Montana has enjoyed a stellar reputation in recent years as an outstanding location for starting a new business. In 2021, Montana was voted the top state for launching small businesses. That same year saw record-breaking numbers for new business ventures. Yes, the sky’s the limit in “Big Sky Country” for launching your very own Montana limited liability company (LLC).
In this guide, we’ll walk you through how to start an LLC in Montana. This simple step-by-step guide will help you launch your new business in no time.
Featured Partners
1
ZenBusiness
$0 + State Fees
Varies By State & Package
2
LegalZoom
$0 + State Fees
Varies By State & Package
3
Northwest Registered Agent
$39 + State Fees
Varies By State & Package
Before Starting Your Montana LLC
In the early stages of establishing an LLC in Montana, you must first handle some key details. Please read the next sections for insight into what to do before submitting LLC documents.
Create an Online ePass Account
One important thing to note about filing in Montana is that its business filing system is entirely online. That means you will need to set up an ePass account with the state before you can get anything done. Make sure you handle this before attempting to file documents with the state.
Research and Reserve LLC Business Name
It is always a great idea to double-check your business name availability. It would be an unfortunate waste of time and resources to apply for an LLC, only to get rejected because the name is already in use. You can easily avoid this by performing a series of searches using the Montana Secretary of State website.
Once you are sure your name is good to use, log in to your ePass account and complete the online name reservation form. Although not required, it is a great way to make sure your desired business name will be available after you finish your LLC preparation and move to file. Filing costs $10 and reserves your name for 120 days.
Get Your Own Web Domain
Prior to forming a Montana LLC, consider setting up and launching your own web domain. A professional website is practically a necessity in the modern business era. Many potential customers are especially savvy when it comes to researching companies and products. You will want to make it as easy as possible for them to find you online and to learn more about your business.
Hire a Registered Agent
A registered agent is a must for any LLC in Montana. This person or business will receive important legal documents on behalf of the company. It is true that you can act as your LLC’s registered agent or appoint a member to this role. To qualify, the would-be agent must be at least 18 and have a Montana physical address.
If no one meets these stipulations, or you just decide it is too much trouble, hiring a registered agent is another popular solution. Pricing varies, but you can expect to spend anywhere from just under $50 to as much as $300 per year.
File Your Montana LLC Documents
When ready, you can go online to submit your LLC forms. Domestic entities file Articles of Organization, while foreign entities complete a Certificate of Authority. Both domestic and foreign LLCs are charged a flat processing rate of $70. It usually takes between one and two weeks for your documents to get processed, after which, you can move on to the next stage of planning and running your newly formed business.
Established LLC: What Comes Next?
What follows successful LLC formation is a series of crucial steps for keeping it in good standing. The next sections discuss a few key considerations for the future of your newly established Montana LLC.
Annual Reports
In Montana, LLCs are required to file annual reports. As with other forms, your documents are completed online using the Montana ePass system. The yearly fee is $20; to avoid additional charges, you must submit your report no later than April 15.
Pay Taxes As Required
If you opt to have your LLC treated as a pass-through entity, you will not have to worry about additional tax filing. However, if you choose to treat your LLC as a corporation, please be aware that you will have to file separate tax documents for your business.
Get an Employer Identification Number (EIN)
Even if you own a single-member LLC and can use your Social Security number, it is still a good idea to get an EIN. If you want to avoid unnecessary risk and potential privacy issues, you are better off with an EIN. This number might also get called a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN), but they all mean the same thing. An EIN is free, and you can get one through the IRS website.
Complete/Create an LLC Operating Agreement
Please note that the state of Montana does not require LLCs to create operating agreements. That said, they are still a good idea to have. Operating agreements set the tone for your entire business, putting down plainly how it will function, member financial obligations and even day-to-day operations. These documents are ideal for avoiding any future confusion or conflict, as member roles and expectations are stated from day one.
By creating an LLC operating agreement, you are providing a strong, legitimate foundation for your brand. These agreements might even make it easier to set up a business account or help make the case for your LLC’s good standing.
LLC State Guides
Frequently Asked Questions
What is an LLC?
An LLC balances the relative ease and flexibility of a partnership or sole proprietorship structure with the increased risk protection of a corporate structure. Like corporate shareholders, LLC owners (known as “members”) enjoy limited liability, meaning personal liability to the company includes only what members have invested and does not extend beyond it to cover corporate losses or debts.
By default, members of an LLC pay taxes as a share of personal income just as owners of a sole proprietorship or general partnership would—this is often referred to as a “pass-through” tax structure. An LLC can elect to be taxed as a C corporation (C-corp) or S corporation (S-corp) if it meets certain requirements. Many small business owners choose LLCs for their simplicity and flexibility.
How much does it cost to file an LLC in Montana?
Both domestic and foreign entities wishing to create a Montana LLC must pay a $70 fee.
Why can I not find forms to download for my Montana LLC?
You are meant to use the Montana ePass system to submit your LLC paperwork quickly and easily.
What are the different types of LLCs to set up?
When determining how to start an LLC, there are several types of LLCs to choose from. Knowing the LLC structures available is essential for selecting a business model that most closely aligns with the nature of your company and how you intend for it to operate. These LLC structures include:
- Single-member LLC: This LLC is owned and operated by a single person. While similar to a sole proprietorship, this LLC provides additional tax benefits and liability shielding.
- Multimember LLC: Standard LLCs with more than one member, often divided into manager-managed or member-managed entities.
- L3C: These entities, also known as “low-profit liability companies,” act as a bridge between nonprofit LLCs and for-profit LLCs where the business cause remains the primary focus rather than earnings.
- Series LLC: Series LLCs are tiered business structures where the topmost LLC owns a series of lower-tiered LLCs through limitless segregation. Each LLC in the series operates mostly independently of one another; their assets are also primarily separated.
- PLLC: A specialized LLC, this business formation type is only available to certain licensed professionals.
- Restricted LLC: Restricted LLCs are not taxed during the first 10 years of formation. Likewise, they cannot make distributions to members. It must be stated in the articles of organization that the LLC will be restricted.
Do Montana LLCs file annual reports?
Yes, Montana requires all LLCs to submit an annual report, using its online system. There’s a yearly fee of $20, though you will have to pay additional fines if you do not file by April 15.
What kind of tax flexibility does an LLC provide?
LLCs can be taxed as sole proprietorships, partnerships, C-corps or S-corps. This choice allows members of an LLC to minimize their tax burden.
