To dissolve a limited liability company one has to take up a set of required steps. In Montana, if you and the members of the LLC want to discontinue business, then it is necessary to dissolve their business legally to avoid any administrative and legal consequences. To dissolve an LLC in Montana, you are required to submit a complete Article of Dissolution to the Secretary of State. Before submitting the Article of Dissolution, one must follow the operating agreement.
If you have a Montana LLC (domestic or foreign) you must have an operating agreement. The first step towards the dissolution of Montana LLC is to follow the operating agreement. There are some points to be noted before proceeding with the official paperwork. At first, make sure all the members of the LLC are agreed to dissolve the business. Once all the members are ready, their consent should be recorded via voting. After casting their vote in favor of the dissolution, the legal process must be started. Here are the steps to address for dissolving Montana LLC.
On this page, you’ll learn about the following:
- How to Dissolve an LLC in Montana
- After Dissolving Your LLC
- Reasons Behind Dissolving Montana LLC
- Montana LLC Dissolution Review
How to Dissolve an LLC in Montana
Dissolution of Montana LLC requires three broad procedural steps. Having a Montana LLC Operating agreement, close all the tax accounts, and finally submit the Articles of Dissolution form to the Montana Secretary of State.
Step 1: Follow Your Montana LLC Operating Agreement
When you have started an LLC as a business entity, then there is an operating agreement that is formed. There are complete details of how the company will function and grow in that operating agreement, which acts as a comprehensive guide. There is also a dissolution process, which is added to your agreement. The common dissolution steps that almost every LLC follows are:-
First of all, the dissolution vote will take place among the LLC members in the dissolution meeting. If the majority is with the YES, then the process goes into legal proceedings.
- All the dissolution votes will be noted down and recorded with the minutes of the meeting or a consent form.
- After that, a formal date for dissolving the LLC will be decided.
- The next step is counting the LLC assets and dividing them among the stakeholders and members accordingly.
- Finally, the creditors of the business are notified, and the debts of the business are settled.
This is a general process. However, it is strongly recommended to seek professional help to avoid any complications when it comes to terminating an LLC.
Get a Professional Agent Service
When it comes to a limited liability company dissolution, it is important to get professional help. The Montana registered agent will guide you with everything you need to close your limited liability company. While choosing a registered agent make sure they have a physical street address in the state. A professional service provider helps you to file the Article of Dissolution and close your various tax accounts without any hassle. Below are the best LLC services we strongly recommend for you.
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Step 2: Close All Tax Accounts
Every action that an official business takes is legally bound to some minimum business taxes. For that, various accounts, especially business entity tax account, are maintained by the state government with the help of various departments. You should consider all the taxes that you have paid for your LLC’s duration and make a list of them.
You must contact all government entities and clear the amount of outstanding taxes due until the date you have decided for dissolution. All the taxes must be paid in advance so that you don’t face any issues in the further process of shutting down your LLC.
Some of the common taxes that limited liability companies have to pay are:
- Unemployment insurance tax
- Employee withholding tax if your LLC has employees.
- If your LLC is engaged in selling taxable goods then they are liable to pay the sales and use tax.
Most of these taxes are normally filed, but some departments require official paperwork, without which it is impossible for the business to close their accounts. Apart from business taxes, federal taxes, personal income taxes, and franchise taxes are to be considered. For the franchise taxes, a franchise tax form is required.
That is why the LLC owner should go through the sales tax guide and hire an accounting service. If you want to do the accounting yourself or make accounting easy, try FreshBooks.
While dissolving the Montana LLC, the owner does not require to obtain a tax clearance certificate. However, if you have filed federal taxes, then you must go through the final return option on your IRS form.
Step 3: File Articles of Dissolution
There is a list of dissolution documents that you, as an LLC owner, have to file. Once these articles are filed, the legal existence of the LLC will be over. Like a Montana Articles of Organization, one has to file Montana LLC Articles of Dissolution. The dissolution procedure and filing the articles of dissolution form is very easy and is discussed below.
- First of all, the LLC owner(s) has to file the Article of Dissolution. There are multiple methods of filing available, such as file by mail, in-person drop, or/and online filing. To get the application form you need to visit the Secretary of State Website of Montana state.
- You can follow the filing instruction on the official portal so that the steps for dissolution will be easier to complete.
- In that particular SOS website, the LLC owner has to look for the Domestic LLC Articles of Dissolution page.
- If you want to dissolve Montana Foreign LLC then look for the Foreign LLC Dissolution process.
- There is a form available on this page, which is the article of dissolution you are looking for.
- You must fill in all the important and legal information in the form, so you should be extra careful.
- After filling in all the important information, you must choose the mode of payment you want to use to pay the LLC dissolution filing fees.
- It takes 3-5 business days after filing of articles of dissolution.
Online FIling: Montana Online LLC Dissolution
Filing Fee: $15
The LLC you owned is dissolved, and you are free from all the liabilities linked with the LLC and its taxes. A copy of both original articles and recorded articles should be submitted in front of the probate judge. Now it’s his call that he accepts your expedited dissolutions or not.
Points to Be Noted When Dissolving Montana LLC
Apart from these three steps, no major dissolution rules are there in Montana. However, there are some other tasks one has to keep in mind while dissolving an LLC legally.
There are some purposes of LLC that require some attention even after dissolution, known as winding up. The task of winding up includes.
