The most common business model for doing business in America in general and Montana, in particular, is the LLC format for companies. This method is convenient for many reasons, but first of all, this format of doing business can save the members’ and owners’ personal finances, thereby reducing risks. For your company to work as smoothly as possible without legal problems, you should consider drawing up an operating agreement template for an LLC.
LLC Operating Agreement is not a mandatory paper for the registration of LLC, but the preparation of such an agreement is highly recommended. First, the LLC Operating Agreement contains a lot of useful information about your LLC, each member’s duties, conducting meetings, and the decision-making process, financial or organizational. The document also relieves members of the LLC some responsibility for the financial losses of the LLC. Each LLC member and the owner must have a signed and notarized copy of the document. Having done so, if the company suffers losses, the personal finances of the members will not be affected. Moreover, if the LLC is declared bankrupt, the LLC members and owners will not be considered bankrupt.
It is important to remember that before signing the Operating Agreement, all members of the LLC must carefully read the document. Their signatures are an indication that they agree with all the points in the paper and are ready to fulfill their duties. If any of the paper’s wording or concepts raises doubts, it is advisable to seek professional legal advice. This will help to avoid possible troubles in the future.
There are two types of operating agreements in Montana. You can complete an operating agreement for a single-member LLC or one for a multi-member or owner LLC. Below, let us take a closer look at each type of document.
An operating agreement for a single-member LLC is drawn up if the company has only one owner. Moreover, both a legal entity and an individual can be considered the owner of the company. Such a paper is drawn up to indicate all investments of a member or owner in the company. Even if the sole proprietor’s business fails and goes bankrupt, with the operating agreement, the member’s finances will be safe.
The second type of paper is for an LLC with several members. Such a document will bring even more business benefits than an agreement for a single-member LLC. In addition to protecting each of the LLC members’ personal finances, it clarifies organizational issues. For example, in the document, you can prescribe the process of accepting or excluding LLC members and other management issues. Do not forget that each of the LLC members must have their copy of the document, and it is better to notarize it.
Registering an LLC and creating an operating agreement may seem difficult. However, it is simple, and the process is almost the same in different states. The most important difference is state laws and fees. Therefore, we recommend that you carefully approach the issue of studying the laws. Below you will find information about the laws of the State of Montana that govern the LLC.
Please read the laws of your state carefully before setting up an LLC. For your business to succeed, you must strictly follow the regulations and try to avoid legal problems.
In Montana, LLCs are regulated by state law, namely the LLC Title 35, Chapter 8. Regarding the drafting of the operating agreement, you should consult § 35-8-109. In this paragraph, you will find all the information about the requirements in the paper and its legal force.
As we have already said, terms and concepts are a critical point in the conduct of any financial and legal affairs. You can consult the complete list of definitions (§ 35-8-102 (23)), and below are a few basic terms. We will define each of the terms.
We have put together a detailed guide for registering an LLC in Montana. Each step in this guide is explained in detail.
1. Choose a Name For Your Company
Even before registering an LLC and creating an LLC, you need to choose its name. for your company. It is essential to meet several requirements so that you can register an LLC and start your business.
To get started, make sure that your LLC name does not contain obscene language, offensive words, or other inappropriate signs or abbreviations. Also, words such as “city” or “village” should be excluded from the LLC’s name.
If you meet all of the above requirements, check if the title is available. Perhaps, under the name you like, some registered LLC is operating. It is worth noting that you cannot choose the same names for the LLC or very similar ones. That is, you cannot replace one letter in an existing name.
Remember, after registering an LLC, you will need to renew your LLC name registration annually.
2. Draw up an Operating Agreement
As we said before, drafting an operating agreement for a limited liability corporation is not mandatory for registering an LLC. Nevertheless, we still advise you to protect yourself and the rest of the LLC members by drawing up this document. You can do this online or manually.
If you decide to create a paper online, use our form-building software. This will help you to significantly reduce the time of paper creation and avoid mistakes.
3. Receive an Employer Identification Number
The Employer Identification Number or EIN allows you to hire, pay, and report income taxes. You can obtain an Employer Identification Number from the Tax Service. The main thing is to do this well in advance so that you have the opportunity to get started as soon as possible.
4. Appoint a Registered Agent
A registered agent is a person who is authorized to receive letters and official papers on behalf of an LLC. It is the responsibility of the registered agent to provide information to the rest of the LLC members.
As a registered agent, you can designate a member of an LLC, an outside employee, or a registered company.
5. Submit your Application
Today in Montana, you can apply for LLC registration exclusively online. To do this, you need to select the type of application.
You can submit either an application for registration of a domestic LLC or an application to register a foreign LLC.
6. Pay the Fee
When submitting your application, you need to attach a receipt for the payment of the fee. In Montana, you will need to pay $70 to apply for LLC registration. However, you can speed up the LLC registration process by paying an additional fee. If you want your LLC to be registered in a day, you will need to pay an additional $20. If the case is urgent and you want the LLC to register in an hour, pay an additional $100.