A Montana LLC is established by filing the Articles of Organization to the Montana Secretary of State. The articles must include the LLC’s name, address, services to be provided, and the name, address, and signature of its registered agent.
LLCs in Montana are required to file an annual report between Januray 1 and April 15 each year. For the LLC to hire employees, a Federal Tax Identification Number (EIN) must be requested. This is also necessary for LLCs to manage a bank account in the state.
The name of the Montana LLC must end with “Limited Liability Company”, “Limited Company”, “LC”, “LLC”, or “L.L.C.”. The name must be recognizably different from other businesses already authorized to conduct business in the state.
Montana does not have age requirements for members or managers of an LLC, but their names must be listed in the Articles of Organization.
What is an LLC?
LLC refers to a Limited Liability Company, and it is organized by business owners. They have fewer corporate formalities and can be taxed by the IRS as a sole proprietorship, S corporation, or C corporation.
Each state has different requirements and regulations regarding the formation of an LLC. Business owners should check with state laws when considering forming an LLC.
Owners of LLCs are known as members, they can be individuals, corporations, other LLCs, or foreign entities. There is no limit on the number of members an LLC can have. In most states, “single-member” LLCs are allowed, where there is only one owner involved in managing the LLC.
The IRS will treat the LLC as a corporation, partnership, or included in the LLC owners personal tax return. A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless they file Form 8832 and elect to be treated as a corporation.
LLCs carry tax advantages over other forms of business such as limited partnerships. The owners of an LLC do not assume personal liability for business debt, and any losses of the LLC can be used as tax deductions against active income.
An LLC can be formed through the state business formation process or consulting with LegalZoom.