What Is Montana Dissolution?
As soon as a business entity has registered with the state, it is responsible for recurring obligations. That is why the state requires companies to dissolve formally if they no longer wish to conduct business in Montana. It makes the state aware that the company will no longer exist and that it will deal with all its obligations.
Why Does A Company Dissolve?
Why do companies need to dissolve? – Montana requires all business entities operating within the state to register through the filing of paperwork. Likewise, it also requires companies to submit paperwork to formalize the closure of the business. This way, your company will no longer have to file reports and pay business taxes and annual fees.
Who makes the decision to dissolve? – The decision to dissolve a Montana LLC relies on its members. Corporations, on the other hand, have to have an approved resolution from the board of directors. This resolution will go through a shareholder vote.
How long does it take to dissolve a business? – The whole process may take weeks. Your company has to start with the resolution and deal with other responsibilities. The time frame will depend on how fast your company finishes each step. As for the state, it usually takes 7-10 days.
What Happens If Your Company Does Not Formally Dissolve?
If you no longer wish to conduct business in Montana, you must dissolve it officially. Failure to do this may result in tax liabilities and penalties, or even legal issues.
Steps To Dissolve Your Business
Make sure you follow every step carefully to ensure that your business in Montana will have proper closure.
1. File Articles of Dissolution with the state – To terminate the operations of an LLC in Montana, the company has to submit a completed Articles of Termination for a Limited Liability Company. A Montana corporation, on the other hand, has to use the Articles of Dissolution for Profit Corporation form. You have to file the form with the Secretary of State by mail, fax, or in person along with the filing fee.
2. Remove all liabilities and obligations – Your company may continue to exist to wind up and liquidate. A member or officer, or a team, may handle the winding up. They can start liquidating the company’s assets and remove liabilities, depending on the order of priorities the law has outlined. After that, they can distribute all remaining assets to members or shareholders.
3. Give notice to any claimants – Check the records of your company to find out if there are existing claimants and creditors. Notify them about the dissolution of the company. You may send a written notice that indicates where and until when they can submit their claims. You may also publish the notice in a newspaper to inform unknown claimants.
4. Tax clearance – Montana LLCs do not need tax clearance to dissolve. Only corporations need it. You can request a tax certificate from the Department of Revenue and submit it to the Secretary of State. The certificate must indicate that your company has paid all taxes due. You can download the application form for the tax clearance certificate through the website of the Secretary of State of the Department of Revenue.
5. Close all bank accounts, credit lines, permits, and licenses – Once you officially closed your business and finished dealing with all its responsibilities, you will no longer be able to use the bank accounts and credit lines under the company name. Thus, you may have to close them. Contact your bank about this process. Additionally, it will also be best for your company to contact agencies and cancel all the permits and licenses with them.
How DoMyLLC can assist with streamlining the process
Closing a business can cause stress. Add to this the process that your company has to go through. However, there is no need for you to deal with everything. You can get personalized solutions from us. We also offer live support from a team of experts. Contact us now and find out how we can make the process of dissolving your Montana company easier.
Montana Dissolution FAQs
The filing fee is $15. If you want to expedite the processing, you can pay an additional $20 for a 1 day service or $100 for a 1 hour service.
LLCs do not need clearance, but corporations have to obtain one.
The normal processing of documents of the Secretary of State takes around 7-10 days. You can decrease the processing time by paying for expedited service. However, corporations will have to wait a couple of weeks before they can file with the Secretary of State. It usually takes business entities weeks to receive their tax clearance certificate.
Business names of LLCs will be available for use immediately upon the dissolution. Meanwhile, the names of corporations will remain safe for 120 days.
Montana Business Resources
Montana Office of Secretary of State
Phone Number:
(334) 242-5324
Address:
Montana Secretary of State
PO Box 202801
Helena, MT 59620-2801