How To Incorporate In Vermont
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1. Choose a Name for Your Vermont Corporation
Check on Available Names in Vermont: You will need to choose a unique name for your corporation when you are preparing to incorporate your small business in Vermont. Before you decide on a name, search online records and other records to determine that the name that you have chosen is not in use by another registered corporation. You can start by searching the online database of registered Vermont corporations available at Vermont Corporation.
Reserve a Corporate Name: It is not a requirement to have a corporate name reservation before you file to incorporate a small business in Vermont, but if you would like to reserve a particular name for your corporation before the time that you are able to file to incorporate, submit a name reservation application to the office of the Vermont Secretary of State. You can find and download the name reservation application form online at Reserve a Vermont Corporation Name. The corporate name that you indicate will be reserved for 120 days. There will be a filing fee of $20.00.
Filing Trademarks and Doing a Corporate Name Search: You may find out that the name that you have chosen is available in Vermont but in use by a corporation in another state. There could be some restrictions on how you use the name that you have chosen. Consult an attorney to learn what these restrictions may be and what you should do to protect the name of your corporation.
Vermont Corporate Name Requirements: When you are choosing a name for your corporation, keep in mind that in Vermont corporate names need to include the word “corporation,” “incorporated,” “limited,” “company,” or an abbreviation of one of these words.
2. Find a Registered Agent in Vermont
You need to find a registered agent before you can file to incorporate your small business. A registered agent acts as an agent for service of process. Your registered agent will receive all legal and tax documents for your corporation. You may indicate an adult resident of Vermont, a corporation in Vermont, or a corporate services company as your registered agent.
3. File Articles of Incorporation with the Vermont Secretary of State
Minimum Requirements: When you have decided on a name for your corporation and a registered agent, you can start preparing the Articles of Incorporation that you will submit to the Secretary of State. There is a form for this document that you can find online at File a Vermont Corporation. The Articles of Incorporation of your corporation must include the name and purpose, of your corporation, the name and address of your registered agent, the address of your principal office, the number of shares authorized by your corporation, and the name and address of each of the directors and incorporators. Each of the incorporators will need to sign the Articles of Incorporation before you submit the document to the Secretary of State.
Other Vermont Legal Provisions: When preparing your Articles of Incorporation, consider including other legal provisions in addition to the minimum requirements. Consult an attorney for assistance in determining what additional legal provisions will be the most important and beneficial for your corporation.
Where to Submit Form: You should submit the signed Articles of Incorporation document and a copy to the office of the Vermont Secretary of State, Corporations Division, 128 State Street, Montpelier, VT 05633-1104.
Filing Fee: The filing fee for Articles of Incorporation in Vermont is $75.00.
4. Create Other Vermont Incorporation Documents (Corporate Kits)
After you have filed Articles of Incorporation with the Secretary of State, you can start to take other actions in your corporation. These actions could include appointing officers and directors, adopting corporation bylaws, issuing stock certificates, obtaining a tax ID number, and acquiring the appropriate business license. Consider creating other types of corporate documents such as buy-sell agreements, shareholders agreements that determine when stock can be sold, and documents that describe what happens in the event that an owner decides to leave the company. These types of corporate documents could be particularly useful if your corporation has multiple owners. Consult an attorney or a professional corporate service company when it is time to draft these important documents so that you are sure to be in compliance with all legal requirements.
5. Qualify Your Vermont Corporation to Do Business in Other States
When you are incorporating your small business, you should keep in mind that you need to qualify your corporation before you can do business in other states. If your main corporate office is located in another state, you need to qualify your corporation to do business in the state where the main office is located. Most other states will require you to pay taxes in your home state. If you would like to learn more about how to qualify your corporation to do business in other states, go to Doing Business in other states.
6. Make Annual Filings and Pay Annual Fees and Taxes in Vermont
Corporations registered in Vermont are required to file an annual report. You can find the form for this report at Vermont Corporation Fee. You will be able to provide updated information about your corporation such as the name and address of your registered agent and the names and addresses of the principal officers and directors of the corporation. There is a filing fee of $35.00 for this report.
Once your corporation is registered in Vermont, you will be subject to state income taxes. You need to file taxes each year and pay the required taxes. You can learn about the corporate tax in Vermont and download tax forms online at the official website of the Vermont Department of Taxes: Vermont Corporation Tax. Consult an accountant when it is time to prepare your tax documents. An accountant can help you avoid mistakes in your tax documents that could end up costing you extra taxes.
The process of incorporating your small business can be complicated, especially if your corporation will have multiple owners. Consult an attorney and an accountant during the incorporation process so that you can feel confident that the paperwork for your corporation is being prepared correctly.
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This site is for informational purposes only and does not constitute legal, financial or tax advise. The information on this site should not be relied upon as an official source of information and should be independently verified.