Step One: Determine Your Business Structure
It is most likely best to form a LLC, limited liability corporation to provide the most shielding from personal assets when dealing with potential rental properties.
structures for more information.
Step Two: File Organizational Documents
- An Application for Registration of an Assumed Business Name. File this form with the Secretary of State if you plan to start a sole proprietorship, general partnership, or association. Once approval is given, your business name will be registered with the state for five years.
- A Certificate of Limited Partnership. Both domestic and foreign limited partnerships must file in order to do business in Montana.
- Registration of Limited Liability Partnership.
of Incorporation. These are required of corporations or individuals who wish to do business in Montana through a corporation. Nonprofit corporations must also file Articles of Incorporation.
- Articles of Organization. File these with the Secretary of State’s Office if you want to form a limited liability company.
Step Three: Apply for Tax ID Numbers
The Internal Revenue Service requires every business who hires employees, or is a partnership or corporation have a federal tax identification number.
- Application for Employer Identification Number requires identification of responsible party;
- Use of Nominees in the EIN Application Process
- Nominees can no longer be listed in the application process.
Step Four: Apply for Local Licenses
Step five: Create an Operating Agreement
What is an Operating Agreement? An operating agreement is a legal document outlining the ownership and operating procedures of your LLC. This agreement allows you to form financial/working relationships with co-owners into an established system suitable to your business. It is not required to form an LLC in Montana, but is good practice to have one. We provide a free sample operating agreement however we recommend getting one professional drafted by a lawyer, especially if you are starting a multi-member LLC. [source]
Step Six: File an Annual Report
If you have a corporation or limited liability company, you must file an Annual Report to stay in good standing with the Secretary of State’s Office. The report is due each year by April 15 and must be accompanied by a $15 filing fee.
Complete PDF and Mail to:
Secretary of State
P.O. Box 202801
Helena, MT 59620-2801