Start a Free LLC in Vermont
LLC Register forms your free Vermont LLC, serves as your Vermont registered agent and keeps your LLC in good standing. Vermont charges $155 to file the Articles of Organization with the Vermont Secretary of State.

Vermont LLC
- Vermont LLC Formation
- Free
- Vermont LLC Name Search
- Free
- Vermont Registered Agent
- $99 per year
- Annual Compliance
- Free
- Vermont State Filing Fee
- $155
Transparent Cost Guide to Form a Vermont LLC with LLC Register
Every fee, line by line. The state fee is passed through at cost; there is nothing else to add at checkout.
| Cost item | LLC Register fee | Vermont state fee | Estimated total | One-time or annual |
|---|---|---|---|---|
Vermont LLC name search | $0 | $0 | $0 | Free |
Vermont LLC business name generator | $0 | $0 | $0 | Free |
Vermont LLC formation (articles of organization) | $0 | $0 | $0 | Free |
Vermont registered agent | $99 | $0 | $99 | Annual |
Vermont LLC compliance (annual report) | $0 | $45 | $45 | Annual |
Vermont state filing fee | $0 | $155 | $155 | One-time |
Vermont Business Entity Income Tax (minimum tax) (annual minimum) | $0 | $250 | $250 | Annual |
Vermont LLC formation and annual compliance are included with the $99 annual registered agent service. You also pay the $155 state filing fee required by the Vermont Secretary of State. That makes $254 in year one, and renewal is $99 per year, plus the $45 Annual Report fee and the $250 minimum Vermont Business Entity Income Tax (minimum tax) paid to the state at cost.
Comprehensive 10-Step Guide to Form a Vermont LLC
From the name search to your first annual report, in the order you will do them.
Step 1 — Choose a compliant Vermont LLC name
Your Vermont LLC name must include "limited liability company", "limited company" or an abbreviation such as "LLC", "L.L.C.", "LC" or "L.C.". It must be distinguishable from every other name on record with the Secretary of State. Check that your name is available with the free Vermont Secretary of State business name search before you file.
Name reservation: for $25 through the Online Business Service Center; the reservation lasts 120 days and can be renewed for another $25
Step 2 — Select a registered agent in Vermont
Every Vermont LLC must name a registered agent to receive legal papers and state mail. Your registered agent (Vermont calls this the "agent for service of process") must be either an individual Vermont resident or a business already authorized to do business in Vermont, and must consent to serve. Vermont also requires a separate "designated office" for notices, which does not have to be a Vermont address. LLC Register's Vermont registered agent service is $99 a year and includes LLC formation and annual report filing.
Required by the Vermont Limited Liability Company Act, 11 V.S.A. Chapter 25
Step 3 — Decide how the Vermont LLC will be managed
Member-managed LLCs are run by their owners; manager-managed LLCs appoint managers to run the business. You choose the structure when you file the Articles of Organization and set the details in your operating agreement.
Member-managed or manager-managed
Step 4 — File the Articles of Organization with the Vermont Secretary of State
Submit the Articles of Organization and pay the $155 state filing fee. You can file online through the Vermont Online Business Service Center, or by mail with a printed copy of the same online form. Online filings take under one business day. Mailed filings take about 7–10 business days. We prepare and file it for you.
State fee: $155 · File online: Vermont Online Business Service Center
Step 5 — Create an LLC operating agreement
Vermont does not require an operating agreement, and you never file one with the state. Vermont law lets the agreement override most of the LLC Act's default rules on members' relations and the company's affairs. Ours is included and ready to sign.
Included with LLC Register
Step 6 — Obtain an EIN or FTIN
Get your federal Employer Identification Number from the IRS. It is free, and applying online gives you the number right away. You need it to hire employees, open a business bank account and file federal taxes; owners without a Social Security number apply with Form SS-4.
