An ultimate guide to starting an LLC in the state of Montana

• What is an LLC?

Limited Liability Company is a business structure to conduct business. Articles of Organization are filed to incorporate an LLC in the state of Montana. A limited liability company is a kind of business entity that brings a limited liability protection to the business corporation with the help of organizational and flexible tax structure of a partnership. It is also called “hybrid” entity because LLC has both partnerships and corporations’ features. In LLC, the owners are called members while the person who is managing the company is called manager. Members of the LLC are not personally liable for any legal and financial obligations.

• How to file an LLC in Montana?

All Montana LLCs are required to be filed with the state of Montana legally to open a business and following are the requirements to set up an LLC in Montana:

• Montana LLC Name Search
  

Check the name availability with the Montana Division of Corporation Data Base to ensure the required name is available to register the LLC. Reserving the company name does not allow to start your business yet.

Register a Business Name in Montana

There is also an option available to reserve the name before filing the Certificate of organization with the Montana Division of Corporations. LLC name reservation in Montana with the Montana Division of Corporation does not give you an authority to conduct or advertise a business in Montana.

You are required to provide following information while filling articles of organization Montana:

• Write the name of the LLC with the extension of Limited Liability Company or LLC.
• You need to provide the business mailing address (PO Box is not acceptable).
  
• Write the name of commercial registered agent for the service process in Montana. Or the address and the name of entity’s noncommercial registered agent for the purpose of service process in Montana.
  
• Who will manage Limited Liability Company; manager or member?
  
• You will provide the business mailing address and the name of your selected members or managers.
  
• The list of liable members (member of the company liable for the LLC’s obligations and debts under 35-8-304(3), MCA) and written consents.
  

Estimated article filling processing time!

The state of Montana takes 2-3 business days (Standard processing time) to approve your article of organization.

Difference between Manager Managed and Member Managed LLC

A Limited liability company that is managed only by its members/Owner is called member managed LLC. A limited liability company that is run by one manager is called Manager Managed LLC. The LLC members appoint an LLC manager to manage day by day operations of the business.

• Employer Identification Number to set up LLC in Montana
  

EIN number is the identity of your business tax. You can take it as a social security number for your business entity. Your employer identification number is necessary to start your business. An EIN number helps you to open a business account. LLC companies need an EIN from IRS (Internal revenue Service) to start an LLC in Montana. This number can be used for filling taxes, obtaining licenses, and bank accounts.

• Can I Non US resident open an LLC in the USA?
  

Yes, a non-US resident can register an LLC in the state of Montana, and ITIN will be issued to each member of the LLC to file taxes. Form W7 will be submitted to the Internal Revenue Service to apply for the Individual Taxpayer  Identification Number.

• Filing Elections to Treat LLC as an S or C Corporations
  

An election must be filed with the Internal Revenue Service to treat your LLC as an S Corp or C Corp for the tax purposes only.

Filing Taxes

1. Single member LLC files Form 1040 as a Sole Proprietorship

2. Multi member LLC files Form 1065 as a Corporation or Partnership.

3. LLC treating an S Corporation Files Form 1120S and LLC treating a C Corporation Files Form 1120S for tax purposes only.

• Operating Agreement
  

The operating agreement is not required to file along with the articles of the organization to create an LLC in the state of Montana. It is a management document showing the list of members, their obligations and limitations, and the complete organizational structure. Banks and other organizations may request you to provide it.

• Sales Tax Registration in Montana

Sales and Use Tax is not applicable in the state of Montana

• Restricted word or need a prior approval

Business may not be transacted under a name or title that contains the words "bank," "banker," "banking," "savings bank," "saving," "trust company," or "investment company"  unless prior approval (consent) has been obtained from the Montana Department of Administration, Banking and Financial Institutions Division.

Business may not be transacted under a name or title that contains the word "insurance company," "captive insurance company," "incorporated cell," or "protected cell" unless prior approval (consent) has been obtained from the Montana State Auditor’s Office, Department of Insurance.

• Filing Annual Report Montana

Business entities are required to renew every year to operate a business in the state of Montana.

Useful Links:

http://mt.gov/govt/statedir/agency/secstate.mcpx

http://sos.mt.gov/business/Forms/

http://revenue.mt.gov/