Known for its business-friendly climate and favourable tax policies, Montana is an ideal destination for entrepreneurs and business owners looking to incorporate. With the convenience of online incorporation, setting up your LLC in Montana is more accessible and efficient than ever. Whether you’re a local resident or an out-of-state entrepreneur, the process is streamlined and user-friendly, allowing you to quickly establish your business presence in this thriving state. 

In Montana, 123,419 small businesses thrive, representing 99.3% of all state businesses. These businesses employ 245,758 people, or 65.3% of Montana’s workforce. This environment is perfect for starting your LLC. 

Maxfilings simplifies this process, offering expert guidance to help you successfully launch your business in Montana’s dynamic market. From your initial click to the final submission of your paperwork, we’re here to guide you every step of the way—no legalese, no hidden fees.

What are the tax requirements for an LLC in Montana?

A Montana LLC can select taxation as a corporation or opt for the pass-through tax structure common to proprietorships, partnerships, and S Corporations. Additionally, it can distribute profits and losses differently from the members’ ownership shares. Although a Montana LLC and a Montana S Corporation are fundamentally similar, an LLC offers more flexibility and operates more easily and with less complexity than a corporation.

MaxFilings can assist you in forming your Montana LLC. Begin the process of setting up your LLC now.

Why form a Montana LLC?

For those seeking the limited liability of a corporation without its formal structure and heavier ongoing requirements, the flexibility and simplicity of a Montana LLC offer a distinct advantage over a corporation. However, Montana S Corporations benefit from allowing owners to reduce self-employment taxes.

Your next steps for business formation with MaxFilings

Ready to establish your Montana LLC? You need to file official documents with the state of Montana to make it official. 

MaxFilings can facilitate this process for you. Lay the foundation for your business success and set up your LLC with us today.

Some points to consider when forming a Montana LLC

• You must file official documents with Montana and pay state filing fees to form a Montana LLC.
• The law treats a Montana LLC as an individual entity separate from its members and managers.
• A Montana LLC can generally conduct any lawful business.
• Montana LLCs require fewer formal reports and less paperwork than corporations.

Limited liability 

• Montana LLC members and managers typically have the same limited liability as a corporation’s shareholders, directors, and officers, risking only their contribution to the LLC.
• Protecting members’ personal assets is a major benefit of a Montana LLC.
• Similar to corporations, there are exceptions where an LLC’s members and managers may face liability.

Taxation

• A Montana LLC can opt for taxation as a corporation or select the pass-through tax structure used by proprietorships, partnerships, and S Corporations.

Members & employees 

• Montana LLC members can form multiple classes with different rights and shares of profits and losses, regardless of their investment in the company.
• Employees often favour working for an LLC over a sole proprietorship or partnership.
• Members or appointed managers can manage a Montana LLC.
• There is no limit to the number of members a Montana LLC can have.
• Corporations, partnerships, and trusts are eligible to be members of a Montana LLC.

Public perception

• The general public usually perceives LLCs as more substantial than sole proprietorships and partnerships.

How to form a Montana LLC

Name your Montana LLC

• Choose a name for your LLC and ensure it includes “limited liability company,” “LLC,” or “LLC.”
• Make sure your name is unique from other businesses in Montana by checking on the Secretary of State’s website.
• Avoid using names that imply a government agency or need additional licenses (like “bank” or “lawyer”).
• Check if your desired website URL is available and consider buying it.
• Reserve your name for up to 120 days by paying a fee if you’re not ready to register your LLC.

Appoint a registered agent

• Select a person or entity in Montana to act as your registered agent.
• Ensure they have a physical address in Montana and are available during business hours.

File articles of organization

• Fill out and submit the articles of organization online or by mail to the Montana State Corporate Commission.
• Include your LLC name, registered agent details, purpose, duration, management structure, and consent of members liable for debts.

Obtain a state certificate

• After filing, Montana will quickly review and approve your LLC.
• Once approved, you’ll receive a certificate confirming your LLC’s existence.
• Use this certificate to get an EIN, business licenses, and a business bank account.

Create an operating agreement

• Draft an operating agreement, though not required in Montana, to outline your LLC’s structure and operations.
• Include details like members’ contributions, profit sharing, and management procedures.

Acquire an employer identification number (EIN)

• Apply for an EIN through the IRS online or by mail.
• Use the EIN for tax filing, opening a business bank account, and hiring employees.

Next steps for maintaining your LLC

• Stay compliant by filing an annual report with the state by April 15 each year.
• Keep up with quarterly tax payments and maintain your registered agent.
• Use your registered LLC to get necessary permits, register with the state’s tax agency, open business accounts, apply for insurance, and trademark your business name and logo.