Start a nonprofit · Vermont
How to Start a Nonprofit in Vermont
Vermont charges $155 to file the articles of a domestic nonprofit corporation. Nonprofits file a biennial report, and the fee is $35 unless the corporation certifies it did not compensate any officer, director or employee in the prior calendar year, in which case it is $0. Federally recognized 501(c)(3) organizations are normally exempt from Vermont sales tax on purchases.
Every fee and rule on this page was checked against the agency's own publication on November 8, 2026. Sources are linked under each item.
At a glance
The Vermont requirements in one table.
| Type of entity | A Vermont domestic nonprofit corporation, formed under 11B V.S.A. by filing Articles of Incorporation with the Secretary of State. Sources: SOS fees |
|---|---|
| State filing fee | $155 for Articles of Incorporation. Sources: SOS fees |
| Federal exemption | Form 1023 ($600) or Form 1023-EZ ($275), filed electronically on Pay.gov. Sources: IRS fee page, IRS e-filing notice |
| Biennial report | $35, or $0 if no officer, director or employee was compensated in the prior calendar year. Sources: SOS fees, 11B V.S.A. ch. 1 |
| Registered agent change | $35 to change an agent or office, capped at $1,000 per filer per calendar year. Sources: 11B V.S.A. ch. 1 |
| Sales tax | 501(c)(3) organizations are normally exempt on purchases, after setting up a Vermont business tax account and giving sellers Form S-3. |
The steps
Four steps, in the order they happen.
Prepare the articles of incorporation.
The articles are filed under 11B V.S.A. section 2.02. The statute pages reviewed for this guide do not state the minimum number of directors or incorporators, or the registered agent requirement itself, so confirm those in Chapters 2 and 5 of Title 11B before filing.
Sources: 11B V.S.A. ch. 1
File the articles and pay $155.
The Secretary of State's fee page lists $155 for articles of incorporation of a domestic nonprofit corporation, under the fee statute 11B V.S.A. section 1.22.
Sources: SOS fees
Apply to the IRS for 501(c)(3) status.
Forming a corporation does not make it tax-exempt. The federal application is Form 1023, with a $600 user fee, or the shorter Form 1023-EZ, with a $275 user fee, for smaller organizations that pass the eligibility worksheet in the form instructions. Both are filed electronically on Pay.gov, and the IRS returns paper applications. The IRS notes that the amounts can change.
The IRS answers with a determination letter, the written ruling that recognizes the exemption.
Sources: IRS fee page, IRS e-filing notice
Set up the Vermont business tax account and the exemption certificate.
The Department of Taxes states that only federally designated 501(c)(3) nonprofits are normally exempt from Vermont sales tax on purchases of taxable items. The organization first applies for a Vermont Business Tax Account, then completes Form S-3, the Vermont Sales Tax Exemption Certificate for Resale and Exempt Organizations, and presents it to the seller at the time of purchase. The Department's page does not describe a separate approval process. If tax is not collected on a taxable purchase, the buyer owes use tax at the 6% rate.
Sales tax
Where Vermont sales tax still applies to a 501(c)(3).
The Department of Taxes sets collection thresholds for nonprofit sales.
Goods sales.
A 501(c)(3) that is not exempt on its sales collects tax if its prior-year sales of tangible personal property exceeded $20,000.
Sources: Dept. of Taxes nonprofits
Live performances.
A 501(c)(3) collects tax on live-performance admissions if prior-year gross admission sales exceeded $100,000.
Sources: Dept. of Taxes nonprofits
Other nonprofits.
Nonprofits under 501(c)(4) through (13) and (19) are generally subject to sales and use tax unless specifically exempted.
Sources: Dept. of Taxes nonprofits
After you form
Staying in good standing.
One state filing recurs, every other year.
File the biennial report.
The fee is $35 under 11B V.S.A. section 1.22, with an exemption for a corporation that certifies it did not compensate its officers, directors or employees in the prior calendar year. The report is filed under section 16.22. The sources reviewed do not state the due date, so confirm it with the Secretary of State. This page also does not verify any charitable solicitation registration in Vermont, so confirm with the Attorney General's office before soliciting.
Sources: SOS fees, 11B V.S.A. ch. 1
Common questions
Quick answers.
How much does it cost to start a nonprofit in Vermont?
The articles cost $155, plus the IRS user fee of $275 for Form 1023-EZ or $600 for Form 1023. That totals $430 or $755 as of the date this page was verified.
Does a Vermont nonprofit pay for its biennial report?
It pays $35, unless it certifies it did not compensate any officer, director or employee in the prior calendar year, in which case the fee is $0.
Is a Vermont 501(c)(3) exempt from sales tax?
Normally yes on purchases of taxable items, after it sets up a Vermont business tax account and gives sellers Form S-3. Other types of nonprofits are generally subject to the tax.
After the filing
What comes next for a Vermont nonprofit.
The state filing is the short part. These are the next four jobs, and the book that handles each.
- Book I
Get the federal application and first-year budget right
The name, bylaws, the IRS application, a founding board and a first-year budget that balances.
- Book X
Start from finished documents
Forty annotated documents, including bylaws, budgets, policies, job descriptions and board papers, as editable Word files.
- Book VII
Build the board on purpose
What a board is for, recruiting for the skills you lack, working with the chair and running meetings that reach decisions.
- Book VIII
Stay in good standing
Charitable solicitation registration, operating in a second state, insurance and annual filings.
The complete set
All ten books and forty documents, $149.
All ten books in PDF and EPUB, plus the forty documents from Book X as editable Word files. The books are not sold separately.
Free when you join the list
Every Document a New Nonprofit Needs
Articles, bylaws, minutes, the exemption application, the policies and the filings: the whole sequence a new organization has to produce, in the order it arrives.
Sources
Where each figure comes from.
- Vermont Secretary of State, Fees
- Vermont Statutes, Title 11B, Chapter 1, Nonprofit Corporations General Provisions
- Vermont Department of Taxes, Sales and Use Tax for Nonprofits
- Vermont Department of Taxes, Exemption Certificates
- IRS, Form 1023 and 1023-EZ: amount of user fee
- IRS, Changes to the exempt organization determinations process
Last verified November 8, 2026. Fees and rules change, so confirm with the agency before you file. This page is general information and not legal or tax advice.