Free from the IRS · Form SS-4
Step 7 — Open a business banking account
Keep business and personal money apart to protect your limited liability. Banks usually ask for your filed Articles of Organization, your EIN and your operating agreement.
Bring your formation document, EIN and operating agreement
Step 8 — Register for Vermont taxes, permits and licenses
If you sell taxable goods or services, register a Business Tax Account for Sales and Use Tax with the Vermont Department of Taxes through myVTax. Online registration has no state fee. Before you hire, register with the Vermont Department of Labor for unemployment insurance and with the Department of Taxes through myVTax for income tax withholding. Check with your city and county for local business licenses.
Tax agency: Vermont Department of Taxes
Step 9 — Consider other LLC documents
Such as a banking resolution, a Certificate of Existence (good standing) ($35), or foreign qualification if you operate in other states. If you use a brand name other than your LLC's legal name, file a Registration of Assumed Business Name.
Certificate: $35 · DBA: $70
Step 10 — Set reminders for annual compliance
Vermont requires the Annual Report every year. It is due within three months after the end of your LLC's fiscal year. The first one is due within three months after the end of your LLC's first fiscal year after formation. We track the deadline and file it on time while your agent service is active.
State fee: $45 · Annual
Vermont LLC Formation Facts Table
The official numbers, names and links for a Vermont LLC, each checked against the state agency.
Vermont LLC filing agency | Vermont Secretary of State, Business Services Division |
|---|---|
Vermont LLC formation document | Articles of Organization |
Vermont LLC filing fee | $155 |
Standard processing time | Online filings take under one business day. Mailed filings take about 7–10 business days. |
Expedited filing | Not offered |
Vermont online LLC filing | sos.vermont.gov/business-services/business-filings/domestic-formation/llc |
Vermont LLC name search | swyftfilings.com/business-name-generator |
Name reservation | Available for $25 through the Online Business Service Center; the reservation lasts 120 days and can be renewed for another $25 |
Vermont registered agent required | Yes |
Registered agent address rule | Your registered agent (Vermont calls this the "agent for service of process") must be either an individual Vermont resident or a business already authorized to do business in Vermont, and must consent to serve. Vermont also requires a separate "designated office" for notices, which does not have to be a Vermont address. |
Can you be your own registered agent | Yes |
Vermont registered agent service | /registered-agent/vermont |
Annual or biennial filing | Annual Report, every year |
Annual report state fee | $45 |
First compliance deadline | Within three months after the end of your LLC's first fiscal year after formation |
Recurring due date | Within three months after the end of your LLC's fiscal year |
Late filing penalty | Missing the deadline automatically terminates your Articles of Organization. Reinstating costs the $45 fee for every missed year plus a $35 reinstatement fee, and your reserved name rights are lost if a report stays unfiled for five years. |
Annual Report filing | sos.vermont.gov/business-services/business-filings/annualbiennial-reports |
Vermont Business Entity Income Tax (minimum tax) | Vermont has no franchise tax by that name, but every LLC that files as a pass-through entity, including any multi-member LLC, owes a $250 minimum Business Entity Income Tax each year, even with no profit. A single-member LLC that is disregarded for federal tax purposes is not itself subject to this filing; its owner reports the LLC's income directly. |
State income tax on LLC profits | Vermont taxes an LLC the way the IRS does, so profits pass through by default to the members' Vermont personal income tax returns. An LLC with nonresident members must withhold Vermont tax for them and file a Business Entity Income Tax return. |
Sales tax permit | Business Tax Account (Sales and Use Tax), issued by Vermont Department of Taxes |
Operating agreement required by law | No |
Newspaper publication required | No |
Series LLC allowed | No |
Professional LLC (PLLC) allowed | No |
Certificate of good standing fee | $35 (Certificate of Existence (good standing)) |
Foreign LLC registration fee | $155 (Application for Certificate of Authority (foreign LLC)) |
Amendment fee | $35 (Articles of Amendment) |
Dissolution fee | $20 (Articles of Termination) |
DBA (assumed name) filing | $70 (Registration of Assumed Business Name), filed with Vermont Secretary of State, Business Services Division |
Vermont LLC law | legislature.vermont.gov/statutes/chapter/11/025 |
Free trademark search | trademarkengine.com/free-trademark-search |
Trademark registration | trademarkengine.com |
Virtual mailbox | snapmailbox.com |
Apply for an EIN (IRS) | irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number |
Author: LLC RegisterLast reviewed 9/30/2026
Vermont agency: Vermont Secretary of StateLast reviewed 9/30/2026
Legal Requirements to Start a Vermont LLC
What Vermont law requires of every LLC, with the rule and the agency that enforces it.
