How to Start a Vermont Corporation

Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

All Posts by Steve Goldstein →
Business Formation Expert  |   Fact Checked by Editorial Staff
Last updated: 
LLCBuddy™ offers informative content for educational purposes only, not as a substitute for professional legal or tax advice. We may earn commissions if you use the services we recommend on this site.
At LLCBuddy, we don't just offer information; we provide a curated experience backed by extensive research and expertise. Led by Steve Goldstein, a seasoned expert in the LLC formation sector, our platform is built on years of hands-on experience and a deep understanding of the nuances involved in establishing and running an LLC. We've navigated the intricacies of the industry, sifted through the complexities, and packaged our knowledge into a comprehensive, user-friendly guide. Our commitment is to empower you with reliable, up-to-date, and actionable insights, ensuring you make informed decisions. With LLCBuddy, you're not just getting a tutorial; you're gaining a trustworthy partner for your entrepreneurial journey.
Start a Vermont Corporation

When you plan to start a business in Vermont, you must decide on the appropriate structure. Starting a corporation may be more complicated than creating an LLC in Vermont or a sole proprietorship. However, it is not that difficult as well. There are a few guidelines that you should be aware of when it comes to creating Vermont corporation. Starting a corporation involves a legal process, that is, the process of incorporation.

In this article, I will share a step-by-step guide to start a corporation in Vermont. I will also enlighten you on the advantages and disadvantages of having a corporation. Some people consider starting a corporation in Vermont more than other business structures since it has many advantages over other forms.

What is a Corporation in Vermont

In definition, a corporation is a formal organization established by stockholders, shareholders, or other people to make a profit. Like individuals, corporations can undertake contracts, own assets, sue and be sued, pay taxes, limit state and federal taxes, and loan funds from banking institutions.

Common Types of Corporations

Before you start with the process of forming a corporation, you should know what type of corporation you will form. There are several different forms of corporations you can take into consideration, depending on your corporation’s objectives and ownership structure.

  • C-Corporation: C-Corporation is the most known type of incorporation. They have almost all corporate distinguishing characteristics. Profits are distributed to corporate owners who are taxed at an individual level. The corporation is taxed similarly to a business unit.
  • S-Corporation: An S-Corporation is set up similarly to a C-corporation but has different tax implications and owner limits. S-corps have no more than 100 stockholders and are not taxed separately. These business units must also file paperwork with the Internal Revenue Service (IRS) to obtain their status.
  • Non-profit Corporation: Nonprofit businesses are frequently used by religious, educational, and charity institutions to run their operations without making a profit. Thus, a nonprofit corporation is exempt from paying taxes. The nonprofit organization’s gifts, contributions, or cash are reinvested in the company to fund its growth, future endeavors, or operations. Read how to start a nonprofit corp in Vermont to learn about nonprofit corporations.

If you have a small business, it is recommended that you form an LLC instead of a corporation in Vermont. LLCs have more tax benefits than other structures. Besides, LLCs protect your personal assets. However, it is wise to consult a legal expert before you start setting up your business in Vermont.

LLCBuddy Editorial Team

How to Start a Corporation in Vermont

To start a corporation in Vermont, you must follow the below steps that, include forming a corporation name, appointing a board of directors, filing for Articles of Incorporation, drafting corporate bylaws, meeting with the board of directors, issuing stocks, creating a shareholders agreement, requesting for an EIN, and getting a license and permit. All these steps are basic ones. It can be changed depending on the type of corporation you form and the nature of your business.

Step 1: Choose a Corporation Name in Vermont

Naming your business is one of the most crucial activities during the startup phase. Your corporation name serves as the foundation for your brand. Legal procedures should be taken into account when choosing your corporation name. Choose a corporation name that will enable you to develop a strong brand identity without being hampered by irrelevant factors.

If you are forming an LLC, there is a complete guide on Vermont LLC name guidelines for a proper LLC name. Here are some guidelines you must follow while naming your corporation in Vermont-

  • Your business name must contain entity identifiers, such as “Incorporated,” “Limited,” “Corporation,” or “Company,” or an abbreviation, such as “Inc.,” “Co.,” or “Ltd.”
  • Exclude any words in your business name, such as “Trust,” “Bank,” “Credit Union,” or “Trustee,” or words related to a government agency, such as “FBI,” “State Department,” or “Treasury.”

