Incorporate in Montana for FREE^*

Incorporation is the process of registering a business as a corporation and making it recognizable under law as its own legal entity. Incorporating a business can be a complicated process because each state has its own requirements for registering and operating a business as a corporation. Knowing the necessary steps and forms, however, will help keep you organized and stress-free. 

With our easy business registration service, you simply answer a few questions and we create your initial paperwork and file it with the state for you. The first business entity registration is free for Rocket Legal+ members—you pay only the state filing fees. Then, you can make and personalize all the legal documents you need for your business. Store everything online in your Rocket Lawyer account.

What is a C-Corp? 

A C-Corp, or C-Corporation, is a common business entity type. More specifically, a C-Corp is a corporation taxed under Subchapter C of the U.S. Code. Under Subchapter C, corporations are subject to tax at both the corporate and individual level (sometimes called “double taxation”). Depending on the situation, this may result in lower or higher tax burdens for the shareholders. 

C-Corps allow for anyone to be an investor and for an unlimited number of shareholders and multiple share classes.

As with other types of corporations, C-Corporations provide a common and well-known legal structure for businesses and offer their shareholders some limited liability. Except for certain instances of fraud or misconduct, a shareholder is not liable for the debts or obligations of a corporation beyond the shareholder's investment into the corporation.

Corporations are treated as a C-Corp by default, unless another type of tax treatment is selected, such as an S-Corp.

What is an S-Corp? 

Like C-Corps, S-Corps provide a common and well-known legal structure for businesses and offer their shareholders some limited liability. However, S-Corps have two main differences from C-Corps: they are taxed differently and they have more restrictions with shares.

An S-Corporation, or S-Corp, is an IRS election that allows a company to be treated like an LLC for income tax purposes, that is, as a “pass-through" entity. Instead of income taxes being owed at both the company and individual level, the income of an S-Corp is only taxed at the individual level, which means it passes through the company directly to the owners and shareholders. Again, this may result in lower or higher tax burdens for the shareholders depending on the situation.

S-Corps have more restrictions regarding shares and shareholders than C-Corps. Specifically, S-Corps can have no more than 100 shareholders, only one class of shares, and only U.S. residents or citizens as investors.

One area of common confusion is what type of entity can elect S-Corp status. Remember that this election is simply a tax choice, not a governance or legal structure choice. Both limited liability companies (LLCs) and corporations can choose S-Corp status if they qualify under the IRS's guidelines.

There are similarities between a Montana S-Corp and a C-Corp regarding personal liability, management, structure, and compliance. The differences in Montana, however, come down to the following:

• Ownership Rules: A C-Corp has no limits on the number of share classes or shareholders it may have. An S-Corp is limited to one share class and not more than 100 shareholders. Also, all shareholders in an S-Corp must be United States citizens or legal residents.
• Taxes: A C-Corp is taxed as its own entity. It pays corporate taxes on money earned. Individual shareholders may also pay taxes on dividends they receive. An S-Corp does not pay corporate taxes on earnings. It's a "pass-through" entity. Earnings pass through to the owners, who then pay taxes on them on their individual returns.
• Documents: When you file as a corporation, you're automatically a C-Corp. To become an S-Corp instead, you must file IRS Form 2553, Election by a Small Business Corporation.

Your corporation’s name should be unique and make a statement about your business. Make sure it complies with the following Montana requirements:

• Your name must include "Corporation," "Incorporated," "Company," "Limited," or an abbreviation of one of these words. Professional corporations must include the words "Professional Corporation" or an abbreviation.
• Your name must be distinguishable from all business names already registered or reserved with the state.
• Your name must not imply a business purpose other than that which is stated in its Articles or which is permitted under Montana law. For example, if your business sells office supplies, don't call it "Video Game World, Ltd."

Need help coming up with a business name for your corporation? Try the Rocket Copilot™ AI Business Name Generator, a free tool to help you brainstorm business names and get started registering your corporation. 

