Form Your Vermont S Corporation
Incorporate in the Green Mountain State and elect S-corp status to unlock pass-through taxation and payroll tax savings, with no franchise tax and a $155 state filing fee
Filed in Vermont
The Green Mountain State · VT
- State filing fee$155
- Processing time1-3 business days online; ~7-10 business days by mail
- Our formation feeFree (you pay $100 if you choose a paid plan)
- Annual report$45/year (corporation annual report) — due Jan 1 - Mar 31 annually
- State tax rate6%-8.5% graduated corporate income tax
Form your Vermont S-Corp — pay only the state filing fee, nothing more.
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Everything to launch your Vermont S-Corp
Free formation means you pay only the $155 state filing fee. All core services are included at no extra charge.
Articles of Incorporation filing
We prepare and submit your Articles of Incorporation to the Vermont Secretary of State.
Registered agent
Required in Vermont — we act as your agent for the first year.
EIN from the IRS
Your federal Tax ID — required to open a US business bank account and file taxes.
Corporate bylaws
Professionally drafted corporate bylaws — defines ownership, voting, and profit splits.
Benefits of forming an S-Corp in Vermont
Vermont pairs a no-franchise-tax environment with a tight-knit, sustainability-minded business community, making it a natural fit for owner-operated S corporations in food, beverage, tourism, and tech. Vermont applies a graduated 6%-8.5% corporate income tax and a 6% sales tax, so pass-through profits still face state tax even as the S election removes federal double taxation.
Pass-through taxation avoids the corporate-level double tax on profits
Self-employment and payroll tax savings on shareholder distributions
Owners pay themselves a reasonable W-2 salary, with remaining profit taken as distributions
No franchise tax on Vermont entities
Limited liability protection for shareholders' personal assets
Sustainability-focused, small-business-friendly Vermont business community
Thriving craft food, beverage, and artisan economy
Enhanced credibility with banks, investors, and vendors
Key features of a Vermont S-Corp
- Pass-through taxation with no corporate-level double tax
- Payroll tax savings on distributions above a reasonable salary
- One class of stock and up to 100 eligible shareholders
- No franchise tax in Vermont
- Sustainability-focused, craft-driven business economy
Major industries in Vermont
Form your Vermont S-Corp in 6 steps
We handle every step while you stay in the loop. Processing takes 1-3 business days online; ~7-10 business days by mail.
- 01
Form a Vermont Corporation
An S corporation is a tax election, not a state entity. First file Articles of Incorporation with the Vermont Secretary of State to create a corporation. The state filing fee is $155, with processing in 1-3 business days online or about 7-10 business days by mail.
- 02
Appoint a Registered Agent
Vermont requires a registered agent with a physical address in the state to accept legal and tax documents on behalf of your corporation.
- 03
Obtain an EIN and Issue Stock
Apply for a free EIN from the IRS, then issue a single class of stock to your shareholders. S corporations may have only one class of stock.
- 04
File IRS Form 2553 to Elect S-Corp Status
File Form 2553 with the IRS to elect S corporation taxation. The election is generally due within 75 days of forming the corporation, or by March 15 to apply for the current tax year. All shareholders must sign.
- 05
Set a Reasonable Salary and Run Payroll
The IRS requires S-corp owner-employees to take a reasonable W-2 salary before distributions. Register for Vermont payroll/withholding accounts and run payroll for working owners.
- 06
File the Vermont Annual Report
Vermont corporations must file an annual report between January 1 and March 31 each year. The corporation annual report fee is $45.
Vermont S-Corp costs at a glance
Kicker formation is free — you pay only the required state fees. No hidden charges.
Vermont S-Corp requirements checklist
Everything you need to form and maintain a Vermont S-Corp in 2026.
- File Articles of Incorporation with the VT Secretary of State ($155)
- Appoint a registered agent with a physical Vermont address
- Obtain an EIN from the IRS and issue one class of stock
- File IRS Form 2553 within 75 days of formation (or by March 15)
- Meet S-corp eligibility: 100 shareholders or fewer, all US citizens or residents, one class of stock
- Pay owner-employees a reasonable W-2 salary before taking distributions
- File the Vermont corporation annual report between Jan 1 - Mar 31 ($45)
Filing information
- Formation document
- Articles of Incorporation
- Filing agency
- Vermont Secretary of State
- Registered agent
- Required
- Corporate bylaws
- Recommended
- EIN
- Required
- Name reservation fee
- $20 (120 days)
Free formation — pay only the state fee
Kicker formation is free. You pay the $155 Vermont state filing fee and nothing more for the Starter plan. Optional plans add registered agent, EIN, corporate bylaws, and compliance.
