How to Form an LLC in Montana : Fees, Steps, and Requirements

When you decide to start an LLC in Montana you will be required to follow certain procedures to ensure you are forming your business correctly and beginning in good standing. With these requirements in mind, it can be helpful to have checklist of guidelines to follow that include all the necessary steps the state of Montana has set. This list will include:

1. Choosing a business name - Your business name will need to be unique and distinguishable enough from other active businesses in the state of Montana. Also, it will need to include a designator in the name such as "LLC" or "Limited Liability Company".

2. Appoint a registered agent - Every LLC in Montana will need to have an active and current registered agent with a physical address in the state. They will be responsible for receiving any service of process and important documents sent to your business by the state.

3. Submit your Articles of Organization - This document will be the form that officially creates your business with the state of Montana. The information you need will be the business information, registered agent information, and ownership information.

4. Draft an operating agreement - An operating agreement will outline the roles and responsibilities of the owners of the business, and also specify certain processes for how your business operates.

5. Obtain an EIN - Your EIN will be issued by the IRS and will be required for filing taxes, hiring employees, and opening a business bank account.

6. Maintain ongoing good standing - After formation your LLC will be required to file annual reports and register for any business licenses that are required by your industry.

This guide will cover the the requirements for starting an LLC in Montana and give new business owners tips for how to complete this process. You can choose to either complete this on your own or you can hire a service like Firstep to do this for you on your behalf. Forming your business correctly will set you up to maintain your good standing and make this process more simple. If you do choose to do this on your own, this guide will give a step by step process for completing this process.

Step 1: Choosing a Business Name

The first step of forming a new LLC will be to choose a name for your business. Your business name will be a key factor of your business as this will be the first thing customers see when they interact with your business. When selecting your LLCs name, you will need to ensure the name is unique and distinguishable enough from other active businesses in the state of Montana. Be aware that Montana will hold business names after they go inactive for up to 120 days, so it is useful to use the the business search tool to check what is potentially available. It will help to choose a business name that relates to the products or services that your business offers as this can make it easier for customers to remember your name and be more likely to be repeat customers.

Your LLCs name will be required to include certain designators in the name such as "LLC" or "Limited Liability Company" in the name. Changing the designator on the name will not make the state of Montana consider the name unique enough from a business that has your chosen business name.

Step 2: Appoint a Registered Agent

All LLCs that are formed in Montana will be required to have an active registered agent. Your registered agent will be responsible to receive service of process and any important documents that are sent to your business by the state. You are able to choose anyone to act as your registered agent as long as they meet the requirements that are set by the state of Montana. These requirements include:

• An active physical address in Montana

• Be at least 18 years old

• Be available during regular business hours at your listed address (Monday-Friday 9am-5pm)

The registered agent information will be listed on your Articles of Organization, which will be public information. If you do not want your personal address listed on this, you will need to appoint a trusted friend or family member or you can hire a registered agent service like Firstep to for this role.

As long as the person you appoint as your registered agent meets the above requirements you can choose whoever you would like. This can be yourself, a friend or family member, or you are able to hire a registered agent service like Firstep. Being your own registered agent can be more affordable, but this can be difficult if you are a mobile business owner or have multiple locations to be at each day.

Step 3: Submit Your Articles of Organization

Now that your business name and registered agent has been chosen, you are able to file your Articles of Organization to officially form your new LLC in Montana. This will be done by going to the Montana Secretary of State website, navigating to the forms tab, and selecting Articles of Organization.

The steps you will need to complete on the Articles of Organization will include:

• Choosing the processing times - Default is $35, 24 hour is $55, and 1 hour is $135

• Select the effective date - Either choose an effective date for the LLC or opt to have the LLC formed once this submission has been processed by the state of Montana

• Choose the type of LLC you wish to form

• Enter the name of your LLC and ensure it is available

• Select the duration you will conduct business for

• Enter the mailing address for the business, and if you choose to do so you can also enter the physical address of the business

• Fill out your registered agent information

• Select if you have any additional documents to submit with your Articles of Organization or not

• Review all information you have entered to ensure there are no errors

• Sign the submission, enter your contact information, and pay the filing fee of $35

Processing times for the Articles of Organization in Montana will take around 7-14 days depending on how busy the Secretary of State is at the time. Once your submission is approved, you will be sent an email with your certified documents so you can download these for your records.

