State Processing Fees and Times
Deciding Between a Vermont C-Corp or S-Corp Tax Designation
- Ownership Rules: A C Corp can have unlimited shareholders and unlimited stock classes. An S Corp is limited to a maximum number of shareholders, usually 100, and only one stock class.
- Taxes: A C Corp is taxed separately. It files taxes at the corporate level, then shareholders may also be taxed individually on dividends they receive. S Corps are “pass-through” tax entities. No taxes are paid at the corporate level. Instead, taxes are paid individually by the owners.
- Documents: An S Corp must file IRS Form 2553 to elect S Corp status.
Every state has its own personnel requirements for incorporating. In Vermont, they include the following:
- Number of directors: Corporations must have at least three directors if they have at least three stockholders. If your corporation has fewer stockholders, you can have the same number of directors as you have stockholders.
- Residency: There are no residency requirements for personnel in Vermont.
Other Requirements for Your Articles of Incorporation
In addition to personnel requirements, your Vermont Articles of Incorporation must also include the following.
You must also include the following in your Articles of Incorporation in Vermont:
- The corporation's fiscal year.
- The name and street address of the corporation, as well as that of its registered agent.
- The number of shares the corporation is authorized to issue, and the different stock classes, if any.
- The names and addresses of each incorporator.
Guidelines for Your Name
- Your corporate name must end with "Corporation," "Company," "Incorporated," "Limited," or an abbreviation of one of these terms.
- Your name must be distinguishable from that of any other Vermont business entity in the records of the Vermont Secretary of State.
Vermont Corporate Taxes and Reports
Corporate Record Keeping and Filing Requirements
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.