StructureCost2026

Vermont: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $4,109 a year less than a sole proprietorship in Vermont. All figures are 2026 tax and fees.

$4,109 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Vermont, at these numbers.

More settings revenue, salary, filing status, payroll costs, PTET

Vermont, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $26,039 $0
Itemized: $26,039
Self-employment taxirs.gov, 2026 rates$14,130
Federal income taxirs.gov, 2026 rates$8,235
State income taxtax.vermont.gov, checked Oct 23, 2026$3,674
Yearly cost$26,039
Single-member LLC $26,067 +$28 $155
Itemized: $26,067
Annual Reportlegislature.vermont.gov, checked Oct 23, 2026$45
Self-employment taxirs.gov, 2026 rates$14,123
Federal income taxirs.gov, 2026 rates$8,228
State income taxtax.vermont.gov, checked Oct 23, 2026$3,671
Yearly cost$26,067
LLC taxed as an S corp lowest $21,930 −$4,109 $155
Itemized: $21,930
Annual Reportlegislature.vermont.gov, checked Oct 23, 2026$45
Payroll tax on your salaryirs.gov, 2026 rates$6,448
State disability and paid leavetax.vermont.gov, checked Oct 23, 2026$44
Payroll service and tax return (estimate)$1,800
Vermont business entity minimum taxtax.vermont.gov, checked Oct 23, 2026$250
Federal income taxirs.gov, 2026 rates$9,565
State income taxtax.vermont.gov, checked Oct 23, 2026$3,778
Yearly cost$21,930
S corporation $21,941 −$4,098 $155
Itemized: $21,941
Annual Reportsos.vermont.gov, checked Oct 23, 2026$60
Payroll tax on your salaryirs.gov, 2026 rates$6,448
State disability and paid leavetax.vermont.gov, checked Oct 23, 2026$44
Payroll service and tax return (estimate)$1,800
Vermont business entity minimum taxtax.vermont.gov, checked Oct 23, 2026$250
Federal income taxirs.gov, 2026 rates$9,562
State income taxtax.vermont.gov, checked Oct 23, 2026$3,777
Yearly cost$21,941
C corporation $30,862 +$4,823 $155
Itemized: $30,862
Annual Reportsos.vermont.gov, checked Oct 23, 2026$60
Payroll tax on your salaryirs.gov, 2026 rates$6,448
State disability and paid leavetax.vermont.gov, checked Oct 23, 2026$44
Payroll service and tax return (estimate)$2,000
State corporate income taxtax.vermont.gov, checked Oct 23, 2026$4,162
Federal corporate income tax (21%)irs.gov, 2026 rates$10,582
Federal income taxirs.gov, 2026 rates$4,759
State income taxtax.vermont.gov, checked Oct 23, 2026$2,807
Yearly cost$30,862
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Vermont

Electing S corp tax treatment for an LLC starts to pay in Vermont at about $52,500 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

Vermont has no pass-through entity tax electionforvismazars.us.

ProfitSole propLLCLLC as S corpC corp
$30,000$5,681$5,716$7,432$7,710
$50,000$10,855$10,887$10,987$13,344
$75,000$17,635$17,667$14,484$20,767
$100,000$26,039$26,067$21,930$30,862
$150,000$44,415$44,444$37,865$53,037
$200,000$63,770$63,803$54,945$74,678
$300,000$108,989$109,005$91,592$119,430

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Vermont

LLCCorporation
Filing to form$155Articles of Organization$155Articles of Incorporationsos.vermont.gov
Yearly reportAnnual Report, $45 a yearAnnual Report, $60 a yearlegislature.vermont.gov
Report dueWithin three months after the end of the fiscal yearWithin two and a half months after the end of the fiscal year
Vermont business entity minimum tax$250if taxed as S corpS corp onlytax.vermont.gov

Not in the calculator: No local income taxes. Some towns add a 1% local option sales, meals and rooms tax.

Switching calculators for Vermont

By profession in Vermont

Questions

Is an S corp worth it in Vermont?

On these figures, from about $52,500 of profit. At $100,000 an LLC taxed as an S corp costs $21,930 a year against $26,067 for a plain LLC, $4,137 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Vermont?

The state charges Annual Report, $45 a year. Forming one costs $155.

Does Vermont recognise the S corp election?

Yes. The federal election carries over with no separate state form. S corp income passes through to owners; the entity pays the $250 minimum business entity tax.

What income tax does Vermont charge?

Vermont taxes personal income in 4 brackets, from 3.35% to 8.75% (2025, single filer). C corporations pay 6% to 8.5% of net income, with a minimum of $100.

How this page models Vermont (1)

Sources checked 2026-10-23. Each figure links to the state or IRS page it comes from.

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