Vermont taxes personal income (Graduated: 3.35% to 8.75% across five brackets), and LLCs owe Business Entity Tax (BET). A Wyoming holding company does not erase Vermont's own entity-level obligations on a Vermont subsidiary, but it can still add liability separation and keep the parent's ownership off Vermont's public LLC filings.
Nearly every Vermont LLC taxed as a partnership or S-corp owes the $250 Business Entity Tax annually, regardless of profitability — this is a true minimum tax, not a franchise tax tied to net worth or revenue. It's easy to confuse with, or forget alongside, the separate $45 annual report filed with the Secretary of State: two different obligations to two different agencies, both mandatory even for zero-income entities.
The general federal tax treatment of holding companies (consolidated filings, dividends-received deductions, and the like) is set at the federal level and does not change state to state — what changes is the entity-level tax Vermont itself charges an LLC or corporation formed or registered there.
Vermont does not levy a franchise tax or a separate entity-level income tax on LLCs, so the holding company and its subsidiaries are not taxed simply for existing. Profit earned by an operating subsidiary flows up through the parent and is reported on the members' individual Vermont income tax returns, where it is taxed once at graduated rates topping out at 8.75%. The trade-off worth understanding is that Vermont's top personal rate sits on the higher end nationally — so while the structure avoids double taxation and franchise fees, members in upper brackets will pay more state income tax on distributed profit than they would in a no-income-tax state.
A Vermont C-Corp pays the state corporate income tax on graduated brackets of 6.0% on the first $10,000 of net income, 7.0% on the next $15,000, and 8.5% above $25,000. Every corporation owes a minimum tax regardless of profit, computed on Vermont gross receipts and starting at $100 for the smallest filers, with the actual liability being the greater of the calculated income tax or the minimum tax. Vermont has no separate franchise tax. The $60 annual report is paid to the Secretary of State, separate from the corporate tax filed with the Department of Taxes.
Vermont LLCs must file Annual Report with Vermont Secretary of State, due Within 3 months after fiscal year end (January 1–March 31 for calendar-year LLCs), with a fee of $45 for domestic LLCs.
Missing the annual report risks loss of good standing and eventual administrative termination by the Secretary of State — a separate consequence from any Business Entity Tax delinquency with the Department of Taxes.
A common structure pairs a Wyoming LLC as the parent with a Vermont entity handling operations, holding property, or running a Vermont-facing business.
The Vermont entity still owes whatever Vermont itself charges — Business Entity Tax (BET) — regardless of where its parent is formed; pairing it with a Wyoming LLC does not change the Vermont subsidiary's own filing or tax obligations. What the Wyoming parent adds is liability separation, and the Wyoming company's own ownership stays out of Vermont's public LLC filings.
For more on the general structure, see the Wyoming holding company guide and how to set one up.
Tax agency reference: Vermont Department of Taxes (tax.vermont.gov).
Note: Tax rates, fees, and thresholds shown here reflect state tax research last verified July 2026; reconfirm current figures directly at tax.vermont.gov before relying on them for a specific filing.
Vermont's tax treatment of a holding structure comes down to its personal income tax (Graduated: 3.35% to 8.75% across five brackets) and its Business Entity Tax (BET). If you have questions about structuring a Wyoming-Vermont holding arrangement, reach out through our contact form.
If you have questions about structuring a Wyoming-Vermont holding arrangement, reach out through our contact form or call +1 (307) 683-0983 to speak with one of our experienced Business Success Advisors. Visit our homepage and blog for more.