Forming an LLC in Vermont costs $125 to file Articles of Organization with the Vermont Secretary of State, with online approval through the SOS Business Services portal in 1 business day. The annual report is $45, due within 3 months of the LLC's fiscal year end (typically March 31 for calendar-year LLCs). Vermont is unique because of its Blockchain-Based LLC (BBLLC) statute — passed in 2018, Vermont was the first U.S. state to provide a specific legal framework for LLCs operating as decentralized autonomous organizations (DAOs) or using blockchain governance. The top individual income tax rate is 8.75% — among the higher in the U.S. Vermont's economy is anchored by specialty food and beverage (Ben & Jerry's, craft maple syrup, Cabot cheese, dozens of craft breweries), outdoor industry, and a growing blockchain/Web3 community attracted by the BBLLC framework. For founders in food/beverage, outdoor, or blockchain-native businesses, Vermont offers distinctive value.
How much does a Vermont LLC cost?
Budget at least $274 to launch a Vermont LLC in Year 1 — that covers the $125 state filing fee plus a $149 registered agent service if you use one. The Articles of Organization go to the Vermont Secretary of State and typically clear in 5-7 business days. Vermont keeps its ongoing costs refreshingly low: the annual report runs just $35, making it one of the cheaper states to maintain year over year. By Year 5, plan on roughly $414 in cumulative state and registered agent costs ($125 filing + four $35 annual reports + four years of agent fees). Unlike California's brutal $800 franchise tax, New York's costly publication mandate, or Tennessee's $300 annual charge, Vermont imposes no minimum business tax and no publication requirement — what you see is largely what you pay.
Why form your LLC in Vermont
Specialty food & beverage (Ben & Jerry’s, craft cider/maple), outdoor industry, and a unique BBLLC framework for blockchain-native businesses.
- Blockchain-Based LLC (BBLLC) statute — first state with specific DAO legal framework
- Specialty food and beverage capital (Ben & Jerry's, craft beer, maple)
- Strong outdoor industry presence
- Quality of life draw for relocating remote workers
- 1 business day online approval
- No franchise tax for pass-through LLCs
Best fit for: Specialty food & beverage · Outdoor industry · Blockchain (BBLLC)
Don’t want to file yourself? Northwest Registered Agent files your Vermont LLC for $39 + state fee and acts as your registered agent the first year free.
How to form a Vermont LLC in 7 steps
- 1Search the Vermont business name database
Use the VT SOS Business Services portal to search names. The name must include "Limited Liability Company", "L.L.C.", or "LLC". For BBLLCs, the name may include "BBLLC" or "Blockchain-Based Limited Liability Company". Reserve a name for $20 (held 120 days) if needed.
- 2Appoint a Vermont registered agent
Required to have a physical Vermont street address. Can be the LLC owner if they're a Vermont resident, or a commercial registered agent service.
- 3File Articles of Organization
File online through VT SOS Business Services for $125 (or $125 for a BBLLC). Standard processing is 1 business day. The Articles include LLC name, registered agent, principal office, and management structure. BBLLCs include specific provisions about blockchain governance.
- 4Draft an Operating Agreement
Not required by Vermont law (unless forming a BBLLC, which requires specific governance provisions) but strongly recommended. Defines membership interests, voting, profit/loss splits, and dissolution. Banks routinely ask for it.
- 5Apply for an EIN with the IRS
Free at irs.gov, takes 10 minutes online. Required for opening a business bank account, registering with the Vermont Department of Taxes, and filing federal taxes.
- 6Register with the Vermont Department of Taxes
Register through Vermont myVTax for sales and use tax (if you sell taxable goods/services), withholding tax (if you have employees), and any industry-specific accounts.
- 7Calendar the annual report
Vermont LLC annual reports are due within 3 months of the LLC's fiscal year end — March 31 for calendar-year LLCs. The fee is $45. File through VT SOS Business Services.
File directly with Vermont Secretary of State →
Vermont LLC taxes & compliance
Vermont is also one of the only states with a "Blockchain-Based LLC" (BBLLC) statute — relevant if you’re forming a DAO-like entity. Top income tax of 8.75% is on the higher end.
Ongoing compliance checklist
- Annual report — $45, due within 3 months of fiscal year end
- No franchise tax for pass-through LLCs
- Sales and use tax filings (Vermont Department of Taxes)
- Withholding tax filings if you have VT employees
- Federal income tax (Form 1065 multi-member, Schedule C SMLLC)
Registered agent rules
Required — VT street address.
Hidden costs new Vermont LLC owners forget
- Top individual income tax rate of 8.75% — among the higher in the U.S.
