How to Register an LLC in Montana
Do you own a business in Montana? Are you self-employed and looking for ways to get the tax benefits and other benefits that come with incorporating? Forming an LLC in Montana will help you grow your business and enjoy all the protection of incorporation.
What Is an LLC?
Why You Want Limited Liability
An LLC is also a corporation, but the term “limited liability” is what’s important. It means that you have limited liability in the case of a lawsuit, bankruptcy or other major financial transaction.
Liability refers to whether you can be held responsible for certain types of payments.
Limited liability is a good thing. It means your business and your personal assets are protected from creditors and lawsuits.
Do You Need a Montana LLC?
An LLC is one type of incorporation. It’s the one that offers the most flexibility when it comes to management and tax filings.
An LLC is the easiest type to set up. You can set it up on your own in just a few hours.
These are the reasons that we recommend an LLC Montana for any size of business. If you run into difficulty with any part of the process, contact our legal team for fast, expert help.
Benefits of Incorporating Your Business
Whether you choose an LLC or another form of incorporation, you will get several benefits that help grow your business.
Protect Your Personal Assets
This is probably the biggest benefit to incorporating. It means that creditors can’t touch your personal money. A lawsuit against your business can only request payments from your corporation, not your personal account. That means you’re protecting your home, car, property and bank account.
Protect Yourself in Case of Bankruptcy
If you ever file personal bankruptcy, a court could rule that you must liquidate your business to pay your creditors. If your business is incorporated, you won’t have to do that. Incorporating protects your business.
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Increase Your Financing Opportunities
Once you incorporate, you can open a bank account in your business name. In fact, that’s a great idea.
You can also start building credit for your business. This is separate from your personal credit. You know how important it is to have access to credit as a small or medium-sized business. Once you incorporate, you can start building that credit and open more financing opportunities. Check out llcformations.com for the full guide.
Protect Your Branding
If you use a trademarked slogan or a logo for your business, being incorporated means that other businesses can’t use them. You can protect your business name, your logo, your slogans and even your official colors.
Make Your Business Legitimate
If you believe strongly in your business, you should be willing to take that extra step to legitimize it. Being incorporated makes your business stand out from regular, small sole proprietorships and independent contractors. It shows that you take yourself seriously as a businessperson.
Make Your Business Easier to Transfer or Sell
If you ever want to sell your business, buyers will be more attracted to a business that’s incorporated. If your business is a sole proprietorship, that means all your personal finances are mixed with the business finances.
Buyers are less interested in getting involved in a complicated financial transaction that might still leave you in charge. They want to buy a business that’s free and clear. Being incorporated makes this possible.
Similarly, if you ever want to transfer control of your business to a family member or one of your employees, being incorporated makes this much easier. You can transfer the business without worries about involving your personal assets.
Take Business Tax Deductions
If your business is incorporated, you can take certain tax deductions for business-related expenses. A tax expert can advise you about the expenses that you might be able to deduct when filing your taxes.
It’s also easier to file taxes as an LLC. If you incorporate as an S or C corporation, you’ll have to file two separate tax returns. With an LLC, you only have to file one tax return. You don’t have to file a separate return for profit on your business.
Benefits of Forming an LLC in Montana
All the benefits of an LLC are available in Montana. In addition, incorporating your business in Montana gives you several advantages.
Montana Is a Business-Friendly State
Montana ranks sixth in the country when it comes to low taxes. This ranking includes corporate taxes, individual taxes, sales taxes, unemployment insurance and property taxes. All of these are low in Montana.
Montana Makes Filing Taxes Easy for Corporations
Corporations in Montana must file two sets of taxes. They must file an individual income tax for the owner’s business profits and a corporate tax. If you’re an LLC, you can choose which filing method you prefer.
It’s Suitable for a Business of Any Size
You might think that you don’t need an LLC for a small business. You may be a sole proprietor who occasionally sells things online or an independent contractor who picks up casual jobs.
The truth is that bad luck can happen to anyone. Even if your business is small, it deserves legal protection. As it grows, you’ll appreciate the benefits that incorporation gives you.
Sell Your Goods and Services Online
You can sell your services or products anywhere in the world with an LLC. Being a corporation makes it easier to get approval for online payments and credit card processing.
Should You Incorporate in Another State?
You might think that it makes sense to incorporate your business in a low-tax state like Delaware or Wyoming. It makes a lot more sense to establish your company in the state where you live and operate. Here’s why.
