Many people are intrigued by the prospect of starting an LLC in Montana. LLCs, or limited liability companies, are attractive business structures in and of themselves.
What is an LLC?
An LLC is a type of business that combines the pass-through taxation of asole proprietorship or a partnership with the limited liability of a traditional corporation.
Under state law, an LLC is not considered a corporation. It is a kind of company that limits the liability of its owners.
LLCs are very popular because of the great degree of flexibility that they provide. An LLC may use corporate tax rules rather than being considered as a partnership,and, in some instances, an LLC may be used as the organizing form for non-profit organizations.
In some states, businesses that offer professional services, such as medical or legal services, must organize themselves through a type of LLC known as a professional limited liability company (PLLC).
How to Form an LLC in Montana
Forming an LLC is a very straightforward proposition
Firstly, you need to make sure that the name that your LLC will use has not already been taken. To do so, you should search for your preferred name in Montana’s business entity database.
You can also reserve your preferred business name for a fee of $10. Reservations are valid for 120 days.
Secondly, you need to complete your application form according to the type of LLC you are filing for. Broadly, there are two types, domestic and foreign.
Thirdly, you need to pay for the registration process. You do this by sending a check to Montana’s Secretary of State. You may want to expedite your registration process, in which case, you will have to pay an extra fee. Send the check alongside the application form, to the Secretary of State, at the following address:
P.O. Box 202801
Helena, MT 59620
You should have an operating agreement which explains how your business operates for those within the organization. This gives everybody clarity right off the bat, so that there are no unnecessary conflicts and misunderstandings.
Finally, you need to renew your LLC status every year. This can be done online, where you will have to fill in a few forms. You may opt to have a pre-filled form created online as well. It costs $20 to renew your LLC, but if you submit your renewal application after 1700 (MST), April 15, that fee rises to $35.
As you can appreciate, Montana law makes it very easy to fulfill the techonologices requirements of setting up an LLC.Â
