If you’re thinking about starting a business in Montana, forming a Limited Liability Company (LLC) is a popular and practical option. With its flexible management structure, pass-through taxation, and liability protection, an LLC is a smart choice for many entrepreneurs. But before you jump in, it’s essential to know the steps involved in creating an LLC in Montana and what to expect along the way.
It’s important to consider factors such as your business plan, industry-specific requirements, and local business regulations when starting an LLC in Montana. By taking the time to properly structure and form your LLC, you can lay the foundation for a successful and protected business venture.
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Steps to Create an LLC in Montana
One of the first things you’ll need to do when starting your own business is creating a Limited Liability Company. In this guide, we’ll outline the steps required to create an LLC in Montana.
- Choose a name for your LLC: In Montana, your LLC name must include “Limited Liability Company,” “Limited Company,” or an abbreviation of one of those phrases. Additionally, your name must be unique and not already in use by another business.
- File Articles of Organization: You’ll need to file Articles of Organization with the Montana Secretary of State. This document includes information such as your LLC name, principal address, and the name and address of your registered agent.
- Appoint a Registered Agent: Every Montana LLC must have a registered agent. This person or entity is responsible for receiving legal notices on behalf of your business.
- Obtain Business Licenses and Permits: Depending on your industry and location, you may need to obtain additional business licenses and permits to operate legally in Montana.
- Create an Operating Agreement: While not required by law, an Operating Agreement is a legal document that outlines how your LLC will be run. It’s a good idea to have one in place to prevent any misunderstandings or disputes down the line
Creating an LLC in Montana is a straightforward process that can be completed in a few simple steps. By following the steps outlined above, you can ensure that your business is formed correctly and operating legally in the state.
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Costs to Open an LLC in Montana
The cost of opening an LLC in Montana is relatively low compared to other states. However, the fees may vary depending on the services you need. Here are some costs to consider when starting an LLC in Montana:
- LLC name reservation fee: $10
- Articles of Organization filing fee: $70
- Expedited processing fee: $20 to $100
- Annual report fee: $20fee (if required by the county): Varies by county
It’s essential to keep in mind that these fees are subject to change, and there may be additional fees if you use a registered agent service or hire an attorney to assist you with the formation process. Opening an LLC in Montana is a cost-effective process compared to other states, but it’s essential to research and understand the costs involved in forming an LLC in Montana before you begin the process.
Three Things To Be Aware Of When Starting Your LLC
The video below covers the following three things you must know when setting up your LLC.
- Commingling Funds
- Registered Agent
- Piercing the Corporate Veil
If you are unfamiliar with these terms, please watch the video below.
Files needed to open an LLC in Montana
To form an LLC in Montana, there are some documents that you will need to file with the Secretary of State’s office. Here are the main documents needed:
- Articles of Organization: This is the main document that officially creates your LLC in Montana. It includes information such as the name and address of your LLC, the name and address of the registered agent, and the names and addresses of the LLC members.
- Certificate of Good Standing: If you are forming a foreign LLC in Montana (meaning your LLC was formed in another state), you will need to provide a Certificate of Good Standing from your home state.
- Operating Agreement: This document outlines how your LLC will be run and managed. It includes details such as the rights and responsibilities of LLC members, how profits and losses will be distributed, and how the LLC will be dissolved if necessary.
- Montana Business License Application: You will need to obtain a Montana business license in order to operate your LLC in the state.
- Annual Report: Every LLC in Montana is required to file an annual report with the Secretary of State’s office.
It is important to note that the requirements and documents needed to form an LLC in Montana may vary depending on the specific details of your business.
In summary, the main documents needed to form an LLC in Montana include the Articles of Organization, Certificate of Good Standing (if forming a foreign LLC), Operating Agreement, Montana Business License Application, and Annual Report.
Incfile is our preferred choice for LLC formation because they provide all of the services your new business needs while being transparent with pricing. They also offer a free registered agent service for the first year, even in their free package.
