Why form a Montana Corporation?
There are many advantages to forming a Montana corporation for your small business. First and foremost is the liability protection of your personal assets. When you form a corporation it helps separate your personal assets from that of your business. A Montana corporation, when run correctly, is a legal corporate entity that exists separately from its owners or shareholders.
Helpful tips on naming your new Montana Corporation
All Montana Corporations must end in either "corporation", "incorporated", "company", or "limited"; the abbreviation "corp.", "inc.", "co.", or "ltd.". The name of the corporation must not include words or phrases that would confuse the general public that it is incorporated for a purpose other than that stated in the articles of incorporation or permitted by Montana statutes. The name of the proposed Corporation must be using a name that is distinguishable from any names that are on file with the Secretary of State. Plurals and singulars will not differentiate as well as legal identifiers such as “Limited Liability Company”, ”LLC”, “Limited Liability Partnership”, “LLP” “Corporation”, “Incorporated”, “Company”, “Limited”, “Corp”, “Inc”, “Co”, or “Ltd”.
S-Corp vs. C-Corp
There are two classifications for corporations. The C-Corp which is most of the companies that are traded opening in the stock market. The default C-Corp has the double taxation set up since the corporation pays a tax and then any profits distributed to its share holders is taxed again. In a S-Corp however, the taxes are passed through the corporation and the shareholders are respsonsible for reporting all income from the corporation. Therefore the corporation doesn't pay a tax in a S-corp. The drawback of the S-corp is that it is limited to 75 shareholders. This is a non factor in most small companies since the shareholders are mostly the owners.
Do you need a lawyer?
When forming a Montana corporation, you do not need a lawyer to prepare and file your documents. Preparing your documents may be a challenging experience if you don't know what you're doing. Many people do hire lawyers because they don't know any other alternative. We are Incorporate Fast have the experience and know to file your documents at a fraction of the cost. Let us file your papers today.
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