Benefits of forming an LLC in Montana

You live in Montana and want to form an LLC to run a business or own property. You must make a choice whether to set up an LLC in Montana or move elsewhere, such as Delaware, to import more advantageous legislation to control the internal activities of the LLC. To make an informed selection, it is necessary to learn more about the Montana LLC and its limitations in order to assess if it is appropriate for your firm.

Every year, about 9,000 new LLCs are formed in Montana. There are about 38,000 active LLCs in Montana. Montana is ranked second in terms of export intensity growth, third in terms of export growth, sixth in terms of academic research and development intensity, seventh in terms of per capita income growth, and eighth in terms of business tax climate and long-term job growth by the U.S. Chamber of Commerce.

It is a state that has a growing and stable economy is the state good for the growth of a business? Tax Foundation has ranked the state #6 when it comes to Business Tax Climate and Gallup-Healthways ranks Montana #3 on the list of “Happiest States in the Nation”.

Some of the top companies headquartered in Montana include Benefis Health System, St Patrick Hospital & Health, Washington Corporations, Blackfeet Tribe, First Interstate BancSystem Inc., The Waggoners Trucking, and Murdoch’s Ranch & Home Supply among others.

As one of the top registered agents in the state, we can assist you with registering a new business in Montana so that you can take advantage of all forms of business benefits and state-provided incentives and awards. Let’s take a brief look at why Montana is the best place to start a business:

Tax Incentives

There are a variety of tax incentives that businesses can benefit from in the state. Some of the popular incentives include:

– Energy Conservation Investments Deduction

– Energy Conservation Installation Credit

– Property tax abatement

– New or Expanding Industry Wage Credit

– Infrastructure Users Fee Credit

– Mineral and Coal Exploration Incentive Credit

– Qualified Endowment Credit

– New Market Tax Credits

Limited Liability

One of the most significant benefits of founding a Montana LLC is “personal liability protection.” As the owner of an LLC, you will not be held personally liable for the LLC’s debts. The LLC’s creditors will be unable to seize your personal assets such as your car, property, bank accounts, and so on.

Flow through Taxation

An LLC can benefit from the flow-through taxation mechanism, which eliminates double taxes.

Independent life

When you register a new firm in Montana as a Corporation, it will live on its own. This means that a stockholder’s incapacity or death will not have a detrimental impact on the company’s activities.

Pass through taxation

If you incorporate a new business in Montana as a S corporation, the corporation or firm will not be subject to income tax. Instead, the corporation’s profit or loss will be distributed to the stockholders.

Montana Business Incentive Program

If you establish a new business in Montana, you will be able to take advantage of a number of programs that offer a range of benefits, from tax credits or abatements to loans and funding. Among the most prominent programs that are advantageous to all types of businesses are:

  • New Industrial Property Benefit Program: This program provides firms with a 3% reduction in taxable valuation on new industrial property for the first three years of operation. This reduction is offered to enterprises in the manufacturing, mining, material production, warehousing, transportation, and agricultural sectors, among others.
  • New or Expanded Industry Credit: This is a scheme that will support a Montana start-up firm by providing a credit of 1% of total wages paid to new employees. The credit is available for three years from the date of inception or operation.
  • Empowerment Zone Tax Credit: This is a program that allows qualifying firms located in various empowerment zones to receive a $500 credit on their employees’ income tax liability. This is a tax break that can be applied to both insurance premium tax and income tax.
  • Montana State Small Business Credit Initiative (MT SSBCI) Program: If you plan to form a new LLC in Montana, this program will be highly helpful because it facilitates small business loans and investment. In reality, the program has already generated over a million dollars in private finance for small firms in the state.

There are several other programs available to you once you register a new company in Montana, including Energy Conservation Investments Deduction, Growth Through Agriculture (GTA) Program, Micro-Business Loans, Primary Sector Workforce Training Grant Program, and Research and Development Firms Tax Exemption, among others.