- For a certain period, the property of a business requires preservation.
- If there is any civil case against the LLC, then the owner needs to finish them.
- Settle all the existing disputes of LLC.
- Transfer all the property of LLC to the names of partners.
- Release all the liabilities that the LLC owes to others.
- Rightful distribution of all the assets among members, according to their percentage of partnerships.
Cost of Dissolving LLC
LLC cost in Montana includes the formation as well as dissolution fees. To dissolve an LLC in Montana, LLCs have to file an Article of Dissolution. The filing fee is $15. The details are mentioned on the second page of the article dissolution filing form. Following are the ways to pay for the dissolution,
- You can select a payment pick-up option.
- There is an option of direct account transfer through your prepaid accounts.
- LLC owners can also use their Credit cards, providing their complete details and types. Along with that, an original signature is required to authorize the transaction state will make.
After Dissolving Your LLC
After you formally dissolve your LLC, your business name will not be reserved anymore. Any other business entity will be eligible to use your Montana LLC name immediately after 120 days of dissolving your LLC. On the other hand, if you have a foreign LLC in other states, then you must comply with the SOS of the state after the dissolution of your LLC in Montana. A registered agent can help you do the needful.
Reasons Behind Dissolving Montana LLC
If a business cannot make better outputs, nothing is left in it rather than leaving it. It is better to dissolve an LLC in Montana rather than keep putting effort into it. We all know that it is impossible to make the business well and good again, so it is better to dissolve it. There is not just one reason that this can happen. There are many reasons, here, let’s get a look at them,
- The business is not getting the support that it should.
- The owners are not willing to keep it going on.
- The government shut the company due to legal reasons.
- The company is not able to pay the taxes.
- The assets of the company are of no use and getting surpassed by liabilities.
Top Businesses in Montana!
If we talk about the industries, then the economy of Montana depends a lot on agriculture. Due to the best and fertile land, Montana is doing great in the matters of agriculture. There are other industries in the state, too, if someone wants to start an LLC in Montana. With the help of knowing which industry is the best and making the most profits, it will be best to make profits. Want to know more about it? Check the following points for top industries,
- Healthcare: If we talk about the fastest growing industries, it is Montana’s healthcare industry. It employs about 68,000 people and provides an annual growth of 2.8%. We will always expect this sector to grow in the following years, too, as it is critical for all.
- Tourism and travel industry: If we look at the growth of this industry, it has grown gradually. People thought there would be a decline, but it is employing 50,000 people in it. The employment rate is seriously incredible, and it is right what we are looking for the positive impact on the state.
- Manufacturing: There are so many employment opportunities in this sector of the economy. With this sector, it is possible to get done with the issues of employment totally and easily. If we talk about the employment growth, it had increased by 21.3% in 2018. It is an excellent thing for the state, and not just men, but women can also get jobs.
Montana LLC Dissolution Review
Time needed: 5 minutes.
Here’s a recap of the steps you must follow when dissolving your Montana LLC. Click on the steps in this list if you want to read the full detail.
- Follow Your Montana LLC Operating Agreement
Remember that when you started, you created an operating agreement. Use this agreement as a guide in proceeding with the dissolution of your LLC.
- Close All Tax Accounts
Make sure you close all your tax accounts to avoid incurring further costs.
- File Articles of Dissolution
File the article of dissolution to make it to the state where your LLC operates is that you are indeed no longer in business.
What is the Cost to Dissolve an LLC in Montana
In Montana, the costs of dissolving an LLC are minimal. There is a $30 filing fee and expedited service for the Certificate of Withdrawal. The state also requires you to file two separate annual reports. The filing fee for the Certificate of Withdrawal is $15. If you’ve missed either one, you can always reapply for reinstatement. The cost of dissolving an LLC in Montana is less than its equivalent in other states.
Filing an annual report is another important requirement for Montana LLCs. The annual report must be filed no later than November 1 and December 15 of every calendar year. Failure to file the required reports will result in the dissolution of the business. If you have decided to dissolve your LLC, you can request your business name and change the Registered Agent. A $35 reinstatement fee is required for a domestic LLC. You will also need a Tax Clearance certificate from the Department of Revenue.
In Montana, dissolving an LLC is not a complicated process. The state will issue a certificate to the new owner of the business within seven to ten business days of your filing. However, you will lose the business name. The name will be available for other businesses to use after the 120-day period has passed. If you are a foreign LLC, you must comply with the SOS of the state before dissolving your business. In addition to dissolving your LLC, you should file for a new company name.
Yes, in Montana, there is a fee of $15 to be paid for filing the Articles of Dissolution. Articles of Dissolution must be submitted to the Montana SOS.
No, there is no requirement of revenue department clearance till the time the SOS of Montana accepts the dissolution form.
The name will also get deregistered with the dissolution of the LLC. But the name will not be allotted for the next 120 days. After that, if some business wants to name their LLC after the name chosen by you, then it is their choice.
If you have not dissolved your LLC, you are liable for business privilege tax, and if it is not paid on time, you are leveraged with 10% of the amount of tax or $50. After that, the additional penalties will increase by $1 per month. If it goes unpaid for a longer duration, then the chances of seizing your property can also recover the tax.
If you are dissolving your LLC, you have to pay some amount to the probate judge who was also present during your LLC formation in the probate office. The minimum fee of the judge is $50, which can vary.