Check out a behind-the-scenes of what managing your LLC looks like in your dashboard in this Incfile review.
Things to consider when opening an LLC in Montana
LLCs provide many benefits, such as the protection of personal assets and flexibility in the management structure. However, there are several things to keep in mind when starting an LLC in Montana.
- Choose a name: Your LLC’s name must be unique and end with “Limited Liability Company,” “LLC,” or “L.L.C.”
- Appoint a registered agent: This is a person or company that will receive legal documents on behalf of your LLC.
- File Articles of Organization: This document officially creates your LLC and includes important information like your business name, registered agent, and the purpose of your LLC.
- Obtain necessary licenses and permits: Depending on your business type, you may need to obtain certain licenses or permits to operate in Montana.
- Consider hiring a lawyer: While it’s possible to form an LLC on your own, a lawyer can help ensure everything is done correctly and provide legal advice.
Starting an LLC in Montana can be a great way to protect your personal assets and establish a strong legal foundation for your business. By following the necessary steps and considering important factors, you can set yourself up for success as a Montana LLC owner.
Conclusion
Creating an LLC in Montana can be a straightforward process with the right guidance and resources. By understanding the costs, required documents, and important considerations, you can feel confident in taking the first steps towards forming your LLC and launching your business in the Treasure State.
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For more information on starting an LLC in Montana, be sure to visit other resources on our website. Our articles on the various steps involved in forming an LLC, as well as information on the benefits of an LLC, can provide you with the information you need to make informed decisions about your business.
Additionally, our guides on registering for taxes, obtaining an EIN, and creating an operating agreement can help you navigate the legal requirements of starting an LLC in Montana. Whether you’re just starting out or looking to expand an existing business, forming an LLC in Montana can be a great choice. For more information and support as you begin this process, be sure to visit our website and take advantage of our comprehensive resources.
Legal Disclaimer: This article contains general legal information, does not constitute professional legal advice for your situation, and should not be interpreted as creating an attorney-client relationship. If you have legal questions, you should seek the advice of an attorney licensed in your jurisdiction.
Where Do I Even Begin with Starting a Business?
This depends on where you’re at in your journey.
Step 1 is deciding what type of business you want to start.
Step 2 is filling out the BizBuddy Pathway for your business.
Step 3 is legally forming your business.
Check out the FAQs below that match up with where you’re at in your process.
What Type of Business Should I Start?
If you’re unsure of what kind of business you want to start, you need to assess your situation. Things like your skills, available time, passion(s), money, and risk tolerance all factor into your decision. This post on What Business to Start is a great place to assess your situation and find the right fit for your unique situation.
What is the BizBuddy Pathway?
Research says that 92% of people with a business idea will never start a business. There are no shortages of ideas… execution is the scarce resource. The BizBuddy Pathway is a simplified approach for you to lay out your business journey.
Think of it like writing a book. The Pathway is like coming up with the title, storyline, and chapters, so you have the outline of where to begin. This is how you become the 8%.
How Do I Legally Form a Business?
It’s not as difficult as you think. That’s because in the U.S. small businesses accounted for 62% of all new jobs created between 1995 and 2020. That’s why you hear people say small business is the backbone of the economy. Check out this Guide on How to Legally Form a Business (in the U.S.). It will give you a full understanding of what goes into forming your legal entity and the options available to you. If you’re unfamiliar with terms like “Piercing the Corporate Veil” you’ll want to check out that guide.
How Do I Grow My Business?
Congrats. You’re already in the game and looking to grow. BizBuddy was founded by Eric Worral who started his first business at 13 years old (sealing driveways). That was well over 20 years ago when he had to figure out how to get new customers. No matter what business you’re in you need paying customers. This is a Guide on How to Get More Customers for Your Business. It’s a comprehensive overview of how to think about your category of business and the marketing strategies to implement. Onward and Upward!
