have a registered agent with a physical street address in Vermont. You can serve as your own agent if you live in Vermont, or hire a commercial service for $99 to $249/yr. See the Vermont registered agent guide.
File Articles of Organization
Filing fee is $155. Online filing is available through the state portal. Mail filings are accepted.
Apply for a federal EIN
Free directly from the IRS in about 15 minutes (see the EIN guide). Required for opening a business bank account, hiring employees, and most formation-service tax workflows.
Adopt an operating agreement
Vermont does not require an operating agreement by statute, but adopting one is strongly recommended to preserve the liability shield. See the operating agreement pillar for the 12 clauses every agreement should include.

Filing walkthrough

File Articles of Organization through the Vermont Business Services Division portal at bizfilings.vermont.gov. The fee is $155 whether you file online or on paper, and online submissions typically clear in 3 business days. Paper filings mailed to 128 State Street in Montpelier run closer to 10 business days. There is no fillable PDF that jumps to the front of any queue, and there is no paid expedited tier at all, so online filing is simply the fastest available option.

Every Vermont LLC needs a registered agent with a Vermont street address, and you can serve as your own if you live in the state. The Articles ask for the standard fields (name, principal office, agent, management structure, and a fiscal year date that sets your annual report window). That fiscal-year box is where small operators trip up. If you leave it on calendar year, your annual report window runs January 1 to March 31 every year, not some rolling anniversary date, and missing March 31 triggers administrative dissolution proceedings.

Check name availability File online Vermont formation guidance

How Vermont taxes an LLC

Vermont does not impose a franchise tax on LLCs that default to pass-through treatment, which is the most common setup. A no minimum minimum corporate tax under 32 V.S.A. §5832 applies only to LLCs that have elected C-corp treatment with the IRS; a default single-member disregarded entity or a multi-member partnership-taxed LLC owes no entity-level Vermont tax at all. The LLC's income flows through to members, who report it on Vermont Form IN-111 under the personal income tax brackets, which run 3.35% up to 8.75%.

If your LLC does elect C-corp treatment, Vermont's corporate income tax is graduated: 6% on the first $10,000 of Vermont net income, 7% through $25,000, and 8.5% on everything above that. Statewide sales and use tax is 6.0%, with a 1% local option layered on in certain towns. If you run a restaurant, lodging business, or bar, the meals-and-rooms tax is 9% and the alcoholic beverages tax is 10%, both administered separately from general sales tax.

For members who live outside Vermont, you still owe Vermont personal income tax on Vermont-sourced distributive share and you still file a Vermont return. Your home state then gives you a credit for the Vermont tax paid. Nothing about forming in Vermont changes the fact that your home state taxes you on your worldwide income.

Ongoing compliance and costs after year one

Budget $45 a year for the Vermont annual report, plus $50 to $125 if you hire a commercial registered agent. That is the floor. There is no separate franchise tax bill on a pass-through LLC, and there is no periodic license tax at the state level. The annual report window is January 1 to March 31 for calendar-year LLCs, and the fee does not change based on member count or revenue.

A non-resident forming in Vermont to hold out-of-state property or run an out-of-state business pays the $45 here, then pays the home-state foreign LLC fee and annual report on top. If Vermont is not where the business actually operates, forming here is an extra line item, not a saving.

Common mistakes forming a Vermont LLC

Two patterns come up often. Filers copy the $155 formation fee and $45 annual report fee from older blog posts that still quote the pre-Act 77 numbers ($125 and $35), then underestimate the budget or accuse the Secretary of State of overcharging. The current fees have been in force since June 20, 2023. Separately, calendar-year LLCs routinely miss the March 31 annual report deadline because Vermont does not send a paper reminder to every filer. The online portal sends an email to the address on file, which is easy to miss, and continued non-filing leads to administrative dissolution. Set the calendar alert for early March.

State agencies that handle Vermont LLCs

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

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

How much does it cost to form an LLC in Vermont in 2026?

The filing fee for Articles of Organization is $155, paid once to the Vermont Secretary of State. Plan another $50 to $125 per year for a commercial registered agent if you are not serving as your own. First-year totals for a typical Vermont LLC land in the $200 to $280 range. The fee was raised from $125 to $155 by Act 77 of 2023, so older guides that quote $125 are out of date.
Does Vermont have an annual report for LLCs?

Yes. Vermont LLCs file an annual report within three months after the end of their fiscal year under 11 V.S.A. §4033(c). For calendar-year LLCs (the default), the window runs January 1 to March 31 every year, and the fee is $45. Foreign LLCs registered in Vermont pay $170 for the same filing.
Do Vermont LLCs pay state income tax?

Vermont has no franchise tax on pass-through LLCs, so a default single-member or multi-member LLC owes no entity-level Vermont tax. Members report their distributive share on Vermont Form IN-111 under graduated personal rates from 3.35% to 8.75%. An LLC that elects C-corp treatment pays the 8.5% top corporate rate (graduated from 6%) with a $250 minimum.
How long does it take to form a Vermont LLC?

Online filings through bizfilings.vermont.gov typically clear in 3 business days. Paper filings mailed to Montpelier take closer to 10 business days. Vermont does not offer paid expedited service at any tier, so online filing is the fastest available option. Plan a business day of margin if you need a firm effective date.
Should I form my LLC in Vermont instead of my home state?

Only if you live or operate in Vermont. The Vermont LLC still has to foreign-qualify in any state where you actually do business, which means paying that state's filing fee, annual report, and any applicable income or franchise tax. For a non-resident online business, Wyoming is cheaper to maintain. For anyone living in Vermont, forming locally is the correct answer.
Does Vermont require an operating agreement?

No. Under 11 V.S.A. §4003, a Vermont LLC's operating agreement can be written, oral, or implied, and nothing needs to be filed with the Secretary of State. Any multi-member LLC should still have a written agreement to override the statutory defaults on management, voting, and distributions. Banks typically want to see one when you open the business account.
Did Vermont raise its LLC fees recently?

Yes. Vermont Act 77 of 2023 raised the formation fee from $125 to $155 and the annual report fee from $35 to $45, effective June 20, 2023. The foreign LLC registration fee was also raised to $155, with the foreign annual report at $170. If a guide or calculator quotes the older numbers, treat the rest of its Vermont information as stale.
Does Vermont charge sales tax on services?

Not broadly. Vermont's 6.0% sales and use tax applies to tangible personal property, not most services, so a consulting or professional services LLC usually has no sales tax to collect. A 1% local option tax applies in certain municipalities (Burlington, Brattleboro, and others). Restaurants, bars, and short-term lodging collect the 9% meals and rooms tax and 10% alcoholic beverages tax separately.
How do I apply for an LLC in Vermont?

Apply for an LLC in Vermont by filing Articles of Organization with Vermont Secretary of State, Corporations Division. The filing fee is $155. Online filing is available through the state portal. Approval typically takes 3 business days online. Mail filings take about 10 business days. Before filing, pick a registered agent (see the Vermont registered agent guide) and confirm your business name is available using the state's entity search.

Compare Vermont to another state

Side-by-side breakdowns of fees, taxes, approval time, and compliance. Every other US jurisdiction has a dedicated compare page against Vermont.

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Vermont vs Louisiana

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Vermont vs Pennsylvania

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Vermont vs Rhode Island

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Vermont vs Utah

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Vermont vs Virginia

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Sources

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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