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How to Start an LLC in Montana (May 2024 Update)

Meow Technologies, Inc.

Meow Technologies, Inc.

As one of the top-ranked states for small business owners and entrepreneurs, Montana presents exciting opportunities if you’re thinking about launching a new venture. Known for its natural beauty and friendly business climate, Big Sky Country rolls out the red carpet for aspiring LLC owners.

Forming a limited liability company (LLC) can provide important legal and tax benefits compared to other business structures. LLCs blend elements of partnerships, sole proprietorships, and corporations to create a flexible and affordable entity. As an LLC owner, you’ll enjoy personal asset protection if the business is sued while retaining pass-through taxation in most cases.

This step-by-step guide takes you through the process of starting an LLC from scratch in Montana:

  • Choose a Name
  • Appoint a Registered Agent
  • File Formation Documents
  • Draft an Operating Agreement
  • Obtain an EIN
  • Open a Business Bank Account
  • Stay Compliant and Market Your LLC

Follow these steps carefully and you’ll be well on your way to launching a successful Montana LLC.

Step 1: Choose a Name for Your Montana LLC

The first step is deciding on an official name for your new business venture. You likely already have a great name in mind. However, to ensure it complies with state rules, double-check the following:

Include Required LLC Designators

Montana LLC names must include the words “limited liability company”, “limited company”, or abbreviations like LLC or LC. You can also use “Ltd. liability company” or “Ltd. company”.

Check Name Availability

Search the Montana Secretary of State database to see if your desired name is already taken. The name you choose must be distinguishable from existing business names.

Consider Reserving the Name

For $10 you can reserve an available business name with the state for 120 days. This prevents anyone else from using it while you complete the rest of the formation process.

Search for Trademarks

Conduct online searches to uncover any existing trademarks identical or similar to your LLC name. Receiving a trademark dispute down the road could force you to change names and rebrand.

Register an Assumed “DBA” Name

If you plan to use a trade name or “doing business as” name that is different than your formal LLC name, be sure to register it with the state. The filing fee is $20.

Step 2: Appoint a Registered Agent

All Montana LLCs need a registered agent on record with the state. This agent receives important legal and tax documents on behalf of the business.

You can designate yourself, a business partner, or an outside registered agent service. Whomever serves as the registered agent must meet the following criteria:

  • Be at least 18 years old
  • Maintain a physical street address in Montana (no P.O. boxes)
  • Be available at their listed address during normal business hours

Many LLC owners prefer to use a registered agent service instead of being their own agent. This way, you don’t have to worry about missing time-sensitive legal notices that could jeopardize the legal standing of your business.

Step 3: File Articles of Organization

To formally create your Montana LLC, the next step is filing Articles of Organization with the Secretary of State. Prepare to provide the following details about your new business:

  • LLC name
  • Registered agent’s name and address
  • Principal business address
  • Management structure (member-managed or manager-managed)
  • Members/managers names and addresses
  • Purpose and duration

You must submit the Articles of Organization electronically via the state’s online filing system for a $35 processing fee. Filing online helps speed up approval which typically takes 5-6 business days in Montana.

Consider setting an effective date 90 days out if you need more time to prepare. You can also file optional amendments later if any information changes.

Step 4: Draft an Operating Agreement

Although not required, creating an operating agreement for your Montana LLC is highly recommended. This document lays out rules and protocols agreed upon by members. It helps settle disputes down the road and reinforces limited liability protections.

Typical operating agreement content includes:

  • Member capital contributions and distribution of profits/losses
  • Member voting rights and management authority
  • Meeting requirements
  • Process for accepting new members
  • Grounds for member withdrawal/removal

Even single-member LLCs benefit from having an operating agreement. It allows you to name a successor in case you can no longer manage it. Reviewing your operating agreement with an attorney ensures it complies with state laws.

Step 5: Obtain an Employer Identification Number (EIN)

An EIN serves as a unique tax ID number for your business to be used when filing taxes and opening business bank accounts. As a new Montana LLC owner, take a few minutes to apply for your EIN directly on the IRS website – it only takes 15 minutes and there is no fee.

You’ll need an EIN even if your LLC doesn’t have employees. Banking institutions require it to open business bank accounts as it helps track financial activity for tax purposes.

Step 6: Open a Business Bank Account

Keeping your business finances separate from personal transactions is crucial as an LLC owner. After being approved for an EIN, shop around to find the best business bank or credit union in Montana to suit your needs.

When opening the business bank account, bring copies of the following documents:

  • Montana Articles of Organization
  • Company Operating Agreement
  • IRS Employer ID Number

Maintaining a separate business account adds legitimacy to your LLC and preserves your personal liability protection. Plus, neatly tracking all revenue and expenses will save headaches at tax time.

For more information, take a look at our article on the key benefits of business checking accounts.