- Annual report fee: $45
- $250 minimum corporate-style minimum tax for some entity elections
- Combined sales tax: 6% statewide + 1% Burlington/Williston
- Foreign LLC qualification: $125
- Some industries require state-specific licensing
Should you use a formation service in Vermont?
You can absolutely file directly with the Vermont Secretary of State for the $125 state fee. The reasons most Vermont owners use a service anyway are (1) registered-agent privacy — keeping their home address off public filings — and (2) calendar reminders for ongoing compliance.
Have Northwest form your Vermont LLC for $39 + state fee
Free registered agent for the first year. Real human support. Privacy-by-default — your home address stays off public filings.
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See the real 5-year cost of a Vermont LLC
Filing fee · registered agent · annual report · franchise tax — all calculated, year by year.
Open cost calculator for Vermont →Vermont's repealed Business Entity Tax: the $250 fee that no longer exists
Vermont used to levy a $250 Business Entity Tax (BET) on every LLC annually — a flat fee that had nothing to do with income and caught many small business owners off guard. Vermont repealed that tax effective July 1, 2021, making the state's LLC cost structure dramatically simpler overnight. Today, Vermont imposes no franchise tax, no privilege tax, and no BET on LLCs. The only mandatory state-level recurring fee is the $35 annual report filed with the Secretary of State. This puts Vermont in a genuinely low-overhead category alongside Wyoming and New Mexico — a contrast to neighbors like New York (publication requirement averaging $1,000+) or Massachusetts (minimum $500 annual excise). Vermont also operates under a modernized LLC Act adopted in 2016, giving members strong default protections and flexible operating agreement terms. The state's economy skews toward agriculture, specialty food production, and outdoor recreation, and its regulatory environment reflects that — built for small operators, not large corporate structures. No residency requirement exists for members or managers.
Year 1: $125 (state filing fee) + $149 (registered agent) + $0 (annual report not yet due in formation year if filed after March 15) = $274 total. Year 2 onward adds the $35 annual report each March 15. By Year 5: approximately $414 in cumulative state and registered agent costs ($274 + $35 x 4 annual reports + $149 x 3 additional registered agent years = roughly $697 total across five years).
The most common Vermont-specific mistake is missing the March 15 annual report deadline. Unlike most states that set deadlines in the formation-anniversary month or later in the calendar year, Vermont's fixed March 15 cutoff falls during tax season when attention is divided. Missing it triggers a $25 late fee and, after 60 days, administrative dissolution — wiping out liability protection retroactively from the lapse date.
Vermont LLC: frequently asked questions
How much does it cost to start an LLC in Vermont?
Vermont SOS charges $125 to file Articles of Organization. The annual report is $45, due within 3 months of fiscal year end (March 31 for calendar-year LLCs). Realistic year-one cost: $125. Ongoing yearly cost: $45.
How long does it take to form an LLC in Vermont?
Online filings through VT SOS Business Services approve in 1 business day. Mail filings take 5–7 business days.
What is a Vermont Blockchain-Based LLC (BBLLC)?
Vermont was the first U.S. state to enact a Blockchain-Based LLC (BBLLC) statute, in 2018. A BBLLC is a Vermont LLC that uses blockchain technology for governance — typically a DAO (decentralized autonomous organization) or a smart-contract-driven entity. The BBLLC statute provides legal certainty around how blockchain-based decisions translate to LLC governance, voting, and member rights. Wyoming has since enacted a similar DAO LLC statute.
Does Vermont have an LLC franchise tax?
No franchise tax for pass-through LLCs. Owners pay personal income tax (graduated up to 8.75%) on their share of LLC profits. LLCs that elect C-corp taxation may be subject to Vermont's corporate income tax (graduated up to 8.5%) plus a $250 minimum tax.
When is the Vermont LLC annual report due?
Within 3 months of the LLC's fiscal year end. For calendar-year LLCs, that means March 31. The fee is $45. File through VT SOS Business Services.
What's the Vermont LLC tax rate?
Vermont has graduated individual income tax topping at 8.75% — among the higher in the U.S. Sales tax is 6% statewide plus 1% in Burlington/Williston. LLCs taxed as pass-through don't owe state-level entity tax.
Can a non-resident form an LLC in Vermont?
Yes. Vermont has no residency requirement for LLC members or managers. You only need a Vermont-based registered agent. Out-of-state owners commonly use a commercial registered agent service.
Is Vermont a good state to form an LLC?
For Vermont residents and businesses tied to specialty food and beverage, outdoor industry, or blockchain/Web3 (BBLLC structure): yes. The 1-day approval and BBLLC framework are distinctive. The 8.75% top income tax is the trade-off — Vermont is more expensive for high-income LLC owners than most neighboring states.