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).

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.

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.  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.

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.

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.

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.