To create a Vermont LLC, the Articles of Organization must be filed with the Vermont Secretary of State. The LLC must list their own name and address as well as those of the registered agent’s. Additional requirements include information on whether the LLC will be managed by a member of manager, the names and addresses of the manager(s), whether the organizers will assume personal liability for debts, and the organizer’s address. The articles can only only be filed by postal mail or through legalzoom
LLCs in Vermont must have names that end with “Limited Liability Company”, “Limited Company”, “Ltd.”, “Co.”, “LC”, “LLC”, or “L.L.C.”. Names cannot have the terms “Cooperative” or any related abbreviation. The name must be distinguishable from the other names of business entities registered or reserved with the Secretary of State.
What is an LLC?
LLC refers to a Limited Liability Company, and it is organized by business owners. They have fewer corporate formalities and can be taxed by the IRS as a sole proprietorship, S corporation, or C corporation.
Each state has different requirements and regulations regarding the formation of an LLC. Business owners should check with state laws when considering forming an LLC.
Owners of LLCs are known as members, they can be individuals, corporations, other LLCs, or foreign entities. There is no limit on the number of members an LLC can have. In most states, “single-member” LLCs are allowed, where there is only one owner involved in managing the LLC.
The IRS will treat the LLC as a corporation, partnership, or included in the LLC owners personal tax return. A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless they file Form 8832 and elect to be treated as a corporation.
LLCs carry tax advantages over other forms of business such as limited partnerships. The owners of an LLC do not assume personal liability for business debt, and any losses of the LLC can be used as tax deductions against active income.
An LLC can be formed through the state business formation process or consulting with LegalZoom.