How To Start An LLC In Montana For Free 2024?

Creating an LLC in Montana can be a smart way to protect your personal assets and enjoy a more favorable taxation situation. But is this business entity right for you? And how do you go about starting an LLC, anyway?

We’ve created this article to answer those questions. Below, you’ll find everything that you need to know about the process and price of creating an LLC in Montana. So, without further delay, let’s get into it.

What is an LLC?

An LLC is a type of business structure. It’s one way to run a legal business, alongside other options like a sole proprietorship and corporation. The acronym LLC is short for a limited liability company. This name comes from the fact that the owners of the LLC have less personal liability than they would if running a sole proprietorship.

What is an LLC in Montana?

When you decide to create an LLC, you need to file the paperwork in a specific state. Montana is one option and likely the best fit if you do the bulk of your transactions within the state’s borders.

The state where your file your LLC paperwork is the one that determines what rules you must follow to maintain a valid LLC. We’ll discuss what those rules are in Montana throughout the rest of the article.

Read More: Best LLC Formation Services in Montana 2024

Requirements to Start an LLC in Montana

If you’re interested in creating a Montana LLC, then there are a few key requirements to keep in mind before doing so. Here are two that are worth mentioning upfront.

Appoint a Registered Agent

First; you’re going to have to have a registered agent. This person is responsible for accepting important business and legal documents on behalf of your new LLC. Hiring an agent is an option, but you can also just fulfill the role yourself if you want to save money.

The LLC’s Name Must Be Different From an Existing Business

Next, the name that you choose for your new LLC can’t already be in use by another business. The state requires that your LLC name be unique, and has tools available on its website to help you make sure that you satisfy this obligation.

Benefits of Starting an LLC in Montana

There are a lot of good reasons to choose this business structure. The main one that people like is being able to protect personal assets in the event of future financial difficulty. If your LLC ends up going bankrupt, your personal assets likely won’t be at risk.

LLCs also provide some nice benefits around taxation, which means you might even save some money by forming this type of company. You’ll also get some benefits related to managerial and profit-sharing flexibility that can be useful.

How Much Does an LLC Cost 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.

There are other fees you may or may not encounter throughout the process as well. For example, you could pay a professional service to help you form your LLC. Or you might be charged to reserve a name if you want to make sure you get it but aren’t quite ready to submit all of your paperwork.

6 Basic Steps To Start an LLC in Montana 2024

Creating a Montana LLC can be a confusing process if you’ve never gone through it before. In this section, we’ll highlight six of the most important steps to keep in mind as you go through the process, to make sure you don’t miss anything important that could delay your company’s formation.

Choose a Name for Your LLC in Montana

The first thing you need is an LLC name for your operating agreements. Here are two steps to choosing an LLC name that the state will approve.

Naming Rules in Montana

First, familiarize yourself with naming rules in Montana. These outline what an LLC business name must include in order to be considered valid. You have to follow the business name guidelines to get your paperwork approved and your LLC started.

Searching Available Name in Montana

Next, make sure that no one has already taken your desired business name. You can look up your desired business name here to see if someone else in Montana has already taken it. Here’s where to do that.

Choose a Registered Agent in Montana

You’re also going to need a registered agent. This is a person who accepts important legal documents on behalf of your business. You can be your own registered agent if you want to save money and don’t mind the additional responsibility.

You can also hire a company to do the job for you. The price of this is about $100 to $300 per year. But you might be able to get the first year for free if you pay a company to guide you with paperwork and your filing fee requirements when starting a new LLC.

Read More: Best Montana Registered Agent 2024

File Organizational Paperwork With the State

Now you’re ready to file your articles of organization with the state. This document provides some basic information about what your business will be called and how it will operate. The step is pretty straightforward, but you can always hire a company to help you out if you need it.

Prepare an LLC Operating Agreement

Now it’s time to fill out and submit your operating agreement. This is also when you’ll pay the filing fee that’s required to process the paperwork and get your new LLC up and running.

Once again, you can either do this on your own or pay a company to guide you through the process, if you think you would benefit from having some support.

Obtain an EIN for Your LLC in Montana 

Now you’re ready to set up your IRS employer identification number. The federal tax identification number is a unique number that gets attached to your LLC whenever taxes are due.

The good news is that this is really easy to set up. You can create one for free in as little as 10 minutes entirely online. Just make sure you have one before you move too far ahead with the business formation process.

Annual Tax

Finally, once you’ve submitted your operating agreement and paid your fees, the next step is to just make sure you keep up-to-date with your annual taxation requirements. If you miss tax payments, your LLC could become invalid, and you may face further difficulties.

Annual reports are fairly affordable in Montana, which means this shouldn’t be a very difficult thing to do. You may just need to set a reminder in your calendar to make sure that you don’t inadvertently miss a key deadline.

Top 2 LLC Services in Montana

Product
Name	ZenBusiness	Northwest Registered Agent
Full review	Read full review	Read full review
Link	Check Price	Check Price

ZenBusiness

ZenBusiness is a lot like Northwest. They also will help you start a Montana LLC by guiding you through the process of filling out and submitting your articles of organization and operating agreement.

ZenBusiness stands out from other providers by offering after-hours support. This makes it a good fit for business owners that tend to do a lot of work outside of standard hours.

This company will also provide you with ongoing support for things like starting a business bank account, managing a foreign LLC, getting business insurance, and making sure that you never miss a filing fee.

Northwest Registered Agent

Northwest makes it easy to create your LLC. They’ll guide you through all relevant Montana LLC naming guidelines, help you set up an employer identification number, and make sure that both your articles of organization and operating agreement are on point.

They also provide registered agent service and ongoing help with things like filing your annual report, setting up a business bank account, and paying sales tax every year. They’re a great partner to have and can even set up a physical business address for you if you need one to get a business license or sign up for business credit cards.

Final Thoughts

If you want to conduct business with the state’s office in Montana and are looking for the right management structure, a limited liability company could be right for you. This structure takes your individual or business entity and makes it easier to improve personal liability protection, pay fewer taxes, and open a business bank account.

You can file an operating agreement and articles of organization on your own. Or you can hire a company like Northwest or ZenBusiness to guide you through operating agreements and complying with every government agency necessary under Montana law and the internal revenue service.

No matter what your next step is as a business owner or what business structure you decide on, we hope our guide has made it a little easier to decide if a Montana limited liability company formed by a professional LLC group is right for you. We wish you all the best moving forward – whether you file articles for Montana LLCs or not.

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