How to Form an LLC in Montana | Guide on Montana LLC

Forming an LLC (Limited Liability Company) in Montana is easy and affordable. The following are few procedural steps on how to start an LLC in Montana. LLCs can be formed in two ways, domestic and/or foreign. If you are planning to set up an LLC in states other than Montana, visit How to Start an LLC.

Montana LLC

Why an LLC in Montana

When a person is thinking of opening an LLC in Montana, then by default, they are choosing to be a part of the best economic zone of the states in terms of business growth. Any type of business can be leveraged here very well. Moreover, the benefits and incentives offered are lucrative that are attracting many people around. To know in detail the benefits, you should go through the information mentioned below.

New industrial property benefit programs 

Under this scheme, the new LLCs that are thinking of starting a Montana LLC in the business will be given a discount of around three per cent on the industrial property they want to buy. This will continue till three years which will help in the proper establishment of the company. Companies that are based in a niche like mining or warehousing in which the requirement of land is more has been added to the list of industries that are about to be benefitted from this scheme.

Montana State Small Business Credit Initiative

The MT SSBCI is a credit and lending program that is particularly made for those who want to start an LLC in Montana. All the small businesses that want investment or take a loan for a small period of time will be covered under this scheme by the government of Montana. According to the records under this scheme, a loan of more than $1 million has been given to small business LLC who have started up in the state.

New Industry Credit 

When a new industry is opened up in Montana, then it is a sure fact that new job opportunities are also credited. Now when you hire new staff, then it will directly devote to the better economic status of the state. That is why as a rebate, the government offers back credit of 1 per cent to all the new industries of the amount they pay as salary to the employees.

For example, if the employee’s wholesome salary is $500,000, then a return of $5,000 will be given to the industry. This scheme is valid for a time frame of 3 years after the incorporation or start of operations in the state.

Empowerment Zone Credit 

There is some special empowerment zone that is available in Montana LLC. If a person goes and establishes their business in such zones, then they are provided with a credit of $500 against the income tax of employees that they have to pay for their employees.

How to Start a Montana LLC

Suppose you’re planning to invest in some profitable business or maybe about to set up your business in Montana. In that case, forming an LLC in Montana is the simplest option for you.

An LLC or a Limited Liability Company a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. This section gives you a step-by-step guide on How to Start an LLC in Montana. 

Step 1: Decide a Name for Your LLC

If you are to start an LLC in Montana, the first thing you do is decide on a business or company name, and how to name your LLC may be tricky. Thus, you have the option to choose a name that complies with the Montana business naming requirements. It must also be easily searchable for potential clients. Here is a step-by-step guide to follow when naming your Montana LLC. 

Why do you need a proper business name?

If you want your LLC to have special identification, your company name is essential. However, many people face lots of issues by avoiding focus on choosing a business name for their LLC business formation filings.

Because of this, here are some of the major benefits of choosing the best LLC corporate names.

  • To help establish a company’s presence in the market, a proper business entity type will help you. This also creates a new identity that will resemble your LLC.
  • After you’ve properly chosen the name for your LLC, you will have no problems finishing the registration process.
  • You can only get the EIN number when you have your name registration certificate with you.

What are the requirements when deciding a name for your LLC? 

name search is vital to make sure your business’ name is unique. Check the availability of your name with Business Entity Search on the Montana Secretary of State’s website. Reserve the name by completing the Name Reservation Request Form for Domestic Entities.  

  • Don’t include words that could confuse people about your company. Words like ‘treasury, state department.’
  • You should also avoid restricted words like ‘bank, attorney, university,’ because they may require a lawyer and more paperwork.
  • As for a business website and your URL name, check if your name is still available for domain use with NameCheap.

Reserve a business domain

Even if you don’t have plans to set up a website today, it will help if you buy a domain to avoid others from using your name for their website, so do visit NameCheap for your domain name and Kinsta for web hosting.

If you have decided on your URL name and have reserved it, set up a professional email account with Google GSuite.  

Step 2: Assign a Registered Agent in Montana

A registered agent, or business entity, is a person that will act or work on your behalf. This person or business will receive significant tax forms, legal documents, a notice of lawsuits, and other official government correspondence in Montana. Choosing Montana-registered agents for your LLC is required. 

Make sure your registered agents are residents of Alabama. It could also be a business. Here are the recommended agents and employees for you:

These five LLC formation services are recommended agents’ registered services as they are authorized to conduct business in Montana. Compare them to check the best yet cheapest option for you. Besides, they can guarantee you professional service because they have been in the business for years. 

Step 3: File Articles of Organization in Montana

A Certificate of Name Reservation is needed to file Articles of Organization, as other states call it. You need to make reports of this certificate with the Montana Secretary of State, which costs $70. You may file them online or by mail. 

This Certificate of Formation is a legal document needed to form your business officially. It will indicate details about your LLC in Montana, like if it is a member-managed or managers-managed

Before you start filings, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your Montana LLC will offer.

How to File Online

Go to the Secretary of State Online Service. Select “non-subscriber.” Fill out the online form. The website will alert you if your county does not support online filings after selecting your principal county.

Step 4: Create Your Montana LLC Operating Agreement

An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts. 

Starting an LLC in Montana does not require you to have an operating agreement, but it is ideal to have one that contains all your details of business operation.

