VERMONT LLC FOREIGN QUALIFICATION
What is Vermont Foreign LLC Foreign Qualification?
explain
You want to do business in the state of Vermont but are registered as a LLC in another state.
In order to legally conduct business in the state of Vermont you must register with the Vermont Secretary of State as
a
Foreign LLC.
The process of registering as a Foreign LLC in Vermont is called
Vermont LLC Foreign Qualification.
The process of Vermont LLC Foreign Qualification is similar to the process of forming a Domestic LLC in Vermont.
Your original home LLC formation documents (frequently called Articles of Organization) and By Laws apply to your Vermont Foreign LLC.
The Officers and Directors of your home LLC will have the same roles in the Vermont Foreign LLC.
Specific requirements to qualify as a Foreign LLC in Vermont are explained below.
Once you have made the decision to Qualify as a Foreign LLC in Vermont,
a Vermont lawyer can file your documents and act as a middle man for a few hundred dollars an hour;
or you can use an online service provider like All Business Documents to perform these services.
Put the money you save with All Business Documents right where it belongs - into your new Vermont Foreign LLC.
What is a Vermont Foreign LLC?
explain
In the United States, just because you are registered to do business in one state does not mean that you can legally do business in another state.
If you want to transact any serious business in a state other than the state in which your LLC is registered, most likely you will
have to register with the state in which you want to do business before you can legally conduct business there.
For example, a LLC that is registered in California wants to do business in Vermont.
The California LLC is a "Domestic" LLC in California and will be a "Foreign" LLC in Vermont.
The California LLC needs to register with the Vermont Secretary of State as a Vermont Foreign LLC.
The use of the term Foreign in this case refers specifically to individual US states.
The US government, including the IRS, considers a Foreign company to be a company that is registered outside
of the United States.
Do I need a lawyer to Form a Foreign LLC in Vermont?
explain
The short answer is no.
The state of Vermont does not legally require a lawyer to form a
Vermont Foreign LLC.
Our detailed
Foreign Qualification page may help you understand some
of the implications of forming a
Vermont Foreign LLC.
However, if there is
anything about forming a Foreign LLC in Vermont
that you're not sure about you should seek the advice of a competent Vermont lawyer, a Vermont accountant,
or both
before you form a Foreign LLC in Vermont.
Once you have made the decision to form a Foreign LLC in Vermont, a Vermont lawyer
can file your documents and act as a middle man for a few hundred dollars an hour; or you can use an online service provider like All Business Documents
to perform these services and
save money that you can use in your new Vermont Foreign LLC.
Do I have to Reserve a Company Name before I Form a Foreign LLC in VT?
explain
You are not legally required to reserve a Company Name for a new Vermont LLC Corporation before you submit your application to Form a Foreign LLC
in Vermont.
The LLC name that you have registered in your home state may or may not be available in Vermont.
In that case you need a different name your Vermont Foreign LLC.
Whether or not you need to reserve a company name for your new Vermont Foreign LLC depends entirely on your business situation.
The Vermont Secretary of State uses LLC names on a first come first served basis.
So if you think that someone may snatch the Company Name that you have in mind, you may want to reserve that Vermont Foreign LLC Name.
What if the Vermont Foreign LLC Name I want is already taken?
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If the Name you have chosen for your new Vermont Foreign LLC is already in use by a currently active
Vermont Corporation or LLC then you will have to register a DBA Name with the Vermont Secretary of State. "DBA" is an abbreviation for "Doing Business As."
We verify that the Name you have chose for your new Vermont Foreign LLC is available before we submit
your Foreign LLC filing to the Vermont Secretary of State.
If necessary we can register a DBA Name in Vermont for you so that you can open your new Vermont business as quickly as possible.
What do I have to do to Form a Foreign LLC in Vermont?