You’ll pay taxes in both states. If you incorporate in another state, you’ll have to file taxes in the state where you’re incorporated and the state where you live. You could end up paying a lot more. That also means doing twice the paperwork at tax time.
You must be compliant in both states. You will have to keep your business fillings, annual reports, business licenses and other documents compliant in both states. You’ll have to send paperwork to two separate states and meet two separate deadlines.
It’s hard to transfer a business. If you decide to relocate your business from one state to another, the paperwork is lengthy and complicated. You will need an attorney.
How to Get an LLC in Montana
You need to go through the state’s secretary of state. That’s where you’ll find the Montana LLC forms and other documents that you need.
State of Montana LLC Registration
We’ve broken down the steps to getting an LLC Montana into seven easy steps. If you need help along the way, our legal team can take over the process for you. We do this regularly. We know how to make the process fast and easy.
Step 1: Get an EIN in Your Business Name
Before you can get your LLC, you must get a new tax identification number or EIN. You get this from the IRS. You must fill out the IRS paperwork precisely.
Five Important Pointers About Your EIN
1. Make sure the business name on your EIN is spelled exactly like the business name you use to get your LLC. Even a minor mistake can result in hours of wasted efforts.
2. The IRS issues a letter with your new EIN. Keep this letter safe. You will need it to open a business bank account for your company.
3. You should use this EIN for credit-related business transactions. Use the EIN to apply for business credit cards and loans. Doing this will build a separate credit line for your business.
4. Your business name must end with the designation “LLC.”
5. If you need help with this process, ask our legal team. They do EIN applications every day. They’ll get it done for you quickly and easily.
Step 2: File Your Articles of Incorporation
Before you begin, search for the name of your business. Make sure there isn’t another company registered in Montana with the same name.
The next step involves filing your articles of incorporation with the state. To get the correct Montana LLC forms, go online to the Montana https://sosmt.gov/business/ office.
Fill out your Montana LLC forms carefully. Remember to:
- List all the members of the LLC.
- Name a designated representative.
- Use your business EIN.
- Provide a Montana street address.
- Ask for a certified copy of your Articles of Incorporation.
Step 3: Choose a Registered Agent
In Montana, you must choose a registered agent for your business. The registered agent can be anyone who is authorized to receive legal documents on behalf of your business. You can name yourself or someone else.
Your registered agent must have a physical address in Montana.
Step 4: Write an Operating Agreement
You should include an operating agreement with your Montana LLC filing. This is especially important if you are setting up a one-person LLC. An operating agreement defines your corporation as a separate entity from your personal businesses and finances.
If your LLC has more than one member, your operating agreement will outline management and profit-sharing responsibilities.
If you need help writing your operating agreement, our legal team will be glad to walk you through the process.
Step 5: Pay the Montana State LLC Fees
Once you complete the paperwork, you pay the filing fees. The state will process your application and mail you the articles of incorporation.
You can expect to wait two weeks to receive your certified articles of incorporation. Montana offers expedited processing for an additional fee.
Step 6: Find Out if You Need Specific Business Licenses
In Montana, you need a license to operate certain businesses. Now that you have incorporated, work on getting the licenses you need to keep your business legally compliant.
Step 7: File an Annual Report
Montana requires every business to file an annual report. It is due anytime between January 1 and April 15 of each year. If you don’t file it by the end of the year, the state will dissolve your company.
Your annual report does not need a lot of detail. You can write up one page of information detailing your profits and losses. You can also use this report to project your upcoming earnings.
If you need help writing your annual report, our legal team is standing by to assist you.
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What Are the Fees for Forming an LLC in Montana?
The Montana LLC registration fee is $70. You can add $20 to get expedited processing. This means that your paperwork will be processed in 24 hours and you can expect to receive your documents in two or three days. Your total payment will be $90.
Montana has one-hour processing for an additional fee of $100. This makes the registration fee $170 total. You can only get one-hour processing if you visit the secretary of state’s office in person during normal business hours. The address is Room 260, Montana Capitol Building, Helena.
You Need an LLC Montana
a) An LLC is the most flexible type of incorporation.
b) An LLC offers the most protection.
c) Forming an LLC is not complicated. If you need help, you can get it right here.
d) An LLC makes it easy to manage, transfer and sell your business.
e) Your LLC continues to protect your business no matter how much your business grows.
Get Help Forming Your Montana LLC
If you run into any difficulty with your Montana LLC registration, we’re here for you. We specialize in helping small and medium-sized business get their business EINs, get incorporated and get started. We’ll take care of the LLC for you. You just need to take care of your business. You can also review our Nebraska LLC formation guide.