Looking to incorporate in Vermont? We can show you how to set up your Vermont corporation step by step, and we can help you file all the necessary paperwork.
State Processing Fees and Times
Wondering what the processing times and fees are for starting a Vermont corporation? We have a list of the average wait times for both standard and expedited filings.
Vermont charges a filing fee for corporation filings. Visit "compare pricing" in our incorporation center to see all state fees for Vermont.
Deciding Between a Vermont C-Corp or S-Corp Tax Designation
Because limits on liability, structure, management and compliance documents are the same, deciding between filing an S Corp or a C Corp tax designation in Vermont comes down to the following differences:
- 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.
Every corporation must appoint a registered agent. In Vermont, you must name your agent in your Articles of Incorporation. A registered agent is the person or business responsible for receiving tax, legal and government documents for your corporation during regular business hours. Every corporation needs one. Your registered agent must have an address in the state. Any Vermont resident or a legally registered corporation in Vermont can be a registered agent. We can help you designate your registered agent when you incorporate with us.
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 corporation's name is how it will be known to the world. Make sure yours meets Vermont's requirements.
- 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
Vermont requires that corporations file annual reports within two and a half months of the end of each fiscal year.
Although it's not the most enjoyable part of owning a business, you'll have to pay taxes for your new corporation. Before you start doing business, apply to the IRS for an employer identification number, or EIN. An EIN is like your corporation's Social Security number. We have more information about the tax structures and obligations of both C Corps and S Corps.
Corporate Record Keeping and Filing Requirements
Vermont requires that corporations create certain records, such as bylaws and corporate meeting minutes to maintain their corporate status. Both documents help protect the legality of your corporate status. We have more detailed information about Vermont's requirements for bylaws and meeting minutes.
Starting a new corporation in Vermont can be exciting and challenging. We wish you success and prosperity in your venture, and we have all the legal documents, filing information and tax information you'll need to get started.
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.