A distinguishable LLC name
Your Vermont LLC name must include "limited liability company", "limited company" or an abbreviation such as "LLC", "L.L.C.", "LC" or "L.C.". It must be distinguishable from every other name on record with the Secretary of State. Search the name for free with the Vermont business name search before you file. You can reserve a name for $25 through the Online Business Service Center; the reservation lasts 120 days and can be renewed for another $25. The rules come from the Vermont Limited Liability Company Act, 11 V.S.A. Chapter 25.
A Vermont registered agent
Every Vermont LLC must appoint and keep a registered agent in Vermont. Your registered agent (Vermont calls this the "agent for service of process") must be either an individual Vermont resident or a business already authorized to do business in Vermont, and must consent to serve. Vermont also requires a separate "designated office" for notices, which does not have to be a Vermont address. To change agents, file the Statement of Change (filed through the Vermont Online Business Service Center) ($35). LLC Register's Vermont registered agent service is $99 a year and includes LLC formation and annual report filing.
The Articles of Organization
Your LLC exists once the Vermont Secretary of State accepts your Articles of Organization and the $155 filing fee. You can file online through the Vermont Online Business Service Center, or by mail with a printed copy of the same online form. Online filings take under one business day. Mailed filings take about 7–10 business days.
An operating agreement
Vermont does not require an operating agreement, and you never file one with the state. Vermont law lets the agreement override most of the LLC Act's default rules on members' relations and the company's affairs. Even where it is optional, a written operating agreement sets ownership, voting, profit splits and what happens when a member leaves, and banks often ask for one.
Annual Report
Vermont requires every LLC to file the Annual Report every year for $45. It is due within three months after the end of your LLC's fiscal year. The first one is due within three months after the end of your LLC's first fiscal year after formation. Missing the deadline automatically terminates your Articles of Organization. Reinstating costs the $45 fee for every missed year plus a $35 reinstatement fee, and your reserved name rights are lost if a report stays unfiled for five years.
State taxes and licenses
Vermont has no franchise tax by that name, but every LLC that files as a pass-through entity, including any multi-member LLC, owes a $250 minimum Business Entity Income Tax each year, even with no profit. A single-member LLC that is disregarded for federal tax purposes is not itself subject to this filing; its owner reports the LLC's income directly. Vermont taxes an LLC the way the IRS does, so profits pass through by default to the members' Vermont personal income tax returns. An LLC with nonresident members must withhold Vermont tax for them and file a Business Entity Income Tax return. If you sell taxable goods or services, register a Business Tax Account for Sales and Use Tax with the Vermont Department of Taxes through myVTax. Online registration has no state fee. See the Vermont Department of Taxes for registrations.
Vermont LLC Company Cost Comparison
Published prices for forming and keeping a Vermont LLC, compared line by line.
| What you pay for | LLC Register | LegalZoom | ZenBusiness |
|---|---|---|---|
LLC formation service | $0 | $0 | $0 |
Vermont filing fee | $155 | $155 | $155 |
Registered agent, first year | $99 | $249 | $99 |
Annual report filing | $0 | $99 | $100 |
First-year total | $99 + state fee | $249 + state fee | $99 + state fee |
Registered agent renewal | $99 per year | $249 per year | $199 per year |
Competitor prices are for each company's lowest-priced LLC package, as published on its own website on September 29, 2026. The Vermont state fee is extra with every provider. Prices change; check each provider before you buy.
