25 Sep What You Need to Know About the Operating Agreement for a Montana LLC
You might already have a Montana LLC or you want to create one, but you might not have been advised on whether or not you should also file an operating agreement. This document, while not mandatory, helps protect you, so completing it is a must. Below you can learn more about what an operating agreement is, why you need one, what it includes, the process for submission, and how a Montana LLC registered agent can help you.
What Is the Operating Agreement for a Montana LLC?
The operating agreement for a Montana LLC is a formal document which allows you to structure your limited liability corporation the best way for your business. Creating a Montana LLC requires filing Articles of Incorporation with the state. The operating agreement is an additional document that you provide the state to let them know exactly how you will be operating your business.
Why Does Someone Need One?
Montana does not require you to have an operating agreement when you form an LLC; however, even as the sole owner of the company, it’s in your best interest to file an operating agreement when you create your LLC. Although other reasons exist for creating an operating agreement, the most important reason a person needs one is to guard the limited liability status of your LLC. An operating agreement is even more crucial with a sole owner because it differentiates your LLC from a sole proprietorship. Limited liability protects your personal assets from lawsuits if you were to cause damage or bodily injury with any vehicles or equipment owned by your LLC.
What Does the Operating Agreement Include?
Your operating agreement for your Montana LLC requires you to include a variety of items, many of which depend on your individual needs and circumstances. The most common items included in an operating agreement include:
- Percentage interests for each member of the LLC
- Rights and responsibilities of each member of the LLC
- Voting powers of each member
- Allocation of profits and losses
- Management structure of the LLC
- Rules about meetings, voting, buyouts, member death, disability, or desire to sell interest
How to Obtain the Operating Agreement
An operating agreement for a Montana LLC is a drafted document which you can file with the state when you create your LLC by filing your Articles of Incorporation with the State. You will find several templates online, but it’s in your best interest to let a registered agent help you complete all the necessary paperwork.
Submitting the Operating Agreement for a Montana LLC
If you choose to create your Montana LLC on your own, you can begin by visiting the Montana Secretary of State’s Online Business Filing System. Here you will create an account, go through on online application process to create your LLC, and upload any relevant documents, including your operating agreement.
How a Montana LLC Registered Agent Can Help
Under Montana law, each LLC must have a designated agent for service of process in the state. This is a person or business who will accept all legal documents on behalf of the LLC if it is sued. The same applies to those who apply for a Montana LLC from out-of-state, who must also apply with the Secretary of State to do business. When you employ the services of a Montana LLC registered agent, they can help you obtain, complete, and submit forms to create your LLC with the accompanying operating agreement. A registered agent also saves you time and ensures you don’t make any mistakes when filling out forms.
Contact Us for a Montana LLC
When you create a Montana LLC, you can utilize the perks that come with your business, but the best way to protect your limited liability status is by also filing an operating agreement with your LLC. Our team of Montana LLC experts lives in Montana and is intimately familiar with the LLC process and operating agreements, unlike some online agents who use subcontractors from other parts of the world. Contact us today for quick personalized attention to help you set up your Montana LLC and its operating agreement.