In this Article, we will give you a snapshot of the legal compliance requirement and associated fees required to register Limited Liability Company (LLC) in Montana and most importantly, maintain the status of an LLC, especially as a small business e-commerce start up.
In the United States, LLCs are registered on the state level, therefore you can register an LLC in any of the 50 States in the United States, including Washington DC.
You can check out our the best states in the US to register your LLC as a small business e-commerce start-up, if you want to pay less State fees, less State imposed taxes and do less periodic paperwork in order to maintain your LLC.
In this Article, our focus is on Montana LLC. What cost should you expect to pay when you register an Montana LLC? What periodic filings requirements are imposed on Montana LLCs? What State taxes are levied on e-commerce small business start ups in Montana and what are the tax rates? What business permits are required to be obtained by e-commerce businesses in Montana, what’s the cost of these permits and are there any renewal requirements?
This Article presents you a snapshot, so you know what fees and legal compliance requirements to expect if you want to register an LLC for your e-commerce small business start up in Montana, operate with the required licenses and maintain your LLC status.
Business registration and compliance on Montana
LLC Registration cost; the state fee for registering an LLC in Montana is $35. You can register your LLC with Bizee for a service charge of $0 + the State fee.
LLC registration Publishing requirement; No, LLCs in Montana are not required to publish their registration in a local newspaper.
Has the Option to register as an Anonymous LLC; No, LLCs in Montana do not have the option to register as an anonymous LLC. Meaning that the business details of the LLC Owners are published on the Montana public records. The LLC can still maintain some privacy by using a virtual office address and not the Owners real addresses.
DBA requirement; DBA is required if your LLC is operating under a different name than your LLC registered name. In Montana DBA is referred to as a “Assumed business name”. Cost of registration is $20, the length of approval is 5 years. You can register for a DBA in Montana online or outsource the registration of your Montana DBA (if needed) to Bizee.
Annual report filing requirement; yes, Montana LLCs have annual report filing requirements. The cost of filing annual report in Montana is $20
You can file the Montana annual returns yourself, you’ll need to visit the Montana ePass or you can outsource the filling of your annual returns to Bizee for a $99 service charge + the state fee.
Annual Franchise tax filing and compliance in Montana
State Franchise tax requirement; No, LLCs are not required to pay Franchise tax in Montana.
Annual State income tax filing and compliance in Montana
State income tax requirement; Montana has a graduated individual income tax, with rates ranging from 1.00 percent to 6.75 percent. Montana has a 6.75 percent corporate income tax rate.
- Who files State income tax; LLCs by default are passed through entities meaning that tax obligation passes through to the individuals who own the LLC. Therefore an LLC with a default tax status pays the individual state income tax. Interestingly, if the individuals behind the LLC are not resident in the state and do not have state source income (a dependent agent in the state), then they are not required to pay “individual State income tax”.
If the LLC owners are resident in the State or have State source income (a dependent agent in the state), then the LLC Owners are required to pay “individual State income tax”.
If the LLC has elected to be taxed as a corporation (C-corp), then the LLC is required to pay “Corporate State income tax”.
- How to file state income tax; You can file your Montana State income tax by yourself. You will need to visit the State website. Alternatively, we recommend using the Service of a Certified Public Accountant (CPA), through H&R Block to file your state income tax.
Periodic Sales tax filing and compliance in Alabama
Sales tax requirement; Montana does not have a state sales tax and does not levy local sales taxes.
Sales tax permit; there is no sales tax permit registration requirement in Montana because there is no sales tax levied in Montana.
Reseller/Resale Certificate; Businesses who purchase products from their suppliers for the purpose of reselling those products to their customers can make sales tax free purchases from their suppliers if they have a resale certificate.
This means that Resale businesses can get cheaper product prices from their suppliers (that is product prices without sales tax included) which can help these Businesses have a higher profit margin and/or maintain competitive selling prices to their Customers.
Generally, suppliers will charge the sales tax rate applicable in the State where the product is to be delivered unless the business presents to the supplier a Resale Certificate (also called a Reseller Certificate).
The Resale certificate must be valid and acceptable in the state where the product is to be delivered.
Montana doesn’t have a state sales tax, or similar. Therefore, a Resale certificate is not applicable.
Montana resale businesses who want to use the MTC Uniform Sales & Use Tax Resale Certificate or SST Certificate of Exemption form to claim resale exemption in other States, can use the Montana Federal Employment Identification Number (FEIN) as Seller’s ID when indicating others States as resale States (except for states that do not accept out-of-state seller ID). For States that do not accept out-of-state seller IDs, the Business must register for seller IDs specifically in those states and indicate those state issued seller IDs on the MCT or SST forms.
Conclusion
This Article shows you a snapshot of the legal fillings and compliance requirements for LLCs that are registered in Montana, specifically for LLCs that want to carry on the business of selling and especially for small e-commerce start up LLCs that are registered in Montana.
If you are wondering what might be the best State in the United States to register your small business (especially if you are a reseller or an e-commerce business), we have written this Article, where we go over our most recommended states for registering a business in the United States, if you want to pay less LLC filling and legal compliance fees, if you want less state imposed taxes and if you want to do less periodic legal paperwork required to maintain your LLC status.
