Do-it-yourself Montana S Corporation Kit

To set up an S corporation in Montana, you take three, relatively simple steps:

First Step: Create an Eligible Entity

Your first step in setting up a Subchapter S corporation in Montana is to form either an LLC by submitting a Montana "Articles of Organization" form or a corporation by submitting a Montana corporation "Articles of Incorporation" form to the Secretary of State, P.O. Box 202801, Helena, MT 59620-2801. (Sorry, I can't provide a consistently good Internet URL you can use to download the free forms. The state changes its website too regularly. But if you Google or Bing on the exact form names, you should be able to find what you need.)

Second Step: Get a Tax ID Number

After you have the LLC or corporation set up--either type of entity works just fine--you need to apply to the Internal Revenue Service for an employer identification number using the SS-4 "Application for Employer Identification Number" form.

If you're an Montana LLC or corporation, you can either mail this form to: EIN Operation, Internal Revenue Service, Cincinnati, OH 45999, or you can fax the complete application to 859-669-5760. (Example of form click here.)

Third Step: Elect Subchapter S Status

Once you receive your new taxpayer identification number, you're ready to request Subchapter S status for the new corporation. To do this, you prepare and then submit a correctly filled-out 2553 form to: Department of Treasury, Internal Revenue Service Center, Ogden, UT. Or you can fax the completed form to (801)-620-7116. Note the preceding address and fax number are correct for Montana businesses at the time of this writing, but you shouldn't use them without double-checking. (Example of 2553 form.)

All the forms just mentioned come with at least a few paragraphs of instructions that many people can figure out on their own. The State of Montana's forms are very easy to complete on your own, for example. (Hey, you can figure out how to fill in blanks labeled with instructions, "Enter your name here," right?) If you want some help (and help can be particularly valuable with the more complex tax forms), know that this website also provides two do-it-yourself S corporation kits for Montana businesses.

Version 1: LLC Do-it-yourself kit

The downloadable LLC Version of my do-it-yourself kit covers the basics of forming an S corporation in Montana using an LLC platform, including the detailed steps required to create your own LLC, to apply for your Employer Identification Number, and to make the election necessary to have your LLC treated as an S corporation for both federal tax and Montana state tax purposes. The LLC version of the Montana kit also comes with two sample operating agreements; one operating agreement is for single member (one owner) LLCs and the other is for multiple-member (multiple owner) LLCs.

Version 2: Traditional Corporation Do-it-yourself kit

I also sell a do-it-yourself Montana kit that explains how to form an S corporation using a traditional corporation. Like the LLC kit, this kit explains the pros and cons of incorporating in Montana, and it walks you through the process of incorporating your business, obtaining an Employer Identification Number, and making the election to be treated as an S corporation. For the "traditional corporation" version of the kit, I provide a set of sample corporate bylaws, which may be used by you or your attorney as inspiration for drafting up your own set of bylaws.

 

Additional Information You May Find Useful

If you want additional information about how to maximize the tax savings related to running a business or investment venture, you may also be interested in one of our downloadable e-books (see descriptions below). Each book covers a category of tax planning topics that easily save a business owner significant amounts of income or self-employment taxes (potentially thousands of dollars a year) and is instantly downloadable.

Often the best tax saving tool private companies have? The Section 199A deduction which allows them to avoid taxes on the last 20 percent of their income.

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Using an S corporation for your business? To maximize savings, you need to minimize the salary paid to shareholders. But this decision is tricky.

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Nearly secret, the federal government's employee retention credits provide tremendous payroll tax savings for most small businesses... A new book from our firm explains.

Info here