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How to Incorporate in Vermont (May 2024 Update)

Meow Technologies, Inc.

Meow Technologies, Inc.

If you're looking to legally establish a corporation in Vermont, incorporating your business is an important first step. Incorporating formally creates a legal entity that is separate from its owners. This provides limited liability protection and opens up key advantages like the ability to raise investment capital.

This comprehensive guide will walk you through the entire incorporation process in Vermont, from choosing a business name all the way to staying compliant after incorporating. Follow the 10 steps below to ensure your new corporation in the Green Mountain State stays in good legal standing.

Incorporating your business in Vermont establishes a corporate entity under statutes set forth by Vermont state law. Key benefits of incorporating in Vermont include:

  • Limited liability protection - Corporations provide legal separation between business and personal assets, ensuring your personal assets are protected from debts and legal issues arising from the business.
  • Tax advantages - Corporations provide options in terms of how income and losses are handled for tax purposes. Consulting with an accountant can help you leverage tax benefits.
  • Fundraising opportunities - The corporate structure provides you with the option to raise investment capital through selling shares of stock in your company.
  • Credibility - Being incorporated lends legitimacy with customers and vendors. Using “Inc” in your business name identifies you as a corporation.

While incorporating has many advantages, it also comes with more legal compliance requirements in terms of paperwork and taxes. You also lose some personal privacy, as incorporation documents require you to publicly disclose information about your company. Using a registered agent service can help maintain privacy.

Steps to Incorporate Your Business in Vermont

Follow these key steps to successfully form a corporation in Vermont:

Choose a Business Name

The first step is choosing and verifying the availability of your corporation’s official legal name. Your name must include a corporate designation like "Corporation," "Incorporated," "Company," or “Limited.” Search the Secretary of State database to ensure your selected name isn’t already in use or too similar to another company’s name. You can reserve an available name for 120 days for a $20 fee.

Appoint a Registered Agent

Vermont corporations must designate a registered agent on file with the state. This agent receives important legal documents on behalf of your business. Using a registered agent service can help maintain privacy as your home address won’t be on public records.

File Articles of Incorporation

To legally form your corporation, you must file Articles of Incorporation (sometimes called a Certificate of Incorporation) with the Secretary of State. This document requires details like your corporation's name, address, stock details, registered agent information, and director details. The filing fee is $125.

Obtain an EIN from the IRS

You must get an Employer Identification Number (EIN) from the IRS to identify your business for tax purposes. This is free to obtain online.

File the Beneficial Ownership Information Report

As of January 2024, most corporations will need to file a BOI report with FinCEN disclosing details on owners, company leadership, and individuals who control company finances. This doesn’t apply to all entities and this information isn’t public.

Write Corporate Bylaws

Bylaws act as an operating manual, detailing internal processes like shareholder voting procedures, director elections, officer roles, and amendment protocols. While not submitted to the state, bylaws are an essential corporate document.

Hold an Organizational Meeting

Once incorporated, the directors named in the Articles of Incorporation hold an organizational meeting to appoint officers and adopt bylaws. This first corporate meeting establishes operating processes for your Vermont corporation.

Open a Business Bank Account

You should open a dedicated business bank account in your company's name after incorporating, keeping finances separate from your personal funds. Any commingling of assets can put your limited liability protections in jeopardy.

For more information, take a look at our article on the key benefits of business checking accounts.

Stay Compliant

After incorporating, you must adhere to various legal and tax compliance requirements:

  • File an annual report with the Secretary of State to maintain “active” legal status. This costs $45 per year.
  • Submit required annual Vermont business tax returns. Income, payroll, and sales tax obligations apply.
  • Obtain any applicable permits and business licenses needed to operate legally in cities/counties within Vermont.

Weigh the advantages and disadvantages as you make decisions through each step outlined above. With attention to legal details and compliance requirements from the very start, you’ll begin your incorporated business in Vermont on the right foot.

Meow Technologies is a financial technology company, not a bank or FDIC-depository insured institution. Likewise, Meow Technologies is not an investment adviser and none of the information presented herein should be relied upon as financial advice or a recommendation to make any financial decision nor should it be considered to be tax or legal advice. The information is the opinion of Meow Technologies for educational purposes and may not be suitable for all companies. Products, like the one described herein, are offered through Meow Technologies and are not advisory services which are only offered through Meow Advisory, LLC.** The FDIC’s deposit insurance coverage only protects against the failure of an FDIC-insured bank.**

