PASSAMANI & LETANG PLLC
Montana LLC and Business Formations
Starting a business is an exciting step—but choosing the right legal structure is critical to protecting your interests and setting the foundation for success. Whether you’re forming a Limited Liability Company (LLC), corporation, partnership, or sole proprietorship, each option carries different implications for taxes, liability, and management. Our firm helps entrepreneurs and business owners navigate the formation process, draft governing documents, and ensure compliance with state and federal requirements. We make it simple to launch your business with clarity and confidence, so you can focus on growing your vision from day one.
We can set your Montana business up for success. This starts with selecting your legal structure and tax election status.
🏛 State Legal Business Entity
This refers to the legal structure of your business as recognized by your state (like Montana). You choose this when you register your business with the Secretary of State.
Common types:
- Sole Proprietorship
- Partnership
- Limited Liability Company (LLC)
- Corporation
- Nonprofit Corporation
Determines:
- Legal liability
- Management structure
- Ownership rules
- Compliance obligations at the state level
💰 Tax Election Status
This refers to how your business is treated for federal tax purposes by the IRS. You select or elect this separately from your state filing (usually by submitting a specific IRS form).
Common IRS tax classifications:
- Disregarded entity (for single-member LLCs)
- Partnership (for multi-member LLCs)
- C Corporation (default for corporations)
- S Corporation (requires IRS Form 2553 election)
Determines:
- How profits are taxed
- How owners are paid and taxed
- Whether there’s double taxation (C Corp) or pass-through
- taxation (S Corp, partnership)
Want to set up an LLC on your own? Here are the steps!
Step 1. Go to the Montana Secretary of State’s website
- https://biz.sosmt.gov/forms/business
Step 2. Choose a Name for Your LLC
-
Must be unique and include “Limited Liability Company,” “LLC” or “L.L.C.”
- Check name availability with the Montana Business Search
Step 3. Appoint a Registered Agent
- The agent must be a Montana resident or business authorized to do business in Montana
- Responsible for receiving legal documents on behalf of the LLC
Step 4. File Articles of Organization
✔ LLC Name and Address
✔ Registered Agent Name and Address
✔ Whether the LLC is Member-Managed or Manager-Managed
✔ Organizer’s Name and Contact Information
Step 5. Create an Operating Agreement (Optional but Recommended)
- Not filed with the state, but legally important for:
- Defining member roles
- Ownership percentages
- Voting rights and decision-making
- Handling profits, losses, and disputes
Step 6. Obtain an EIN from the IRS
- Required for:
- Opening a business bank account
- Hiring employees
- Filing federal taxes
- Apply online at irs.gov (free)
Step 7. Register for State Taxes (If Applicable)
- Required if:
- Hiring employees (Unemployment Insurance & Withholding Tax)
- Selling goods subject to sales tax (not common in Montana, but required for some specialty industries)
Step 8. File Annual Reports
- Due by April 15 each year
- Filed online at Montana SOS Business Portal
- Pay Annual Filing Fee




