We’ve put together a free step-by-step guide on how to set up an LLC in Montana. We want you to have a clear idea of how to set up and manage an LLC for your state. We’ve tried to make sure you have the information you need right at your fingertips. Each step has instructions and links to the sites for you to fill out the forms in the correct order. So, let’s set up your Montana LLC right now!
A few points to remember before setting up your LLC in Montana
When you set up an LLC in Montana you’ll need a few things before you get started. This section will help you get your checklist in order.
A Unique Business Name
Every business in the state must be unique. You’ll need to search for a Montana LLC name. Go to Montana Business Search to make sure yours is not taken.
An LLC Designator
You must have an LLC designator in your name in one of the following formats.
- LLC (most common)
- L.L.C.
- LC
- L.C.
- Limited Company
- Limited Liability Company
Now that you have your unique business name, it’s time to register it with the state of Montana. Let’s get down to business.
A Registered Agent
In most states, a registered agent is a person or a company that accepts “Service of Process” for your Montana LLC. A registered agent will receive any subpoenas, notices, and other legal, and tax documents sent to your business by the Montana Department of Revenue.
If you’re opening a business in Montana but you aren’t a resident, you’ll need to get a registered agent in that state. The requirements for a registered agent are as follows:
An Individual:
- Must be 18 and be a resident of the state
- Must be authorized to do business in the state.
- Must have a physical street address located in Montana
A Company
- Must be authorized to do business in the state
If you meet the above criteria, you can be your own registered agent. Or you can set up a friend or family member to be your registered agent.
You can also hire a commercial Registered Agent. A company that provides their name and address to receive legal documents from the state.
Hot Tip
The nice part of using a company is that their address is used instead of yours. As the business address will be public knowledge. By using a registered agent, you can protect and secure your own address.
Step 1: Register Your Business Name
To set up an LLC in Montana you need to reserve your business name. This way during the process no one can steal the name of your company.
You’ll need to reserve your name online at the Montana SOS: Reservation of Name. Your reservation will be up to 120 days and the filing fee is $10.
You can also file for a Registration of Assumed Name to the Montana Secretary of State to do business in Montana even without a legal entity name. The filing fee is $20.
Step 2: File Your Articles of Organization in Montana
Setting up an LLC in Montana is easy, especially for single-member LLCs. Just go and sign up to Welcome to ePass Montana.
You can just directly file the Articles of Organization even without a reservation. Easy peasy.
If you don’t want to file online, you can download and print out the Articles of Organization form.
Fees: In Montana, the cost of setting up your LLC and filing the Articles of Organization is $70. It takes 7 to 10 business days to get approval. But you can pay an extra $20 for 24-hour processing and/or $100 for 1-hour processing.
Step 3: Complete Your Montana LLC Operating Agreement
An operating agreement is a key document used by LLCs, and partnerships. It outlines the business’ financial and functional decisions including rules, regulations, and provisions. This describes how your LLC will operate internally. For more information on operating agreements, you can check out the Small Business Administration’s article on basic operating agreements.
Hot Tip
You are not required to file an Operating Agreement with your state. But it may be vital to have it, especially if there are multiple members of your LLC.
Step 4: Get Your Federal Tax ID Number (EIN)
Once your Montana LLC has been approved it’s time to get your Federal Tax ID Number from the IRS.
Your EIN is the social security number of your business. Keep it well protected. You’ll use this number to open bank accounts, file tax documents, apply for loans, and many other uses. It also protects your social security number when doing business with other businesses like merchant accounts, 1099s received etc.
To apply for your EIN you can go to IRS EIN/Tax ID Application. Make sure you pick the correct Business Entity Type.
Quick Note
You can only file online if you have a Social Security Number (SSN) or Taxpayer ID (ITIN). Otherwise, you’ll have to mail in the forms and wait for the response. If you don’t have an SSN, on Form SS-4, where it asks for your SSN, ITIN, or EIN (line 7b), write “Foreign”. Your EIN application will then be approved without the need for an SSN.
Step 5: File Your LLC Annual Report
Your Montana LLC is required to file an annual report on whether your LLC does nothing or makes no money at all. To file the annual report online (no mail filings since 2017), go to Welcome to ePass Montana.
The filing fee is $20 and is due on or before April 15th of each year. Filing beyond that will result in a penalty of $35.
Failure to file by December 1st will automatically dissolve your LLC business. You can file an Application for Reinstatement for up to five years after its dissolution.
Taxes, Permits, and Licensing in Montana
To do business in Montana you will need to file tax returns, and hold permits and licenses in your county or city.
Montana LLC must apply for the necessary business licenses and or permits. This depends a lot on the type of business and the location of your business.
Aside from business licenses and permits, all LLCs must also pay appropriate taxes and meet obligations with the Montana Department of Revenue.
Never miss a deadline
Not sure which forms to file with the IRS and your State after you set up your new business?
Sign Up to Simply Tax Compliant. File the right forms and the right time to avoid penalties and interest.
Putting it All Together
Now that you can set up an LLC in Montana online it shouldn’t take more than an hour or two to get up and running. The Montana Secretary of State’s website is very easy to navigate and following the five steps above will help you get your talents and ideas to market faster.
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