Why Form Your Vermont LLC with LLC Register
One price, the whole bill up front, and your LLC kept in good standing every year.
$99 a year. That is the whole price.
The same $99 at renewal, every year. No tiers to compare and nothing pre-checked at checkout.
Formation included
We prepare and file your Articles of Organization with the Vermont Secretary of State. You pay only the $155 state fee, at cost.
A Vermont registered agent
A physical Vermont address for legal and state mail, with scans sent to you the same day.
Your annual compliance, handled
We track the Vermont deadlines and file your Annual Report on time while your agent service is active.
Every fee shown before you pay
The cost guide above is the bill. State fees are passed through at cost and never marked up.
Support by email
Real people answer your questions by email, before and after your Vermont LLC is formed.
Important Vermont LLC Resources and Links
Official Vermont offices, forms and data in one place. Every link goes to the source.
State government offices
Filing, forms and records
- Business name searchsos.vermont.gov
- Articles of Organization formsos.vermont.gov
- Certificate of Existence (good standing)sos.vermont.gov
- Annual Report filingsos.vermont.gov
- Foreign LLC registration (Application for Certificate of Authority (foreign LLC))sos.vermont.gov
- DBA (Registration of Assumed Business Name)sos.vermont.gov
- Vermont Limited Liability Company Act, 11 V.S.A. Chapter 25legislature.vermont.gov
Taxes, permits and licenses
Vermont business data and help
- Population and demographicsU.S. Census Bureau QuickFacts, Vermont
- Small business statisticsSBA Office of Advocacy, 2025 state small business profiles
- Vermont Small Business Development Centervtsbdc.org
- U.S. Small Business Administrationsba.gov
- SBA local assistanceFind SBA offices and advisors near you in Vermont
Vermont LLC FAQs
Short questions, direct answers about forming and running an LLC in Vermont.
How much does it cost to start an LLC in Vermont?
Per the Vermont Secretary of State, as of September 2026, Vermont charges $155 to file the Articles of Organization. After that, the Annual Report costs $45 every year. The Vermont Business Entity Income Tax (minimum tax) has a minimum of $250 a year. With LLC Register, formation is included in the $99-a-year Vermont registered agent service, so year one costs $254.
How long does it take to form an LLC in Vermont?
Online filings take under one business day. Mailed filings take about 7–10 business days. Vermont does not offer paid expedited processing for LLC formations. Your LLC exists once the state accepts your filing.
How do I start an LLC in Vermont?
To start an LLC in Vermont, choose an available name, appoint a Vermont registered agent, and file the Articles of Organization with the Vermont Secretary of State for $155. Then sign an operating agreement, get a free EIN from the IRS, open a business bank account and register for any state taxes. LLC Register files it for you as part of the $99-a-year registered agent service.
Can I form an LLC online in Vermont?
Yes. You can file online through the Vermont Online Business Service Center, or by mail with a printed copy of the same online form. The Articles of Organization costs $155.
What is the Vermont LLC formation document called?
In Vermont you form an LLC by filing the Articles of Organization with the Vermont Secretary of State. Other states call this document the articles of organization or the certificate of formation. The filing fee is $155.
Is there an expedited LLC filing option in Vermont?
No. Vermont does not offer paid expedited processing for LLC formations. Online filings take under one business day. Mailed filings take about 7–10 business days.
How do I do a Vermont LLC name search?
Use the Vermont Secretary of State's free online business name search to check whether your LLC name is available. Your Vermont LLC name must include "limited liability company", "limited company" or an abbreviation such as "LLC", "L.L.C.", "LC" or "L.C.". It must be distinguishable from every other name on record with the Secretary of State.
What are the Vermont LLC name requirements?
