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Starting a limited liability company in Vermont involves a set of costs. In general, the cost of forming an LLC anywhere is much lower than the cost of establishing a corporation or other business structures. To start an LLC in Vermont, you pay $125 as a filing fee. There are other types of fees, like annual reports, licenses, permits, and state taxes (if applicable).
In this article, the LLCBuddy team has summed up the overall projected LLC cost in Vermont. From initial filing fee to maintenance cost, and to annual taxes, you will get it covered here!
Cost of LLC Filing in Vermont
The cost to start an LLC anywhere in the US includes many things. Apart from the initial filing fee, it involves license and permit fees, tax filing, sales taxes, other local and state government fees, etc.
Cost of Filing Formation Certificates
The main cost associated with an LLC is the filing fee paid to the state. The fee is different based on which state you’re in. In Vermont, the filing fee is $125. Once you file the Vermont Articles of Organization, you must pay the fees to the Vermont Secretary of State at the time of form submission. Apart from the filing fee, some other fees and costs are mentioned below,
Vermont Domestic LLC
- Online Filing costs $125.
- Annual Report filing costs $35
- Name Reservation fee costs $20
- By Mail: Request and fill out the application form. Send the form to the Vermont Secretary of State Corporations Division, 128 State St., Montpelier, VT 05633. Costs $125.
Vermont Foreign LLC
- Online Filing costs $125.
- Annual Report filing costs $35
- Name Reservation fee costs $20
Note that filing online is ideal, not only because you need to go to the Secretary of State’s office, but also because it would be faster. You won’t have to wait in a queue to do so.
Vermont LLC Registered Agent Fee
Hiring a registered agent in Vermont is necessary while forming an LLC. LLC formation cost includes the cost of hiring a registered agent. You can be your own registered agent; however, that is not recommended, as a registered agent has to be present at the official physical address during working hours. Here are the best LLC services in Vermont that offer registered agent services as well.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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 | $0 + State Fees |
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Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Vermont Department of Revenue for regulatory boards or agencies requiring licensing.
Taxes Payable to the Vermont Department of Revenue
Forming an LLC (Limited Liability Company) is definitely a better option for reducing the costs spent via taxes. However, there will be certain taxes and other costs to be paid by the LLCs in Vermont. You will be paying taxes to the federal government as well as the Vermont Government for your LLC.
State Income Tax: While representing your LLC in Vermont, you pay yourself. These earnings are reflected in your personal Tax return & can be calculated at the time of paying the Income Tax.
The Standard Vermont State Tax rate, ranging from 3.55% to 9.4% applies to your earnings. You can claim all the standard allowances & deductions upon filing the tax return.
State Sales & Use Tax: The state of Vermont levies Sales & Use tax on all tangible goods & certain types of services. The current Sales & Use Tax Rate in the state of Vermont is 6%
Federal Self-Employment Tax: Every member of the LLC, such as a member or manager of the Vermont LLC, who earns profit out of the LLC, is liable to pay the Federal Self-Employment Tax. This Tax is also called the Social Security or Medicare Tax. The Federal Self-Employment Tax is applicable to all the earnings of an LLC member or manager. The Federal Self-Employment Tax rate in Vermont is 15.3%
In order to deduct your LLC’s business expenses from the income earned, you have to calculate how much Self-Employment Tax you owe.
Federal Income Tax: One more type of Federal Tax that needs to be paid by an LLC in Vermont is the federal Income tax. This tax is also applicable to all the earnings you make out of your LLC.
The Federal Income Tax Rate depends upon your earnings, the Industry you are dealing with, your LLC tax bracket, deductions, etc.
Employee & Employer Taxes: If you have employees on the payroll, then there are different taxes applicable for each employee. These tax implications are different than all the other types mentioned above. For Example, all employees of an LLC have to collect and withhold the Payroll tax at the time of receiving the salary.
Irrespective of whether you withhold the Federal Tax or not, each employee has you file an individual Tax return.
Cost Comparison between States
Vermont shares its borders with many states. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.
| States | Filing Fee | Annual/Biennial Fee | Sales Tax |
| Vermont | $125 | $35 | 6% |
| New Hampshire | $100 | $100 | None |
| Massachusetts | $500 | $500 | 6.25% |
You should consult with an accounting professional to know more about all the other taxes or duties levied on LLCs in the State of Vermont.
Other Costs
- Vermont Name Reservation: $20 for online filings
- Doing Business As (DBA): $50 for online filing
- Certified Document Copies: $25
- Certified of Good Standing: $25
- Business Domain Name and Website: depend on your preference, but the domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Vermont LLC: $20
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds necessitates the creation of a business bank account for your LLC.
In Conclusion
The cost of doing business in Vermont is much lower compared to other states. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the prices of professional LLC services and choose the most affordable one. Hiring professionals, like LegalZoom, which offers LLC formation at $0, can be profitable, as there will be no additional cost to form an LLC.