15 Feb Starting A New Business The Right Way With A Montana LLC
If you’re in the market to open up a new business have you thought about starting a Montana LLC or want to know more about it? Aside from its captivating scenery and serenity, Montana is a state with no sales tax. This fact allows you to take advantage of buying moveable property or running a competitive business without tax distractions. It’s ideal if you own a motorhome or want to purchase items like exotic cars, boats, motorbikes and aircraft without paying a state sales tax. Here are deeper reasons to pursue an LLC in the pro-business state of Montana.
Advantages of Montana’s Pro-Business Policies
Montana is consistently ranked by financial experts as one of the top business states in America. Not only are businesses free of paying and collecting sales tax, the state provides incentive programs such as financial assistance for trade show marketing. State loan programs allow you to get fixed-rate financing up to 25 years. Montana is currently experiencing strong business and employment growth with a highly educated workforce. Here are other important reasons why launching a Montana LLC is favorable:
- Montana ranks top five in export growth
- State has an AA+ credit rating
- Among the states with lowest business costs
Top Industries in Montana
Agriculture, travel, tourism, timber and mining are some of the top industries in Montana, which is famous for embracing the great outdoors in its vast open space. The Montana Department of Agriculture proclaims on its website that agriculture is the state’s top industry. Wheat is the state’s top export, which mainly goes to Asia. Corn, cattle and sheep play into the state’s agricultural profile as well. In 2015 agriculture had a $4.6 billion impact on the state economy.
There are wide-open opportunities for organic farmers, as the state ranks #2 in the nation behind California for organic acres. In 2014 there were 147 certified and exempt organic farms in Montana. Organic food has been one of the fastest growing industries in America this century. Other high demand industries in the state include finance, trade, education, health care, manufacturing, construction, transportation, forestry and business services. Mining is the state’s top paying industry in terms of average wages.
If you want to enter the tourism or recreation business, consider that popular activities in Montana include skiing, fishing, rafting and hiking. Catering to camping enthusiasts can bring you plenty of success. Cost of living is low compared with the national average, allowing for maximum profit margins.
Start a New Business and Enjoy the Benefits of a Montana LLC
LLCs are considered to be partnerships unless they are run by single-members, which are referred to as “disregarded entities.” You can also choose to classify your LLC as a corporation, but that means it will have to pay a state corporation license tax. As an LLC, you will have the limited liability protection of a corporation.
Unlike a typical partnership in which profits are evenly split, LLCs allow more flexibility in profit distribution among members. While corporations must formally document minutes, meetings and resolutions, these requirements do not apply to LLCs, making them much easier to manage.
Another major advantage to operating a business as an LLC is that you will avoid double taxation of corporate and individual tax. All business profits, losses and expenses from the company flow to individual members. A Montana LLC can exist forever regardless of who its officers are, a member dies, the other members maintain authority over the LLC and it will remain in good standing.
The process for starting an LLC is not as complex and involves completing an application with the state that includes an LLC operating agreement and other documents with a list of member names and addresses. These documents can be prepared by a Montana registered agent.
Your agent will need to do some homework for you to make sure that your Montana LLC business name does not conflict with any other competing organization names or trademarks.
The registered agent will make sure that your business name meets state standards. Your Montana LLC must file Articles of Organization with the Montana Secretary of State. The turnaround time for approval is 24 hours on priority, unless you choose to expedite the filing, which will take one hour. The state allows you to have a principal office in another state. As an LLC, you are required to file an annual report with the Montana Secretary of State.
Starting a business can be expensive and complex, unless you decide to launch one in the business-friendly state of Montana. LLCs are particularly attractive, especially for businesses outside the state that want to operate an office in Montana. The easy filing and tax advantages can get your business launched much more quickly than in other states. Contact a Montana registered agent to learn more.