To form an LLC in Montana, choose a name and file articles of organization. The filing fee is $70. A registered agent, receiving legal documents, must have a Montana address. An operating agreement outlines member responsibilities, though not required. As a separate entity, an LLC protects assets if sued. Income and losses "pass through" to personal taxes. With business-friendly laws, an LLC benefits many small owners.
To maintain an LLC, pay a $20 annual fee and Montana taxes from 1% to 6.9%, plus federal taxes. Research and factor this into your budget, as it impacts the cost of forming an LLC.
Choosing a compliant, searchable name is important. You may reserve a name for 120 days for a $10 fee.
A professional LLC has at least one approved member to perform services like law or medicine. After choosing a name, nominate a registered agent to receive legal documents. Though you can serve, using a service is preferable.
Articles of Organization and Taxes
To set up an LLC, file articles of organization with a $70 fee. An LLC provides limited liability protection and pass-through taxation. Creditors can’t pursue personal assets if the business can’t pay debts.
In Montana, the approval time for articles of organization is typically quick. Application for approval is only conducted online. The state will issue you a certificate that confirms the LLC formally exists after the LLC’s formation documents are filed and approved.
If you opt to have your LLC treated as a pass-through entity, you will not have to worry about additional tax filing. However, if you chose to treat your LLC as a corporation, please be aware that you will have to file separate tax documents for your business.
Filing Requirements and Annual Reports
In Montana, LLCs are required to file annual reports. As with other forms, your documents are completed online using the Montana ePass system. The yearly fee is $20; to avoid additional charges, you must submit your report no later than April 15.
The main cost to start an LLC in Montana is $70.00 for filing your Certificate of Formation. You will also need to file an annual report with the state of Montana on a yearly basis, which also costs $20.00.
Naming and Additional Fees
Creating an LLC in Montana offers various benefits like limited liability protection, potential tax advantages, and more.
Naming Requirements:
- Your desired LLC name must include “Limited Liability Company” or its abbreviations like “LLC” or “L.L.C.”
- Distinctiveness: The name should be distinguishable from existing entities registered in Montana.
It costs $35 to register your paperwork and become a domestic LLC in Montana. But the price is doubled to $70 for foreign LLCs that want to register in this state. The other charge to keep in mind is your annual report filing fee. This only costs $20, but you have to pay it each year in order to remain compliant and in good standing with the secretary of state.