Choosing the limited liability company (LLC) structure for your startup comes with many benefits. It protects the personal assets of the owners, who are also known as members, against the debts and obligations of the company. It also allows flexibility in taxation as LLCs can opt for pass-through taxation. While LLCs may have fewer formalities than corporations, they still have responsibilities. You have to make sure that your LLC remains compliant with the requirements that the state has set. You should also file formal paperwork in case there is a need to make changes to certain information related to your company. Depending on the type of filing, you may have to pay certain fees. Knowing the LLC fees in Vermont can help you prepare your budget and plan for your company’s expenses.
Starting An LLC
- Name Reservation – Vermont requires companies to have distinguishable names. You have to make sure that your LLC name not only reflects the company’s values but is also unique. You can conduct a business name availability check to find out if it is not yet taken. If you want to reserve the name while you are preparing the formation documents, you can do so using the online portal of the Secretary of State. You can also file by mail using the Application to Reserve a Specified Business Name. The name reservation in Vermont costs $20. This will protect the company name for 120 days.
- LLC Registration – Before you can start operating in Vermont, you will have to file the Articles of Organization with the Secretary of State. The state requires you to pay $125 along with your submission. It is among the LLC fees in Vermont that you only need to worry about once.
- Registered Agent – Like other states, Vermont requires LLCs to nominate a registered agent in the state. You can choose either an individual resident or a business entity. The registered agent agrees to accept all legal correspondences and services of process on behalf of your company. If you choose a professional commercial registered agent, you have to include payment for their services in your company’s budget. If you choose DoMyLLC, your company will only have to pay $99 per year. That is much less compared to other commercial registered agents.You can save money by appointing one of the members of your LLC or choosing a friend. Make sure they are not younger than 18 years old and have a physical street address in Vermont that is open during normal business hours. However, a third-party organization like DoMyLLC may offer more advantages as a team of experts is more likely to have the necessary skills and knowledge to help protect your business and ensure compliance with various state requirements.
- Business Licenses And Permits – Depending on the industry you are in, your business activities, and location, you may have to secure business licenses or permits. The cost will vary depending on what type of license you need. Check with the state, city, and county government agencies if you need to prepare LLC fees in Vermont for certain licenses.If your company offers professional services such as accounting, medicine, or law, you will have to contact the Professional Licensing Board of your specific industry.Some municipalities also require LLCs to obtain municipal permits and zoning. You can check this out on the website of the Vermont government or the municipal director of the Vermont League of Cities and Towns.If you have to make certain improvements to the facilities of your LLC, you have to contact the District Environmental Coordinator for the state. Ask them if you will have to secure an Act 250 Permit, which is also known as Land Use Permit.If you are thinking of putting up a sign at your place of business or an Official Business Directional Sign (OBDS) on a highway, you need to have a permit from the District Manager of the Agency of Transportation. Contact municipal agencies to check if they require permits for signs too.
You may also need to get an Employer Identification Number (EIN) from the Internal Revenue Service. You will need this for tax filing purposes, hiring employees, and opening business bank accounts. The EIN is free.
Ongoing Compliance And LLC Fees In Vermont
The responsibilities of Vermont LLC owners continue even after they successfully register their business with the state. You will have to file an Annual Report with the Secretary of State. You can complete the report on the website of the Secretary of State. It requires you to pay $35 annually. The deadline for your annual report is within the three-month filing window following the close of the company’s fiscal year.
Tax Payments
Generally, LLCs are pass-through entities when it comes to taxation. That means LLC members file the income they get from the company in their individual tax returns. However, you may need to pay taxes in the state and local levels. Those include your city, town, or county.
Other Fees in Vermont
There are optional fees in Vermont for other processes. Here are the circumstances that may require payments:
- Assumed Name Or DBA – In some cases, business owners opt to use a company name that is different from the legal name they used in the Articles of Organization. To register it with the state, you have to file a completed Trade Name Registration Form and pay $50. If you want to get certified copies, you have to pay an additional $25 per copy.
- Changing Registered Office Or Agent – If you have to make certain changes to any of the information related to your registered agent, you have to file a Change of Registered Agent. You can submit online or in paper form to the Secretary of State. This filing comes with a $25 fee.
- Amendment – If you have to change pieces of information in your Articles of Organization, you will have to file two copies of the Articles of Amendment: Limited Liability Company with the Corporations Division of the Secretary of State. You can use the available form or draft your own. It comes with a $25 filing fee.
If you need help in ensuring compliance with state requirements, you can contact DoMyLLC. You can also discuss your needs with our team to find out which of our services suits your Vermont LLC.