Form an LLC in Montana with Inc Authority for Free

The first step toward setting up a successful business is creating a business plan, which serves as a roadmap to help you achieve your goals. Potential investors will also feel more comfortable doing business with you when you have a plan. 

Ensure your business plan includes an executive summary and company description and provides in-depth information on the services your company will offer. Always include research-backed financial goals and revenue targets you want to hit.

Once you have a business plan in place, it’s time to open an ePass account. This is a necessary step for all LLCs in Montana because, unlike other states that have the option for in-person filing, Montana’s filing system is exclusively online. 

You can create an ePass account by visiting the Montana Secretary of State website and submitting the necessary details and contact information. Once it is set up, you can use your ePass account to access Montana State’s online filing portal.

Next, you should choose a business name for your LLC in Montana. Your business name represents your brand. Therefore, you must consider the nature of the products and services you will offer and choose a unique name that reflects that. 

The name of your LLC must include “Limited Liability Company” or its abbreviations, including “LLC”, “L.L.C”, and “L.C.” It should not contain any misleading words or phrases that suggest a different business structure, such as “corporation.” 

In Montana state, no two businesses can have the same name or names that are too similar. Therefore, once you choose a name, you should also research to ensure no other company bears the same name, as this will lead to consumer confusion. 

If the business name you want is available, but you are not yet ready to register your LLC, you can easily reserve it for up to 120 days. To do this, log in to your ePass account, fill out the name reservation form, and pay the filing fee of $10. 

As you reserve a business name, it’s also advisable to reserve a domain name if you want to open a website for your business. While this is optional, it is highly recommended because owning a website will help your business grow. 

Before picking a domain name, check with domain registrars to ensure it is available for use. Additionally, make sure the name you reserve matches your registered business name and social media handles to maintain brand consistency.

All LLCs in Montana must have registered agents to serve as points of contact for the company and receive business correspondence. If any legal or government documents are sent to your LLC, the registered agent will receive them. 

Your Montana registered agent can be any individual or business entity that has a physical address within Montana state. You or any member of your LLC can act as a registered agent for the business or you can outsource this service.

Starting an LLC in Montana state gives you the flexibility to choose among different types of company structures. You can, for instance, run your business as a single-member LLC, which means you will be the sole owner and member. 

Alternatively, you can also establish a multi-member LLC, which gives you room to hire employees or have multiple owners. Your LLC in Montana can also be a manager-managed or member-managed company per your preferences. 

An operating agreement is an important legal document that establishes rules about the management structure, ownership, and decision-making process of an LLC. Once signed, all the members of your LLC are bound by this document. 

It’s important to create an LLC operating agreement for your business in Montana because it serves as a guide for your company’s day-to-day operations. It costs $15 to file your operating agreement with the Montana Secretary of State.  

Your LLC in Montana will not be recognized as a legal entity till you file your articles of organization with the Secretary of State. These documents provide the government with the necessary information about your business. 

You can easily file your Montana Articles of Organization online via your ePass account. For domestic LLCs, this can be done for a filing fee of $35, while foreign LLCs are required to complete a Certificate of Authority for $70. 

Also known as a tax ID, an Employer Identification Number (EIIN) is a unique nine-digit number the IRS uses to identify business entities for tax filing purposes. You can get an EIN by filling out Form SS-4 on the IRS website. 

If you’re the sole member of your LLC, your social security number can be used in place of an EIN. However, we strongly advise you to acquire an EIN as you may want to expand to a multi-member LLC in the future and it costs nothing. 

The best way to keep accurate records of your business finances and streamline transactions is by keeping them separate from your personal finances. That’s why you should open a business bank account for your LLC in Montana. 

The requirements for opening a bank account usually vary depending on the bank. However, you will likely need to provide your EIN, LLC operating agreement, a copy of your business license, and other documents for your LLC in Montana. 

Speaking of business licenses, some LLCs in Montana are mandated to acquire business licenses and permits from the government. This legally allows them to carry out business operations in a specific field and location within the state.  

For example, if your LLC intends to provide services in real estate, private security, healthcare, or agriculture, you must get a business license. You may also need more permits depending on the specific city or county where your LLC is located. 

One of the advantages of starting an LLC in Montana is that you can choose the tax structure that best suits your business needs. LLCs in Montana are automatically treated as pass-through entities, so they enjoy pass-through taxation. 

If you choose pass-through taxation, your LLC will pay the Montana graduated income tax rate, which ranges from 1%-6.75%. However, if you want your LLC to be taxed as a corporation, you will pay the corporate income tax of 6.75%.

If you want to run your LLC in Montana under a different name from what you have registered, you can opt for a DBA (doing business as). It is also called a trade name. Using a DBA is great for companies that want a simpler name for branding.

A DBA does not serve as a legal business structure on its own; it simply gives you the flexibility to conduct business using a catchier name. Additionally, your DBA is doesn’t need to include “Limited Liability Company” or any of its variations.

LLCs in Montana that are established in 2024 are required to file a BOI report within 90 days of their registration. This report should be filed with the Financial Crimes Enforcement Network (FinCEN) via the BOI e-filing website at no cost. 