Step 7: Stay Compliant and Market Your New Montana LLC

Congratulations, the foundation of your Montana LLC has been laid! But the real work begins now as you look to build and grow the business. Here are some next steps to consider:

File Annual Reports

You must submit annual reports to the state each year by April 15th to maintain an active legal status. The $20 report confirms your company’s longevity and updates any changes.

Explore Licensing/Permits

Depending on your industry, the state or county/city your LLC operates in may require special licensing. For example, contractors need to register for state contractor licenses.

Market Online

A strong web presence is essential for modern small businesses. The earlier you build a professional website and social media pages, the faster word will spread. Promote your LLC’s products/services and make it easy for customers to learn about and contact you.

Buy Business Insurance

Speaking with an insurer helps identify coverage options to protect against losses tied to property damage, natural disasters, lawsuits, and interruptions. Buying adequate insurance ensures your LLC continues operations without financial strain from unexpected incidents.

Conclusion

Launching an LLC in Montana comes with advantages if you plan to base your business there. By following the seven steps covered in this guide, your new venture will gain solid legal footing. From naming your LLC to opening a dedicated business bank account, check each item off the list to avoid issues as you work to build the business.

The process does involve moderate upfront effort and paperwork. However, forming an LLC beats alternatives by offering outstanding flexibility and protections as your company expands. Simplify the process by using an LLC formation service. For less than $100 plus state fees, they handle completing and submitting all documents on your behalf.

Ready to join the thriving small business landscape scattered across Big Sky Country? Weigh the information and advice in this guide as you work towards launching your Montana LLC!

Meow Technologies is a financial technology company, not a bank or FDIC-depository insured institution. Likewise, Meow Technologies is not an investment adviser and none of the information presented herein should be relied upon as financial advice or a recommendation to make any financial decision nor should it be considered to be tax or legal advice. The information is the opinion of Meow Technologies for educational purposes and may not be suitable for all companies. Products, like the one described herein, are offered through Meow Technologies and are not advisory services which are only offered through Meow Advisory, LLC.** The FDIC’s deposit insurance coverage only protects against the failure of an FDIC-insured bank.**

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**Disclaimer: Meow Technologies is a financial technology company, not a depository, bank or credit union, and your account at Meow is not, itself, an FDIC-insured product.

Meow currently partners with three banking providers. Banking services are provided by Third Coast Bank SSB; Member FDIC, Grasshopper Bank, N.A; Member FDIC, and FirstBank, a Tennessee corporation; Member FDIC.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Grasshopper Bank, N.A, you deposit your funds into a deposit account at Grasshopper Bank, N.A. which sweeps those funds into deposit accounts across a network of Federal Deposit Insurance Corporation (“FDIC”)-insured banks, for up to the current standard maximum deposit insurance amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including Grasshopper's ICS Deposit Placement Agreement. Grasshopper Bank, N.A. uses a third-party vendor and agent to help administer this sweep process. Visit https://www.intrafi.com/network-banks/ for a list of the banks and savings associations with which we/Grasshopper, N.A. have a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Grasshopper, N.A. or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of Grasshopper Bank, N.A, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheets for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Third Coast Bank SSB, you deposit your funds into a deposit account at Third Coast Bank SSB. If you also hold funds in a sweep program with Third Coast Bank SSB, Third Coast Bank SSB sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per receiving bank, for each ownership capacity or category, including any other balances you may hold at that receiving bank directly or indirectly through other intermediaries, including broker-dealers. Third Coast Bank SSB uses a third-party vendor and agent to help administer this sweep process. Visit Third Coast Bank SSB for a list of the banks and savings associations with which we/Third Coast Bank SSB have a business relationship for the placement of deposits at receiving banks, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Third Coast Bank or you). The current maximum deposit insurance amount for your funds is up to $50 Million in FDIC insurance through the sweep network of Third Coast Bank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and conditions and refer to the applicable rate sheet for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by FirstBank, a Tennessee corporation, you deposit your funds into a deposit account at FirstBank, which sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including FirstBank's ICS Deposit Placement Agreement. FirstBank uses a third-party vendor and agent to help administer this sweep process. Visit IntraFi for a list of the banks and savings associations with which FirstBank has a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by FirstBank or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of FirstBank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheet for additional information.

***FDIC insurance coverage is only available to protect you against the failure of an FDIC-insured bank that holds your deposits (and does not protect you against the failure of Meow or other third party). Your account with Meow and all services provided to you are subject to the Meow Terms of Service (“Account Agreements”) and other applicable terms and no other representations or warranties, express or implied, are provided to you except as expressly set forth in those written Account Agreements. If you have any questions regarding your account, please contact team@meow.com.

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FirstBank’s general policy is to allow you to withdraw funds deposited in your account on the first business day after the day we receive your deposit. Funds from electronic deposits will be available on the day we receive the deposit. In some cases, we may delay your ability to withdraw funds beyond the first business day. Then, the funds will generally be available by the SECOND business day after the day of deposit.