Step 4: Draft an Operating Agreement

Now that your LLC has been officially formed in the state of Montana, a highly suggested next step will be to draft an operating agreement. Operating agreements will outline the roles and responsibilities of business owners, the ownership percentages, management structure, and voting rights of members. This document will also detail how members will participate in the management of the LLC, contribute to the business, and how members are involved in the decision making process. Operating agreements are not required by law, but they are an extremely useful document for LLCs to have to detail these processes in writing.

Since operating agreements are not legally required by Montana, they are not filed with any government or state agency, although you may be asked to provide this document when you go to open a business bank account. As your business grows and scales, it is helpful to have an operating agreement to give your business a standardized process for dealing with certain situations such as determining if your business will be member managed or manager managed, or how members are added or removed from the LLC.

Step 5: Obtain an EIN

With your new business formed and other documents collected for it, you will need to obtain an EIN from the IRS. An EIN, or employer identification number, is like a social security number for your business and it will be used for multiple different purposes. This number will be required to be able to file taxes, hire employees, and open a business bank account. Each business will only be issued one EIN so it's important to save your certified document with your number along with writing down or saving your EIN number just to be safe.

If you do lose your EIN number, you can still retrieve your EIN number through the IRS although this process can take anywhere from a few weeks to a few months. This will require you to fill out certain documents to send to the IRS to prove you are an authorized owner or member of the LLC. You will need to make sure you are entering the information on your EIN form exactly as it appears on your Articles of Organization to avoid these long processing times and get your submission approved. You can either choose to obtain this EIN number on your own, or you can have a service like Firstep get this number for you on your behalf. If you want to avoid dealing with the IRS hiring a service can be useful and make this process much easier for you.

Step 6: Maintain Ongoing Good Standing

Once your new LLC has been officially formed and you have gotten all the required documents along with your Articles of Organization your next step will be to maintain your LLCs good standing with the state. This process will include things like filing annual reports each year and also registering for any business licenses that are required by your business industry you are operating in.

Annual Reports

All LLCs in Montana will be required to submit an annual report each year to renew their business registration with the state. These forms will be found on the Montana Secretary of State website and you will need to have your exact business name or the filing number to search your business. From here, it will give you the ability to file an annual report for the chosen business. Your annual report will confirm and update your LLCs listed information to ensure all the information is correct and accurate. Keeping your information such as the business address, registered agent information, and ownership information accurate and up to date helps keep your business in good standing, along with the submission of your annual report. The annual report due date for Montana LLCs is April 15th of each year. It's important to file your report on time to avoid paying any additional late fees and avoid having your business administratively dissolved. It will cost $0 to file this if you do it yourself and file on time, or you can hire a service like Firstep to ensure your business never misses a report and have it filed for you each year on time.

Business Licenses

Depending on the industry your business is operating in you may be required to register for certain business licenses to maintain your good standing. These are typically done at the local level and requirements vary so it's important to know what will be required of your business once you have formed it. Certain industries are usually required to file for these like specialized services such as construction, healthcare, law, and insurance. It's important to register for these if your business is required to maintain your good standing with the state and avoid falling out of compliance.

FAQs on Montana LLCs

Where do I go to form and maintain my Montana LLC

To form a new LLC in Montana you will need to go to the Montana Secretary of State website, navigate to the forms tab on the left hand side, and choose the Articles of Organization for a limited liability company. Once you have submitted this and your LLC is officially formed with the state, you will need to file annual reports each year to stay in good standing. This is also done through the State website and will require you to search your business name or filing number, and choose to file an annual report by April 15th.

What is a registered agent and do I need to have one for my LLC

A registered agent will be responsible for receiving legal service of process and important documents sent by the state. Every LLC that is formed in Montana will be required to have a registered agent with an active physical address in the state, and this person can be yourself, a friend or family member, or you can hire a service like Firstep to do this for you.

Do I need to have an operating agreement for my LLC

You are not legally required to have an operating agreement to stay in good standing in Montana. Although, it is highly recommended for business owners to have a written set of policies and responsibilities to help guide decisions.

Can I form an LLC in Montana if I don't live in Montana

Yes, you can still form an LLC in Montana even if you don't live in the state. You will still need to have a registered agent with an active physical address in Montana to meet the state's requirements.

When are annual reports due for LLCs in Montana

Annual reports are due by April 15th each year for LLCs in Montana. Filing your report by this date helps avoid any additional fines or fees you will need to pay.