Montana LLC, Corporation, and DBA Startup Guide
- Step 1: Decide on a Business Structure
- Step 2: Pick a Business Name
- Step 3: Register the Business
- Step 4: Obtain Your Federal Employer Identification Number
- Step 5: Open Company Bank and Credit Accounts
- Step 6: Set-up An Accounting System
- Step 7: Obtain Licenses and Permits
- Step 8: Hire Employees (if applicable)
- Step 9: Obtain Business Insurance
- Step 10: Systemize and Organize
- Step 11: Branding and Marketing
- Step 12: Annual and Ongoing Requirements
Montana Business Facts and Environment
MT Business Facts
In modern times, financial services have called Montana home. Financial activities accounts for about 18% of the state’s gross domestic product. Both Business Services and Retail together make up a total of 14%. Most of Montana’s population is employed in trade, transportation and utilities, government, and education and health services.
Major Companies Headquartered in Montana
Montana is the headquarters of many major companies including Benefis Health System, State of Montana, Glacier Ban, Town Pump, and Kalispell Regional.
Startup Environment
Montana is a good place for startups because of the low cost of living in the state. Businesses are not obliged to pay or collect sales tax. For businesses looking to expand, the properties in the Big Country are inexpensive.
Montana LLCs, Corporations, and DBAs
Step 1: Decide on a Business Structure
There are 3 basic options: a DBA, a Corporation or an LLC. Click here to learn more about business entities.
- A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
- A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
- An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (doesn’t require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.
Step 2: Pick a Business Name
Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in Montana, but we highly recommend you do the following before searching Montana state databases:
- Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
- Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
- Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself.
- Make sure your company name choice is available by searching the Montana Business Entity Database and doing a name search on the State of Montana website. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).
Tip: Search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.
NOTE: Familiarize yourself with the Montana naming guidelines. LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.
Restrictions on Montana Business Name & Business Purpose
- Business names should be unique.
- The following makes a business name distinguishable:
- Key words are different. Example: “Bill’s Carpentry” is distinguishable from “Bill’s Builders”.
- Key words are the same, but in a different order. For example: “Yellowstone Hotel” is different from “Hotel Yellowstone”.
- The use of geographic designations. For example: “Helena Auto Painting: is different from “Boulder Auto Painting”.
- Abbreviations. For example: “Montana Ave Salon” is different from “Montana Avenue Salon.”
- Different spellings of proper names. For instance: “Jayne’s Boutique” is different from “Jane’s Boutique.”
- Unique or improper spelling. For example: “Black Cat Designs” is different from “Black Kat Designs.”
Step 3: Register the Business
Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Montana.
How to form an LLC in Montana
- File the “Articles of Organization” with the Montana Secretary of State LLC Division.
- Once the articles are filed and approved you will then need to properly organize the LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.
How to Incorporate in Montana
- File the “Articles of Incorporation” with the Montana Secretary of State Corporate Division.
- Hold an “Organizational Meeting” to determine the percentage of ownership for each shareholder as well as resolve to do tasks like open a company bank account, pay back pre-incorporation expenses, elect S-Corporation status and more.
- Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.
NOTE: When registering a new company the Secretary of State can take several weeks to file the paperwork. You can expedite the process by hand delivering the documents directly to them or one of their field offices and paying an additional fee.
TIP: Check our order form to see how long Montana is currently taking to process regular and expedited orders.
How to File a DBA in Montana
- Check the state database of business names.
- Complete the DBA registration form.
- The filing fee is $20.
Optional Considerations when registering a Montana business
- Hire a professional Registered Agent. Many people list their home or business address on the Articles of Organization or Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent).
Ready to register a business in Montana?
- We specialize in registering businesses in Montana.
Ready to Start Now? Let Us Do The Work
Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.
- Learn more about our business formation service
- Read our verified reviews and 100% Satisfaction Guarantee
- Contact our friendly support team if you have any questions
Step 4: Obtain Your Federal Employer Identification Number
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.