Each state has its own personnel requirements for incorporating. In Montana, your corporation must have at least one director.

Montana does not have any age limits on directors or incorporators, and it does not require that directors live in the state.

Every corporation must appoint a registered agent to receive important tax, legal, or government documents on behalf of the business. Your registered agent must be available during normal business hours and have a physical address in Montana. Montana requires that you include your registered agent's name and address in your Articles of Incorporation. If your agent's mailing address is different from the physical address, you must also include that as well. Your agent should sign the appropriate section of your Articles. We'll help you designate a registered agent when you incorporate with us.

You must also include the following in your Articles of Incorporation in Montana:

• Your corporate name.
• The total number of shares your corporation is authorized to issue, and it must be at least one.
• A designation for each share class, if there will be more than one class.
• The names and addresses of all incorporators.

You may also include the following in your Articles of Incorporation in Montana, if you’d like:

• The purpose of the corporation.
• The duration of the corporation, if it's not intended to be perpetual.
• A par value for authorized shares.

Nearly every state has standard processing times, but not all provide expedited processing for corporations. In Montana, there are a few fees that you may be charged when you register your business as a corporation. They include the following:

State fee: $70.

• Fee to expedite your filing: $80.

Rocket Lawyer filing fee: $0 $99.99.

• First filing FREE* for Rocket Legal+ members (excluding state fees).
• Get additional filings HALF OFF with Rocket Legal+.

Processing time: 5 business days.

•  Expedited processing time: 1-2 business days.

Note: The above state fees and processing times (including expedited processing fees and times) are provided as a summary and may or may not encompass various fees mandated by your state or local authorities. Your state may also change these fees and processing times over time and without notice. If you have questions, speak to a Rocket Lawyer Business Pro to understand the costs and processing times that apply to your specific filing.

Businesses can save up to $2,500 per year with a Rocket Legal+^™ membership. This calculation is based on total savings on an initial business registration and registered agent, trademark, and business tax filing services for Rocket Legal+ members (a total cost of $924.97) compared to Rocket Legal members (a total cost of $1,949.96). This is in addition to savings on the average cost of 5 hours for document preparation by a non-Rocket Lawyer network attorney at the average attorney hourly rate in the U.S. of $300 (an estimated cost of $1,500 when purchased without any form of Rocket Lawyer membership) compared to unlimited use of customizable business documents for both Rocket Legal+ and Rocket Legal members at no extra cost.

Yes – although it's not much fun to think about taxes, you'll need to pay them for your new corporation. Before doing any business, you must apply to the IRS for an employer identification number, or EIN. This federal tax ID is similar to a Social Security number, and all businesses with employees must have one. We have more information to help you better understand the actual tax structure of a C-Corp and an S-Corp.

You may also need two state tax IDs:

• A state withholding tax ID number from the Department of Revenue.
• A state unemployment insurance tax ID number from the Montana Department of Labor and Industry.

Montana requires that you create and maintain certain corporate records to maintain your corporate status:

• Bylaws: A corporation's Bylaws formalize its management, structure, operating procedures and other important considerations. All provisions in the Bylaws must be consistent with law and with your corporation's Articles of Incorporation.
• Meeting Minutes: All decisions and actions taken during shareholder and director meetings must be recorded as Corporate Minutes. These minutes must be maintained as permanent records. Three years of minutes must be kept at your business's principal office.

Neither document must be filed with the state, but should be stored with the rest of your important corporate documents. We have more detailed information about Montana's requirements for Bylaws and Corporate Meeting Minutes.

We wish you success with your new Montana corporation! You can count on Rocket Lawyer for all the business, tax, and legal help you need at a price you can afford.

If you are planning to operate in another state, you may need to register a corporation in that state. Rocket Lawyer can help you determine which states you should register in.

Other states may have their own rules for foreign corporations that originate in Montana or domestic corporations that also operate in Montana. Talk to an attorney to understand the legal and tax requirements for the state(s) in which you plan to operate.