A BOI report provides information about the beneficial owners of your LLC or members who have at least 25% ownership interests. Failure to meet the BOI reporting requirements can lead to a fine of up to $500 and other penalties.

Getting a trademark is optional and you’ll only need one if you want to protect your brand name or logos from being stolen or misused by other competing business entities. You can apply for a trademark by yourself or hire a trademark attorney. 

To apply for a trademark, fill out an application on the  U.S. Patent and Trademark Office (USPTO) website, providing the required details. It is important to check for any existing trademarks similar to yours or your application may be rejected. 

Every business needs capital to get established and start operations. This is crucial because your business may not survive the initial start-up phase if you don’t have enough funds to sustain it. As such, you need to find ways to secure funding.

Besides dipping into your savings, you can get funding for your LLC by collecting informal loans from your family members or friends. You can also apply for government-sponsored grants or get small business loans from banks.

There are certain ongoing compliance requirements your LLC needs to meet in order to remain in good standing with the state and keep your business going. Montana LLCs are required to file annual reports before 15 April every year. 

This report informs the state that you are still in business. It is usually filed at a fee of $20, but the filing fee has been waived for the year 2024. However, if you miss the 15 April deadline, you can still submit your annual report at a fee of $35. 

Let’s briefly take a look at the features you’ll enjoy with the free LLC formation plan:

• Business name search: Inc Authority makes it easy for you to check if your desired LLC name is available or not. All you need to do is use the free business name search tool on its website and get results within seconds.

• 1-year registered agent services: With the free plan, you can enjoy up to one year of registered agent services at no cost. Inc Authority will provide a registered agent who will collect all legal documents on your LLC’s behalf. 

• Online document management: Starting an LLC involves many important documents that must be safeguarded. The free plan offers access to an online document management database for storing your LLC documents. 

• Tax planning consultation: With Inc Authority’s free plan, you’ll also enjoy an expert tax planning consultation. The company will provide tax planning experts who will guide you through choosing the tax filing process.  

• LLC formation: The main service Inc Authority provides is LLC formation. Its experts will review all your paperwork, file your Articles of Organization with the Secretary of State, and file your LLC application with the state.

• S-Corp election and filing: If you want your LLC to be taxed as an S-corporation, you must complete the S-election form. Inc Authority will help you file this form so that you can get the S-corp tax status in no time. 

• Business funding analysis: Your LLC will need funding to become fully established and expand its operations. Inc Authority will analyze your financial needs and provide trusted funding sources you can explore.

You can start with the Free LLC formation plan, which gives you access to basic features. However, for more premium add-ons, opt for a paid plan. 

Price: Free

Here are the additional services you’ll get with the Starter plan:

• LLC operating agreement: An LLC operating agreement helps you set the ground rules for your company. With the Starter plan, Inc Authority will guide you through the process of creating one. Its team of professionals will ensure you create an agreement that covers all the basics your new company needs.

• Employer Identification Number: Without an EIN, your LLC in Montana will not be able to open a business bank account or keep the necessary tax records. Inc Authority will take care of the application process to ensure that you get an EIN for your business in a swift and hassle-free manner. 

• Corporate forms and documents package: Besides an LLC operating agreement, your LLC will need several professional documents, agreements, and contracts that enforce business dealings. With the Starter plan, you’ll get access to professional templates for all these documents. 

• Compliance notifications: For your LLC in Montana to keep being recognized as a legal business entity, you must keep up with your annual reports, taxes, and other compliance requirements. Inc Authority will notify you of every upcoming deadline, helping you remain compliant.

• Detailed tax consultation: While you have the flexibility to choose any tax structure when you have an LLC, you still need professional guidance to help you make the right choice. Inc Authority will provide tax planning experts who will thoroughly analyze your business and help you make the right choice. 

• Web domain + 5 business email addresses: We live in a digital age where having an online presence is a must-have for business growth. Inc Authority will provide a web domain that aligns with your registered business name and 5 professional email addresses for communication and marketing purposes. 

Price: Custom

Check out the additional services you’ll get over the Starter plan:

• Customer success advisor: When you choose the Fasttrack plan, which is the highest tier Inc Authority offers, you’ll enjoy priority service. You’ll have a customer success advisor assigned specifically to you. They will be available at all times to provide the expert guidance you need and answer any questions you have till your business is up and running smoothly.  

• Private banking expert: Finances make up a significant part of running your business. With Inc Authority’s Fasttrack plan, you’ll have your own private banking expert, who will outline the best banking options for you and guide you through the process of opening a business bank account for your LLC. 

• Personalized business advisory: Inc Authority is not only concerned with helping you start an LLC in Montana, but it is also willing to help you grow it. With this plan, Inc Authority will provide personalized business advisory services and suggest the best ways to grow your business. 

• Expedited preparation & filing: One of the biggest advantages of choosing Inc Authority’s Fasttrack plan is that you can enjoy expedited preparation and filing. You’ll get to skip the long lines and waiting queues and have your documents quickly prepared, filed, and processed even on the same day. 

If you’re looking for an LLC formation plan that provides premium, personalized services with expedited filing options, the Fasttrack plan is your best choice. However, if you don’t mind starting with only the basics, opt for the Free plan.