TIP: We will obtain your EIN for you if you we form your company.
Step 5: Open Company Bank and Credit Accounts
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
Top 5 Major Banks in Montana
- Glacier Bank
- First Interstate Bank
- Wells Fargo Bank
- Stockman Bank
- U.S. Bank
Click here to view a list of our recommended banks in our Vendor Network.
TIP: Our business formation service includes a free banking resolution for your use.
Step 6: Set-up An Accounting System
Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.
Company documents generally are required to be kept for 3 years, including: a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.
Review our list of Accountants, Accounting Software and Bookkeepers in our Vendor Network.
Step 7: Obtain Licenses and Permits
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.
Step 8: Hire Employees (if applicable)
If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.
Review our list of recommended Payroll Providers in our Vendor Network.
Step 9: Obtain Business Insurance
There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.
Click here to view our list of insurance providers in our Vendor Network.
Step 10: Systemize and Organize
Prepare the business as if someone needed to take it over and run it for you. This means have a method to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.
Step 11: Branding and Marketing
Now that you’ve set-up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.
Step 12: Annual and Ongoing Requirements
DBA: Your Fictitious Business Name should be valid for 5 years, with option for renewal.
LLC: Montana corporations are required to file a Periodic Report with the Montana Secretary of State on or before April 15 each year, in addition to general taxation. Information on your business’ taxes can be found here. The filing fee is $70.
Corporation: Business in Montana should file a report annually on or before April 15 to the Division of Corporate and Consumer Services. LLCs and Corporations will pay a filing cost of $15.
Click here to view our MyCompanyWorks Premium™ service which can automate most or your ongoing compliance tasks.
Important Montana Contacts
Business Services (for Corporation and LLC filings)
P.O. Box 202801
Helena, MT 59620-2801
Phone: (406) 444-3665
Fax: (406) 444-3976
Montana Taxation Departments
Montana Labor and Employment Departments
Montana Startup Resources
1. Small Business Administration (SBA) Montana District Offices
2. SCORE Montana
- Western Montana SCORE is a team of nationally Certified Mentors who provide free professional counseling to aspiring entrepreneurs and small business owners in Butte, Great Falls, Helena, Kalispell, Missoula and White Sulphur Springs.
- Montana SCORE is the district organization of SCORE “Counselors to America’s Small Business” and is the best source of free and confidential small business advice to help you build your business—from idea to start-up to success.
3. Montana Legal Statutes
- Montana Business Corporation Act – this is not a revision of the prior corporation law, but is an entirely new act. Thus, when it becomes effective it will be essential for the lawyer to refer to the new act before making any decisions as to his corporate clients.
- Montana Limited Liability Company Act – the specific act that applies to Montana LLCs.
4. Montana Chambers of Commerce
- Montana Chamber of Commerce
- Bozeman Chamber Of Commerce
- Glasgow Area Chamber of Commerce & Agriculture
- Missoula Chamber of Commerce
- Beaverhead Chamber of Commerce
5. Montana Means Business
- Montana Means Business, the web application utilizes ArcGIS 9.3 technology, custom ASP.NET applications, and newly engineered Google Maps services to provide a host of reporting and analytical tools.
6. Montana Angel Investors
7. Montana Business News
8. mt.gov
- The Governor’s Office of Economic Development serves to advise the Governor on policy issues related to economic development; lead the state’s business recruitment, retention, expansion, and start-up efforts; and serves as the state’s primary economic development liaison between federal, state, and local agencies, Montana tribal governments, private nonprofit economic development organizations and the private sector.
9. Montana Small Business Development Center
- The Montana District Office is the only SBA office in Montana and serves all 56 counties.
10. Tri-County Green Business Program
- The Tri-County Green Business Program is a free, voluntary certification program that recognizes local businesses for their resource efficiency efforts.