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- Choose a name for your Vermont Foreign LLC
- File Registration Documents with the Vermont Secretary of State
- Determine how you want your Vermont Foreign LLC to be taxed
- Choose a name for your Vermont Foreign LLC
You can use the same name in Vermont that you use in your home state, however, if the name of your Domestic LLC is not available you need to choose another name.
Your Vermont Foreign LLC name can identify the type of products and services your business will provide;
or it may be the name of the founder; or it can be a combination of the two or something else.
In any case, the Vermont Foreign LLC name that you choose must be distinguishable from the name of any other registered Vermont LLC or other
business entity and the name must also be different from any reserved names on record with the state of Vermont.
Your Vermont Foreign LLC name must not imply that it was formed for a purpose other than that stated in the
Articles of Organization for your Domestic LLC and your Vermont Foreign LLC name must not be a name that is likely to mislead the public.
The name of a Vermont Foreign LLC must include the word "Limited Liability Company" or
or the abbreviation "LLC" or "L.L.C.".
It's important to choose a good name for your Vermont Foreign LLC because if you want to change it after you qualify you
will have to file amended documents with the Vermont Secretary of State (and pay a fee).
We will check to make sure that your requested Vermont Foreign LLC name is available and conforms to all state of Vermont
Limited Liability Company naming regulations.
- File Registration Documents with the Vermont Secretary of State
In order to Qualify as a Foreign LLC in Vermont you must file Registration Documents with the Vermont Secretary of State.
In Vermont the registration documents are named "Articles of Organization".
The registration documents must include certain specific information about your Vermont business.
If the LLC Registration Documents do not conform exactly to state of Vermont Foreign LLC requirements they will be rejected. 
If you need to change any of the information on your registration documents after your Vermont Foreign LLC has been approved,
you may amend the registration documents for your Vermont Foreign LLC but you will have to pay a fee to the state of Vermont in order to make the changes official.
- Determine how you want your Vermont Foreign LLC to be taxed
The Vermont Corporate Income Tax Rate is variable depending on the annual net income of the Vermont Foreign LLC.
Vermont Corporate Income Tax Rates vary from 6 to 8.5%.
You may choose that your Vermont Foreign LLC is to be taxed as a C Corporation or S Corporation.
A C Corporation is what you may think of as a traditional Corporation like General Electric or Ford.
C Corporations pay a Corporate income tax to the state if that state taxes Corporations.
You may choose to have your Vermont Foreign LLC taxed as a S Corporation.
S Corporations "pass through" all corporate profits to the shareholders (owners) who then pay tax at their applicable personal rate.
S Corporations do not pay any Vermont Corporate Income Tax.
The Corporation Tax structure in the state of Vermont consists of three tax brackets:
- 0- $10,000 - 6%
- $10,001 - $25,000 - $600 + 7% of amount over $10,000
- Over $25,000 - $1,650 + 8.5% of amount over $25,000
The minimum Vermont Corporation Income Tax is $250.Â
The exception is Small Farm Corporations which pay a minimum Vermont Corporate Income Tax of $75.
If you form a Single Member Vermont Foreign LLC and do not specify to the IRS how you want to be taxed your Single Member Vermont Foreign LLC
will be taxed as a Sole Proprietorship.
If you form a Multiple Member Vermont Foreign LLC and do not specify to the IRS how you want to be taxed your Multiple Member Vermont Foreign LLC
will be taxed as a Partnership.
Click here for more Vermont Corporate Tax Information .
If you choose to be taxed as an S Corporation, we can prepare the S Corporation election form for your Vermont Foreign LLC and include it with
your final Foreign LLC documents.
What do I have to do to after I Form a Vermont Foreign LLC?
explain
- Obtain Business Licenses from the cities and counties in which you plan to do business
- File the required reports for your Vermont Foreign LLC
- Keep proper records of your Vermont Foreign LLC on file
- Pay your taxes to the state of Vermont
- Obtain Business Licenses from the cities and counties in which you plan to do business
Note that forming a Vermont Foreign LLC doesn't take the place of obtaining a local business license, tax
registration certificate, or other required business permits.
