Frequently Asked Questions

What are the different business structures available when starting a business in Montana?

When starting a business in Montana, you have four main business structures to choose from. These are the sole proprietorship, partnership, Limited Liability Company (LLC), and corporation. A sole proprietorship is the simplest form of business structure, where the business is owned and run by a single individual. A partnership, on the other hand, involves two or more people sharing ownership of a business. An LLC is a more complex business structure that combines elements of partnerships and corporations. It provides the owners with limited liability, meaning they are not personally responsible for the company's debts and liabilities. Lastly, a corporation is a legal entity separate from its owners, providing the highest level of protection from personal liability. Choosing the right business structure is crucial as it affects your legal obligations, tax liabilities, and the level of control you have over your business. It's important to consider the nature of your business, the level of control you wish to maintain, the business' vulnerability to lawsuits, and tax implications when deciding on the most suitable structure.