Your Vermont LLC name must include "limited liability company", "limited company" or an abbreviation such as "LLC", "L.L.C.", "LC" or "L.C.". It must be distinguishable from every other name on record with the Secretary of State. The rules are set by the Vermont Limited Liability Company Act, 11 V.S.A. Chapter 25.
Can I reserve an LLC name in Vermont?
Yes. You can reserve a name for $25 through the Online Business Service Center; the reservation lasts 120 days and can be renewed for another $25. A reservation is optional; filing the formation document also secures the name.
Do I need a registered agent for my Vermont LLC?
Yes. Every Vermont LLC must have a registered agent. Your registered agent (Vermont calls this the "agent for service of process") must be either an individual Vermont resident or a business already authorized to do business in Vermont, and must consent to serve. Vermont also requires a separate "designated office" for notices, which does not have to be a Vermont address.
Can I be my own registered agent in Vermont?
Yes. Any individual Vermont resident, including a member or manager, can serve as the LLC's agent for service of process if they consent to the appointment. Your address becomes public record, and someone must be there during business hours to accept legal papers.
Can I use a PO box for my Vermont LLC?
Not as your registered agent's address. Your registered agent (Vermont calls this the "agent for service of process") must be either an individual Vermont resident or a business already authorized to do business in Vermont, and must consent to serve. Vermont also requires a separate "designated office" for notices, which does not have to be a Vermont address. A PO box can usually serve as a mailing address, but the registered agent needs a physical address in Vermont.
How do I change my registered agent in Vermont?
File the Statement of Change (filed through the Vermont Online Business Service Center) with the Vermont Secretary of State. The fee is $35.
How much does a registered agent cost in Vermont?
Serving as your own Vermont registered agent is free if you qualify. Commercial registered agents charge a yearly fee. LLC Register's Vermont registered agent service is $99 a year and includes LLC formation and annual report filing.
Does Vermont require an annual report for LLCs?
Yes. Vermont LLCs must file the Annual Report every year. The state fee is $45.
When is the Vermont LLC annual report due?
The Annual Report is due within three months after the end of your LLC's fiscal year. Your first one is due within three months after the end of your LLC's first fiscal year after formation. It is filed with the Vermont Secretary of State.
How much is the Vermont LLC annual report fee?
Per the Vermont Secretary of State, as of September 2026, the Annual Report state fee is $45. It is due within three months after the end of your LLC's fiscal year. LLC Register files it for you at no extra service fee while your registered agent service is active.
What happens if I miss the Vermont annual report deadline?
Missing the deadline automatically terminates your Articles of Organization. Reinstating costs the $45 fee for every missed year plus a $35 reinstatement fee, and your reserved name rights are lost if a report stays unfiled for five years. File as soon as possible to keep your LLC in good standing.
Does Vermont have a franchise tax for LLCs?
Vermont has no franchise tax by that name, but every LLC that files as a pass-through entity, including any multi-member LLC, owes a $250 minimum Business Entity Income Tax each year, even with no profit. A single-member LLC that is disregarded for federal tax purposes is not itself subject to this filing; its owner reports the LLC's income directly.
How are LLCs taxed in Vermont?
Vermont taxes an LLC the way the IRS does, so profits pass through by default to the members' Vermont personal income tax returns. An LLC with nonresident members must withhold Vermont tax for them and file a Business Entity Income Tax return. Federally, a single-member LLC is taxed like a sole proprietorship and a multi-member LLC like a partnership, unless it elects to be taxed as a corporation.
Do I need a sales tax permit for my Vermont LLC?
If you sell taxable goods or services, register a Business Tax Account for Sales and Use Tax with the Vermont Department of Taxes through myVTax. Online registration has no state fee.
How do I register my Vermont LLC as an employer?
Before you hire, register with the Vermont Department of Labor for unemployment insurance and with the Department of Taxes through myVTax for income tax withholding. You also need an EIN from the IRS before you run payroll.
