Form a Vermont LLC or Incorporate in Vermont

Watching the leaves change in Vermont is just spectacular.  The colors, the countryside, the seasons changing are all magical sights to see.  If you haven't experienced it, then it is something that you should take time to enjoy.  If you live and work in Vermont, then you know that thousands of people travel to the state each year to vacation and take advantage of the state and the beauty it has to offer.  If you live here in the state and have a business, then you probably should think about forming a Vermont LLC, or Incorporating in Vermont for your business.   There are a couple of reasons that you may want to file or form an entity in the state and let's discuss those:

  1. The entities that we discuss on this page will afford the business owners limited liability protection.  This is a benefit in that it provides a separation between the business owners assets, and the business assets.  This is important in the case of a lawsuit, where you may loose and find your personal assets subject to the judgment.
  2. Most investors want to see that you have take the proper steps to setup a professional entity because this will help to ensure the safety of their investment.
  3. Pass through taxation is important concept and can be obtained by the limited liability company, and the S corporation.  The S corp is setup by filing an additional form 2553 with the IRS, where the default corporation in Vermont is called a C corporation.  The C corporation is typically appropriate and required for large public companies that have more than 100 shareholders.  The S corp is limited to only having 100 shareholders.

These are some of the main reasons that people choose to setup a corp or LLC in the state, but everybody will have a different situation and different needs and requirements.  Let's discuss them more in detail here.

Forming a Vermont LLC

The LLC in Vermont can be filed in paper form, or Online using the Secretary of State website.  It is important that you complete the process correctly, otherwise it will get rejected potentially wasting you both time and money.  So, we have put together a page of tips, forms, links, suggestions to help you with the filing process.

Steps to forming an LLC in VT

  1. You need to find an available name for your LLC.  The name must also include an ending of "Limited Liability Company" ("LLC" or "Ltd Liability Co"), or "Limited Company" ("LC" or "Ltd Co").
  2. Next, you will need to provide both a mailing address and a business address.
  3. Then you'll need to provide tha name and physical street address, and email address of a registered agent.
  4. You can optionally provide information about the duration of the LLC and by default it is perpetual, or you can specify a end date.
  5. You must specify whether the business is member managed or managed by managers.
  6. Finally you will need to have the document and signed by the Organizers and provide their address information.

These are the basic steps, and you can see the PDF to form an LLC in Vermont here.

Incorporate in Vermont

The Vermont corporation is similar to any corporation formed in other states, in that you can form either a C-corp or and S-corp.  The difference here is that the C-corp is a stand alone entity, where the S-corp is a pass through entity.  The S-corp will pass through the income earned to the tax returns of the shareholders based on their ownership percentages.  The C-corp will pay the income earned for the business.  This is obviously after deducing all expenses and completing the profit/loss for the business.  We suggest that you talk to a CPA for specifics about the process of filing taxes, or even if a C-corp or S-corp is right for you.   Next you will need to find a name for the incorporation.

Searching for a name for a Vermont Corporation

The search for a business name in Vermont is going to be a bit challenging as you will see that many of the available names will be already taken or not available.  You can also do a name search for a Vermont corporation on the Secretary of State Website.

Vermont Secretary of State Links:
Secretary of State Address :
Vermont Secretary of State
Corporations Division
128 State Street
Montpellier, VT 05633-1104
Secretary of State Phone :
(802) 828‐2386
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