Starter
- Articles of Incorporation filing
- Name availability check
- Digital document delivery
- Formation status tracking
Booster
- Everything in Starter
- Registered agent (required in Vermont)
- EIN / Federal Tax ID
- Expedited processing (1–2 days)
- Corporate bylaws
- Priority support
- Kicker Voice — 3-day free trial
- Kicker Pay — free for 15 days
Founder
- Everything in Booster
- Business mailing address
- Bookkeeping — 3 months free
- Dedicated account manager
- Rush processing
- Kicker Voice — 6-day free trial
- Kicker Pay — free for 30 days
Kicker
- Everything in Founder
- ITIN filing & preparation
- Same-day priority processing
- 2nd year annual filing $0
- Kicker Voice 12-day + Kicker Pay 60 days free
Compare all plans on our pricing page.
Vermont S-Corp questions, answered
Common questions about forming an S-Corp in Vermont. Can't find an answer? Talk to our team.
Is an S corporation a separate filing in Vermont?
No. An S corporation is a federal tax election, not a state entity. You first form a corporation by filing Articles of Incorporation with the Vermont Secretary of State ($155), then file IRS Form 2553 to elect S-corp tax treatment.
How much does it cost to start an S corporation in Vermont?
The state charges $155 to file the Articles of Incorporation that create your corporation. The federal S-corp election on Form 2553 is free. The Vermont corporation annual report is $45 per year.
How long does Vermont take to form the corporation?
The Vermont Secretary of State processes online filings in 1-3 business days. Mailed filings take roughly 7-10 business days. The S-corp election with the IRS is filed separately on Form 2553.
When is the Form 2553 S-corp election due?
Form 2553 is generally due within 75 days of forming your corporation, or by March 15 to take effect for the current tax year. Filing late can push the election to the following year.
Who can own a Vermont S corporation?
S corporations are limited to 100 shareholders or fewer, all of whom must be US citizens or residents, and the company may have only one class of stock. Foreign owners are not eligible; if you have non-resident owners, a standard corporation or LLC is the better fit.
What taxes does a Vermont S corporation pay?
Profits pass through to shareholders, avoiding federal double taxation. Vermont still applies a graduated 6%-8.5% corporate income tax that can reach pass-through income, plus a 6% sales tax, and there is no franchise tax.
Why elect S-corp status instead of staying an LLC or C corp?
The S election lets owners take a reasonable W-2 salary and receive remaining profit as distributions, which are not subject to self-employment or payroll tax. This can produce meaningful payroll tax savings while avoiding the corporate-level double tax.
Does my Vermont S corporation have to file a BOI report?
Under FinCEN's March 2025 interim final rule, US domestic entities and US persons are exempt from beneficial ownership (BOI) reporting. Only foreign-formed entities registered to do business in a US state still file.
Vermont government filing resources
Filing fees for common S-Corp services
Official Vermont state charges for the filings you may need after formation — our service fee is separate, and we confirm the current amount before filing.
Reservation lasts 120 days (11 V.S.A.
Flat $25.00 administrative fee per certified copy (does NOT vary by entity type.
$10.00 per document, payable to the Vermont Secretary of State.
No fee to register a Vermont Sales & Use Tax account / seller registration - Vermont has no standalone 'seller's permit' fee.
Learn moreIdentical to C-Corp - S-Corp is a federal IRS election (Form 2553), not a separate Vermont entity.
Learn moreIdentical to C-Corp - S-Corp is a federal IRS election (Form 2553), not a separate Vermont entity.
Learn moreEverything you need to run your Vermont S-Corp
Formation is the first step — stay compliant and operational with these services.
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Ready to form your Vermont S-Corp?
Formation is free — you pay only the $155 Vermont state filing fee. Personal-asset protection, pass-through taxation, and a complete document package, filed in 1-3 business days online; ~7-10 business days by mail.
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