What should I know about business licenses in Vermont?
December 10, 2020, Update: Vermont revenues have risen nearly seven percent, which is the strongest growth reported by state legislators in five years. The biggest source of this revenue is personal income tax, up 10 percent compared to 2018 tax numbers. In addition, the Green Mountain State's consumption tax (liquor, sales, hotel rooms, and meals) exceeded 2018's consumption tax rate by almost six percent. What does this mean? Vermont residents and tourists are spending much more money in the state than they did in 2018.
Potential business owners do not need to obtain a general business license in Vermont. However, the state enforces licensing regulation for over 40 professions, ranging from architects and private investigators to accountants and land surveyors. In addition to these licensing laws, many cities and counties enact their own regulations regarding permits and business licenses.
Limited liabilities, limited partnerships, cooperatives, and non-profit organizations must register their business with Vermont's Secretary of State Department. Alternately, general partnerships and sole proprietors won't have to register with the Secretary of State unless they operate under trade names.
Common Vermont business license questions
So you’re ready to start a business in the beautiful Green Mountain State? We’ve gathered the answers to the top questions on how to become a licensed business in Vermont.
Though there isn’t a general statewide business license requirement, the Secretary of State office has an online form to register your business. Some cities, like Burlington and Rutland, have specific local licensing requirements. Also, depending on the type of business established, you may have to obtain multiple licenses.
Depending on your entity type and what needs to be filed, fees range from $25 - $140.
To make your business official in Vermont, you must reserve a name (be sure to check for name availability first), then obtain a Federal Employer Identification Number. The next step is to register your business with the Vermont Secretary of State.
Again, depending on your type of business, you may have to register for a business tax account and/or additional licenses and permits. Avalara is here to streamline this process for you so you’ll be on your way to becoming a Vermont business owner.
Licensing information for Vermont cities
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