If you’re interested in building your business locally or regionally, incorporating in Vermont could be the right move for you. To do so, you file a short set of forms, pay a predictable fee, and check in once a year with an update. As with any other state, the details that matter most are in your control: what structure you pick, how you handle governance, and whom you’ll use as your registered agent. Below, we’ll explain how to incorporate in Vermont and what it takes to keep your business in good standing.

What’s in this article?

• How do you incorporate a business in Vermont?
  
• What are the benefits of incorporating in Vermont?
  
• What are the legal requirements to incorporate in Vermont?
  
• How much does it cost to incorporate in Vermont?
  
• What are the steps to register an LLC or corporation in Vermont?
  
• How Stripe Atlas can help
  

How do you incorporate a business in Vermont?

Incorporation creates the legal basis to separate your business from your personal assets, gives you credibility with banks and investors, and sets you up to grow without worrying about liability. “Incorporate” technically refers to forming a corporation, but people often use it to refer to limited liability companies (LLCs), too.

To incorporate in Vermont, you pick your business structure, choose a name, select a registered agent, and file the appropriate documents with the state. LLCs file articles of organization, while corporations file articles of incorporation. Corporations will need to draft bylaws, and LLCs typically draft an operating agreement.

Once you’ve checked those boxes, ongoing compliance is as simple as filing an annual or biennial report, depending on your business type.

What are the benefits of incorporating in Vermont?

Vermont doesn’t market itself as a Delaware-style incorporation hub. But incorporating in Vermont provides pragmatic, affordable benefits that work well if you’re building locally or regionally.

Easy compliance

Filing requirements are simple: you file one annual or biennial report and follow simple recordkeeping rules. Most businesses don’t pay an annual franchise tax.

Favorable business environment

The state supports businesses with access to local grants, tax incentives, and a strong environment of cooperatives and community-focused enterprises. The Investment Tax Credit, for example, allows up to 24% credit for qualifying investment in rehabilitation, energy, advanced coal projects, gasification projects, and advanced energy projects.

Legal protection

As in any other state, incorporating in Vermont gives you an important liability shield between personal assets and business debts.

What are the legal requirements to incorporate in Vermont?

Here’s what your business will need to form an LLC or corporation in Vermont.

A compliant name

Vermont requires your LLC or corporation to have a distinct name that isn’t already in use. You can check availability through the Vermont secretary of state’s online search tool. LLC names must include “Limited Liability Company” or “LLC,” while corporation names need “Inc.,” “Corp.,” or a similar tag.

A registered agent

Every business must designate a registered agent with a physical Vermont address (not a PO box). This is the person or service authorized to receive notices and legal documents on your behalf, and they must be available during normal business hours.

Filed documents

To officially launch your company, you’ll file either articles of organization for an LLC or articles of incorporation for a corporation. You’ll submit these to the secretary of state online or by mail.

Internal agreements

Vermont expects you to keep internal guardrails in place: an operating agreement is best practice for LLCs, and corporate bylaws are legally required for corporations. While you don’t file these with the state, you’ll want them for governance and clarity among owners.

Annual reports

For-profit corporations and LLCs must file annually and nonprofit corporations must file biennially to confirm basic details such as your business address, registered agent, and members or directors. This keeps your Vermont business in good standing and helps you avoid late fees and administrative dissolution.

Licenses and tax IDs

There’s no general business license in Vermont. Depending on your industry, you might need local business licenses or permits. If you plan to hire or sell taxable goods, you’ll need Vermont tax registrations.

How much does it cost to incorporate in Vermont?

While Vermont’s incorporation process costs more than that of many states, the cost is relatively low compared to that of the most expensive states, such as Texas. Filing articles of incorporation or articles of organization comes with a $155 filing fee. After that, you’ll pay $45–$60 each time you file your annual report. If you’re paying for a registered agent service, that typically costs $100–$300 per year, depending on the provider.

What are the steps to register an LLC or corporation in Vermont?

Here’s what you’ll need to do to register an LLC or corporation in Vermont.

1. Decide on your entity type

LLCs are often favored for small businesses that want pass-through taxation and flexible ownership. Corporations are most suitable if you’re raising outside capital, planning to issue stock, or need a more formal governance model.

2. Choose a business name

Vermont requires a compliant entity name that’s unique and distinguishable from other businesses in the state.

3. Appoint a registered agent

Every business must have a registered agent with a Vermont street address. This can be you, another member of your business, or a professional service.

4. File formation documents

LLCs file articles of organization, and corporations file articles of incorporation. Both submit these documents to the secretary of state online or by mail. This step officially records your Vermont business registration.

5. Draft internal governance documents

These aren’t filed with the state, but they outline how your business operates. LLCs should draft an operating agreement that clarifies ownership percentages, voting rights, and profit distribution, and corporations need corporate bylaws that define the board structure, officer duties, and shareholder rights.

6. Register for Vermont taxes and licenses

If you’ll have employees or collect sales tax, register with the Vermont Department of Taxes. Depending on your industry, you might also need local business licenses or permits.

7. File your annual report

Both LLCs and for-profit corporations must file annual reports with the secretary of state to update their basic information. Missing this filing can result in late fees or even administrative dissolution.

How Stripe Atlas can help

Stripe Atlas sets up your company’s legal foundations so you can fundraise, open a bank account, and accept payments within two business days from anywhere in the world.

Join 75K+ companies incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z, and General Catalyst.

Applying to Atlas

Applying to form a company with Atlas takes less than 10 minutes. You’ll choose your company structure, instantly confirm whether your company name is available, and add up to four cofounders. You’ll also decide how to split equity, reserve a pool of equity for future investors and employees, appoint officers, and then e-sign all your documents. Any cofounders will receive emails inviting them to e-sign their documents, too.

Accepting payments and banking before your EIN arrives

After forming your company, Atlas files for your Employer Identification Number (EIN). Founders with a US Social Security number, address, and cell phone number are eligible for IRS expedited processing, while others will receive standard processing, which can take a little longer. Additionally, Atlas enables pre-EIN payments and banking, so you can start accepting payments and making transactions before your EIN arrives.

Cashless founder stock purchase

Founders can purchase initial shares using their intellectual property (e.g., copyrights or patents) instead of cash, with proof of purchase stored in your Atlas Dashboard. Your IP must be valued at $100 or less to use this feature; if you own IP above that value, consult a lawyer before proceeding.

Automatic 83(b) tax election filing

Founders can file an 83(b) tax election to reduce personal income taxes. Atlas will file it for you—whether you are a US or non-US founder—with USPS Certified Mail and tracking. You’ll receive a signed 83(b) election and proof of filing directly in your Stripe Dashboard.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company. Atlas C corp documents are built in collaboration with Cooley, one of the world’s leading venture capital law firms. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.

A free year of Stripe Payments, plus $50K in partner credits and discounts

Atlas collaborates with top-tier partners to give founders exclusive discounts and credits. These include discounts on important tools for engineering, tax, finance, compliance, and operations from industry leaders like AWS, Carta, and Perplexity. We also provide you with your required Delaware registered agent for free in your first year. Plus, as an Atlas user, you’ll access additional Stripe benefits, including up to a year of free payment processing for up to $100K in payment volume.

Learn more about how Atlas can help you set up your new business quickly and easily, or get started today.