Montana LLC: Everything You Need to Know
A Montana LLC (“Limited Liability Company”) is a form of business structure that can be registered in Montana State. 3 min read
2. Choose a Name for Your LLC
3. Appoint a Registered Agent
4. Prepare an Operating Agreement
5. Comply with Other Tax and Regulatory Requirements
6. File Annual Reports
7. Foreign LLCs Doing Business in Montana
8. Why Register a Montana LLC?
9. Montana LLC Registration is a Benefit
10. Do I Need An FEIN?
11. Why Do I Need An EIN?
12. How Do I Maintain A Montana LLC?
What is a Montana LLC?
A Montana LLC (“Limited Liability Company”) is a form of business structure that can be registered in Montana State.
Distinct from a corporation or S-corporation small business, a LLC is normally a single-member LLC sole proprietorship, or a multi-member LLC partnership. Registration of a business as an LLC in Montana entitles an owner to the status of a legitimate business, and “pass-through” tax filing with the federal Internal Revenue Service. The following are the steps to forming a LLC in Montana:
Choose a Name for Your LLC
Under Montana law, a registered LLC must contain the phase "Limited Liability Company," “Limited Company,” or the acronyms "LLC," “L.L.C.,” or “LC”. To register as business as a LLC, a fictitious name must be distinguishable from the names of existing registered business entities on file with the Montana Secretary of State. A Montana LLC is created by filing Articles of Organization with the Montana Secretary of State.
Appoint a Registered Agent
Registration of an LLC requires a registered agent residing or operating as a business in Montana. Businesses holding LLC or other registered status outside the state are required to file with Montana Secretary of State to conduct business in the state. Existing corporations can file the LLC without a registered agent by downloading the application for submitting Articles of Organization at the Montana SOS.mt website. Processing of the LLC registration should be accompanied by a payment forwarding to the MT SOS for the $70 filing fee.
Prepare an Operating Agreement
An LLC operating agreement is not required criterion of registration in Montana, but is highly advisable for the formation of businesses with more than one member. An operating agreement outlines the LLC structure, owner(s), management, rules to distribution, including proportional distribution to individual members, and tax reporting status of an entity.
Comply with Other Tax and Regulatory Requirements
Depending on county and municipal jurisdiction where a business will be maintained, as well as type of operation, additional tax and regulatory requirements may apply to an LLC. It is important to note, that some Montana LLC businesses are also subject to mandated permit authorization for operation. Permits are generally granted by county or city government offices, and should be applied for directly.
File Annual Reports
Montana Secretary of State requirements to LLC standing include filing an Annual Report with the administration.
Foreign LLCs Doing Business in Montana
Under Montana law, a foreign (out-of-state) LLC must register with the Secretary of State to conduct business within the state.
Why Register a Montana LLC?
There are both the legal and marketplace considerations to filing for a LLC business in Montana. If a business desires to do business in the state, filing for a LLC is an expedient alternative to filing for Corporation status. Expedited 1-3 day processing of expedited LLC service is a $20 fee, or 1 hour processing, $100 fee.
Montana LLC Registration is a Benefit
The benefit to registering a business as a LLC in Montana, is that risks associated with debt or legal liabilities resulting from a start-up venture should it fail, are not incurred directly by an owner(s). LLC protects members from costly liability that might otherwise affect individual credit standing, or legal obligation to remedies in the circumstance of litigation.
Since Montana is a state with no sales tax, “pass-through” income is unmitigated by additional taxation. For sole proprietors, Montana law enables an owner to file individual tax reporting on business income without worrying about corporate capital gains or other business tax matters. LLC partnerships met with IRS Form 1065 filing reporting to the individual members of an entity, provide designated proportional income to the individual members, who in turn file personal tax reporting to meet the criteria for business income filing.
Do I Need An FEIN?
All LLC businesses require an IRS “Federal Employer Identification Number” FEIN in order to hire employees.
Why Do I Need An EIN?
The Employer Identification Number (EIN) is used to identify a business entity. A sole proprietorship does not require an EIN. An EIN is required of multi-member LLC when filing state and federal taxes. Banks usually require an EIN to open a business checking account. Application for an EIN can be done free of charge via the IRS.gov website.
How Do I Maintain A Montana LLC?
Maintaining LLC status in Montana State is a $15 a year reinstatement fee. The deadline for LLC filing of an annual report is April 15th.
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