Do I need a business license for my Vermont LLC?
It depends on your industry and location: Vermont regulates some professions and activities through state licenses, and many cities and counties require local business licenses. Start with the Vermont Agency of Commerce and Community Development, Business Resources.
Do I need an operating agreement for a Vermont LLC?
Vermont does not require an operating agreement, and you never file one with the state. Vermont law lets the agreement override most of the LLC Act's default rules on members' relations and the company's affairs. LLC Register includes an operating agreement with every Vermont LLC it forms.
Do I need an EIN for my Vermont LLC?
You need an EIN if your LLC has employees or more than one member, and most banks ask for one to open a business account. A single-member LLC without employees can use the owner's Social Security number for federal taxes, but an EIN keeps it off business paperwork.
How do I get an EIN for a Vermont LLC?
Apply for free on the IRS website once the state has approved your LLC; online applicants receive the EIN immediately. Owners without a Social Security number can apply with Form SS-4 by fax or mail.
Can a nonresident form an LLC in Vermont?
Yes. You do not have to live in Vermont or be a U.S. citizen to form a Vermont LLC. You do need a registered agent with a physical address in Vermont. Non-U.S. owners without a Social Security number apply for an EIN with IRS Form SS-4.
Can I form a single-member LLC in Vermont?
Yes. Vermont allows an LLC with a single owner. By default the IRS taxes a single-member LLC like a sole proprietorship, reported on the owner's personal return.
Does Vermont allow series LLCs?
No. Vermont's LLC Act does not provide for series LLCs.
Can licensed professionals form a PLLC in Vermont?
No. Vermont's LLC Act has no separate professional LLC designation; licensed professionals who want a licensed corporate structure instead organize as a professional corporation under a separate chapter of Title 11.
Does Vermont require LLCs to publish a formation notice?
No. Vermont does not require newspaper publication to form an LLC.
How do I get a certificate of good standing in Vermont?
Order a Certificate of Existence (good standing) from the Vermont Secretary of State for $35. Banks, lenders and other states often ask for one as proof your LLC is current with the state.
How do I register a foreign LLC in Vermont?
An LLC formed in another state registers to do business in Vermont by filing the Application for Certificate of Authority (foreign LLC) with the Vermont Secretary of State. The fee is $155, and the LLC needs a Vermont registered agent.
How do I amend my Vermont LLC?
File the Articles of Amendment with the Vermont Secretary of State for $35. Amend when you change your LLC's name or other information in the formation document.
How do I dissolve an LLC in Vermont?
File the Articles of Termination with the Vermont Secretary of State for $20. Before you file, wind up the business: pay debts, close tax accounts and distribute what is left to the members.
How do I file a DBA for my Vermont LLC?
File a Registration of Assumed Business Name with the Vermont Secretary of State for $70 within 10 days of starting to use the name. A DBA lets your LLC trade under another name without forming a new company.
Can my Vermont LLC be taxed as an S corporation?
Yes. An eligible LLC can elect S corporation tax status by filing IRS Form 2553. The election can reduce self-employment tax once profits are high enough to pay yourself a reasonable salary. Vermont taxes an LLC the way the IRS does, so profits pass through by default to the members' Vermont personal income tax returns. An LLC with nonresident members must withhold Vermont tax for them and file a Business Entity Income Tax return.
What are the benefits of forming an LLC in Vermont?
An LLC separates your personal assets from business debts and lawsuits, keeps pass-through taxation, and needs less paperwork than a corporation. In Vermont it costs $155 to form and the Annual Report is $45 every year.
LLC vs sole proprietorship in Vermont: which is better?
A sole proprietorship costs nothing to start, but you are personally liable for the business's debts. A Vermont LLC costs $155 to form and protects your personal assets, with the same pass-through taxes by default.
Should I form my LLC in Delaware or Wyoming instead of Vermont?
