Better Business Bureau Serving Eastern MA, ME, RI & VT Are you a small business owner in Vermont? It could be time to take the next step and form a Limited Liability Company (LLC). This type of business entity is growing in popularity as it has both the features of a partnership and a traditional corporation. A key point to remember about LLCs is that they provide businesses with greater liability protection while being simple to manage. Under the formation of an LLC, the owner isn’t personally responsible for the debts and liabilities of the business.
Here’s how to get started on your path to establishing an LLC in Vermont:
- Chose a business name that complies with the Vermont business name rules. To check the availability of your desired name, vist the Vermont Secretary of State business name database. If the name you are interested in is available, you may reserve it for up to 120 days by filing an application to Reserve a Specified Business Name with the VT Secretary of State. The application can be filed online here.
- Choose a registered agent. A registered agent is a person or business that agrees to send and receive legal papers on behalf of your LLC. You may elect an individual within the company, including yourself, as long as the agent is a resident of Vermont.
- Your LLC will be created when you file the Articles of Organization with the VT Secretary of State. To file online you will need to have:
- Name and address of the LLC
- Name and address of the LLC’s registered agent
- The LLC’s purpose
- The LLC’s fiscal year
- Whether the LLC will be member-managed or manager-managed
- The names and addresses of the managers
- Whether the organizers will be personally liable for LLC debts
- The organizer's addresses
- Obtain an EIN, employer identification number or a federal tax identification number. This number will be used to identify the business as an entity. EIN numbers are given to the business owner free of charge by the IRS. If you do not have an EIN number, you can apply here.
- Although not required for filing, it’s still recommended that you create an Operating Agreement for your LLC in Vermont. An operating agreement is a legal document that outlines the ownership and operating procedures in order to reduce future conflict.
- File your annual reports online with the Secretary of State Corporations/Business Services Division within two and a half months of the end of your LLC’s fiscal year.
These six steps will put you on the path to setting up your LLC. For more tips you can trust, check out bbb.org or follow us on Facebook.
Source: Better Business Bureau Feb 19, 2019. Please note: BBB does not provide legal advice and this content is not legal advice. For legal advice please contact a BBB Accredited Business who has earned their credentialing standards of trust.