Colorado LLC vs Vermont LLC (2026)
Written for owners based in Colorado.
Verdict: for most owners, form where the business is based
Vermont's $45 annual report is nearly twice Colorado's $25, and the number that matters sits outside it. Vermont tax law charges a flat $250 a year to an LLC taxed as a partnership, owed even in a loss year, while a single-member LLC that is a disregarded entity does not file Form BI-471 and does not owe it. So Vermont's recurring cost is $45 for one owner and $250 more for two. Forming is $155 against Colorado's $50, year one $200 against $75, plus $100 to register here.
Based in Vermont? Read Vermont LLC vs Colorado LLC →
Compare Colorado LLC vs Vermont LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: September 23, 2026
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| Factor | Colorado | Vermont |
|---|---|---|
| Filing Fee | $50 | $155 |
| Processing Time | Instant (online filing only) | Under 1 business day online; 7 to 10 by mail |
| Annual Report Fee | $25 | $45 |
| Annual Report Due | Anniversary month | Within 3 months of fiscal year end |
| State Income Tax | Yes | Yes |
| Anonymous LLC | No | No |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $100 + registered agent ~$150/yr |
Full fee breakdown for either state: Colorado LLC cost and Vermont LLC cost. Owner privacy options for either state: Colorado anonymous LLC guide and Vermont anonymous LLC guide.
Business Climate: Colorado vs Vermont
| Factor | Colorado | Vermont |
|---|---|---|
| 5-year business survival rate | 48.5% (#36 of 51) | 46.6% (#44 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +22.5% YoY (#10 of 51 by volume) | +15.4% YoY (#51 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Colorado vs Vermont
Colorado
Vermont
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Colorado charges $50 to form an LLC, while Vermont charges $155. Colorado is $105 cheaper upfront. The cost that usually gets overlooked: if you form in Vermont but operate in Colorado, you must also register as a foreign LLC in Colorado (a $100 filing) and maintain a registered agent in Vermont (typically around $150 per year). That puts the realistic first-year cost of the Vermont route at roughly $405, versus $50 for simply forming in Colorado. Both states publish a standard turnaround, Colorado (instant, online filing only) and Vermont (under 1 business day online; 7 to 10 by mail), though a published figure is a norm, not a guarantee.
Taxes: Colorado vs Vermont
Both Colorado and Vermont levy a personal income tax on pass-through business income, and your LLC's profits will be taxed where you live and operate. Forming in Vermont doesn't change what a Colorado-based owner pays. Colorado levies a flat 4.4% personal income tax. Neither state imposes a separate franchise or privilege tax on LLCs beyond standard filing fees.
Privacy & Asset Protection
Neither Colorado nor Vermont offers anonymous LLC formation: both states require owner or manager information on public filings. Vermont's annual report must state only the company name, designated office and registered agent, and the articles and foreign application make owner or principal names optional, but the Secretary of State treats up-to-date principal personnel as part of good standing and its public business record displays the principals on file, so whether an LLC can keep member and manager names off its filings in practice isn't confirmed. Business owners who prioritize privacy typically form a holding company in a state like Wyoming or New Mexico instead. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal.
Annual Maintenance Costs
Colorado LLCs file an annual report ($25, due in the anniversary month), and Vermont LLCs file an annual report ($45, due within 3 months of fiscal year end). If you form in Vermont while operating in Colorado, you maintain filings in both states, Vermont's report plus Colorado's equivalent for your foreign registration, and pay a Vermont registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the Vermont route to roughly $220 a year, versus about $25 to keep a domestic Colorado LLC in good standing.
When Vermont Actually Makes Sense
Forming in Vermont makes sense in a few specific situations: your business genuinely operates in Vermont, with a real office, employees, or property there, or you're relocating to Vermont in the near future. For a typical small business based in Colorado, none of these usually apply. Registering a Vermont LLC to do business back home means $100 in Colorado foreign-registration fees, on top of Vermont's $155 formation fee, while Colorado's own annual report runs $25 a year and is due in the anniversary month. When in doubt, form where you actually do business.
Frequently Asked Questions
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so. Where we hold the citation but no stable public link, the citation is printed on its own rather than pointed at a guessed address.
- Vermont statute: 32 V.S.A. 5921 (business entity minimum tax)
- Vermont statute: 11 V.S.A. § 4033(a) (annual report contents)
- Vermont statute: § 4023(b)(2), § 4112(b)(2) (optional owner names)
- coloradosos.gov/pubs/business/businessHome.htmlColorado Secretary of State: business entity filings
- coloradosos.gov/pubs/info_center/fees/business.htmlColorado LLC filing fees
- sos.vermont.gov/business-services/business-filings/domestic-formation/llcVermont Secretary of State: business entity filings
- sos.vermont.gov/business-services/fees-statutesVermont LLC filing fees
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.