Step 2: Board of Directors Initial Appointment

To form a corporation in Vermont, you must appoint an initial board of directors before making them permanent once the corporation is formed. In Vermont, you may appoint at least Three board of directors. The initial board of directors is in charge of guiding the overall strategy of your business. The structure, responsibilities, and powers given to a board of directors are determined by the bylaws of a company or organization. So, appointing your corporation’s initial board of directors in Vermont is a big step in forming a corporation.

Step 3: Filing the Articles of Incorporation in Vermont

After you appoint the initial board of directors in your Vermont corporation, the next step is to write and file a Articles of Incorporation. In writing, the Vermont Articles of Incorporation, the corporation name, principal place of business, the purpose of business, Vermont Resident Agent contact information, and the names and addresses of incorporators and/or initial board members, should be written.

Filing a Articles of Incorporation in Vermont may be done with one method that is online. The Articles of Incorporation fee may vary from different states. However, in Vermont, it costs $125 for filing online..

  • Online Filing: Get the eForm from the SOS site, login/subscribe to the site, fill up the form, submit online
  • Offline filing: there’s no offline method of filing the documents

Step 4: Draft Corporate Bylaws

Now you are done filing a Articles of Incorporation in Vermont, the next step is to draft corporate bylaws. Corporate bylaws are the basic rules that control a corporation. It includes the organization’s structure, processes, laws, and rules. As a result, all personnel, managers, and corporation members must obey the firm’s rules.

In creating corporate bylaws, you should include the following on how the decisions will be made-

  • The responsibilities are given to each officer.
  • How will judgments in business be made?
  • Where and when are the annual shareholder meetings?
  • The minimum number of shareholders required for decision-making.
  • Location and timing of dividend payments.

Step 5: Hold the First Board of Directors’ Meeting

After drafting the corporate bylaws, gather all the board of directors for the first meeting. This meeting will be finalized by appointing directors to manage the company’s daily operations, approve the bylaws, choose the corporation’s accounting year, and approve the stock issue. All board meetings should have minutes taken and stored with the company’s records.

Step 6: Issuing Stock in a Corporation

After starting your Vermont corporation, one of the first official corporate actions is issuing stock to the shareholders. Keep track of the number of shares issued to each shareholder and the purchase price. A corporation in Vermont is managed by its shareholders, who contribute to the business in exchange for ownership shares.

Step 7: Draft and Finalize a Shareholders Agreement

Even though drafting and finalizing a shareholders agreement is unnecessary, I suggest you still comply since it will benefit your corporation and its shareholders. A small business’s shareholders enter into a shareholder agreement contract. It establishes how ownership will be handled in unexpected situations, like a shareholder passes away, retires, becomes disabled, or quits the corporation. Early on in the life of your Vermont corporation, signing a shareholders’ agreement can help maintain corporate continuity and prevent future disputes.

Step 8: Request an EIN in Vermont

After everything is in place, you should get or request an Employer Identification Number (EIN). An EIN will serve as the tax ID for your Vermont corporation. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website.

The application of an EIN in Vermont can be through the following:

  • Apply Online- The EIN online application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is 4 weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

After you have your EIN number, you can benefit in a number of ways. It will give your corporation the final advantage necessary to operate at full capacity without encountering legal or judicial issues.

Step 9: Get Licenses and Permits for your Corporation in Vermont

Before your corporation operates in Vermont, you must have a business license. A business license is a document issued by a government agency that permits you to operate your business in the geographic region that that agency governs. To legally operate your corporation, you’ll need a business license. Numerous corporate licenses need to be filed and renewed regularly. Check out how to get business licenses and permits in Vermont to know more.

You must also register a DBA name if you intend to conduct business using a name other than your corporation’s legal name. The DBA name is sometimes known as “doing business as” or a “fictitious business name.” Depending on your location, you may need to register the DBA with your state, city, and county. You can skip this step if your business solely uses your legal company name.

Important Information

Paying your Taxes in Vermont

Even if you have established your corporation in Vermont, pay your taxes and keep everything up to date so you won’t pay any penalty. Unlike an LLC, there is a corporate tax that every corporation in Vermont has to pay. On the other hand, they must pay income taxes based on their business income. Some other types of taxes in Vermont are sales tax, franchise tax (not applicable to all the states), and other state taxes.

