HOW TO FORM A MONTANA FOREIGN LLC ONLINE
What is a Montana Foreign LLC?
In the United States, just because you are registered to do business in one state does not mean that you can legally do business in another state.
If you want to transact any serious business in a state other than the state in which your LLC is registered, most likely you will
have to register with the state in which you want to do business before you can legally conduct business there.
For example, a LLC that is registered in California wants to do business in Montana.
The California LLC is a "Domestic" LLC in California and will be a "Foreign" LLC in Montana.
The California LLC needs to register with the Montana Secretary of State as a Montana Foreign LLC.
The use of the term Foreign in this case refers specifically to individual US states.
The US government, including the IRS, considers a Foreign company to be a company that is registered outside
of the United States.
What is Montana Foreign LLC Foreign Qualification?
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You want to do business in the state of Montana but are registered as a LLC in another state.
In order to legally conduct business in the state of Montana you must register with the Montana Secretary of State as
a
Foreign LLC.
The process of registering as a Foreign LLC in Montana is called
Montana LLC Foreign Qualification.
The process of Montana LLC Foreign Qualification is similar to the process of forming a Domestic LLC in Montana.
Your original home LLC formation documents (frequently called Articles of Organization) and By Laws apply to your Montana Foreign LLC.
The Officers and Directors of your home LLC will have the same roles in the Montana Foreign LLC.
Specific requirements to qualify as a Foreign LLC in Montana are explained below.
Once you have made the decision to Qualify as a Foreign LLC in Montana,
a Montana lawyer can file your documents and act as a middle man for a few hundred dollars an hour;
or you can use an online service provider like All Business Documents to perform these services.
Put the money you save with All Business Documents right where it belongs: into your new Montana Foreign LLC.
Do I need a lawyer to Form a Foreign LLC in Montana?
explain
The short answer is no.
The state of Montana does not legally require a lawyer to form a
Montana Foreign LLC.
Our detailed
Foreign Qualification page may help you understand some
of the implications of forming a
Montana Foreign LLC.
However, if there is
anything about forming a Foreign LLC in Montana
that you're not sure about you should seek the advice of a competent Montana lawyer, a Montana accountant,
or both
before you form a Foreign LLC in Montana.
Once you have made the decision to form a Foreign LLC in Montana, a Montana lawyer
can file your documents and act as a middle man for a few hundred dollars an hour; or you can use an online service provider like All Business Documents
to perform these services and
save money that you can use in your new Montana Foreign LLC.
Do I have to Reserve a Company Name before I Form a Foreign LLC in MT?
explain
You are not legally required to reserve a Company Name for a new Montana LLC Corporation before you submit your application to Form a Foreign LLC
in Montana.
The LLC name that you have registered in your home state may or may not be available in Montana.
In that case you need a different name your Montana Foreign LLC.
Whether or not you need to reserve a company name for your new Montana Foreign LLC depends entirely on your business situation.
The Montana Secretary of State uses LLC names on a first come first served basis.
So if you think that someone may snatch the Company Name that you have in mind, you may want to reserve that Montana Foreign LLC Name.
What if the Montana Foreign LLC Name I want is already taken?
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If the Name you have chosen for your new Montana Foreign LLC is already in use by a currently active
Montana Corporation or LLC then you will have to register a DBA Name with the Montana Secretary of State. "DBA" is an abbreviation for "Doing Business As."
We verify that the Name you have chose for your new Montana Foreign LLC is available before we submit
your Foreign LLC filing to the Montana Secretary of State.
If necessary we can register a DBA Name in Montana for you so that you can open your new Montana business as quickly as possible.
What do I have to do to Form a Foreign LLC in Montana?
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- Choose a name for your Montana Foreign LLC
- File Registration Documents with the Montana Secretary of State
- Determine how you want your Montana Foreign LLC to be taxed
- Choose a name for your Montana Foreign LLC
You can use the same name in Montana that you use in your home state, however, if the name of your Domestic LLC is not available you need to choose another name.
Your Montana Foreign LLC name can identify the type of products and services your business will provide;
or it may be the name of the founder; or it can be a combination of the two or something else.
