Forming an LLC in Vermont
Forming an LLC in Vermont in 7 easy steps
- The first step is to decide what you wish to call your new company. The name must contain a so called LLC identifier to let the public know that it is a limited liability company. “Ltd Liability Co”, “LLC” and “L.L.C.” are all examples of LLC identifiers. You must pick a name that is not already used by another LLC and you must naturally follow trademark law. According to Vermont state law, the word “cooperative” can only be used by worker cooperative corporations. (The restriction includes any abbreviations of the word as well.)
- You are not required by Vermont state law to hire an attorney when forming an LLC in Vermont. You should however be aware that a flawed Operating Agreement can lead to serious tax problems for the LLC and its members in the future. Due to this risk, many companies chose pay an attorney to check the Operating Agreement before they proceed to step three.
- During the third step, you will visit the Vermont state filing office, file the Articles of Organization and pay the filing fee. The minimum filing fee for LLC’s formed in Vermont is $75.00. (For 25 business days.)
- Step four is to arrange an Organizational Meeting where the members (owners) of the LLC adopt the Operating Agreement.
- It is now time to obtain a Federal Employer Identification Number (FEIN) for your newly formed company.
- Don’t forget to open a bank account for the LLC.
- The LLC needs to obtain a local business license form each city/county in which it will conduct business. Also check if your company needs any permits.
Maintaining an LLC in Vermont
In the state of Vermont, the annual report is due 2.5 months after the close of the fiscal year. When the report is handed in, the LLC must pay $20 in annual report fee.
