Most businesses operating in Vermont must first register with the Vermont Department of Taxes. For Sales and Use, Meals and Rooms, or Withholding you will need a separate business tax account for each of these respective taxes. Eligible exempt organizations must also register prior to using an exemption certificate.
For new businesses, the Vermont’s Department of Taxes, the Secretary of State’s office, and the Department of Labor have partnered to bring you an Online Business Service Center where you can register your business and apply for the licensing and insurance you will need to conduct business in Vermont.
After you’ve registered your new business online with the Secretary of State, you will be given the option to register for a business tax account with the Department to collect:
- Sales and Use Tax
- Meals and Rooms Tax
- Employer Withholding Tax
- You can also register for any of the miscellaneous business taxes that your business may be liable for
Business already registered with the Secretary of State?
For businesses already registered with the Secretary of State, you may register for a tax account only. You may also register for a business tax account directly with the Department of Taxes using myVTax.
To Register for Your Tax Account by Mail or Fax
- Form BR‐400, Application for Business Tax Account and Instructions which include
- Form BR-400A, Business Principals with Fiscal Responsibility, and
- Form BR-400B, Account Application
The Secretary of State's office has annual filing requirements for businesses. You will need to renew your business with its office every year. Renew your business registration through the Secretary of State. You do not have to renew your business tax account with the Department of Taxes.
A business may update its business tax account online using myVTax. You may change an address, contact information, owner name, EIN, and more. To change entity type, however, you will need to close the old account and apply for a new one.
When you close your business, be sure to close your business tax account with the Vermont Department of Taxes. Otherwise, the Department may think you are still in business but not filing returns. The Department may then bill you for unpaid taxes.
Pay taxes owed and file returns due
Before closing your account, be sure to pay any remaining taxes and file all returns due to the Department. If you have employees, it is important to file a final Form WHT-434, Annual Withholding Reconciliation, with forms W-2 and/or 1099 as required, or file using your myVTax account.
How to close your business tax account
To close your business tax account online, log on to your myVTax account and click “Cease Account.” If you have more than one type of business tax account, you must close each individually. If you do not have a myVTax account, you may file on a paper form using Form B-2, Notice of Change.
You will also want to end your business registration with the Secretary of State.
Selling your business or assets?
If you are selling your business, or selling the assets of a closed business, the buyer may ask for a Notice of Escrow from the Department of Taxes. This is also called a tax certificate or clearance. This notice provides information to the buyer about what taxes are due for which the buyer might become responsible. For more information, please see Vermont law at 32 V.S.A. § 3260 or contact the Department.
If you have questions about registering, renewing, or closing a business tax account, please contact us.