How to Dissolve an LLC in Vermont (2026)
To dissolve an LLC in Vermont, file a Limited Liability Company Termination with the Vermont Secretary of State, for a $20 fee. Vermont is one of the last paper-only holdouts: you mail or drop off a signed original plus a copy, paid by check, since Vermont requires original signatures and doesn't accept online filing, fax, credit cards, or cash for the termination. The one flexibility Vermont offers that most states don't: you can draft your own articles of termination rather than using the state's form.
Here's the full process and the Vermont-specific specifics.
Vermont LLC dissolution at a glance
| Item | Detail |
|---|---|
| Form | Limited Liability Company Termination (or your own drafted version) |
| Filing fee | $20 |
| Where to file | Vermont Secretary of State, Corporations Division, 128 State Street, Montpelier, VT 05609 — mail or drop-off (no online/fax) |
| Payment | Check only (no credit cards or cash) |
| Processing time | 3–5 business days |
| Tax clearance | Not required for LLCs |
| Annual report | $35/year, due within 3 months after fiscal year-end |
| Final return | Final Vermont business income tax return and federal return |
Step 1: Vote to dissolve and document it
Check your operating agreement for the dissolution procedure and hold the required member vote, then record it. The documented decision is the basis for the termination filing.
Step 2: Wind up the business and settle debts
Wind up the LLC's affairs: notify known creditors, resolve outstanding claims, pay or provide for the company's debts, and distribute remaining assets to members, creditors first. Distributing assets ahead of creditors can create personal exposure.
Step 3: Handle final taxes
Vermont doesn't require a tax-clearance certificate for LLCs to dissolve. File your final federal return and your final Vermont business income tax return (Form BI-471 or BI-476, filed through myVTax), and close any sales-and-use tax or withholding accounts with the Vermont Department of Taxes. Vermont's business income tax has a minimum, so file the final return even if the LLC had little or no activity.
Step 4: File the LLC Termination (on paper, by check)
This is where Vermont's old-school process matters. File the Limited Liability Company Termination with the Secretary of State's Corporations Division, $20, and note the constraints: Vermont requires original signatures, so you mail or drop off the signed original plus a copy, you can't file online or by fax, and payment is by check made out to the Vermont Secretary of State (no credit cards or cash). Include a self-addressed envelope so they can return a filing acknowledgment. Processing takes about 3–5 business days. One bit of flexibility: you don't have to use the state's form, Vermont lets you draft your own articles of termination as long as they contain the required information.
Step 5: Close accounts, licenses, and registrations
Finish by canceling local business licenses and permits, closing business bank accounts, canceling the EIN with the IRS if appropriate, and withdrawing any out-of-state registrations.
The Vermont wrinkle: a paper-and-check holdout (with form flexibility)
Vermont's defining feature is how analog the filing still is. As most states have pushed dissolution fully online, Vermont has kept the termination on paper: an ink-signed original plus a copy, mailed or hand-delivered, paid by a paper check, with no online portal, no fax, and no card or cash accepted. If you're used to closing LLCs with a few clicks elsewhere, Vermont's process feels like a step back in time, so plan for printing, signing, writing a check, and mailing, and include that self-addressed envelope to get your acknowledgment back.
The redeeming flexibility is that Vermont doesn't lock you into its form. You're allowed to draft your own articles of termination, which is handy if your situation needs language the standard form doesn't accommodate. Beyond the filing mechanics, the substance is standard: get your $35 annual report current (it's due within three months after your fiscal year-end, around March 31 for a calendar-year LLC), file your final returns, and submit the termination. An undissolved Vermont LLC keeps owing that annual report and its business income tax minimum until you file, with a $25 late penalty and eventual administrative dissolution, the trap covered in can you just walk away from an LLC. The paper filing is mildly annoying, but the $20 close is still far cheaper than letting it run.
Frequently asked questions
Can I dissolve a Vermont LLC online?
No. Vermont requires original signatures on the termination and doesn't accept online filing or fax for it, you mail or drop off a signed original plus a copy. Payment must be by check (no credit cards or cash). This makes Vermont one of the last paper-only states for LLC dissolution. Include a self-addressed envelope so the Secretary of State can mail back your filing acknowledgment.
How much does it cost to dissolve a Vermont LLC?
The Limited Liability Company Termination costs $20, paid by check. There's no tax-clearance fee for LLCs. The cost to avoid is the $35 annual report (plus a $25 late penalty), which keeps accruing if you let the LLC lapse, along with Vermont's business income tax minimum. So dissolving promptly at $20 is cheaper than leaving it open.
Do I have to use Vermont's official termination form?
No, and this is a small bit of Vermont flexibility. The state lets you draft your own articles of termination instead of using its form, as long as your document includes the required information. Either way, it must be a signed original (plus a copy) submitted on paper by mail or in person, with a check for the $20 fee, since Vermont doesn't accept online or fax filings for dissolution.
This page covers the Vermont specifics; for the general framework, see our complete guide to how to dissolve an LLC, and for nearby states, New Hampshire and Massachusetts. Vermont's official filing is at the Vermont Secretary of State, and taxes through the Vermont Department of Taxes.