Usually not if your business operates in Vermont. An out-of-state LLC doing business here must also register as a foreign LLC in Vermont for $155 and keep a Vermont registered agent, so you pay two states' fees.
Does LLC Register charge a separate fee to form a Vermont LLC?
No. Formation is included in the $99-a-year Vermont registered agent service. The state still charges its $155 filing fee, which we pass through at cost.
What does LLC Register include with a Vermont LLC?
For $99 a year plus the $155 state fee: Vermont LLC formation in year one, a Vermont registered agent, an operating agreement, and filing of your Annual Report every year. Renewal is $99 a year. State fees are passed through at cost.
Does my Vermont LLC need to file a BOI report with FinCEN?
No. FinCEN has exempted companies created in the United States from beneficial ownership information (BOI) reporting. Only foreign companies registered to do business in a U.S. state still have to report.
Which state agency handles LLC filings in Vermont?
The Vermont Secretary of State, Business Services Division, handles LLC formations, amendments and annual filings. Its office is at 128 State Street, Montpelier, VT 05633.
Do I need a separate bank account for my Vermont LLC?
Yes, you should. Mixing business and personal money can weaken the liability protection your LLC gives you. Banks usually ask for your filed Articles of Organization, your EIN and your operating agreement.
Complete Vermont LLC Glossary
The terms, documents and filings you will meet when forming a Vermont LLC.
Annual report
A recurring filing that keeps your LLC in good standing with the state. In Vermont it is the Annual Report, due within three months after the end of your LLC's fiscal year.
Articles of Organization
The document filed with the state to create an LLC. Some states call it a Certificate of Formation; in Vermont it is the Articles of Organization.
Assumed name (DBA)
A trade name your LLC uses instead of its legal name. In Vermont you file a Registration of Assumed Business Name.
Banking resolution
A document authorizing who may open and run the LLC's bank accounts.
Certificate of good standing
Proof from the state that your LLC exists and is current on its filings and fees. In Vermont it is the Certificate of Existence (good standing).
Dissolution
Formally closing an LLC with the state. In Vermont you file the Articles of Termination.
EIN
Employer Identification Number: the nine-digit federal tax ID the IRS issues to a business.
Foreign qualification
Registering an LLC formed in another state so it can do business in Vermont, through the Application for Certificate of Authority (foreign LLC).
Franchise tax
A state tax some states charge for the privilege of doing business there. Vermont has no franchise tax by that name, but every LLC that files as a pass-through entity, including any multi-member LLC, owes a $250 minimum Business Entity Income Tax each year, even with no profit. A single-member LLC that is disregarded for federal tax purposes is not itself subject to this filing; its owner reports the LLC's income directly.
Limited liability
The legal protection that keeps the owners' personal assets separate from the LLC's debts and lawsuits.
Manager-managed LLC
An LLC run by appointed managers rather than by all of its members.
Member
An owner of an LLC. An LLC can have one member or many, and members can be people or companies.
Member-managed LLC
An LLC run directly by its owners, the members.
Operating agreement
The internal contract that sets out an LLC's ownership, voting, profits and what happens when a member leaves.
Pass-through taxation
The default federal tax treatment of an LLC: profits pass to the owners' personal returns instead of being taxed at the company level.
Professional LLC (PLLC)
An LLC for licensed professionals such as doctors, lawyers or accountants. Not offered as a separate entity in Vermont.
Registered agent
The person or company with a physical Vermont address named to receive legal papers and state mail for the LLC.
S corporation election
A federal tax election, made on IRS Form 2553, that lets an eligible LLC be taxed as an S corporation.
Series LLC
An LLC divided into separate series, each with its own assets and liabilities. Not provided for in Vermont law.
Single-member LLC
An LLC with one owner. By default the IRS taxes it like a sole proprietorship.
Vermont Limited Liability Company Act, 11 V.S.A. Chapter 25
The Vermont law that governs how LLCs are formed, run and dissolved.