In any case, the Montana Foreign LLC name that you choose must be distinguishable from the name of any other registered Montana LLC or other
business entity and the name must also be different from any reserved names on record with the state of Montana.
Your Montana Foreign LLC name must not imply that it was formed for a purpose other than that stated in the
Articles of Organization for your Domestic LLC and your Montana Foreign LLC name must not be a name that is likely to mislead the public.
The name of a Montana Foreign LLC must include the word "Limited Liability Company" or
or the abbreviation "LLC" or "L.L.C.".
It's important to choose a good name for your Montana Foreign LLC because if you want to change it after you qualify you
will have to file amended documents with the Montana Secretary of State (and pay a fee).
We will check to make sure that your requested Montana Foreign LLC name is available and conforms to all state of Montana
Limited Liability Company naming regulations.
- File Registration Documents with the Montana Secretary of State
In order to Qualify as a Foreign LLC in Montana you must file Registration Documents with the Montana Secretary of State.
In Montana the registration documents are named "Certificate of Authority of Foreign Limited Liability Company Application".
The registration documents must include certain specific information about your Montana business.
If the LLC Registration Documents do not conform exactly to state of Montana Foreign LLC requirements they will be rejected. 
If you need to change any of the information on your registration documents after your Montana Foreign LLC has been approved,
you may amend the registration documents for your Montana Foreign LLC but you will have to pay a fee to the state of Montana in order to make the changes official.
- Determine how you want your Montana Foreign LLC to be taxed
The Montana Corporate Income Tax Rate is 6.75%.
You may choose that your Montana Foreign LLC is to be taxed as a C Corporation or S Corporation.
A C Corporation is what you may think of as a traditional Corporation like General Electric or Ford.
C Corporations pay a Corporate income tax to the state if that state taxes Corporations.
You may choose to have your Montana Foreign LLC taxed as a S Corporation.
S Corporations "pass through" all corporate profits to the shareholders (owners) who then pay tax at their applicable personal rate.
S Corporations do not pay any Montana Corporate Income Tax.
Corporation Income Tax in the state of Montana is referred to as the Corporation License Tax.Â
The Montana Corporation License Tax is a franchise tax levied on corporations for the privilege of doing business in the state of Montana.Â
The Montana Corporation License Tax rate is 6.75% and is calculated on net income earned in Montana.
Corporations whose only activity in Montana consists of making sales, and do not own or rent real estate or tangible personal property, and whose annual gross volume of sales made in Montana does not exceed $100,000, may elect to pay a tax of 1/2 of 1% of gross sales.
The minimum Montana Corporation License Tax is $50.
However, if a Montana corporation has no property, payroll, or sales in Montana during the tax period, it is excluded from the minimum payment.Â
All Montana corporations must file a tax return even if they are excluded from the minimum payment.
If you form a Single Member Montana Foreign LLC and do not specify to the IRS how you want to be taxed your Single Member Montana Foreign LLC
will be taxed as a Sole Proprietorship.
If you form a Multiple Member Montana Foreign LLC and do not specify to the IRS how you want to be taxed your Multiple Member Montana Foreign LLC
will be taxed as a Partnership.
Click here for more Montana Corporate Tax Information .
If you choose to be taxed as an S Corporation, we can prepare the S Corporation election form for your Montana Foreign LLC and include it with
your final Foreign LLC documents.
What do I have to do to after I Form a Montana Foreign LLC?
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- Obtain Business Licenses from the cities and counties in which you plan to do business
- File the required reports for your Montana Foreign LLC
- Keep proper records of your Montana Foreign LLC on file
- Pay your taxes to the state of Montana
- Obtain Business Licenses from the cities and counties in which you plan to do business
Note that forming a Montana Foreign LLC doesn't take the place of obtaining a local business license, tax
registration certificate, or other required business permits.
A Montana Foreign LLC merely creates an ownership structure that limits the owners' personal liability.
You may still need to take care of getting set up to do business with your local government.
Depending on the nature of the business and the location of your Montana Foreign LLC within Montana you may need to get one or more local
business licenses or permits.
