Business Entity Income Tax

Overview

Subchapter S Corporations, Partnerships and Limited Liability Companies engaged in activities in Vermont must file a Business Entity Income Tax return with the Commissioner of Taxes. This includes entities receiving income as a shareholder, partner, or member.

The business entity income tax applies to S-Corporations, Partnerships, and Limited Liability Companies that elect to be taxed as partnerships or S-Corporations. The income of S-Corporations, Partnerships and Limited Liability Companies attributable to Vermont passes through to the shareholders, partners, or members and is taxed at the individual or corporate income tax rate.  Each shareholder, partner, or member must also file a Vermont Income Tax return.

Forms and Instructions

Payment Methods

You may make electronic payments regardless of the method used to file your return using one of the following payment methods:

Online
myVTax, a convenient and free service that allows you to manage, file, and pay your Vermont taxes using ACH Debit. You may also pay through myVTax using your Credit Card, subject to a 3% processing fee which is retained by the service company. ACH Credit, is an easy and convenient way to pay your Vermont taxes. Review the ACH Credit instructions and ACH Credit Payments QuickStart Guide to get started.

Paper Forms
Mail your personal check, cashier’s check, or money order payable to the Vermont Department of Taxes. 

Vermont Department of Taxes
PO Box 1779
Montpelier, VT 05601-1779

If you are submitting any of the following paper forms by mail, you may submit your payment with the paper forms below. Otherwise, include a completed Form BI-470, Business Income Tax Return Payment Voucher to ensure the payment will be properly applied to your account and period.

Forms and Publications

No. Instructions Title
BA-403   Application for Extension of Time to File Vermont Corporate/Business Income Tax Returns
BI-470   Business Income Tax Return Payment Voucher
BI-471 Instructions Business Income Tax Return
BI-476 Instructions Business Income Tax Return For Resident Only
WH-435   Estimated Income Tax Payments for Nonresident Shareholders, Partners, or Members

Due Dates

If the listed due date falls on a weekend or holiday, the due date is the following business day.

Income Tax Return

Due on the date established for filing under the Internal Revenue Code.

Most business entities will file form BI-471, Business Income Tax Return. Generally, a minimum tax of $250 is due. Additional forms and schedules may be required. 

Business entities owned exclusively by Vermont residents, with income and loss deriving only from Vermont, may file the simplified form BI-476, Business Income Tax Return (For Resident Only). The Vermont minimum entity tax of $250 must be paid with the return. The BI-476 may be filed and the tax paid using myVTax, our free, secure, online filing site. 

If you cannot file and pay through myVTax, you may still use the paper form.

File an Extension An extension of time to file a federal return automatically extends the time to file with Vermont until 30 days beyond the federal extension date. However, tax is due on the original due date
Nonresident Withholding Estimated Payment

Due on the 15th day of the 4th, 6th, and 9th months of the tax year and the 1st month of the subsequent year. For calendar year entities, these dates are normally April 15th, June 15th, September 15th, and January 15th.

Business entities must make estimated income tax payments on behalf of their shareholders, members or partners for income attributable to Vermont. These payments are remitted quarterly on form WH-435, Estimated Income Tax Payments For Nonresident Shareholders, Members or Partners. Entities cannot delegate the requirement to make WH-435 payments to the Vermont nonresident.  If composite filing is mandated or elected, the payments will be applied to the entity’s composite return.

Composite Filing Estimated Payment

Due on the 15th day of the 4th, 6th, and 9th months of the tax year and the 1st month of the subsequent year. For calendar year entities, these dates are normally April 15th, June 15th, September 15th, and January 15th.

Business entities may elect to file a composite return, and pay income tax at the entity level on behalf of all owners who are nonresidents of Vermont. Beginning with the tax year 2013, composite filing became mandatory for pass-through entities with more than 50 non-resident shareholders, partners, or members.   Owners who are included in a composite return are relieved of the obligation to file their own income tax return, provided there is no other income or activity that creates a requirement to file in Vermont.

Entities filing a composite return must make estimated income tax payments. Use form WH-435, Estimated Income Tax Payments For Nonresident Shareholders, Members or Partners.

*For S-Corporations, Partnerships, and Limited Liability Companies using the calendar year
Due Date Submit
3/16/2020

BI-471, Business Income Tax Return, or
BI-476, Business Income Tax Return (For Resident Only), or
BA-403, Application for Extension of Time to File Vermont Corporate/Business Income

4/15/2020

Nonresident Withholding Estimated Payment, or
Composite Filing Estimated Payment

6/15/2020

Nonresident Withholding Estimated Payment, or
Composite Filing Estimated Payment

9/15/2020

Nonresident Withholding Estimated Payment, or
Composite Filing Estimated Payment

10/15/2020

Extended due date for:
BI-471, Business Income Tax Return, or
BI-476, Business Income Tax Return (For Resident Only)

1/15/2021

Nonresident Withholding Estimated Payment, or
Composite Filing Estimated Payment