How to Syndicate an Apartment Deal in Vermont

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What is the Vermont Rule 506 notice filing?
How do you form the deal LLC in Vermont?
What Vermont landlord and tenant rules should a sponsor know?
What does Vermont charge when an apartment building sells?
How does Vermont property tax work for an apartment building?
Does Vermont tax the deal LLC or its investors?
How DoorRaise fits in
FAQ

To syndicate an apartment deal in Vermont, you form the deal LLC (or register an outside LLC with the Vermont Secretary of State), raise under Rule 506(b) or 506(c), and file a Form D notice with an $820 fee through NASAA's EFD, the highest fixed state fee in DoorRaise's data. For underwriting, the key Vermont detail is that apartment buildings pay the statewide education property tax at the non-homestead rate, which is usually higher than the rate an owner-occupant pays.

This is the Vermont version of our general syndication guide. It covers what changes when the building, the investors or both are in Vermont. It is general information, not legal advice.

What is the Vermont Rule 506 notice filing?

Vermont treats Rule 506 interests as federal covered securities and asks for a notice: a copy of the SEC Form D and the fee, filed through the NASAA Electronic Filing Depository (EFD) for the Securities Division of the Vermont Department of Financial Regulation. DoorRaise's state data, from NASAA's fee schedule, lists the fee as $820, one of the highest state notice fees; file within 15 days of the first sale to a Vermont investor. EFD shows the exact amount before you pay, and that amount wins. See blue sky notice filings and blue sky fees by state.

How do you form the deal LLC in Vermont?

A Vermont LLC is formed by filing Articles of Organization with the Vermont Secretary of State; the published fee is $155. Each year the LLC files an annual report with a small fee. An LLC formed elsewhere that will own Vermont property registers as a foreign LLC. Confirm fees with the Secretary of State before you file. See forming an LLC for a syndication and foreign qualification in the property state.

Vermont's Residential Rental Agreements Act is 9 V.S.A. chapter 137. A landlord returns the security deposit, with an itemized list of deductions, within 14 days after the tenant leaves (9 V.S.A. 4461); a landlord who willfully keeps it can owe twice the amount. For unpaid rent, a landlord gives at least 14 days' written notice before the tenancy ends (9 V.S.A. 4467(a)). Your property manager should use Vermont forms and follow these periods exactly.

What does Vermont charge when an apartment building sells?

Vermont's property transfer tax is generally 1.25% of the price for a building that is not the buyer's principal residence, plus a clean water surcharge of 0.2%, and the buyer pays it. Put your share in sources and uses.

How does Vermont property tax work for an apartment building?

Vermont property tax has a municipal part and a statewide education part. Apartment buildings are non-homestead property, so the education part is charged at the non-homestead rate set each year for the town. Towns reappraise periodically, and the state publishes a common level of appraisal for each town. Underwrite taxes from your price, the town rate and the non-homestead education rate. See property tax reassessment in apartment underwriting.

Does Vermont tax the deal LLC or its investors?

Vermont taxes income earned in the state, and a business entity may have to withhold or pay estimated tax for nonresident owners. Ask your CPA early; the investor side is in state tax returns for nonresident syndication investors.

How DoorRaise fits in

DoorRaise helps sponsors raise equity for apartment buildings from their friends and followers under Rule 506(b) or 506(c), and verifies that every investor is accredited before they sign. Investors fund by wire into the deal's escrow account at Enterprise Bank & Trust. By default DoorRaise files the notice in the property's state; the first investor from another state pays that state's filing fee by card when they sign, later investors from that state pay nothing, and the sponsor never fronts it. Sponsors pay a $1,500 setup fee (non-refundable) and a flat $5,000 a year administration fee; see pricing or how it works.

FAQ

How much is the Vermont Rule 506 notice fee?

$820, per NASAA's fee schedule. EFD shows the final amount before you pay.

How long does a Vermont landlord have to return a deposit?

14 days after the tenant leaves.

What is the Vermont property transfer tax on an apartment building?

Generally 1.25% of the price, plus a 0.2% clean water surcharge, paid by the buyer.

Which property tax rate applies to apartments in Vermont?

The non-homestead education rate, plus the town rate.

Sources

This article is general information as of November 2026, not legal, tax or investment advice. State laws and fees change: confirm with the state agency and your own attorney before you file. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.