The business licenses or permits that are required for your Montana Foreign LLC vary depending on your business activities
and the specific locations within the state of Montana in which you want to conduct business.
If your Montana Foreign LLC will be selling products in Montana you may be required to obtain a Reseller's Permit from the appropriate
Montana state agency.
If your Montana Foreign LLC will be selling products in Montana you will also be responsible for all applicable local and state of Montana
sales taxes if there are any.
We have the expertise to find out exactly which state and local permits that you need for your specific business.
- File the required reports for your Montana Foreign LLC
The Montana Annual Report includes basic information about your Montana Foreign LLC including information on your business location as well as the names of the Officers and Directors.
Failure to submit a properly completed Montana Annual Report to the Montana Secretary of State on or before the
due date may subject the Montana Foreign LLC to being administratively dissolved in the state of Montana or having its authority to
transact business in the state of Montana revoked by the Montana Secretary of State.
Penalties may accrue if you fail to file any Montana Foreign LLC Annual Report to the Montana Secretary of State by the due date.
- Keep proper records of your Montana Foreign LLC on file
Keep the following records on file and available at the principal business office of your Montana Foreign LLC:
- Names and addresses of all Members and Managers of the Montana Foreign LLC
- Foreign LLC formation documents and any Amendments to them
- Montana Foreign LLC Operating Agreement and any Amendments to them
- Copies of any LLC Resolutions which have been adopted by the Montana Foreign LLC
- Copies of all tax returns and Annual Reports for the Montana Foreign LLC for the last 3 years
- Pay your taxes to the state of Montana
Foreign LLCs that either do business in the state of Montana or that derive income from sources within the state of Montana are subject
to Montana and federal tax laws.
If you are engaged in intrastate business and derive income from other states besides Montana, you must allocate the amount of income derived
from the state of Montana in order to determine your Montana state taxes.
What information do I need in order to Form a Foreign LLC in Montana?
explain
In order to Form a Foreign LLC in Montana you'll need the following information about your LLC:
- The name of your new Montana Foreign LLC along with your second choice of a name in case the name that you want is not available
- Physical address of the Foreign LLC office in Montana (not a PO Box)
- A description of the nature of the business you are planning to operate with the Montana Foreign LLC
- Whether the Montana Foreign LLC will be managed by LLC Members or Managers
- When the Montana Foreign LLC will start and when it will cease to exist (normally the Foreign LLC starts on the date the application is filed and will exist perpetually)
Remember -
ALL the information that you provide when you Form a Foreign LLC in Montana becomes part of the public record.
Our data entry forms include the
absolute minimum amount of information that is required in order to Form a new Foreign LLC in Montana.
How long does it take to Form a Foreign LLC in Montana?
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Processing times for new Montana Foreign LLC applications vary depending on the work load of the
Secretary of State's staff.
We've found that normal processing of new Montana Foreign LLC applications takes the state around 10-12 business days.
Add 2-3 days for the time period for shipping the final documents by mail.
Choosing our Express Mail option can shave a couple of days off the total processing time for your new Montana Foreign LLC.
PLEASE NOTE: WE CANNOT GUARANTEE MONTANA SECRETARY OF STATE PROCESSING TIMES.
The Montana Secretary of State reserves the right to extend expedite periods in time of extreme volume, staff shortage or
equipment malfunction.
We are dependent on, and have no control over, the staff and systems of the Montana Secretary of State.
In our experience 10-12 business days is the time it
usually takes the Montana Secretary of State to process
a new Montana Foreign LLC application.
We get your Montana Foreign LLC application to the MT Secretary of State ASAP.
Once it is at the state we have no control over the new Montana Foreign LLC application process.
How much does it cost to Form a Foreign LLC in Montana?
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The state of Montana charges $80.00 to Form a Foreign LLC in MT.
If you choose All Business Documents to help you Form your Foreign LLC in Montana our processing fees are $145.00.
