The Basics of Vermont Small Business Taxes in 2023

As a small business owner in Vermont, navigating the world of taxes can be daunting. But with new tax laws taking effect in 2023, it’s more important than ever to stay informed and up-to-date on the latest regulations.

One major change coming in 2023 is the introduction of a new tax on digital advertising. This means that businesses who advertise online will need to adjust their budgets accordingly to account for this additional expense. It’s crucial for small business owners to understand how this tax works and how it will impact their bottom line.

In this article, we’ll provide an overview of Vermont’s small business tax laws and delve into the specifics of this new digital advertising tax. We’ll also explore available deductions and credits that can help offset your tax burden and offer tips for staying informed as these laws continue to evolve over time.

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Overview of Vermont’s Small Business Tax Laws

You’re about to learn all you need to know about how the state of Vermont handles your company’s financial obligations. As a small business owner in Vermont, it’s crucial to understand the tax filing requirements and tax planning strategies that come with owning a business.

One key aspect of navigating Vermont small business taxes in 2023 is understanding the implications if you decide to create an LLC in vermont.

When it comes to handling small business taxes in Vermont for the year 2023, it’s crucial to understand the various options available. Entrepreneurs can simplify their tax filing by utilizing the expertise of the best online vermont LLC services for a seamless experience.

Vermont small business owners should stay informed about the ever-evolving landscape of taxes. Understanding the nuances of vermont small business taxes in 2023 is essential for maintaining compliance and maximizing benefits within the state’s tax codes.

All businesses, regardless of their size or structure, are required to file an annual report with the Secretary of State’s office and pay taxes on income earned.

When it comes to taxes, Vermont has several unique laws that small business owners should be aware of. For example, the state imposes a corporate income tax on companies earning more than $10,000 per year. Additionally, businesses must collect sales tax on most goods and services sold in the state.

To stay compliant with these regulations, small business owners can work with an accountant or bookkeeper who specializes in Vermont tax law.

To minimize your business’s tax liability and maximize deductions, strategic tax planning is essential. Consider contributing pre-tax dollars to a retirement plan or investing in energy-efficient equipment that qualifies for federal and state incentives. By working closely with a qualified professional knowledgeable in current regulations, you can ensure that your business remains financially healthy while complying with all Vermont laws.

As we move into 2023, small business owners must remain vigilant about changes to Vermont’s tax laws. One significant change coming up is the new tax on digital advertising revenue proposed by Governor Phil Scott as part of his budget plan for 2022-23. This proposal would require companies like Facebook and Google to pay taxes based on their digital ad revenue generated from Vermont residents.

Stay tuned for updates on this developing story as it will have implications for businesses across industries operating in Vermont.

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New Tax on Digital Advertising

If your company relies heavily on digital advertising, you may be affected by the new tax regulations implemented in Vermont in 2023. These regulations require companies to pay a tax on their digital advertising costs, which could have significant implications for small businesses. Here are four things to keep in mind as you navigate this new tax:

  1. The tax applies to companies with annual global revenues of at least $100 million and digital advertising revenue in Vermont of over $1 million.
  2. The rate of the tax varies based on the company’s revenue from digital advertising within Vermont, ranging from 2% to 10%.
  3. This tax is aimed at generating revenue for the state, which has struggled with budget shortfalls due to the pandemic.
  4. Small business owners should consider adjusting their online marketing strategies or finding other ways to offset these costs.

As someone who’s experienced navigating complex tax regulations, I recommend taking a proactive approach and analyzing your current online marketing budget. Consider whether there are any areas where you can cut costs or shift resources towards more cost-effective strategies. Additionally, make sure that you’re keeping detailed records of all relevant expenses so that you can accurately calculate your liability under this new law.

While it can be frustrating to deal with yet another layer of taxes and regulations as a small business owner, it’s important to stay informed and adapt accordingly if you want your company to thrive in today’s marketplace.

In fact, there’s some good news on the horizon: starting in 2023, Vermont is also increasing its standard deduction for individuals and couples filing jointly. This change could provide some relief for both employees and employers alike as they adjust their budgets for the coming year.

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Increase in Standard Deduction

As a tax professional, I’m excited to discuss the recent increase in standard deduction and its potential impact on small businesses, individual taxpayers, and corporations.

This change provides much-needed relief for small businesses whose profits have been affected by the pandemic.

Additionally, individuals may see a reduction in their taxable income, which could result in lower taxes owed or potentially even a refund.

Corporations may also benefit from this change as it allows for more flexibility in managing their finances and reinvesting back into their business.

