How Much Does a Business License Cost in Vermont?

Any time you start a business in Vermont, you want to take all the necessary steps to make the business a legal entity. Most importantly, you should know that Vermont does not have a requirement for a general business license.

Instead, Vermont requires various licenses and permits, depending on the type of business and its location. As a result, there are various costs and registration requirements. We will dig into those fees further in this article. It’s important that you follow all the necessary steps to register your business.

Do you need a business license in Vermont?

The short answer is no, you don’t need a general business license in Vermont. You do, however, need some specific licenses.

If you rent rooms, hire employees, sell personal property, or sell meals, you must have a Vermont business tax account. You’ll also need a license with the Vermont Department of Taxes.

You may need a special industry license or certifications, depending on your business activities. The city or town in which you operate may require you to have a business license. If you operate your business under a different name, also known as doing business as (DBA), you must register the name.

How much does a business license cost in Vermont?

Since Vermont does not have a single business license across the state, it may be difficult for you to determine the exact cost of a business license for your company. Depending on your type of business, you may have to register with the Vermont Department of Taxes. There is no fee for this, but it will indicate which taxes you have to pay. You may have to pay taxes at tax time.

If you are forming a corporation or LLC, you have to form the entity with the Vermont Secretary of State. You can expect that to run about $155. You may need a professional license for some businesses, such as a doctor or a lawyer. If you havea restaurant, that will also require a special license. These fees are going to vary based on the industry and location.

On top of those fees, each city or town may have its own requirements. All licenses and registrations will need to be renewed. The fees and renewal period also vary.

Types of business licenses in Vermont and their cost

• State-level permits: If you plan to sell taxable services or goods in Vermont, you must have a Sales and Use Tax License from the Vermont Department of Taxes. While there is no upfront fee for this, it allows you to operate legally within the state.
• Professional licenses: Vermont requires specific professions (including but not limited to: accountants, attorneys, and health care providers) to have board certifications and/or licenses to operate within the state.
• Health permits: If you are preparing or selling food, you must have a health permit. The Vermont Department of Health issues a permit to ensure you are operating within the food safety regulations and laws mandated by the state.

There are some licenses or registrations that you need based on your location within Vermont.

• City/County business license: Not only does your location matter, but so does the type of business you’re operating. A zoning permit may be needed for a retail store, while a restaurant may need a food establishment permit. For zoning permits, you would contact the Office of City Planning. However, for a food establishment permit, you must contact the Health Department for the specific city.
• Federal: When looking at the Vermont business license cost, most businesses are exempt from the federal license requirement. There are some exceptions. Alcohol production and agriculture are regulated at the federal level and may need additional permits.

Examples of different licenses for different industries in Vermont

The service your business provides will dictate whether you need additional licensing in Vermont. For example, construction, food service, and retail may all require extra licenses and permits.

Medical, legal, and child care providers have additional regulations and may require another type of license. The Vermont Office of Professional Regulation is the office to contact about general and professional service requirements.

Food services require health certificates to ensure they are following the rules set by the Vermont Department of Health. This is important for businesses that are selling food products to know.

Alcohol and Tobacco are closely monitored, and if you want to sell these products, you need a license from the Vermont Department of Liquor Control to do so.

Depending on the type of business, you may need permits for waste management, air pollution, or environmentalconcerns.

Renewing your business license in Vermont

The renewal business license requirements Vermont vary based on your location and business. There are some places you should check to determine your specific renewal requirements. A great resource is the Vermont Business License Portal. It can help you determine which licenses and permits you need to make it easier for you to navigate the renewal process.

Here is an example of the Town of Brattleboro and its renewal requirements:

In Brattleboro, you must renew your license every year by March 15. The cost is $100. If you wait until after March 15, there will be late fees. On March 16, the price goes up to $150. After April 1, you will pay $250 to renew your license. As you can see, the late fees add up quickly if you don’t file your renewal on time.

You should also be aware that you may have to file an annual report. It will cost you $35 to file the annual report, and you must do so with the Secretary of State.

Get help starting your business in Vermont

Now you know that the answer to how much a business license costs in Vermont is that it all depends on your business type and your location. The best way to know the answer is to have a good understanding of your business type and Vermont’s requirements for your business.

In addition, where you operate your business matters. Not only does it impact the licensing and permit requirements for your business, but it also determines how much it all will cost.

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