Starting a Business in Montana: A Step-by-Step Guide
Starting a business in Montana involves several key steps. Below is a detailed checklist to guide you through the process, along with some helpful tips and resources tailored for Montana entrepreneurs.
Important Note: Before finalizing your business structure and setup, we highly recommend consulting your tax advisor and attorney to ensure compliance and proper planning. However, if you’re a “by the bootstraps” kind of business owner, this guide provides a high-level overview of the “must-dos” to get started.
Checklist: Starting Your Business in Montana
01 | Conduct Marketing Research
- Identify Your Niche: Understand market demand, local competition, and your potential customer base.
- Develop a Business Plan: Outline your goals, target audience, revenue model, and marketing strategy.
[Tip] Use free tools like Google Trends, Census data, or local directories.
Resource: Small Business Development Centers (SBDCs) in Montana may offer free or low-cost market research help.
02 | Register Your Business Name
- Choose a Business Name: Ensure it’s unique and check its availability via the Montana Secretary of State’s website.
- Trademark Search: Check for trademarks to avoid legal disputes.
- Register Your Name: File a trade name registration (DBA – Doing Business As) if necessary.
03 | Choose and Register a Business Structure
- Evaluate Options:
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- Sole Proprietorship: Simple but offers no liability protection.
- LLC: Provides liability protection with less complexity.
- Partnership: Shared responsibility among partners.
- Corporation or S-Corporation: More complex; consult your advisor for tax implications.
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- Register Your Structure: File the necessary paperwork with the Montana Secretary of State.
[Tip] The Montana Secretary of State website has detailed guides on each structure.
04 | Obtain an Employer Identification Number (EIN)
- Apply Online: Get an EIN from the IRS website. This is necessary for taxes, hiring employees, and opening a business bank account.
[Tip] It’s free, don’t get scammed into paying $100 for the application!
05 | Register for State Taxes
- Montana Department of Revenue: Register for applicable state taxes, even though Montana has no general sales tax. Check for industry-specific excise taxes.
06 | Secure Permits and Licenses
- Local Permits: Check zoning and permit requirements in your county or city.
- State Licenses: Confirm whether your business type (e.g., contractors, health services) requires specific licenses.
07 | Open a Business Bank Account
- Separate Finances: Open a dedicated account to separate personal and business transactions.
08 | Get Business Insurance
- Liability Insurance: Protect against potential lawsuits.
- Property Insurance: Cover equipment, property, or inventory.
- Workers’ Compensation: Required if you have employees.
09 | Set Up Accounting and Banking
- Choose an Accounting System: Use software like QuickBooks or hire a professional.
- Track Expenses and Revenue: Maintain accurate financial records.
Need Help? Book a consultation with FNCH to simplify your accounting needs.
10 | Hire Employees (If Needed)
- Recruitment: Advertise job openings, interview candidates, and verify references.
- Follow Employment Laws: Comply with Montana’s labor laws and complete new hire paperwork.
11 | Market Your Business
- Create a Marketing Plan: Use a mix of online (e.g., social media) and offline strategies (e.g., local events).
- Build a Website: Establish a professional online presence.
- Utilize Social Media: Engage your target audience on platforms like Facebook or Instagram.
12 | Stay Compliant with Ongoing Requirements
- File Annual Reports: Submit these to the Montana Secretary of State as required.
- Renew Licenses and Permits: Track expiration dates to avoid interruptions.
Additional Resources
- Montana Secretary of State: Business Services
- Montana Department of Revenue: Taxpayer Services
- Small Business Administration (SBA): SBA Resources
FAQ | Starting a Business in Montana
Yes! Here are some options:
- SBA Loans: The Small Business Administration offers guaranteed loans through local banks.
- Montana Growth Through Agriculture Program: Provides grants for businesses in agriculture.
- Montana Board of Investments: Offers loan programs for small businesses.
- Local Grants: Check with your city’s economic development office for community grants.
All of the above subject to change and applicate qualifications.
Online filings with the Secretary of State are typically processed within a few business days. Paper filings may take longer.
Montana doesn’t have a statewide business license requirement, but cities and counties may have their own. Always check local regulations.
Remember to check if your city or town requires a business license.
Agriculture, tourism, tech startups, and renewable energy are some of the fastest-growing sectors in Montana.
Disclaimer:
This blog is for informational purposes only and does not constitute legal, tax, or financial advice. Every business is unique, and laws may vary by location. We recommend consulting with a qualified professional to address your specific circumstances before making any final decisions related to starting or managing your business.
