Draw On Legal Montana Startup For S-Corporation Forms For Free

Montana has a graduated individual income tax, with rates ranging from 1.00 percent to 6.75 percent. Montana has a 6.75 percent corporate income tax rate. Montana does not have a state sales tax and does not levy local sales taxes. Montana's tax system ranks 5th overall on our 2023 State Business Tax Climate Index.

LLCs can have an unlimited number of members; S corps can have no more than 100 shareholders (owners). Non-U.S. citizens/residents can be members of LLCs; S corps may not have non-U.S. citizens/residents as shareholders. S corporations cannot be owned by corporations, LLCs, partnerships or many trusts.

An EIN is required for LLCs that will have employees. Additionally, most banks require an EIN in order to open a business bank account. State tax identification number. Montana does not require a state tax identification number.

Corporations in Montana have access to several tax incentives not offered in other states. Some of the credits and deductions include: job credits, research and development deductions, investment credits, and deductibles for the cost of goods sold by the business.

S Corporations are subject to an annual License Fee of . 1% of capital and paid-in-surplus, plus $15. The License Fee cannot be less than $25. Both the Income Tax and License Fee are reported on form SC1120S.

Choose a business name for your S corp. ... File articles of incorporation. ... Issue stock for your S corp. ... Elect a board of directors and appoint officers. ... Meet other S corp eligibility requirements. ... Obtain an employer identification number. ... Elect S corp status. ... Apply for state and local S corp business licenses.