A Vermont Foreign LLC merely creates an ownership structure that limits the owners' personal liability.
You may still need to take care of getting set up to do business with your local government.
Depending on the nature of the business and the location of your Vermont Foreign LLC within Vermont you may need to get one or more local
business licenses or permits.
The business licenses or permits that are required for your Vermont Foreign LLC vary depending on your business activities
and the specific locations within the state of Vermont in which you want to conduct business.
If your Vermont Foreign LLC will be selling products in Vermont you may be required to obtain a Reseller's Permit from the appropriate
Vermont state agency.
If your Vermont Foreign LLC will be selling products in Vermont you will also be responsible for all applicable local and state of Vermont
sales taxes if there are any.
We have the expertise to find out exactly which state and local permits that you need for your specific business.
- File the required reports for your Vermont Foreign LLC
The Vermont Annual Report includes basic information about your Vermont Foreign LLC including information on your business location as well as the names of the Officers and Directors.
Failure to submit a properly completed Vermont Annual Report to the Vermont Secretary of State on or before the
due date may subject the Vermont Foreign LLC to being administratively dissolved in the state of Vermont or having its authority to
transact business in the state of Vermont revoked by the Vermont Secretary of State.
Penalties may accrue if you fail to file any Vermont Foreign LLC Annual Report to the Vermont Secretary of State by the due date.
- Keep proper records of your Vermont Foreign LLC on file
Keep the following records on file and available at the principal business office of your Vermont Foreign LLC:
- Names and addresses of all Members and Managers of the Vermont Foreign LLC
- Foreign LLC formation documents and any Amendments to them
- Vermont Foreign LLC Operating Agreement and any Amendments to them
- Copies of any LLC Resolutions which have been adopted by the Vermont Foreign LLC
- Copies of all tax returns and Annual Reports for the Vermont Foreign LLC for the last 3 years
- Pay your taxes to the state of Vermont
Foreign LLCs that either do business in the state of Vermont or that derive income from sources within the state of Vermont are subject
to Vermont and federal tax laws.
If you are engaged in intrastate business and derive income from other states besides Vermont, you must allocate the amount of income derived
from the state of Vermont in order to determine your Vermont state taxes.
What information do I need in order to Form a Foreign LLC in Vermont?
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In order to Form a Foreign LLC in Vermont you'll need the following information about your LLC:
- The name of your new Vermont Foreign LLC along with your second choice of a name in case the name that you want is not available
- Physical address of the Foreign LLC office in Vermont (not a PO Box)
- A description of the nature of the business you are planning to operate with the Vermont Foreign LLC
- Whether the Vermont Foreign LLC will be managed by LLC Members or Managers
- The yearly tax closing month of the Vermont Foreign LLC
Remember -
ALL the information that you provide when you Form a Foreign LLC in Vermont becomes part of the public record.
Our data entry forms include the
absolute minimum amount of information that is required in order to Form a new Foreign LLC in Vermont.
How long does it take to Form a Foreign LLC in Vermont?
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Processing times for new Vermont Foreign LLC applications vary depending on the work load of the
Secretary of State's staff.
We've found that normal processing of new Vermont Foreign LLC applications takes the state around 3-5 business days.
Add 2-3 days for the time period for shipping the final documents by mail.
Choosing our Express Mail option can shave a couple of days off the total processing time for your new Vermont Foreign LLC.
PLEASE NOTE: WE CANNOT GUARANTEE VERMONT SECRETARY OF STATE PROCESSING TIMES.
The Vermont Secretary of State reserves the right to extend expedite periods in time of extreme volume, staff shortage or
equipment malfunction.
We are dependent on, and have no control over, the staff and systems of the Vermont Secretary of State.
In our experience 3-5 business days is the time it
usually takes the Vermont Secretary of State to process
a new Vermont Foreign LLC application.
