--- title: "Setting Up a Business Entity in Vermont" description: "How to set up a Vermont entity, what it costs, and when an employer of record is the faster path in. Teamed explains the tradeoffs." canonical: https://www.teamed.global/country-hiring-guides/united-states/vermont/entity-setup --- ![Vermont business district.](/cluster-assets/country-hiring-guides/united-states/vermont/entity-setup/images/hero.webp) # How do you set upa company in Vermont. You either register a Vermont entity with the Secretary of State yourself, or Teamed employs your Vermont team under our own entity while you skip setup entirely. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Vermont guide At a glance ## Vermont entity setup, the short version Vermont charges a formation and registration fee through the Secretary of State, and taxes corporate income at the state level. Setting up your own entity means owning both the filing and the ongoing compliance that follows it. Hiring through Teamed means neither exists on your side of the ledger. Corporate income tax6.0% Formation / registration fee$155 Forming the entity ## What registering a Vermont entity actually involves Registering a company in Vermont starts with the Vermont Secretary of State, where you file formation paperwork and pay a registration fee of $155. That fee gets your entity on the books, but it is only the opening step. You still need a registered agent, an operating structure that matches how you plan to run the business, and a plan for the paperwork that follows, from annual reports to tax registrations. None of this is unusually hard by US standards, but it takes real time. Most founders underestimate how many small filings stack up in the first few months, and how much of that admin has nothing to do with actually hiring anyone. Tax exposure ## Corporate income tax once you're set up Vermont taxes corporate income at 6.0%, according to the Vermont Legislature's House Ways and Means overview. That rate applies once your entity is generating income in the state, on top of whatever federal obligations apply. If your Vermont presence is a single hire or a small pilot team, running that income through a full entity structure means carrying a tax filing obligation for a business footprint that may not justify it yet. That is the calculation worth running before you file anything. The faster path ## Hiring in Vermont without forming an entity Teamed employs your Vermont hires under our own entity, handling payroll, benefits, and local compliance so you never file the formation paperwork or register with the state at all. Your new hire works for you day to day, Teamed is their employer of record on paper. This is the practical route when you want someone working legally in Vermont this month, not after weeks of registration and setup. You get the hire without the entity. Before you commit ## Sometimes an employer of record is the better fit An employer of record is sometimes the better answer, not a lesser one, especially for a small or still-changing Vermont team, or when you're testing the market before committing capital to an entity. Talk to a member of the team about your specific plans, or run the numbers yourself through the crossover calculator, since the right call depends on salaries and how long you intend to stay. Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue. Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local salaries and employer costs rather than on a headcount rule of thumb. Talk to a member of the team Model the crossover for the United States Who carries it ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it. If Vermont becomes a long-term base rather than a test, we help you stand up your own entity there, migrate your employees from our EOR structure into it, and hand you a working, compliant setup, intact, with nothing broken in the transition. Global Entity and Employment Operations, which we call GEMO, works the same way across 100+ countries, so the process doesn't change just because Vermont is a smaller market. Entity Management (GEMO) The Graduation Model Employer cost calculator > They set up our EU entity and moved hires across without missing a payroll. *Helene Dubois, COO* Talk to an expert about Vermont Questions ## Common questions about setting up in Vermont How much does it cost to register a business entity in Vermont? The Vermont Secretary of State charges a formation and registration fee of $155. That covers the filing itself, not the registered agent, ongoing reports, or tax registrations that follow. What is Vermont's corporate income tax rate? Vermont taxes corporate income at 6.0%, per the Vermont Legislature's House Ways and Means overview. This applies once your entity has taxable income sourced to the state, separate from federal tax obligations. Can I hire someone in Vermont without setting up an entity? Yes. Teamed employs your Vermont hire under our own entity as an employer of record, so you avoid the Secretary of State filing and the tax registrations that come with owning an entity directly. When does it make sense to form a Vermont entity instead of using an EOR? It generally makes sense once your Vermont presence is large enough or permanent enough that the entity's compliance overhead pays for itself. The crossover calculator helps you weigh that against your actual salaries and timeline rather than guessing. Can Teamed help me move from an EOR setup into my own Vermont entity later? Yes. Through GEMO, Teamed sets up the Vermont entity, migrates your employees into it, and hands it back to you fully intact, so switching later doesn't mean starting over. Where these figures come from ## Sources Figures on this page come from the Vermont Legislature and the Vermont Secretary of State. ## More on entities in Vermont - [Hiring in Vermont, overview](/country-hiring-guides/united-states/vermont)parent - [Vermont running costs](/country-hiring-guides/united-states/vermont/entity-running-costs-and-filings)sibling - [Vermont tax presence](/country-hiring-guides/united-states/vermont/permanent-establishment-risk)sibling - [Vermont entity or eor](/country-hiring-guides/united-states/vermont/eor-vs-entity)sibling - [Vermont moving from an eor](/country-hiring-guides/united-states/vermont/moving-from-eor-to-your-own-entity)sibling - [Set up an entity, by country](/entity-setup-by-country)hub - [Entity Management (GEMO)](/entity-management)core - [Talk to an expert about Vermont](https://www.teamed.global/contact?from=entity-setup)CTA