Cost of Forming a Corporation in Vermont

A filing and annual fee must be paid to form a corporation in Vermont. Without it, your corporation won’t operate. The initial filing fee for a corporation may vary depending on the state. However, in Vermont, it costs $125 for filing online.. The corporation in Vermont also has to file an annual report (though it might not be mandatory, it is recommended to file one). Ensure you comply with all the necessary fees and costs so your corporation will run successfully and smoothly. If, in the future, you make any changes to your corporation, you must file the Vermont Amendment. It costs $25.00 to file an amendment in Vermont.

Advantages of Starting a Corporation in Vermont

  1. Limited Liability: The biggest advantage of setting up a Vermont corporation is that the shareholders are not personally responsible for the debts of the company. As a result, when you incorporate as a corporation, personal assets like homes, vehicles, and other possessions are prohibited. One of the main benefits of setting up a corporation over a general partnership or sole proprietorship business structure is that neither the business nor the owners are held legally responsible for the obligations of the business, even if it means giving up their personal assets.
  1. Limitless Corporation: The fact that a corporation’s existence is independent of its owners is another significant benefit of incorporation. In other words, a corporation has an endless life and will continue operating normally even if the owner dies or decides to sell their ownership.
  1. Advantages in Tax: The deduction of health insurance premium payments made on behalf of an owner-employee is one of the many financial benefits to which corporations are entitled. Corporations also save on self-employment taxes since their revenue is not subject to workers’ compensation, Social Security, or medical taxes. Tax rates on corporate profits are lower than those on individual income.


What type of business entity can I form in Vermont?
Vermont offers a variety of business entity formations including a Sole Proprietorship, Partnership, Limited Liability Company (LLC), Corporation, and Nonprofit Corporation.
What are the requirements to form a corporation in Vermont?
The basic requirements to form a corporation in Vermont include filing Articles of Incorporation with the Vermont Secretary of State, selecting a registered agent, issuing stock, appointing directors, and adopting bylaws.
What is the cost to start a corporation in Vermont?
The cost to start a corporation in Vermont with the Secretary of State is $125 plus additional fees for expedited filing and certified copies.
What is the filing process to start a corporation in Vermont?
The filing process to start a corporation in Vermont includes filing Articles of Incorporation with the Vermont Secretary of State, selecting a registered agent, issuing stock, appointing directors, and adopting bylaws.
What are the advantages of forming a corporation in Vermont?
The advantages of forming a corporation in Vermont include limited personal liability for shareholders, favorable tax treatment, and increased credibility with potential customers and investors.
What is the timeline to form a corporation in Vermont?
The timeline to form a corporation in Vermont can be as fast as 24 hours if filing expedited paperwork, or up to 10 business days for standard processing.
Do I need to register my business in Vermont?
Yes, you need to register your business in Vermont if you plan to conduct business in the state.
How do I select a registered agent in Vermont?
You can select a registered agent in Vermont by consulting with a business formation services provider or searching for a registered agent in the state.
What is the role of a registered agent in Vermont?
The role of a registered agent in Vermont is to receive legal documents and other important business communications on behalf of the corporation.
What are the legal requirements to maintain a corporation in Vermont?
The legal requirements to maintain a corporation in Vermont include filing annual reports and business license applications, complying with state and federal laws, and paying taxes on time.
What type of taxes does a corporation in Vermont need to pay?
A corporation in Vermont needs to pay both state and federal income taxes, as well as any applicable sales and use tax.
Does a corporation in Vermont need any special permits to operate?
Depending on the type of business, a corporation in Vermont may need to obtain special permits and licenses from the state or local government in order to legally operate.
What are the requirements to start a corporation in Vermont?
To start a corporation in Vermont, you must file articles of incorporation with the Secretary of State, pay the filing fee, and appoint a registered agent. You must also create bylaws for the corporation that are compliant with Vermont law.
How much does it cost to incorporate in Vermont?
The filing fee to incorporate in Vermont is $125.
How long does it take to incorporate in Vermont?
Generally, you can expect the process of incorporating in Vermont to take about 5-10 business days.
What information is required to incorporate in Vermont?
When incorporating in Vermont, you must provide information such as the name and address of the corporation, the purpose of the corporation, the number of shares that the corporation is authorized to issue, and the name and address of the registered agent.
Who can be a registered agent in Vermont?
You must appoint a registered agent in Vermont to accept legal documents on behalf of the corporation. A registered agent must be a resident of the state or a domestic business entity with a business address in Vermont.
What are the annual reporting requirements in Vermont?
All corporations in Vermont must file an annual report with the Secretary of State. This report must include the name of the corporation and the name and address of the registered agent.
Is it necessary to hold annual meetings in Vermont?
Vermont law does not require corporations to hold annual meetings. However, corporations may choose to hold annual meetings to discuss the business and affairs of the corporation.
Is it necessary to file articles of amendment in Vermont?
Corporations in Vermont must file articles of amendment with the Secretary of State to make changes to the articles of incorporation.
What is the process for dissolving a corporation in Vermont?
To dissolve a corporation in Vermont, you must file articles of dissolution with the Secretary of State, pay the filing fee, and notify creditors and other parties with an interest in the corporation.
Is there a fee to file articles of dissolution in Vermont?
Yes, there is a filing fee of $125 to file articles of dissolution in Vermont.
Are there any other fees associated with dissolving a corporation in Vermont?
Depending on the circumstances, there may be other fees such as back taxes, late fees, interest charges, or other penalties.
Is it necessary to file a final tax return in Vermont?
Yes, corporations in Vermont must file a final tax return with the Vermont Department of Taxes.
Does the corporation need to be dissolved in the state in which it was originally incorporated?
Yes, if a corporation was incorporated in Vermont, it must be dissolved in Vermont.
Are there any other steps required to dissolve a corporation in Vermont?
You must also notify creditors and other parties with an interest in the corporation.
Is there a time limit for dissolving a corporation in Vermont?
No, there is no time limit for dissolving a corporation in Vermont.
What happens to the assets of the corporation after it is dissolved in Vermont?
The assets of the corporation must be distributed to the shareholders in proportion to their ownership interest.
Is there a way to reinstate a dissolved corporation in Vermont?
Yes, corporations in Vermont may be reinstated by filing articles of reinstatement with the Secretary of State.
What is the process for reinstating a corporation in Vermont?
To reinstate a corporation in Vermont, you must file articles of reinstatement with the Secretary of State and pay the filing fee.
Is there a fee to reinstate a corporation in Vermont?
Yes, there is a filing fee of $125 to reinstate a corporation in Vermont.

