A report by Department of Labor and Industry, Research and Analysis Bureau, revealed that the economy of Montana has been outperforming the national economy in the recent years with the real GDP growing from $28.83 billion in 2000 to $41.85 billion in 2017. This economic stability has attracted incorporation in Montana with the largest sector of Montana’s economy being “outdoor recreation” according to Outdoor Industry Association (OIA). Some of the other important industries that contribute towards the economy of the state include agriculture, Petroleum refineries, Lumber and wood products, and community, business and personal services sector.
Why Choose Montana for Incorporation?
There are several industries or sectors where you can set up company in Montana and this includes “Financial Activities” sector, which has a 17 percent contribution to Montana GDP. The transportation segment also contributes a large share to Montana’s growing economy followed by manufacturing, which has seen a definite rise in new small and medium enterprises being established in this segment.
Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:
- Montana Empowerment Zone Tax Credit: This is a tax credit that you can benefit from post company incorporation in Montana. In order to be eligible for this tax credit, your business needs to be established in a qualified empowerment zone. The tax credit is applied on the basis of each new employee hired by the business and can vary from $500 for the first year of employment to $1,500 for the third year of employment. This tax credit can be carried forward for a period of seven years and also carried backwards for a period of three years.
- Business Grants and Incentives: One of the advantages of incorporation in Montana is that you can avail of or claim a variety of business grants and incentives. Some of the most popular programs are:
– Alternative Energy Production Credit: The credit is 35% of eligible expenditures
– Alternative Fuel Credit: The allowable benefit is 50% of equipment as well as labor costs
– Mineral and Coal Exploration Incentive Credit: The credit is a maximum of 50% of the tax liability for the tax year in which expenditure was made on mining exploration.
– New Industry Credit: Manufacturing companies can benefit from credit of 1% on the total wage paid to new employees.
How do you incorporate in Montana?
What is the process of incorporation in Montana? What type of documentation is required? These are some of the common questions that you will be confronted with if you planning to start a new business in the state. The following steps will enable understanding of the entire process:
The first step towards company incorporation in Montana is choosing the type of business you want to form. You can choose to form an LLC or a Corporation. The type of business entity you want to form can be domestic or foreign entity. The forms and fee will be different for each type of entity.
Business Entity Name
One of the most important steps towards incorporation in Montana is naming your business entity. You have to start by identifying, searching, reserving, and then registering the business entity name. There are 3 steps towards business name formation and they are:
- Naming Requirements: A corporate name pursuant to MT Code § 35-1-308 (2015) should contain the words “corporation”, “incorporated” or abbreviation like “corp.”, and “inc.” The names should be distinguishable from existing names.
- Business name search: You need to search for a business name that is not in use currently. You can conduct name search here.
- Name Reservation: Once you have identified business entity name, it is advisable to reserve the name by filing an application with the office of the Secretary of State pursuant to MT Code § 35-1-309 (2015). Name reservations are valid for 120 days and are non-renewable.
Choose a Registered Agent
A domestic business entity as well as foreign entity authorized to transact business in the state of Montana will have to maintain a registered agent pursuant to MT Code § 35-7-112 (2017). We are one of the respected registered agents in Montana and will be responsible towards initiating incorporation in Montana through processing of your “Articles of Incorporation” for domestic corporations and “Certificate of Authority” for foreign corporations.
Articles of Incorporation and Certificate of Authority
You will be required to submit “Articles of Incorporation” pursuant to MT Code § 35-1-216 (2017), if your business is a domestic corporation. You will be required to file a “Certificate of Authority” pursuant to MT Code § 35-1-1028 (2017), if it is a foreign business entity. In order to streamline the process of incorporation in Montana, we can file documents on your behalf through the online process or through expedited process.
Date Stamped Copies
As a part of the process of company incorporation in Montana, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.
Costs and Fees associated with Montana Incorporation
What would it cost to set up company in Montana? Check Fees here!