In recent years, Montana has gained a solid reputation as a great place to start a business. Montana has named the best state for starting small businesses in 2021. In the same year, records were set for new ventures. For Montana LLCs, there are many options.
This guide will show you how to create an LLC in Montana. This guide will show you how to launch your business quickly and easily.
Before Starting Your Montana LLC
When establishing an LLC in Montana, you must first take care of some important details. For more information on submitting LLC documents, please read the following sections.
Register for an Online ePass account
It is important to remember that Montana’s business filing system is completely online. This means that you will need an email account to file with the state. Before you file any documents with the state, make sure that you have this set up.
Research and Reserve LLC Business Name
Double-checking the availability of your business name is a good idea. It would be a waste of time and resources to try to register an LLC only to find out that the name is already in use. This can be avoided by using a number of searches on the Montana Secretary of State website.
Once you have confirmed that your name is suitable for use, log into your ePass account to complete the online name reservation form. It is not mandatory, but it is a great way for you to ensure your chosen business name will be available once your LLC preparation and file are complete. Filing costs $10, and your name is reserved for 120 days. .
Register Your Own Web Domain
Before you form a Montana LLC, it is worth setting up and running your own website domain. In today’s business world, a professional website is essential. Potential customers are particularly savvy about researching products and companies. It is important to make it easy for potential customers to find you online as well as to learn more about the business.
Hire a Registered Agent
Any LLC in Montana must have a registered agent. This agent will be able to receive all necessary legal documents for the company. You can either act as the registered agent of your LLC or appoint another member. The agent must be at minimum 18 years old and reside in Montana.
Hiring a registered agent can be a good alternative if you don’t meet these requirements or feel it is too difficult. Prices vary, but you can expect to pay anywhere from $50 to $300 annually.
File Your Montana LLC Documents
Once you are ready, you can go online and submit your LLC form. While domestic entities file Articles of Organization (for foreign entities), a Certificate of Authority is required. Flat processing fees of $70 are charged to both domestic and international LLCs. The processing of your documents can take between one and two week. Once your documents are processed, you can begin planning and operating your new business.
How do you grow your LLC?
A series of critical steps are required to maintain a successful LLC. These sections will discuss some key considerations that you should make for your Montana LLC’s future.
Montana requires LLCs to file annual reports. Like other forms, your documents can be completed online via the Montana ePass system. To avoid any additional fees, the annual fee is $20. You must submit your report by April 15th.
Pay taxes as required
You don’t have to file additional taxes if your LLC is treated as a pass-through entity. If you treat your LLC like a corporation, you must file separate tax documents.
Register for an Employer Identification Number (EIN).
Even if your LLC is a single member, you can still get an EIN. An EIN is a better option if you want to avoid any unnecessary risk or potential privacy concerns. You might also call it a Federal Employer Identification Number, (FEIN), or Federal Tax Identification Number(FTIN), but these terms all refer to the same thing. You can obtain an EIN for free from the IRS website.
Complete/Create an LLC Operating Contract
It is important to note that Montana doesn’t require LLCs to establish operating agreements. They are still an excellent idea. Operating agreements are a blueprint for your business. They set the tone and outline how it will operate, financial obligations, and day-to-day operations. Operating agreements are great for avoiding future conflict or confusion since they clearly define the roles and expectations of each member.
You are creating a solid, legal foundation for your brand by creating an LLC operating arrangement. These agreements can make it easier for you to open a business account, or make your case for the good standing of your LLC.
Most Frequently Asked Questions
What is an LLC?
A limited liability company combines the flexibility and ease of a sole proprietorship or partnership structure with the greater risk protection offered by a corporate structure. LLC owners, also known as “members”, have limited liability. This means that their personal liability to the company is limited to what they have invested. It does not cover losses or debts beyond that amount.
Members of an LLC are subject to taxes by default. This is the same as for owners of a general partnership or sole proprietorship. This structure is commonly referred as a “pass through” tax structure. If the LLC meets certain criteria, it can choose to be taxed either as a C corporation Corp (S-corp), or S corporation (S-corp). Small business owners prefer LLCs because of their simplicity and flexibility.
What is the cost of a Montana LLC?
A $70 fee must be paid by domestic and international entities wishing to establish a Montana LLC.
What is the problem with finding forms that I can download for my Montana LLC business?
To quickly and easily submit LLC paperwork, you can use Montana ePass.
If the LLC has no income, do I need to file taxes?
Only if your LLC is treated as a corporation must corporations file annual corporate tax returns, regardless of whether they have earned income.
Do Montana LLCs file annual reports?
Yes, Montana requires LLCs to submit an annual report using the online system. A $20 annual fee is charged. However, you may be subject to additional penalties if your report is not filed by April 15.