Form a Montana LLC
At LawInc we are Montana LLC formation experts who can help you form a Montana LLC, the right way. We file the Montana LLC Articles of Organization with the Montana Secretary of State Corporations Division and prepare a customized operating agreement. We can also obtain the Montana LLC’s EIN, in an quickly as 24 hours. Let LawInc guide you through the process of forming your Montana LLC.
Let LawInc walk you through the Montana Limited Liability Company formation process. Our clear, concise and easy to use website, helps keep things simple.
Montana LLC Name
The first step in forming a Montana Limited Liability Company (LLC) is selecting the business name. Montana LLC names:
- Must contain the words must contain the words “Limited Company” or “Limited Liability Company” or the abbreviation “L.C.” or “L.L.C.”
- The name of a Montana LLC must be distinguishable on the records of the Montana Sec. of State.
An available Montana LLC name may be reserved for 120 days.
LawInc.com permits you to choose up to three names and will conduct a name search for your Montana LLC, prior to filing.
Montana LLC Formation
Montana LLC Filing Procedure: When forming a Montana LLC, the Montana Articles of Organization must be filed with the Montana Secretary of State. The Montana Articles of Organization must state:
- The Montana LLC name.
- Name and address of each Montana LLC organizer.
- Street address of Montana registered agent.
- Street address of principle place of business.
Montana LLC Organizers: An Montana limited liability company can be formed by one (1) or more organizers.
Montana LLC Members: Montana LLCs require 1 or more members. There is no residence or age requirement. Montana LLC members are not required to be listed in the Articles of Organization.
Montana LLC Duration: The period of duration of a limited liability company shall be perpetual unless the Montana Articles of Organization place a limitation on the company’s existence or until dissolution or termination.
Montana Registered Agent: An Montana LLC must maintain a registered agent and office to receive service of process in Montana. The Montana registered agent should be available, at an Montana physical address, during normal business hours to accept important legal and tax documents on behalf of the Montana LLC. The registered agent can either be (1) a domestic entity or a foreign entity that is registered to do business in Montana or (2) an individual resident of the state. A Montana LLC may not act as its own agent.
Montana LLC Operating Agreement: After filing, it is highly advised that an operating agreement is drafted which dictates the LLC internal affairs and management. There is no set criteria, but an Montana LLC operating agreement should reference how the Montana LLC is managed, allocation of profits and losses and member capital contributions. The Montana LLC operating agreement does not need to be filed.
Montana LLC Post-Filing Requirements
Montana LLC Annual Report: Montana LLCs must file an annual report which is due on April 15th. The Montana LLC annual reports cost $50.00. To file and pay online, visit https://app.mt.gov/bear.
Montana LLC Taxes
Montana State Income Tax: The LLC tax rate for Montana is variable, depending on Montana taxable net income.
Federal Income Tax: An advantage of the LLC is its tax flexibility. LLC members are allowed to select how the entity will be taxed. An LLC may be classified for federal income tax purposes as either a:
- Sole proprietorship
- Partnership, or
Single member LLCs are treated the same as sole proprietorships. Profits are reported on Schedule C as part of your individual 1040 tax return. Self-employment taxes on Montana LLC net income must be paid just as you would with any self-employment business.Most Montana multi-member LLCs elect to be treated as partnerships by the IRS and file IRS Form 1065. On this form, Montana LLC profits are reported and allocated to each of the owners according to the Montana LLC’s operating agreement. Each owner is given a Schedule K-1, which shows each owner’s share of LLC income or loss. The owner then reports and pays taxes on this income on the owner’s annual 1040 income tax return. It is important to note that as with sole proprietorships, all Montana LLC profits are taxed to the owners, even if they are not actually distributed by the LLC. This situation can arise when the LLC needs to use its profits to pay ongoing expenses.
If pass-through taxation is not desired, an LLC may elect to be taxed as a corporation by completing IRS Form 8832. If this election is made, the LLC is taxed as a C corporation by the federal government. Because the corporate income tax rates for the first $75,000 of corporate taxable income are lower than the individual income tax rates that apply to the taxable income of non-corporate taxpayers, it is possible a net income tax savings can result from this tax election. Additionally, an LLC can be taxed like an S corporation by filing IRS Form 2553.
Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. An EIN is typically required if the Montana LLC has more than one owner, or any employees.
Montana LLC Dissolution/Cancellation
Montana LLC Dissolution/Cancellation: In order to dissolve or cancel an Montana LLC, the members or managers must file a Articles of Termination with the Montana Secretary of State.
Acts Triggering Montana LLC Dissolution: A Montana LLC can be dissolved upon the happening of one of the following:
- At a time specified in the Articles of Organization or operating agreement;
- Upon occurrence of events specified in the Articles of Organization or operating agreement;
- Consent by the specific number or percentage of members indicated in the operating agreement;
- At any time there are no members; or
- Judicial decree to dissolve by a Court.