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Every step to open an LLC in Vermont and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: Secretary of State (Corporations Division) · Department of Taxes · Department of Labor · Office of the State Treasurer (VT Saves) · Department of Financial Regulation.
This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.
Customize this checklistPopular Vermont business types:
Do this first. The state tax and payroll accounts ask for your registration details.
Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.
This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.
Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.
Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.
If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.
File Articles of Organization (or the state's equivalent) online through Secretary of State Business Services online filing.
Changing the registered agent or office costs $25.
Trade names (assumed business names) are registered with the Secretary of State for $50 and renewed for $40.
Formation fees are low, but foreign entities pay much higher annual report fees ($140 for LLCs, $200 for corporations).
Vermont charges no late fee, but entities that miss the filing window are terminated. Reinstatement requires a fee plus all missing reports.
Register online in myVTax by selecting Sign Up, or file Form BR-400 by mail or fax. You need a separate business tax account for withholding and for sales and use tax.
No local income or payroll taxes confirmed. Dozens of towns charge a 1% local option sales, meals, rooms, or alcohol tax, and Burlington and Rutland City collect some of their own meals and lodging taxes.
Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.
Vermont calls it a Sales and Use Tax business tax account (sales tax license). Register with the Vermont Department of Taxes through myVTax (paper Form BR-400 also accepted) before you make your first taxable sale in Vermont. You'll collect tax from customers and send it to the state.
Give your supplier Form S-3, Vermont Sales Tax Exemption Certificate for Purchases for Resale, by Exempt Organizations, and by Direct Pay Permit so you don't pay tax on inventory you'll resell. The buyer completes Form S-3 and gives it to the seller; Vermont also lists the Streamlined Exemption Certificate (Form F0003) as an accepted form. Keep certificates your own customers give you, too.
Out-of-state sellers must register once sales into Vermont pass $100,000 or 200 transactions (preceding 12-month period, tested at the end of each quarter), even with no office here.
Businesses must e-file in myVTax if they have local option tax sales, more than one location, or paid over $100,000 in sales tax the prior year.
Applies once you pay W-2 employees who work in this state.
Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.
Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.
Register once you pay wages to employees working in Vermont. Reports and payments are usually quarterly.
Vermont Family and Medical Leave Insurance (VT-FMLI) is voluntary for private employers. It is insured by The Hartford. Employers with 2 or more employees could join starting July 1, 2024, and single-employee businesses and individuals starting July 1, 2025.
Required at 1 or more employees. Sole proprietors are exempt. Up to 4 corporate officers or LLC members can be excluded with prior Department of Labor approval. Penalties start at $100 per day uninsured, and the state can issue stop-work orders. Small employers may need the assigned risk pool.
Report within 10 days of the first day of paid work, online through Employer e-Services. Rehires also count if they were gone 60 or more consecutive days.
Vermont's wage payment rules:
$14.42 an hour.
Vermont's Earned Sick Time law requires paid sick time. Employees earn at least 1 hour per 52 hours worked. Employers may cap accrual at 40 hours per 12 months.
Employers with 2 or more employees, in business at least 2 years, and no qualified retirement plan must register. Employers with a plan certify an exemption using their Access Code. New businesses were given a June 30, 2026 deadline; earlier notified employers' deadlines have passed.
Vermont doesn't require harassment training for private employers. A written policy and a yearly refresher are still best practice.
Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.
Employers owe 0.44% of Vermont wages and may withhold up to 0.11% from employees. Pay it on your withholding schedule and report it on the WHT-436 quarterly reconciliation.
Employers with uncovered employees may owe a quarterly assessment per full-time equivalent. The first 4 uncovered FTEs are exempt, but you must still file a return.
The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.
File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).
Self-employed people pay a 0.11% Child Care Contribution on Vermont self-employment income, with no income cap. It is paid with the annual Vermont income tax return.
Recurring deadlines. Put these on your calendar now.
FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.
Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.
File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.
The Department assigns monthly, quarterly or annual filing; returns are due the 25th of the month after the period (moved to the next business day on weekends and holidays). File a zero return if you had no sales; skipping it can bring penalties.
Recurring dates for Vermont and federal filings. A payroll service handles most payroll lines, but you should know they're happening.
| When | What | Filed with |
|---|---|---|
| Jan 31 | W-2s to employees | Vermont |
| Mar 15 | Corporation annual report due (calendar-year) | Vermont |
| Mar 31 | LLC annual report due (calendar-year) | Vermont |
| Quarterly | UI wage and contribution report; WHT-436 withholding and Child Care Contribution reconciliation | Vermont |
| Apr 15 | Self-employed Child Care Contribution with Vermont income tax return | Vermont |
| Assigned schedule | Sales tax return (file a zero return if no sales) | Vermont |
| Jan 31 | W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941 | IRS / SSA |
| Jan 31 | 1099-NEC to contractors and IRS | IRS |
| 15th monthly | Federal payroll tax deposit (monthly depositors) | IRS |
| Apr 30 · Jul 31 · Oct 31 | Form 941 for the quarter | IRS |
| Jul 31 | Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension) | DOL (EFAST2) |
Last verified: October 27, 2026
The Vermont state filing fee for an LLC is $125. That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.
You need to register to collect sales tax in Vermont if you sell taxable products or services there. The state rate is 6%, and local taxes may add to it. Registration cost: Free.
Out-of-state sellers must register once their sales into Vermont pass $100,000 or 200 sales a year. Having an employee or office in Vermont also creates nexus right away.
Recurring filings include: file the Annual Report; file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.
This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.
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