Profit Corporation

A profit corporation is a business structure that affords particular liability and tax benefits to its members. The owners of a corporation are called shareholders and the business of the corporation is managed by the directors and officers. You can create a new Vermont corporation, or you can register an existing out-of-state corporation who wishes to do business in Vermont.

Types of Corporations

When registering your corporation with us, you will be given the choice to select which type of corporation you wish to form. There are two primary options:

  • General corporation: The general corporation is a standard Vermont corporation.
  • Close corporation: A close corporation is a Vermont corporation which, provided certain conditions are met, dispenses with the formality of having decisions approved by both shareholders and corporate directors. The close corporation is ideally suited for small businesses where the people who own the corporation’s stock also run the business. In a close corporation, all management decisions are made by the shareholders (providing there will be no more than 35 shareholders and none of the corporation’s shares will be publicly traded) and are typically the people who are in charge of running the business. Also, as a close corporation who chooses to dispense with the board of directors, you are required to name the individual(s) in whom the powers of the directors have been bestowed; this may be a shareholder who does not wish their name to be listed in a public registry. Please consult your attorney or accountant about whether a close corporation is right for you.

Professional Corporations

A general or close corporation may also choose to be a professional corporation, thereby allowing certain professionals such as health care, financial, legal, and real estate appraisers to operate as a corporation. Only licensed professionals may incorporate as a professional corporation. 

Benefit Corporations

A general or close corporation also may choose to be a benefit corporation under Vermont law, thereby allowing a profit corporation to combine a social mission with that of its financial goals. The benefit corporation is an option for both new and existing for-profit corporations. 

View more information about benefit corporations.

Corporation Law

Please visit Title 11A of the Vermont Statutes Online for more information.

STOP: Before you get started we recommend that you consult with an attorney, accountant, or business advisor about which corporation type is best for you.

Registering a Corporation

To create a Vermont (domestic) corporation:

You will need to file Articles of Incorporation. The form is simple and asks basic questions about your new company such as its name, address, registered agent, officers, directors, and business purpose. To get started, please select the applicable form below:

Articles of Incorporation (General Corporation)

Articles of Incorporation (Close Corporation)

To register a non-Vermont (foreign) corporation 

You will need to apply for a Certificate of Authority to do business in the state of Vermont:

Application for Certificate of Authority (Corporation)

Once registered, you must renew your corporation registration each year. For renewal information, please see “Manage Your Registration.”

Name Availability

DO NOT invest in websites, banners, advertisements, or other marketing materials until you receive a certificate confirming your ownership of the requested name.

The state of Vermont operates under a “deceptively similar” standard. Under this standard, if the requested name is so similar to an already registered name, such that it would confuse the public as to whom they are dealing with, it will be rejected.

All registrations with the Office of the Secretary of State are subject to name availability rules. Please search our online database for your desired business name to avoid any obvious conflicts:

Search Businesses

 

Coming soon: All registration, management, and closing functions will occur via our Online Business Service Center.

 

This page was last updated: 2014-07-24