Overview
Getting an LLC in Montana involves a straightforward process. Below, we’ll guide you through the essential steps and provide factual answers to common questions.
How To Get An LLC In Montana: Step-By-Step
- Choose a Name for Your LLC:
- Choose a unique and available name for your LLC.
- Perform a Montana LLC name search through the Montana Secretary of State website.
- Reserve your chosen name if needed.
- Registered Agent:
- Appoint a registered agent with a physical address in Montana.
- File Articles of Organization:
- Complete the Montana LLC Articles of Organization form.
- File online through the Montana Secretary of State website.
- Operating Agreement:
- Draft an operating agreement outlining the structure and operation of your LLC. Although not required by the state, it is highly recommended.
- Employer Identification Number (EIN):
- Obtain an EIN from the IRS for tax purposes.
- File the Beneficial Ownership Information Report:
- Beginning in 2024, Montana LLCs must submit a Beneficial Ownership Information (BOI) Report.
1. Choose A Name For Your LLC
Check if the name you desire for your Montana LLC is available in the state. This is important because no two businesses in Montana can share the same name.
To do this, use the Montana Secretary of State website Entity Search tool to compare your business name with existing ones in Montana.
Make sure your LLC name is unique by following Montana’s naming rules to increase the chances of your LLC name being approved.
If you need, you can reserve the name for your LLC for up to 120 days. The cost is $10.
2. Appoint Registered Agent
In Montana, you are not required to choose a registered agent for your LLC, but it is advisable to keep your personal address off public record to protect privacy.
Registered agent is the person or company allowed to get legal papers and important notices on behalf of your LLC.
Your registered agent can be a person, like yourself or one of your employees, or a company that offers this service.
The registered agent has to meet some requirements:
- If it is a company, it must offer registered agent services.
- The agent must have an address in Montana.
- The agent must be there in person and ready to get documents during regular business hours.
3. File Montana LLC Articles of Organization
To officially establish your Montana LLC, you need to file the Montana LLC Articles of Organization.
This document provides essential details about your LLC and serves as the official registration.
To prepare the certificate, gather the following information: your LLC name, the name and address of the registered agent, specify the type of your LLC business, and provide the effective date if different from the filing date.
The form is a straightforward online submission only.
The Montana LLC Articles of Organization filing fee is $35.
Once filed, the Montana Secretary of State will review the document, and upon approval, your LLC attains legal business entity status.
You can undertake this process independently using our step-by-step guide or opt for the convenience of hiring a company for assistance.
>> Form your LLC with Bizee for $0 (plus state fee) <<4. Create An Operating Agreement
An operating agreement is a document that shows how your LLC will do business.
While Montana doesn’t make it a must, having one is crucial. It helps in different ways, like resolving money disputes or potential legal issues. Without it, the courts decide based on state laws, not necessarily what’s best for the LLC.
The agreement can include things like the LLC’s name, address, how long it will last, the registered agent’s details, info from the Articles of Organization, the business’s purpose, member contributions, how profits and losses are shared, rules for new and leaving members, how the LLC is managed, and clauses about protection and responsibility.
5. Obtain Employer Identification Number (EIN)
The Internal Revenue Service (IRS) gives your LLC a nine-digit number called an Employer Identification Number (EIN) to identify it for taxes. You can get your EIN by mail or online through the IRS.
This number helps you:
- File and handle taxes at both the state and federal levels.
- Open a bank account for your business.
- Apply for permits and licenses.
- Hire employees.
Obtaining an EIN is FREE.
6. File The Beneficial Ownership Information Report
Starting in 2024, many Montana LLCs must now file an extra document at the federal level, known as the Beneficial Ownership Information (BOI) Report, to the Financial Crimes Enforcement Network (FinCEN).
This report mandates disclosing information about your company applicant and all beneficial owners to FinCEN. You can submit it online using the Beneficial Ownership Information E-filing System or opt for a professional service to handle it for you.
Review: What Is Needed To Form An LLC In Montana?
To form an LLC in Montana, you need:
- A unique LLC name.
- Articles of Organization
- Registered Agent information (recommended).
- Operating Agreement (recommended).
- Employer Identification Number (EIN).
What Forms Do You Need To Get An LLC In Montana?
How Much Does It Cost To Start An LLC In Montana?
The cost to start an LLC in Montana involves several steps, each with its own associated fees:
- Articles of Organization Filing Fee: $35
- Name Reservation Fee (if needed): $10
- Annual report Fee: $20
What Is The Montana LLC Annual Report?
Montana LLCs need to submit a yearly report known as the Annual Report to the state. This report ensures the government has current contact details for your business and is informed about any changes in ownership.
It is due on April 15th each year, starting one year after formation.
The annual report is $20 in Montana, but make sure you file it to avoid the late fee ($15).
How Long Does It Take For An LLC To Get Approved In Montana?
In Montana, you can only apply online, and your LLC will be approved in 5-7 business days.
What Are The Benefits Of Getting An LLC In Montana?
- Limited liability protection for members
- Pass-through taxation
- Flexible management structure
- Credibility for business transactions
Is Montana A Good State To Get An LLC?
Whether Montana is the right state for your LLC depends on where you live and do business. If you live or operate in Montana, it makes sense to start your LLC there.
Getting An LLC In Montana: Next Steps
Once your LLC is registered, you can:
- Get the permits and licenses you need for your business, like health or zoning permits.
- Register your business with the state’s tax agency.
- Open a business bank account.
- Apply for a business credit card.
- Buy insurance for your business.
- Safeguard your name and logo with a trademark.
To maintain your LLC in Montana, you must:
- File the Annual Report to keep the LLC in good standing.
- Update any changes to the registered agent or business address promptly.
- Pay Taxes (owners file their individual tax returns)
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Conclusion
Forming an LLC in Montana involves a few key steps, from name reservation to obtaining an EIN.
Carefully following the process ensures a smooth establishment of your LLC.
For more detailed information and to access the necessary forms, visit the Montana Secretary of State website.
