Is it cheaper to form an LLC in Vermont than Delaware?

No. Vermont costs more upfront ($155 vs $110), and if you operate in Delaware you must also register there as a foreign LLC ($200) plus pay a Vermont registered agent. Realistic first-year cost is roughly $505 versus $110 for forming locally.

Can I form my Delaware business in Vermont?

Yes. Any Delaware business can form its LLC in Vermont. But if the business operates in Delaware, it must also register there as a foreign LLC ($200 filing fee) and maintain a registered agent in Vermont, so you take on two states' fees and filings instead of one.

Does Vermont have better asset protection than Delaware?

Not meaningfully. Both states provide charging-order protection for LLC members, and neither offers a decisive asset-protection edge for a typical small business. Sound insurance and clean separation of business and personal finances matter more in practice.

State Comparison

Delaware LLC vs Vermont LLC (2026)

Written for owners based in Delaware.

Verdict: for most owners, form where the business is based

Vermont's $45 annual report is due three months after the company's fiscal year end, not on a formation anniversary, which makes it the most commonly missed deadline in the state. Sitting outside that $45 is the $250 minimum business entity tax under Vermont tax law, owed by an LLC taxed as a partnership even in a loss year, though a single-member LLC treated as a disregarded entity does not owe it. Formation is $155 against Delaware's $110. Delaware's $400 applies to every LLC alike, plus $200 to register a Vermont one here.

Based in Vermont? Read Vermont LLC vs Delaware LLC →

Compare Delaware 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

If your business is based in Delaware, a Delaware LLC needs no foreign registration there; a Vermont LLC run from Delaware generally must also register in Delaware as a foreign LLC (Delaware's $200 filing fee). If your business is based in Vermont, a Vermont LLC needs no foreign registration there; a Delaware LLC run from Vermont generally must also register in Vermont as a foreign LLC (Vermont's $155 filing fee). An LLC formed in one of these states and run from the other owes whatever filings, fees and taxes each state requires. A Delaware LLC runs $510 in year one and $400/yr after; a Vermont LLC runs $200 and $45/yr. See the full breakdown below.

Using a formation service? We compare the 4 formation services that pay us a commission, on three-year service cost, BBB rating and Trustpilot score.

Compare LLC formation services →

Or by state: Best LLC services in Delaware, Best LLC services in Vermont

Ready to file? Our affiliate partner ZenBusiness files your LLC formation paperwork, from $0 + state fee.

Start your LLC with ZenBusiness →

Affiliate link. We may earn a commission at no cost to you. MyStateLLC is not a law firm and does not provide legal advice.

Factor	Delaware	Vermont
Filing Fee	$110	$155
Processing Time	Not published by the state	Under 1 business day online; 7 to 10 by mail
Annual Report Fee	None ($400/yr entity tax instead)	$45
Annual Report Due	None required	Within 3 months of fiscal year end
State Income Tax	Yes	Yes
Anonymous LLC	Yes	No
Publication Requirement	No	No
Foreign LLC Cost (if forming out-of-state)	N/A, you're in your home state	$200 + registered agent ~$150/yr

Full fee breakdown for either state: Delaware LLC cost and Vermont LLC cost. Owner privacy options for either state: Delaware anonymous LLC guide and Vermont anonymous LLC guide.

Business Climate: Delaware vs Vermont

Factor	Delaware	Vermont
5-year business survival rate	48.1% (#37 of 51)	46.6% (#44 of 51)
Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months))	+2.5% YoY (#33 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)

See the full 50-state survival ranking.

Compare LLC Costs: Delaware vs Vermont

State A

State B

Delaware

✓ Cheaper Upfront

Formation fee$110

Annual report feeNo report required

State entity tax$400/yr, Annual LLC Tax (alternative entity tax)

Report dueNone required

Processing timeNot published by the state

Late penaltyNo report to file late. The annual tax carries its own penalty

Vermont

✓ Cheaper Long-Term

Formation fee$155

Annual report fee$45

State entity taxNone

Report dueWithin 3 months of fiscal year end

Processing timeUnder 1 business day online; 7 to 10 by mail

Late penalty$0

Total Cost

Delaware

Vermont

1 Year

$510

$200

3 Years

$1,310

$290

5 Years

$2,110

$380

Will you operate outside your home state?

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

Delaware charges $110 to form an LLC, while Vermont charges $155. Delaware is $45 cheaper upfront. The cost that usually gets overlooked: if you form in Vermont but operate in Delaware, you must also register as a foreign LLC in Delaware (a $200 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 $505, versus $110 for simply forming in Delaware. Only one side of this comparison is knowable: Vermont publishes a standard turnaround (under 1 business day online; 7 to 10 by mail), while Delaware publishes no standard processing time, so the two can't be ranked against each other on speed.

