Burlington, Vermont LLC Cost (2026)
State filing $155 · $250/yr franchise tax · $45annual report · Year-1 total: $450 · 5-year cost: $1,630
By Aissam Baidi · Reviewed against sos.vermont.gov · Verified 2026-05-02
How much does an LLC cost in Burlington, Vermont? Forming an LLC in Burlington costs $450 in year one and $295/year ongoing (5-year total: $1,630). The state-level fee is $155 for the Articles of Organization, paid to the Vermont Secretary of State. On top of that, Burlington adds 4 city-specific fees covering local business licenses and any zoning/occupational permits. The Burlington metro has a population of 229,550, median household income of $93,043, and a cost-of-living index of 113.4 (US average = 100). Standard Vermont processing takes about 1 business days; expedite for $0 extra. Sourced from datausa.io, verified 2026-05-02.
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Local context: doing business in Burlington
LLCs operating in Burlington may incur additional city-specific costs, most notably the Gross Receipts Tax on certain business activities (e.g., meals, lodging, entertainment), which is not a statewide requirement. Furthermore, specific business types like peddlers or vehicle-for-hire services require city-level licenses and associated fees that add to the overall cost of doing business locally.
Burlington-specific business fees
- Gross Receipts Tax: Applies to businesses in specific categories (Admissions, Alcoholic Beverages, Amusements, Meals, Short Term Rental, Hotel/Motel). As of August 1, 2024, rates are 2.5% for Admissions, Alcoholic Beverages, Amusements, and Meals, 9% for Short Term Rental, and 4% for Hotel/Motel. These rates for Admissions, Alcoholic Beverages, Amusements, and Meals are a temporary increase from 2% to 2.5% until June 30, 2026.
- Peddler License: A license required for peddlers in the General District, costing $100 per year, plus a $45 background check fee per person.
- Vehicle for Hire Business License: A base business license fee of $125 for all vehicle for hire businesses operating in the City and/or at the Airport.
- DBA Filing: The cost to file for a Doing Business As (DBA) name is $40 for four years.
Top industries in Burlington
- Health Care & Social Assistance
- Educational Services
- Manufacturing
State-level cost (applies to all of Vermont)
Because LLC formation is a state-level filing, the base $155 fee applies regardless of which Vermont city you choose. Ongoing maintenance is $45 per annual, the same in every city. Vermont also charges a $250 franchise tax annually, again statewide. See the full Vermont LLC cost breakdown for state filing fees, annual reports, franchise tax, and registered-agent options.
What city-level fees apply on top of state filing
On top of the state filing, Burlington businesses typically encounter a few city-level cost layers that don't appear in Vermont's SOS fee schedule. The most common are a city or county business license (annual, $25-$500 depending on activity and gross receipts), a zoning permit if you operate from a commercial address, professional or occupational licenses for regulated industries, and any sales tax registration if you sell taxable goods or services. Some metros also impose a gross-receipts tax that kicks in above a revenue threshold, and many require a doing-business-as (DBA) filing with the county clerk if your operating name differs from the LLC's legal name.
For most Burlington founders, the practical year-1 budget includes the Vermont state filing ($155), a registered-agent service if you don't want your home address public ($100-$150/year), an EIN from the IRS (free, takes 10 minutes online), a Burlington business license, and a starter operating agreement (free SBA template or $99-$200 paid, or $400-$1,500 attorney-drafted for multi-member LLCs with profit splits). Bookkeeping software (QuickBooks/Wave/Xero, $0-$30/month) and a business bank account round out the operational stack.
The number that varies most by city: registered-agent service price (commercial agents compete on price in major metros, often discounting first-year rates), and the hourly rate for a CPA or business attorney if you choose paid help. Burlington's cost-of-living index runs at 113.4 (US average = 100), which is a reasonable proxy for local professional service rates.
FAQ, common questions for Burlington LLCs
How much does an LLC cost in Burlington, Vermont?
Forming an LLC in Burlington costs $450 year-1 and $295/year ongoing. The state-level fee is $155 for the Articles of Organization, paid to the Vermont Secretary of State. Burlington-specific layers like business licenses and zoning permits add $25-$500 on top depending on activity.
Do I need to register my LLC with the city of Burlington after filing with the state?
Yes, in nearly all cases. Even though the LLC entity is registered at the state level, Burlington requires any business operating within city limits to obtain a local business license, register for any city-collected taxes (sales, occupational, gross receipts), and comply with zoning rules. Check Burlington's official business portal for the specific license forms.
Can I form my LLC in another state and operate from Burlington?
Technically yes, but you'd then have to "foreign qualify" the LLC in Vermont, paying a second filing fee and keeping a registered agent in both states. For founders who actually live and work in Burlington, that almost always costs more than just forming in Vermont directly. The exception is non-resident founders with no US presence using privacy-friendly states like Wyoming or New Mexico.
How long does LLC formation take if I'm in Burlington?
Vermont's standard processing applies regardless of city, about 1 business days. Expedited filing for an extra $0 can compress this to 24-48 hours. Burlington's city business license adds another 1-3 weeks after the state-level LLC is approved.
What's the year-1 budget for a Burlington LLC including city fees?
For most Burlington founders, year-1 totals roughly $650-$1250 depending on choices: $155 state filing, $0 EIN (free from IRS.gov), $0-$150 registered agent service, $50-$500 Burlington business license, $0-$200 operating agreement template, and any zoning/professional license fees. Cost-of-living index here runs at 113.4 (US average = 100), a reasonable proxy for local CPA/attorney rates.