Are you in the process of forming a Limited Liability Company in Vermont? If so, you’ll need to file your Vermont LLC Articles of Organization with the Vermont Secretary of State’s office. Filling out and filing your Articles can seem like an intimidating task, but I’ll take you through each step, one by one, to help make it as easy as possible.
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Steps To Fill Out The Vermont LLC Articles Of Organization
The Vermont Articles of Organization is the official document filed with the Vermont Secretary of State, Corporations Division, to establish a Limited Liability Company (LLC). After the filing is approved by the state, the business can officially begin operating and register for the necessary business licenses and permits.
To form a Vermont Limited Liability Company, you must submit the completed LLC Articles of Organization form to the Vermont Secretary of State. The form can be completed online through the Vermont Secretary of State’s website or by mail by filling out Form LLC-3(D).
Filing online is the fastest option, so I’ll go over how to fill out the Articles of Organization on the Secretary of State’s website. To get started, create a user account.
Once the account is created, click on the “Most Frequent Online Services” dropdown and then “Start or Register Your Business.”
Then, click on “I am Creating a New Domestic Business” and then select “Limited Liability Company.”
Next, there will be a drop-down menu for the type of LLC. In this example, I will go over the most common choice, the Limited Liability Company, but there are options for the Professional Limited Liability Company (PLLC), Low-Profit Limited Liability Company, or Blockchain-Based Limited Liability Company.
A Professional LLC is a business that requires licensing to operate in Vermont, such as an accountant, architect, veterinarian, etc.
The Low-Profit LLC (L3C) is a hybrid business form that combines a socially beneficial mission with a for-profit business entity.
Last, the Bitcoin-Based LLC (BBLLC) was developed after state legislation created favorable laws for cryptocurrency-related businesses.
Step 1: Pick a Name for the Business
The first step in filling out the Vermont Operating Agreement is to pick a business name.
There are a few requirements when choosing a name for a Vermont LLC.
1. The name of your LLC must not be too similar to the name of another business entity already registered with the state of Vermont. You can enter some alternative choices, but the Secretary of State will assign the highest priority name. I would first verify that the name is available by doing a Vermont LLC name search with the Vermont Secretary of State.
2. The name of the LLC must include one of the following entity identifiers at the end of the business name:
- LLC: “LLC,” “L.L.C.,” “LC,” “L.C.,” “Limited Liability Company,” “Limited Liability Co.,” “Limited Company,” “Ltd. Liability Company,” or “Ltd. Liability Co.”
- Professional LLC: “PLC,” “PLLC,” “Professional LLC,” “Professional LC,” “Professional Ltd Co,” “Professional Limited Liability Company,” or “Professional Limited Company.”
- Low-Profit LLC: The abbreviation “L3C.”
Enter the LLC name, including the identifier, to continue.
Step 2: Describe the Purpose of the LLC
Next, you will enter information about what your business will do by including your North American Industry Classification System (NAICS) code. This code is used by the federal government to classify the different industries in which a business operates.
The dropdown will list the many types of industries. If the specific activity of your business isn’t listed, choose the closest activity or choose “Any Legal Purpose.” Also, if your business will operate over multiple industries, pick the primary one.
Related: What is my NAICS code?
Step 3: Enter the Address of the Designated Office
The address of the Designated Office of business may be, but is not required to be, the actual place of the business. It can also be the main location where the business records are kept.
A physical address must be used for the Designated Office, as P.O. Boxes are not acceptable. However, a mailing address can be used if you prefer to have correspondence sent to another address.
Step 4: Enter a Business Email Address
Enter a preferred email address for the Secretary of State to send correspondence. An email address that will be checked frequently is important as the Vermont Secretary of State will send important notices, such as the annual report.
Step 5: Choose the Fiscal Year End
The fiscal year refers to the accounting year end of a business. The fiscal year-end for most businesses (and is the default choice) is December, but if you aren’t sure, talk to your accountant.
Step 6: Appoint a Registered Agent
One requirement to have an LLC in Vermont is to appoint a Vermont registered agent. The registered agent is a party that is physically located in the state of Vermont (Registered Office) and will receive important notices and service of process (which means to accept papers that start a lawsuit) on behalf of the LLC.
Provided the LLC member lives in the state of Vermont and is generally available during business hours, they may act as the registered agent. Additionally, any adult resident of the state, attorney or accountant in the state, or a registered agent service can also act as the LLC’s Agent.
Related: Should you be the registered agent?
Step 7: Select the Management Structure
The next step provides information regarding whether the LLC is Manager-Managed or Member-Managed.
- A Member-Managed LLC means the Members are involved with the day-to-day operations of the business. Many LLCs are operated and run by the owner, in which case would be Member-Managed.
- A Manager-Managed LLC refers to a Limited Liability Company that hires a manager to run the business, similar to hiring a CEO of a corporation.
Select the management style of the LLC and whether the LLC will have members at the time of filing.
Step 8: Provide Member & Manager Information
In step 8, you will enter the title, name, and address of the members and managers.
Step 9: Include Any Additional Provisions
This is an optional section should additional information regarding the operation or regulation of the LLC need to be included.
Step 10: Certify the Articles of Organization
An authorized LLC Member will review the Articles of Organization to ensure they are correct and sign the document.
Step 11: File the Articles of Organization
Last, file and pay the filing fee for the Articles of Organization!
Vermont LLC FAQs
How much does a Vermont LLC cost?
The cost to file the Articles of Organization with the Vermont Secretary of State and form an LLC in Vermont is $125.
How long does it take to form a Virginia LLC?
The paperwork to start a Vermont LLC will vary depending on how the Articles of Organization are filed. LLCs formed online are typically processed in one business day, while the mailed-in form can take 7-10 business days.
Is an operating agreement required for Vermont LLCs?
Vermont Statute 11 V.S.A. § 4003 states that an LLC Operating Agreement is optional. Even though it isn’t required, it is recommended that most LLCs have one, as it can help prevent disputes among members and better protect the LLC’s legal status.
What is a Foreign Limited Liability Company?
A foreign LLC isn’t a special type of LLC. Instead, it’s an LLC that was formed in another state that wants to operate physically in Vermont. Physically operating means having a presence, such as having an office or hiring an employee.
Related: What is the difference between a domestic Vermont LLC and a foreign LLC?