How to Start an LLC in Montana
The basics of starting an LLC in Montana include naming your business, choosing a registered agent, and filing Articles of Organization. Once your LLC is formed, further steps are needed to make sure your business is in good working order.
Create an MT LLC in 5 Steps:
Step 1: Name Your Montana LLC
You won’t be able to register your Montana LLC without first giving it a name. Montana has specific requirements for that name, too. Below is a summary of the state’s naming rules and some other naming considerations.
What are Montana’s business name requirements?
The basics are that your LLC name must:
- Include the words “limited liability company,” “limited company,” or an abbreviation like “LLC” or “L.LC.”
- Not include language stating or implying that it’s another type of entity, meaning you can’t use something like “corporation.”
- Be distinguishable from other business names that already exist in Montana. That means you can’t use a name that’s the same or very similar to other Montana business names.
How do I know if my LLC name is unique in the state?
Visit the Montana Secretary of State’s website and run a Montana business name search to find out if the name you want is available. If your search comes up with no matching names, chances are good the name you’ve chosen will be accepted by the state. If your search reveals that a similar business name already exists, reach out to the state to make sure your LLC name won’t be rejected.
Are others using the name online?
When you find a name you like that’s also available in the state, see if it’s also available as either a domain name or social media handle. If your preferred name is already being used, it’s good to find out now rather than later. That way, you can re-calibrate your brand identity early to ensure your brand presence is as consistent as possible.
When you hire Registered Agents Inc to form your LLC in Montana, we can register your domain name, set up your business website, and more in minutes.
Can you register the name as a trademark?
Yes, you can and we can help! When you’re ready to pursue trademark registration of your LLC name or business logo, our attorney-led service includes a clearance check that searches for potential conflicts with already existing trademarks.
Step 2: Choose a Montana Registered Agent
Under Montana law, you must appoint and maintain a Montana registered agent for your LLC. A registered agent can be either an individual or a commercial registered agent service.
Your registered agent must:
- Have a physical address in Montana.
- Be available during normal business hours Monday through Friday.
- Forward you your legal mail, including service of process notices.
- Keep their information updated with the Montana Secretary of State.
Can I be my own registered agent in Montana?
Yes, you can be your own Montana registered agent if you live in the state and have a physical address where you’re regularly available to accept service of process. However, make sure you’re prepared for everything that comes with this role, including listing your address on the public record.
It may not be a good fit if your business keeps you out of the office all day and unable to accept legal mail. If you decide not to be your own registered agent, you can opt to hire a registered agent service instead.
Step 3: File Montana Articles of Organization
To officially form an LLC in the Treasure State, you’ll submit Montana Articles of Organization.The paperwork must be completed properly for the state to accept your filing.
You can only submit your Articles of Organization online, as Montana does not accept filings sent by mail. You must also submit a $35 fee. Your formation paperwork must include the following information:
1
LLC name
Must included an accepted indicator like “LLC.”
2
Duration
Most businesses will check “At Will,” meaning they plan to operate indefinitely. Check “Term” and list an end date if you have one in mind.
3
Business mailing address
You can list a physical address or a PO box here.
4
Registered agent information
There are two possible sections here, one for commercial registered agents and one for noncommercial registered agents (like individuals). Only fill out the section that applies to your LLC. If you have a noncommercial registered agent, you must list their Montana physical address.
5
Governing structure
If members (also known as owners) will manage the LLC’s day-to-day operations, check the “members” box. If you’re going to hire one or more managers to do the job, check “managers.”
6
Member or manager information
Depending on which box you checked above, you’ll list the names and mailing addresses of either your LLC’s members or managers.
7
List of liable members
The whole point of an LLC is not to be liable for the business’ debts, but if any of your members want to take on that liability, attach their names and written consent here.
8
Services provided
Only complete this field if you’re forming a Professional Limited Liability Company (PLLC).
9
Organizer signature
The organizer is the person preparing your formation paperwork.
10
Contact information
List a daytime phone number and email where the state can contact you.
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Step 4: Set Up Business Operations
Once Montana approves your formation paperwork, you officially have an LLC. However, you’ll need to take additional measures to finish setting up your business and maintain your limited liability.
Draft an operating agreement.
Think of an operating agreement as a detailed handbook for how your LLC functions. Let’s say a dispute between members arises, and you forget exactly how your LLC is supposed to resolve disputes. Procedures for resolving disputes should be in your operating agreement, which also covers things like how voting works and how the LLC will be managed.
While you don’t need to file a copy with the state, you should bring a copy of your operating agreement to the bank when you’re ready to open a business bank account.
Get an EIN.
EIN stands for Employer Identification Number, and you can obtain one of these through the IRS for free. EINs are important for completing tasks like opening a bank account and hiring employees. A single-member LLC can opt to use the member’s Social Security number, but that’s a less secure option.
Establish a business bank account.
Establishing separation between your personal finances and business finances is critical to maintaining your personal asset protection. Because of this, you should open a business bank account.
Get business licensing or permits.
Montana doesn’t issue general business permits, but you should check with your city and county about local business licensing. If you’re in an industry like accounting or child care, you’ll need to get a professional license from the Montana Department of Revenue.
Step 5: File BOI Report
In 2021, Congress passed a federal law requiring most businesses to file a Beneficial Ownership Information (BOI Report) starting in 2024.
The BOI Report is designed to fight back against fraud and money laundering in the business world. For the report, you must list information about the company’s beneficial owners, defined as the people with a significant amount of control or influence over the business. If you formed your LLC after January 1, 2024, you also need to include information about the person or entity who filed your LLC’s formation paperwork.
Not ready to file another report? We can file the BOI Report on your behalf when you hire us to form your Montana LLC.
Frequently Asked Questions
What is required to set up an LLC in Montana?
The document that forms your Montana LLC is called Articles of Organization. You must give your business a name and choose a registered agent before you can submit your Articles of Organization. To file, you’ll also need to pay a $35 filing fee.
How much does an LLC cost in Montana?
It costs $35 for standard processing of your Montana Articles of Organization. For processing within 24 hours, you can pay an extra $20. For one-hour processing, you can pay an extra $100.
Do LLCs pay taxes in Montana?
Montana’s personal income tax rate tops out at 6.5% for 2024. For both federal and state taxes, your Montana LLC is taxed as a pass-through entity by default. You can file paperwork with the IRS if you’d prefer your LLC be taxed as an S-corp or C-corp.
There’s no general sales tax in Montana, but there are taxes on natural resources harvested there, as well as on alcohol, cigarettes, and lodging facilities. The Montana Department of Revenue’s Business and Income Tax Division has a more complete list of affected industries.
When is the Montana Annual Report due?
The Montana Annual Report for LLCs is due by April 15th each year and the fee is $20. You will need to submit this report online.
How do I contact the Montana Secretary of State?
Have business or filing questions for the Montana Secretary of State? All their contact information is below:
Phone: 406-444-3665
Fax: 406-444-3976
Email: [email protected]
Mailing address:
P.O. Box 202801
Helena, MT 59620-2801
Physical address:
State Capitol, Room 260
1301 6th Avenue
Helena, MT 59620