Registering Your Startup to do Business in Montana

Forming your business entity in Delaware—specifically, a corporation—gives you a lot of flexibility, but you may still need to follow local laws depending on what state you operate in.

Specifically, if you do business in Montana, you need to register with the state. We’ll walk through the process and simplify it. But first, how can you tell whether you’re legally doing business in Montana?

Delaware C corps—and all other corporations formed outside of Montana—are referred to as “foreign” corporations by the State.

Montana statutes do not specifically define what is considered doing business in the state. However, Montana statutes provide that the following activities would not require you to register with the State:

Defending or settling a lawsuit

Having a bank account in the state

Selling through independent contractors

Unlike most other states, Montana does not have a general sales tax on goods purchased in Montana. This means that you do not need to register with the Montana Department of Revenue to collect sales tax in the state.

• Select a name under which to do business. This doesn’t have to be the name you registered when incorporating in Delaware, but it can be.
• Fill out an application. You’ll need to file a Foreign Registration Statement for Foreign Profit Corporation to the Montana Secretary of State.
• Pay the fee. Now you pay the Montana Secretary of State a $70 filing fee.
• Submit your Application for Foreign Registration Statement for Foreign Profit Corporation in Montana.
• Wait. Processing typically takes two to four weeks.

Once you’re approved to operate as a qualified foreign business in Montana, you’ll need to comply with certain requirements.

Your registered agent in Montana is your point of contact with local authorities. If you don’t have a physical address for your company in Montana, it may be advantageous to find a registered agent to receive state notices on your behalf.

Foreign corporations are required to have a registered office in Montana. The office cannot be a P.O. box, rather it must be a physical address of your registered agent or a licensed registered agent service.

Your registered agent will forward any important information, such as business mail, to you. There are a number of firms that contract out registered agents. They typically cost $50 – $100 per year.

Every year, you must file a statement with the State, updating any changes to the company address or the composition of the Board and officers. You’ll include info like:

• The legal name of your business
• The name and address of your registered agent
• The names and addresses of board members, managers, and officers

The filing fee for the annual report is $20.

A corporate income tax is a tax imposed directly on the income of your corporation. For more information on filing and paying your corporate income taxes, please see the following guidance from Montana Department of Revenue.

When you hire a new employee in Montana, federal and state laws require that you report new hires within 20 days of hire date. You can report your new hires online.

Your payroll provider should be able to take care of paycheck withholdings, but it’s up to you to register as an employer with the State and set up an online employer account.

For a comprehensive guide of your responsibilities, Montana provides the following information.

To register your business in Montana, you’ve got to keep track of a lot of moving parts. Failing to file the right forms, provide the right information, or stay on top of compliance laws can lead to serious headaches.

Capbase makes it easy. When you incorporate your Delaware corporation on Capbase, we will generate the required information needed to register to do business in Montana and keep you up to date on any required filings.

The compliance calendar inside your Capbase account will notify you of upcoming fees, reporting, or other requirements, so you can keep your startup in good standing with Montana state officials. Try Capbase now.