How to Create an LLC in Montana

Business owners may choose to create a limited liability company in Montana to protect their personal assets from business losses and liabilities. Creating an LLC in Montana allows the members of the company to pass their share of company profits and losses directly to their personal income tax returns. An LLC can be created in Montana by filing formation documents with the Montana secretary of state. The state of Montana allows corporations, other LLCs, partnerships, foreign entities and individuals to act as members of an LLC.

• 1

  Confirm business name availability in the state of Montana. Log in to the Montana secretary of state website or contact the Montana secretary of state at 406-444-3665 to confirm the availability of the LLC's business name. Businesses that are registered with the Montana secretary of state are forbidden from sharing a company name that appears too similar. Include the words "limited liability company" or the appropriate abbreviation in the legal name of the Montana LLC.

• 2

  Obtain fill-in-the-blank articles of organization from the Montana secretary of state. Print the articles of organization from the Montana secretary of state website or call 406-444-3665 to have forms sent to you by mail. If you're in Helena, you can pick up articles of organization in person at the Montana secretary of state's office in the State Capitol, Room 260, at 1301 Sixth Ave.

• 3

  Complete the articles of organization, providing information including the legal name and principal address of the LLC. State whether the Montana LLC will be managed by nonmembers or members of the company. Determine the length of time that the LLC will exist. Supply a dissolution date or indicate that the LLC will have an unlimited life. List the name and address of each person or business that is responsible for organizing and filing the LLC's formation documents. Supply the name and address of a person or a business that will accept the LLC's legal and tax documents. Include the signature of a member, manager or authorized representative of the LLC.

• 4

  Pay the applicable fee to file the Montana articles of organization. In 2010, the cost was $70 to file articles of organization with the Montana secretary of state. The filing fee may be paid by debit or credit card, money order, or by check. Provide payment in cash only when filing articles of organization in person at the Montana secretary of state's office.

• 5

  Write an operating agreement to establish rules and procedures for running the LLC. The state of Montana does not provide specific guidelines for creating an operating agreement, which allows a Montana LLC to tailor its operating agreement to the specific needs of the company. Include provisions such how company profits will be divided and the process for adding new members. Maintain the company's operating agreement at the LLC's main business location.