Montana saw a record number of businesses open last year, with the total count reaching about 51,000. With so many people starting LLCs in Montana, it’s not a bad idea to form your own LLC there.
So, are you ready to learn how to get an LLC in Montana? Read on to learn about setting up an LLC in Montana and download a Montana LLC operating agreement template.
Is an LLC Operating Agreement Required in Montana?
In General, an LLC operating agreement is not required in Montana. However, if you start a Series LLC you do have to create an LLC operating agreement.
Knowing this exception to the rule is important when it comes to learning how to form an LLC in Montana. Otherwise, you could find yourself in violation of state law.
Montana Operating Agreement Laws
It’s not just LLCs themselves that have laws surrounding them. LLC operating agreements are also governed by Montana law, and it’s important to know about those laws to create a legally compliant document. You can read the Montana operating laws in § 35-8-109, but we’ve also outlined the most notable ones below.
In Montana, if you create an LLC operating agreement, you have to outline the duties, roles, and responsibilities of all the members. You should also be aware that there are some things that operating agreements can’t do. For instance, they cannot:
- Unreasonably limit member rights
- Violate the duty of loyalty
- Violate the duty of fair dealing and good faith
How Much Does it Cost to Form an LLC in Montana?
In Montana, it will cost you just $70 to start your own LLC. You pay this fee at the time that you file your articles of incorporation with the Secretary of State.
How to Form an LLC in Montana?
With all the finer details out of the way, it’s time to go through the steps of how to form an LLC in Montana. Let’s take a look at what you need to do to get your business off the ground.
Step 1 – Choose a Name for Your LLC
The first step to starting your own LLC in Montana is to choose a name. Under Montana state law, your business name has to include some variation of the words ‘limited liability company’. It must contain the words ‘Limited Liability Company’, ‘Limited Company’, or the abbreviations ‘LLC’, ‘L.L.C.’, ‘LC’, or ‘LLC’.
If you want to reserve your name, you can do so by paying just $10 and filing a name reservation form with the Secretary of State. This is completely optional, however, so don’t feel that you have to do so.
Step 2 – Find a Registered Agent
Once you’ve selected your business name, it’s time to find a registered agent. A registered agent is a person that receives process of service on behalf of your LLC.
In Montana, a registered agent can be any resident of the state. It can also be a business entity that’s legally allowed to operate in the state of Montana. The registered agent must have a physical street address in Montana.
Step 3 – File Your Articles of Incorporation
When you find a registered agent it’s time to move on to filing your articles of incorporation. To do so, you’ll need to send your certificate of formation to the Montana Secretary of State.
Remember that you need to include your filing fee when doing so. This process usually takes somewhere between seven and ten days for you to get approval and launch your LLC.
Step 4 – Create an LLC Operating Agreement
The fourth step is only required if you’re starting a Series LLC. If you are starting a standard LLC, it’s optional, although it’s still a good idea to consider creating an LLC operating agreement.
Remember, your operating agreement needs to outline the duties and rights of each member. You should also lay out how your business will be conducted and what percentage of the company each member owns.
Finally, don’t forget to include how you will conduct votes and meetings in your company. Having this information in writing is important for keeping your business compliant and avoiding legal issues.
After you create your agreement, file it away with your other important business documents. If you ever have to provide it, you’ll know exactly where to find the document.
Step 5 – Get an EIN
The last step of the process is to get an EIN. Although single-member LLCs can use their social security instead of an EIN, it’s still handy to know how to get one.
You can get an EIN by applying for one on the IRS website. It’s completely free to do so, and with your new EIN number, you’ll be able to do things like hire employees, open a business bank account, apply for business loans, and take out a business credit card.
Montana LLC Operating Agreement Template
Now that you know how to register an LLC in Montana, it’s time to look at a Montana operating agreement template:
LLC Operating Agreeement