So you’ve decided to move your LLC to Vermont, or perhaps you’re just considering it. Either way, you’ll want to know a bit about Vermont LLC domestication before making the big decision.
Here’s everything you need to know about Vermont LLCs, from the basics of formation to the nitty-gritty of domestication. Let’s get started!
What is Vermont LLC Domestication?
LLC domestication in Vermont means changing the location or domicile of your LLC from any state into Vermont. In other words, if you want to move your Georgia LLC to Vermont, for instance, LLC domestication is the best way to do so.
By LLC domestication, you change the governing laws of your LLC. Domesticating your LLC into Vermont will have the following benefits over other methods of moving your LLC to Vermont:
- LLC domestication allows you to maintain previous business relationships.
- No need to renew contracts made in the previous state.
- No need to change bank accounts and credit rating.
- You can retain your EIN (Tax ID Number).
- No need to rehire employees.
- No need to transfer assets.
How to Domesticate your LLC in Vermont
There’s always something new to learn in the ever-changing landscape of business, and this same goes for LLC domestication in Vermont. Below, we explained the process of transferring an LLC from any state to Vermont via VT LLC domestication in 3 simple steps.
Acquire a Certificate of Good Standing
A certificate of good standing is also called a certificate of existence or certificate of status in some states. It is a legal document issued by the state authorities, usually the secretary of state.
In other words, this official document states that you timely pay your LLC taxes, submit LLC annual reports and fees, follow the state laws in all business operations: hence, your business is in good standing with the state.
Vermont LLC domestication requires that your LLC does not have any outstanding debts or taxes in the home state. So you have to pay state taxes, LLC annual fees, and other fees in the state where you initially registered your LLC.
To prove that your LLC is up to date on all important business marks, you need to submit a certificate of status while filing Articles of Domestication in Vermont.
Approval of LLC Domestication
Before you file articles of domestication with the Vermont Department of State, you need to acquire approval from the state where you originally formed your LLC.
Contact the state department where you initially filed your articles of organization and acquire permission to move your business out of that state.
For instance, if you want to move your Texas LLC to Vermont, you need to get permission to transfer your LLC out of Texas from the Texas Secretary of State.
File an Articles of Domestication Vermont
To formally move your LLC from the LLC’s home state to Vermont, you need to file articles of domestication downloaded with the Vermont department of state.
With Vermont Articles of Domestication, you will see Vermont articles of organization form as well. So you need to file the Vermont certificate of domestication along with the Vermont articles of domestication.
To download both forms, click on the link below:
Moreover, you also need to submit the certificate of good standing to show that your LLC does not have any outstanding state taxes or debts in the previous state.
Finally, depending on the LLC management structure mentioned in your LLC operating agreement, you need the signature of the authorized person to sign the Vermont LLC domestication form. After completing all the information, send the complete forms to:
Vermont Secretary of State,
Corporations Division, 128 State Street,
Montpelier, VT 05633-1104.
Requirements to Complete Vermont Articles of Domestication Form
As mentioned earlier that Vermont articles of domestication are filed with the Vermont articles or organization; the following information/documents will be needed to complete the LLC domestication process:
- Certificate of good standing from the previous state
- LLC domestication approval from the previous state
- Name of the domesticating entity (The name of your LLC with which you used to operate your business in the previous state)
- The name of the previous state where your LLC was registered
- The date when your LLC was formed initially
- Vermont articles of organization form with Vermont registered agent information
- Signature of the authorized person to initiate LLC domestication
- The effective date of the LLC domestication, if it is not the same as the date of filing of the Vermont articles of domestication
Vermont LLC Domestication Fee (Cost)
To convert an out-of-state LLC into a Vermont LLC, you need to pay the following fee to the Vermont Department of State along with the Vermont articles of domestication:
- Articles of Domestication: $25
- Articles of Organization: $125
- Total to Domesticate and file: $150
Alternatives to LLC Domestication Vermont
If you do not plan to move your LLC to Vermont permanently, or for any other reason Vermont LLC domestication does not seem suitable, the followings are the alternative to Vermont LLC domestication:
What Next After Vermont LLC Domestication?
Once the state of Vermont domesticates your LLC, the laws of the previous state will no longer apply to your LLC.
Now your LLC will be governed under the LLC statute of Vermont. Now, to remain compliant with the laws of Vermont, you need to:
- Make sure you pay outstanding LLC federal taxes or debts in the previous state.
- Keep your registered agent information up to date. If you don’t have one, you can review top registered agent services here.
- Follow your LLC operating agreement.
- Acquire licenses and permits specifically required by the new state.
- Regularly submit annual reports and fees.
- Pay Vermont sales tax (6% on the total sales).
Moving an LLC out of Vermont
The Vermont Department of state allows an LLC to move out of Vermont via LLC domestication. However, the law of the other state must permit LLC domestication in its statute.
For the states that allow LLC domestication, you need to submit a Vermont certificate of status to domesticate your LLC there. Click on the following link to get a Vermont certificate of status.
FAQs on How to Domesticate an LLC in Vermont
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