Relief for Small Businesses

Take advantage of the relief options available to you as a small business owner in Vermont. The state government offers tax credits and government grants to help ease financial burdens, especially during times of economic uncertainty.

For instance, the Vermont Small Business Recovery Grant Program provides eligible businesses with grants ranging from $5,000 to $300,000 for expenses such as rent, payroll, and inventory. Additionally, small businesses may qualify for tax credits such as the Employment Growth Incentive (EGI) that rewards businesses for creating new jobs in Vermont.

It’s important to stay informed about these options and take advantage of them to keep your company afloat. As regulations change frequently in regard to taxes and relief programs, it’s essential to consult with a knowledgeable accountant or financial advisor who’s experienced in working with small businesses.

With the right support and resources, your business can navigate the current landscape effectively and emerge stronger than ever before.

The relief options available through government grants and tax credits can significantly impact individual and corporate income taxes. By taking advantage of these programs designed specifically for small businesses in Vermont, you can reduce your taxable income while also investing back into your company. However, it’s crucial to ensure that you’re following all regulations correctly so that you don’t face any penalties or audits down the line.

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Impact on Individual and Corporate Income Taxes

You’ll be pleased to know that the relief options available to you can significantly impact your income taxes. As a small business owner in Vermont, you have the opportunity to reduce taxable income while investing back into your company. This is particularly important when it comes to individual and corporate income taxes.

It’s important to understand how tax brackets work in Vermont and what deductions are applicable for small businesses. When filing requirements and deadlines approach, it’s essential that you’re knowledgeable about current regulations so that you can take advantage of any opportunities available.

With this knowledge, you can make informed decisions about which deductions will benefit your business the most before transitioning into the subsequent section about available deductions and credits.

Available Deductions and Credits

Don’t miss out on deductions and credits that could save you some serious cash. As a small business owner in Vermont, it’s crucial to understand the available deductions and credits for your tax return.

One common misconception is that only large corporations can take advantage of these benefits. However, there are plenty of opportunities for small businesses too. Maximizing benefits requires attention to detail and knowledge of current regulations.

For example, if you have employees, you may be eligible for the Federal Work Opportunity Tax Credit (WOTC) or the Vermont Employer Incentive Grant (VEIG). You can also deduct expenses related to travel, office supplies, and equipment purchases. Additionally, if your business has been impacted by COVID-19, there are various relief programs that offer tax credits and incentives.

Staying informed about changes in tax laws is essential for small business owners in Vermont. The state regularly updates its tax code with new rules and regulations that can impact your business’s bottom line. Make sure to consult with a qualified accountant or tax professional who can guide you through the process and help you maximize your deductions and credits each year.

By staying up-to-date on changes in regulations and taking advantage of available benefits, you can save money on taxes while growing your business at the same time.

Staying Informed

As we discussed earlier, Vermont small business owners can take advantage of various deductions and credits to reduce their tax liability. However, it’s crucial to stay informed about the latest tax laws and regulations that affect your business.

Tax planning is a vital aspect of managing finances for any small business owner, and staying up-to-date on changes can help you make better decisions.

To stay informed about the latest tax laws affecting small businesses in Vermont, I recommend utilizing government resources such as the Vermont Department of Taxes website or consulting with a trusted accountant or tax advisor. These resources can provide valuable information on new laws, filing requirements, deadlines, and other important details that impact your business.

Knowledge is power when it comes to taxes, so take advantage of these resources to ensure you’re making informed decisions.

In addition to staying informed about changes in tax laws and regulations, proactive tax planning is also essential for small business owners. By working with an experienced accountant or tax advisor throughout the year, you can identify opportunities for deductions and credits while ensuring compliance with all applicable regulations.

This approach not only minimizes your tax liability but also helps you avoid potential penalties or audits down the line.

Remember that as a small business owner in Vermont, you have access to many resources that can help you navigate the complex world of taxes. By staying informed about changes in legislation and engaging in proactive tax planning strategies, you’ll be better equipped to manage your financial obligations while freeing up more time and energy to focus on growing your business.


Overall, navigating Vermont’s small business tax laws can be complicated, but with the right knowledge and resources, it’s manageable.

As of 2023, there are some changes that small business owners need to be aware of, including the new tax on digital advertising and an increase in standard deduction.

It’s important for small business owners to understand the deductions and credits available to them and stay informed about any updates or changes in tax laws. Seeking guidance from a tax professional or utilizing online resources can also help ensure compliance with state regulations.

With careful planning and attention to detail, managing taxes as a small business owner in Vermont can be done successfully.

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