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*Disclaimer: Meow Advisory LLC is a registered investment adviser. Registration as an investment adviser does not imply any level of skill or training.
For accounts opened through Atomic Brokerage LLC: Meow Advisory LLC has an engagement with Atomic Brokerage LLC (“Atomic Brokerage”), a registered broker-dealer and member of FINRA and SIPC , to bring you the opportunity to open a brokerage account. Brokerage services for customers of Meow Advisory LLC are provided by Atomic Brokerage. For more details about Atomic Brokerage, please see the Form CRS, General Disclosures, and the Privacy Policy. Check the background of Atomic Brokerage on FINRA’s BrokerCheck.
For subadvisory services for accounts opened through Atomic Invest LLC: Meow Advisory LLC has an engagement with Atomic Invest, LLC (“Atomic Invest”), an SEC-registered investment adviser, to bring you the opportunity to open an investment advisory account. Investment advisory services are provided by Atomic Invest. Companies which are engaged by Atomic Invest receive compensation of 0% to 0.85% annualized, payable monthly, based upon assets under management for each referred client who establishes an account with Atomic Invest (i.e., exact payment will differ). Atomic Invest also shares a percentage of compensation received from margin interest and free cash interest earned by customers with Meow Advisory LLC. Meow Advisory LLC is not a client of Atomic Invest, but our engagement with Atomic invest gives us an incentive to refer you to Atomic Invest instead of another investment adviser. This conflict of interest affects our ability to provide you with unbiased, objective information about the services of Atomic Invest. This could mean that the services of another investment adviser with whom we are not engaged could be more appropriate for you than Atomic invest. Advisory services through Atomic Invest are designed to assist clients in achieving a favorable outcome in their investment portfolio. They are not intended to provide tax advice or financial planning with respect to every aspect of a client’s financial situation and do not include investments that clients may hold outside of Atomic Invest. For more details about Atomic Invest, please see the Form CRS, Form ADV Part 2A, the Privacy Policy, and other disclosures. Brokerage services for Atomic Invest are provided by Pershing Advisor Solutions LLC (“PAS”), a registered broker-dealer and member of FINRA and SIPC.
Neither Atomic Invest nor Atomic Brokerage, nor any of their affiliates, is a bank. Investments in securities are Not FDIC insured, Not Bank Guaranteed, and May Lose Value. Investing involves risk, including the possible loss of principal. Before investing, consider your investment objectives and the fees and expenses charged by Atomic Brokerage and/or Atomic Invest.
See the Legal Section within the Meow website for additional agreements.

U.K. Gilt pricing quoted net of fees. ~5% U.K. Gilt yield is sourced from Investing.com December 2023 6-month United Kingdom 6-Month Bond Yield. ~5% Treasury Bill yield is sourced from treasurydirect.gov December 2023 12-week U.S. Treasury Bill auction.

**Disclaimer: Meow Technologies is a financial technology company, not a depository, bank or credit union, and your account at Meow is not, itself, an FDIC-insured product.

Meow currently partners with three banking providers. Banking services are provided by Third Coast Bank SSB; Member FDIC, Grasshopper Bank, N.A; Member FDIC, and FirstBank, a Tennessee corporation; Member FDIC.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Grasshopper Bank, N.A, you deposit your funds into a deposit account at Grasshopper Bank, N.A. which sweeps those funds into deposit accounts across a network of Federal Deposit Insurance Corporation (“FDIC”)-insured banks, for up to the current standard maximum deposit insurance amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including Grasshopper's ICS Deposit Placement Agreement. Grasshopper Bank, N.A. uses a third-party vendor and agent to help administer this sweep process. Visit https://www.intrafi.com/network-banks/ for a list of the banks and savings associations with which we/Grasshopper, N.A. have a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Grasshopper, N.A. or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of Grasshopper Bank, N.A, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheets for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Third Coast Bank SSB, you deposit your funds into a deposit account at Third Coast Bank SSB. If you also hold funds in a sweep program with Third Coast Bank SSB, Third Coast Bank SSB sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per receiving bank, for each ownership capacity or category, including any other balances you may hold at that receiving bank directly or indirectly through other intermediaries, including broker-dealers. Third Coast Bank SSB uses a third-party vendor and agent to help administer this sweep process. Visit Third Coast Bank SSB for a list of the banks and savings associations with which we/Third Coast Bank SSB have a business relationship for the placement of deposits at receiving banks, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Third Coast Bank or you). The current maximum deposit insurance amount for your funds is up to $50 Million in FDIC insurance through the sweep network of Third Coast Bank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and conditions and refer to the applicable rate sheet for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by FirstBank, a Tennessee corporation, you deposit your funds into a deposit account at FirstBank, which sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including FirstBank's ICS Deposit Placement Agreement. FirstBank uses a third-party vendor and agent to help administer this sweep process. Visit IntraFi for a list of the banks and savings associations with which FirstBank has a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by FirstBank or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of FirstBank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheet for additional information.

***FDIC insurance coverage is only available to protect you against the failure of an FDIC-insured bank that holds your deposits (and does not protect you against the failure of Meow or other third party). Your account with Meow and all services provided to you are subject to the Meow Terms of Service (“Account Agreements”) and other applicable terms and no other representations or warranties, express or implied, are provided to you except as expressly set forth in those written Account Agreements. If you have any questions regarding your account, please contact team@meow.com.

FirstBank Funds Availability Notice

FirstBank’s general policy is to allow you to withdraw funds deposited in your account on the first business day after the day we receive your deposit. Funds from electronic deposits will be available on the day we receive the deposit. In some cases, we may delay your ability to withdraw funds beyond the first business day. Then, the funds will generally be available by the SECOND business day after the day of deposit.