This includes:
- Same day processing in of your new Montana Foreign LLC order
- MT Name Check and Reservation
- Prepare Certificate of Authority of Foreign Limited Liability Company Application
- File Formation Documents with the Montana Secretary of State
- Certified Copies of Formation Documents
- Montana Foreign LLC Checklist
- Priority Mail Delivery
- Unlimited Customer Support
MONTANA FOREIGN QUALIFICATION COST ESTIMATOR
Our MT Foreign Qualfication Services include:
(These services are included in our processing fees)
Optional Montana Foreign Qualification Services
(Choose options, cost is updated automatically)
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Expedited Service
explain
Normal processing time for a new Montana Foreign LLC is 10-12 business days.
The Montana Secretary of State offers two expedited processing options for new Montana LLC filings. For an additional $20 the Secretary of State will process your new Montana LLC filing within 24 hours. For $100 the Secretary of State will process your new Montana LLC filing within one hour.
This is the time by which the Montana Secretary of State will either approve or deny the Foreign LLC application.
Montana Foreign LLC applications must be received by the Secretary of State before noon Montana time for the process to start that day.
Another way to expedite your order is to choose the Express Mail option.
The Express Mail option can cut document delivery times in half.
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- Express Mail - $35
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If you really need your original approved Certificate of Authority of Foreign Limited Liability Company Application in your hands quickly, the
Express Mail option can cut the delivery time in half.
The Express Mail option has no effect on the Montana Secretary of State's processing time. For the quickest turn-around time also choose the Expedited Service option.
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S Corporation Election - $50
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S Corporations are taxed differently than C Corporations.
With an S Corporation, business profits may be "passed through" directly to the shareholders.
This avoids the double tax on both corporate and shareholder profits.
S Corporations do not pay any Montana Corporate Income Tax.
We can prepare the S Corporation Election form for you and include it with your final Foreign LLC documents pakage.
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MT Registered Agent - $135
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Every Montana Foreign LLC is required to have an address within the state of Montana where
official and legal correspondence can be delivered.
The individual or company that is registered with the state of Montana to receive all correspondence
on behalf of the Foreign LLC is called a Registered Agent.
You may act as your own Registered Agent, however, many Foreign LLCs hire a Registered Agent because they don't have a physical address within
Montana or to provide a distinct level of privacy.
We can act as your Montana Foreign LLC Registered Agent.
This is an annual service.
We will forward all correspondence to you and will remind you when it is time to renew your MT Registered Agent services.
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MT Good Standing Certificate - $38
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A Montana Good Standing Certficate is proof of the existence of your new Montana Foreign LLC.
The Certificate is issued by the Montana Secretary of State and is proof that your MT Foreign LLC is not behind on any
of its Montana Secretary of State Corporate obligations.
A Montana Good Standing Certificate is often required for loans, to apply for business licenses, or for tax or other business purposes
in the state of Montana or in any other state.
We can get your Montana Good Standing Certificate immediately after the Montana Secretary of State has approved your Foreign LLC filing.
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Federal EIN - $65
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An FEIN is like a Social Security Number for your Montana Foreign LLC.
We can get your FEIN on the same day that your Certificate of Authority of Foreign Limited Liability Company Application are approved by the Montana Secretary of State.
You can get your FEIN before your articles are approved by the Montana Secretary of State but it's a good idea to wait until
after approval.
Your filing may be rejected or the Foreign LLC name that you want may not be approved.
Changing information on an FEIN filing is not a trivial exercise with the IRS.
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Foreign LLC Kit and Seal - $99
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While you're not required to have a Foreign LLC Kit and Seal for your new Montana Foreign LLC they do come in handy.
The MT Foreign LLC Kit consists of a beautiful customized binder, stock certificates, a stock ledger
and your custom Foreign LLC Seal.
The Foreign LLC Seal is used to emboss important company documents, such as stock certificates.
The binder also includes dividers so you can use it for all of your Montana Foreign LLC record keeping.
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Business License Research - $175
explain
Most new Montana Foreign LLCs are required to get some kind of state, regional or local permits or business licenses.
The task to figure out exactly what you need can be daunting.
We can determine exactly which forms you need to fill out, fill them out for you and file the forms with the appropriate government agency
where possible.