Step 5: Filing a Montana LLC EIN

The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes. It is like a Social Security number dedicated to a business. 

It is also called a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN). You will need this number for tax filing and to determine tax classification options.

Mail to:

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

After Starting your Montana LLC 

After forming your LLC, there are still some things that you will need. Take note of the following:

  • Get a company business account
  • File Montana business permits & licenses
  • Get liability for business insurance with coverage for employees
  • File a Montana LLC annual report or biennial report
  • Already existing LLCs that wish to operate in Montana must register as a foreign Montana LLC.  

This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.  

Get to Know the Best Businesses in Montana 

Are you willing to form an LLC in Montana? If yes, it is a must for you to have complete knowledge of Montana top industries and their contribution to the state. If you don’t have it, then you must go through the below-mentioned information. 

Construction Business and Real Estate Business 

The increasing demand and population have also raised the demand for property and construction business. With 11.8% of the contribution to the GDP of Montana State, the construction business is considered the best business. This industry is employing around 101,868 jobs in the state. This sector’s generation of revenue is $9.1 billion, which is enormous for a small state like Montana.

Agriculture Sector 

The fertile land present in Montana State is considered the best agriculture. There are large-sized farms in the state on which barley and wheat are grown. The agricultural products that are exported by the state are wheat, hay, barley and cattle. Out of 59.7 million acre farms in the state, half are owned by the state. 

The agricultural sector is generating more than 141,600 jobs in the state, which is the maximum for any other industry. With the help of huge jobs and exports business, the turnover of the agriculture sector is $6.9 billion.

Health Care Sector 

The healthcare sector of the Montana state is providing jobs to around 68,000 people, out of which 1,300 are a medical professional. With the increasing population of the state, the demand for the healthcare sector is increasing continuously. The healthcare sector’s contribution to the industry is around $6.8 billion, which is about 9% of the state’s total GDP.

The small businesses which are most liked and opted by the new-age entrepreneurs in Montana are:-

  • Coal exporting business 
  • Selling medical equipment 
  • Hotel Business 
  • Oil and gas-based business

Montana LLC Formation Review

Time needed: 1 hour and 5 minutes.

 Just to recap, here are the easy steps again when forming an LLC in Montana. Click on the steps in this list to read the full detail.

  1. Name your Montana LLC

    The first thing you must do is to choose a company name, which should include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
    name llc

  2. Choose a registered agent

    In Montana, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
    get registered agent

  3. File a formation certificate

    Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
    file formation certificate

  4. Create operating agreement

    An operating agreement is not a strict requirement but something encouraged when you start an LLC.
    create operating agreement

  5. Get an EIN

    The Employer Identification Number (EIN), also called  Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
    get an ein

F.A.Qs

What is the difference between ‘domestic LLC’ and ‘foreign LLC’?

A “domestic LLC” is one that conducts business in a state where it was formed. Meanwhile, a “foreign LLC” is an existing LLC that extended business to another state.

What do I need for Domestic and Foreign LLCs?

For Domestic LLCs, it is vital to have a Certificate of Name Reservation and Certificate of Formation. For the foreign LLCs, you must have a Certificate of Good Standing.

Is the cost to form an LLC the same across states?

The cost to form an LLC varies per state.

Does an LLC need to use a DBA?

Seldom do L.L.C.s use D.B.A. or a ‘Doing Business As’ name nor a fictitious business name. However, if you want to have one, you make read more about DBAs here

Why are operating agreements important?

This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.

Is there anything else I should keep in mind when naming my LLC?

>Your name should have “L.L.C. or LLC” or the phrase “limited liability the business.” 
>Do not include words that could create confusion between your LLC and any government business. 
>Words like ‘bank, attorney, university’ are restricted as well. 
>Lastly, your name should distinguish from other limited liability corporations, limited partnerships, or registered limited liability partnerships.

Where can I file my LLC name?

Typically, you can file your LLC name online or by mail. Check with the state where you will set up your LLC name. Take note that the fees for business names may also vary per state.  

How can I know if my URL name is available?

As for a website and your URL name, check if your name is still available for URL use with NameCheap to see if your name is available as a web domain. Even if you don’t have plans to set up a website today, it will help if you buy a URL. Buying it can help to prevent others from getting your name; check out WPEngine, Kinsta, and GoDaddy for hosting and building your website. 

Can I mail the LLC Certificate of Formation to the Secretary of State?

No. Never mail these documents or payments to the Secretary of State directly. 

Why do I need an EIN?

The reason you might need an E.I.N. is that it would help for three reasons:
>Opening a business bank account
>Filing and managing federal and state taxes
>Hiring employees or agents

How do I get an EIN when I do not have a Social Security number?

You are not required a Social Security number when getting an EIN You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.

I already have an EIN for a sole proprietorship; what now? 

Note that an LLC is different from a sole proprietorship. If you already have an EIN for your sole proprietorship, the IRS will require you to get a new one when your convert to an LLC. 

Do foreign applicants need an SSN to get an EIN?

International EIN applicants do not need an SSN to get an EIN.

What is an IRS?

The IRS is the one that will issue your EIN. You can request an EIN from the IRS ONLINE or download the FORM, fill it out, and send it by mail or fax.

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