We get your Vermont Foreign LLC application to the VT Secretary of State ASAP.
Once it is at the state we have no control over the new Vermont Foreign LLC application process.
How much does it cost to Form a Foreign LLC in Vermont?
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The state of Vermont charges $152.00 to Form a Foreign LLC in VT.
If you choose All Business Documents to help you Form your Foreign LLC in Vermont our processing fees are $145.00.
This includes:
- Same day processing in of your new Vermont Foreign LLC order
- VT Name Check and Reservation
- Prepare Articles of Organization
- File Formation Documents with the Vermont Secretary of State
- Certified Copies of Formation Documents
- Vermont Foreign LLC Checklist
- Priority Mail Delivery
- Unlimited Customer Support
VERMONT FOREIGN QUALIFICATION COST ESTIMATOR
Our VT Foreign Qualfication Services include:
(These services are included in our processing fees)
Optional Vermont Foreign Qualification Services
(Choose options, cost is updated automatically)
- Express Mail - $35
explain
If you really need your original approved Articles of Organization in your hands quickly, the
Express Mail option can cut the delivery time in half.
The Express Mail option has no effect on the Vermont Secretary of State's processing time.
-
S Corporation Election - $50
explain
S Corporations are taxed differently than C Corporations.
With an S Corporation, business profits may be "passed through" directly to the shareholders.
This avoids the double tax on both corporate and shareholder profits.
S Corporations do not pay any Vermont Corporate Income Tax.
We can prepare the S Corporation Election form for you and include it with your final Foreign LLC documents pakage.
-
VT Registered Agent - $135
explain
Every Vermont Foreign LLC is required to have an address within the state of Vermont where
official and legal correspondence can be delivered.
The individual or company that is registered with the state of Vermont to receive all correspondence
on behalf of the Foreign LLC is called a Registered Agent.
You may act as your own Registered Agent, however, many Foreign LLCs hire a Registered Agent because they don't have a physical address within
Vermont or to provide a distinct level of privacy.
We can act as your Vermont Foreign LLC Registered Agent.
This is an annual service.
We will forward all correspondence to you and will remind you when it is time to renew your VT Registered Agent services.
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VT Good Standing Certificate - $58
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A Vermont Good Standing Certficate is proof of the existence of your new Vermont Foreign LLC.
The Certificate is issued by the Vermont Secretary of State and is proof that your VT Foreign LLC is not behind on any
of its Vermont Secretary of State Corporate obligations.
A Vermont Good Standing Certificate is often required for loans, to apply for business licenses, or for tax or other business purposes
in the state of Vermont or in any other state.
We can get your Vermont Good Standing Certificate immediately after the Vermont Secretary of State has approved your Foreign LLC filing.
-
Federal EIN - $65
explain
An FEIN is like a Social Security Number for your Vermont Foreign LLC.
We can get your FEIN on the same day that your Articles of Organization are approved by the Vermont Secretary of State.
You can get your FEIN before your articles are approved by the Vermont Secretary of State but it's a good idea to wait until
after approval.
Your filing may be rejected or the Foreign LLC name that you want may not be approved.
Changing information on an FEIN filing is not a trivial exercise with the IRS.
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Foreign LLC Kit and Seal - $99
explain
While you're not required to have a Foreign LLC Kit and Seal for your new Vermont Foreign LLC they do come in handy.
The VT Foreign LLC Kit consists of a beautiful customized binder, stock certificates, a stock ledger
and your custom Foreign LLC Seal.
The Foreign LLC Seal is used to emboss important company documents, such as stock certificates.
The binder also includes dividers so you can use it for all of your Vermont Foreign LLC record keeping.
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Business License Research - $175
explain
Most new Vermont Foreign LLCs are required to get some kind of state, regional or local permits or business licenses.
The task to figure out exactly what you need can be daunting.
We can determine exactly which forms you need to fill out, fill them out for you and file the forms with the appropriate government agency
where possible.