Filing a Montana Corporation
When exploring which corporate structure to choose, many new owners are intrigued by a Montana Corporation. A Corporation not only offers tax benefits to owners, but it also allows them to gain instant credibility with customers and clients. However, those looking to form a company will need to ensure that they are diligent when doing so, as there are many steps involved with the administrative process.
Steps When Filing
Choose A Name
The first thing that potential owners will want to do is choose a name for their Montana Corporation. The state of Montana requires companies to include an indicator in their name. Business owners will want to add something like “Corporation,” “Incorporated,” “Company,” “Limited,” or a similar abbreviation to their name, such as “Inc.” Additionally, the state of Montana requires the name of each business to be unique, meaning that no two entities can share the same name. To prevent this from happening, owners can use the DoMyLLC Name Availability Check Page
Choose An Agent For Service Of Process
After choosing a name, new owners will then need to hire a registered agent. The registered agent can play an integral role in the business, as they are responsible for accepting all legal correspondence on the company’s behalf. Because the registered agent position is so critical, many owners choose to hire a professional third-party company, such as DoMyLLC.
File Articles Of Incorporation & Pay Filing Fees
Once owners have chosen a name and registered agent, they can file Articles of Incorporation with the Montana Secretary of State. There is a $70 fee to do so, in addition to optional expedite fees that range between $20 and $100. Information that owners need to provide includes:
- The Corporation type and whether the organization will operate with directors
- The name of the company
- Whether the Corporation will provide public benefits
- Name and address of the registered agent
- Number of shares of Capital Stock the Corporation will issue
- Name and mailing address of each incorporator
- Signature of incorporator
- Contact information
File Initial Report
A Montana Corporation does not need to file an Initial Report. However, if the organization were to expand, it may need to do so in other states.
Create Corporate Bylaws, Appoint Directors And Hold Meetings
After filing the Articles of Incorporation, members of the Montana Corporation should hold their initial corporate meeting. In attendance at this meeting should be the directors who were listed on Articles of Incorporation. These directors will serve in this capacity on the board until the next annual meeting of shareholders, where directors are up for re-election.
If incorporators chose not to list directors on the Articles of Incorporation, they then are responsible for completing the board’s duties. Duties include drafting corporate bylaws, appointing directors, defining roles of officers, and electing officers. Bylaws are private and serve as an internal operating manual. They are a matter of corporate compliance, as a Corporation cannot exist or operate until the board has adopted bylaws. Additionally, many banks and insurers wish to see proof of bylaws before entering into business with a Corporation.
While at the initial corporate meeting, directors of the Corporation should also issue stock. The board is responsible for approving all stock issuance throughout the life cycle of the Corporation. The board should begin to maintain a stock ledger as well, as this will provide clarity to potential investors and protect the corporate veil.
Obtain Employer Identification Number
The company will also want to contact the IRS to obtain an Employer Identification Number. This number allows the entity to open a business bank account. It is also needed to file taxes and hire new employees.
File Montana Required Annual Reports
Each year, the Montana Corporation will need to file an Annual Report. This report is due by April 15 each year. There is a $20 fee to register the document. Members of the Corporation can learn more by visiting the Montana Annual Report page.
There are other annual requirements in addition to the Annual Report. Business owners will need to make sure they file state and federal taxes and renews all licenses and permits each year.
How DoMyLLC Can Assist With Streamlining The Process
At DoMyLLC, we understand how overwhelming the administrative process can be when forming a Montana Corporation. That’s why we streamline the process, making it easy for you. Our services include:
- Name availability check
- Prepare Articles of Incorporation
- File Articles of Incorporation with the Secretary of Montana’s office
- Provide sample bylaws, meeting notices and minutes for meetings
- Dedicated account manager
- Unlimited customer support
By allowing us to handle your administrative needs, you can focus on growing your company. Be sure to contact us today to learn more.