Taxes: Delaware vs Vermont

Both Delaware 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 Delaware-based owner pays. Delaware LLCs owe a flat $400 annual LLC tax (no report required).

Privacy & Asset Protection

Delaware, your home state, actually offers more formation privacy than Vermont: Delaware allows anonymous LLC formation, while Vermont requires 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. 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. From a privacy standpoint there's no reason for a Delaware-based business to form in Vermont.

Annual Maintenance Costs

Delaware LLCs file no annual report at all, and Vermont LLCs file an annual report ($45, due within 3 months of fiscal year end). If you form in Vermont while operating in Delaware, you maintain filings in both states, Vermont's report, though Delaware asks for nothing on the foreign-registration side, 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 $195 a year, versus about $400 to keep a domestic Delaware LLC in good standing. The tax inside those totals: Delaware LLCs owe a flat $400 annual LLC tax (no report required).

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 Delaware, none of these usually apply. Registering a Vermont LLC to do business back home means $200 in Delaware foreign-registration fees, on top of Vermont's $155 formation fee, while Delaware itself never asks for an annual report at all. Delaware already allows anonymous formation, so the privacy argument for Vermont doesn't apply to a Delaware-based owner. Trading Delaware's no-annual-report status for Vermont's filing calendar is a step backwards for most owners. When in doubt, form where you actually do business.

Frequently Asked Questions

: No. Vermont costs more upfront ($155 vs $110), and if you operate in Delaware you must also register there as a foreign LLC ($200) plus pay a Vermont registered agent. Realistic first-year cost is roughly $505 versus $110 for forming locally.
: Yes. Any Delaware business can form its LLC in Vermont. But if the business operates in Delaware, it must also register there as a foreign LLC ($200 filing fee) and maintain a registered agent in Vermont, so you take on two states' fees and filings instead of one.
: Not meaningfully. Both states provide charging-order protection for LLC members, and neither offers a decisive asset-protection edge for a typical small business. Sound insurance and clean separation of business and personal finances matter more in practice.
: It depends on where the business is based. For a Delaware-based business, Delaware: forming where the business is based keeps costs and compliance simple, and Vermont is worth considering only if you actually do business there. For a Vermont-based business, the same reasoning points to Vermont.
: Only one side of this comparison is knowable: Vermont publishes a standard turnaround (under 1 business day online; 7 to 10 by mail), while Delaware publishes no standard processing time, so the two can't be ranked against each other on speed. Whichever you pick, remember that forming in Vermont while operating in Delaware means you're not fully set up until the Delaware foreign registration is also processed, so the out-of-state route is rarely the faster path end to end. If your timing is genuinely fixed, buy the state's expedite tier rather than relying on a standard turnaround.

Comparison chart of forming an LLC in Delaware versus Vermont, contrasting filing fees, annual report cost and ongoing obligations across 8 factors. — Delaware and Vermont side by side on the factors that decide where to form. Source: MyStateLLC 50-state cost dataset, verified against each Secretary of State's published fee schedule, July 2026.

Ready to form your LLC?

Using a formation service? We compare the 4 formation services that pay us a commission, on three-year service cost, BBB rating and Trustpilot score.

Compare LLC formation services →

Or by state: Best LLC services in Delaware, Best LLC services in Vermont

Our affiliate partner ZenBusiness files your LLC formation paperwork, from $0 + state fee.

Start your LLC with ZenBusiness →

Affiliate link. We may earn a commission at no cost to you. MyStateLLC is not a law firm and does not provide legal advice.

More State Comparisons

Delaware vs Virginia →Delaware vs Washington →Delaware vs West Virginia →Delaware vs Wyoming →Vermont vs Wyoming →

Delaware LLC Guide →Vermont LLC Guide →

📎

Embed this comparison, free

Add the Delaware vs Vermont cost calculator to any page. Works in WordPress, Squarespace, Webflow, and any HTML site.

<iframe src="https://www.mystatellc.com/tools/compare-states?embed=1&stateA=DE&stateB=VT" width="100%" height="720" frameborder="0" style="border:0;max-width:900px;display:block;margin:0 auto;" title="Delaware vs Vermont LLC Cost Comparison" loading="lazy"></iframe>
<p style="text-align:center;font-size:.8125rem;color:#6b7280">Source: <a href="https://www.mystatellc.com/llc/compare/delaware-llc-vs-vermont-llc">MyStateLLC, Delaware vs Vermont LLC Comparison</a></p>

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)
Delaware statute: 6 Del. C. § 18-1107(b) (annual LLC tax)
corp.delaware.govDelaware Division of Corporations: business entity filings
corpfiles.delaware.gov/AugustFee2024.pdfDelaware 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.