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Vermont's New Business Checklist
Please note—your answers aren't permanent, and you can update them anytime.
Picking a business name is an exciting step, but there are a few rules to follow.
Make sure your name is unique, clear, and meets Vermont's guidelines.
Important: To confirm a name is available, use the Business Name Search (Note: name approval is not "official" or final until authorized by the Secretary of State's Office.)
Your business type has a 6-digit “NAICS code.”
This code helps decide what permits and licenses are needed.
Your legal structure affects taxes, liability, and operations.
If you're unsure, consider ownership, risk, and tax needs. Explore common structures below:
What is Sales Tax?
Sales of most physical and digit items are considered “tangible personal property” and are subject to sales tax in Vermont. Learn more about Sales and Use Tax
Who pays Meals and Rooms Tax?
Restaurants, bars, hotels, bed and breakfasts, etc. are common businesses that must collect Meals and Rooms Tax. Learn more about Meals and Rooms Tax
If you are an existing business in another state that is starting business in Vermont for the first time, select Starting a New Business.
Hiring employees? Here's what to know
If you plan to hire employees, there are a few taxes and requirements to consider.
Here’s what you’ll need to know:
Workforce resources:
You may be interested in opportunities available through:
You can explore additional resources available to Vermont businesses from:
Follow this checklist to kick off your new business journey.
Income Taxes
Learn more about corporate, business, and personal income.
Register with the Vermont Department of Taxes
You have indicated that you are unsure if your business will be selling meals, alcohol, or renting rooms. Review Meals and Rooms Tax and if you will be subject to collecting Meals and Rooms tax, register for your Meals and Rooms Tax license.
There is also an additional 1% Meals and Rooms Tax in some cities and towns. Learn more about Local Option Tax.
You have indicated that your business will be hiring employees. You will need to register for a Vermont Withholding account, which the State of Vermont uses to collect tax on income for residents and those who perform work in Vermont. Learn more about wages subject to Vermont Withholding tax.
Wages paid for work that is performed in the state of Vermont are usually subject to the Child Care Contribution (CCC). CCC is reported on your withholding returns and does not need a separate registration or return filing. Learn more about the CCC.
In addition to withholding income, you may also need to report a Health Care Contribution. Find out if you need to report Health Care Contribution.
The state of Vermont collects tax on income for residents and those who perform work in Vermont. Learn more about wages subject to Vermont Withholding tax. If you have employees you will likely need to pay the Child Care Contribution and may need to pay the Health Care Contribution if you do not provide health insurance. If you hire employees, you will need to register for a Vermont Withholding account.
General
Based on your answers, we do not think you need to register with the Department of Taxes.
See the Department of Taxes’ online Business Center for general information that can help you learn about State of Vermont tax rules.
Vermont also collects taxes that apply to specific industries. Please review our list of miscellaneous taxes to see if any of these taxes apply to your business.