Also Read

Why Vermont Corporation is So Important

First and foremost, Vermont Corporation drives economic growth within the state by creating jobs and generating revenue. By taking risks, investing capital, and engaging in commerce, corporations in Vermont stimulate economic activity, which in turn leads to job creation and wealth generation. This not only benefits individuals by providing them with opportunities for employment but also contributes to the overall vitality of the state economy.

Additionally, Vermont Corporation plays a critical role in fostering innovation and entrepreneurship. Through research and development, corporations in Vermont continuously strive to create new products and services that can improve the lives of consumers. Whether it be in the technology, healthcare, or agriculture industries, innovation drives progress and growth, leading to a more prosperous and sustainable future for all.

Furthermore, Vermont Corporation plays a significant role in giving back to the community. Many corporations in Vermont are actively engaged in corporate social responsibility initiatives, such as philanthropy, volunteer work, and community service projects. By investing in the well-being of the community, corporations not only fulfill their moral obligations but also foster a sense of unity and cohesion among residents.

Moreover, Vermont Corporation serves as a source of inspiration and motivation for aspiring entrepreneurs. By witnessing the success and impact of established corporations, individuals are encouraged to pursue their own business ventures, leading to a more diverse and vibrant local economy. Additionally, corporations can provide mentorship, support, and resources to help entrepreneurs succeed, further contributing to the growth and prosperity of the business community in Vermont.

In conclusion, Vermont Corporation is an indispensable driver of economic growth, innovation, and community development in the state of Vermont. Through job creation, revenue generation, innovation, and community service, corporations play a vital role in shaping the economic and social landscape of the state. It is essential to recognize and support the invaluable contributions of corporations in Vermont, as they continue to make a positive impact on the lives of residents and the overall well-being of the community.


When determining which corporate form is best for you, be selective. You must know which business structure is bet-fitted for your product/service in Vermont. Consult a legal professional before you take the first step while setting up your business. Finding the ideal ratio of corporate advantages and legal protection that meets your unique needs is very important. In forming a corporation in Vermont, you need to ensure that every detail is well-formed so that your corporation will be successful. And if you have any questions, share them in the comment section below.

Leave a Comment