Summary
The fact that you may need to register with state agencies like Montana Secretary of State is a sneaky misconception that many folks miss.
However, with the rise of remote work, states have begun cracking down and levying penalties for those who (unknowingly) fail to register.
If you're considering operating in Montana, use this guide to:
- Explore the that triggers the need to register with the Montana Secretary of State, including criteria such as physical presence, economic activity, and advertising efforts.
- Determine where and how to register with the Montana Secretary of State.
- Understand additional requirements such as Registered Agents, registration with other state departments, and ongoing annual reports.
What criteria would trigger the requirement to register with the Montana Secretary of State?
Key Factors Physical Presence: Having any of the following in Montana typically means you're doing business in the state:
- An office, store, warehouse, or other physical location
- Employees or representatives based in the state
- Owning or leasing property in Montana Economic Activity: Engaging in these activities within Montana usually indicates you're doing business:
- Selling goods or services to Montana customers (even through e-commerce or remote sales)
- Providing services in Montana
- Regularly soliciting business or engaging in transactions within the state
Specific Examples
- The following activities would likely be considered doing business in Montana:
- Operating a retail store in Montana.
- Having a Montana-based contractor perform construction work in the state.
- Maintaining a sales team that regularly visits clients in Montana.
- Shipping products from a Montana warehouse to customers.
- Providing consulting services to clients based in Montana.
Nexus
- The concept of "nexus" is important for understanding this. Nexus means having a sufficient connection with a state to trigger tax obligations or business registration requirements. Physical presence is a strong form of nexus, but recent developments in sales tax laws mean even remote sellers with no physical presence in a state can create nexus based on sales volume or the number of transactions.
Where do I register, and what else is required?
- A Certificate of Good Standing is not required.
In addition:
A Registered Agent is required to serve as the company's physical in-state presence to receive important legal documents. Do not fall victim to the common misconception that you can leverage an in-state employee as your Registered Agent. It's far too risky.
You'll want to review the other registrations required in Montana. Here's a Montana specific guide we put together.
What is the registration fee?
The fee charged by Montana is $100 (if registration is needed).
How long does Montana usually take to process?
Montana usually takes approximately 1 - 2 weeks to process registrations.
What is required ongoing?
Each state has a complex schedule of required annual reports, which can vary by entity type. Let's take a look at Montana's:
C-Corporation
- Filing Date: April 15
- Filing Frequency: Annual
LLC
- Filing Date: April 15
- Filing Frequency: Annual
Non-Profit
- Filing Date: April 15
- Filing Frequency: Annual
There is an Easier Way
Automate registration and annual report tracking in AbstractOps.This guide should definitely help reduce some of the confusion for Montana. However, if you have multiple states to worry about, you may look to:
Automate state registrations and annual reports
Centralize email, snail mail, state ID’s, and registered agents, and
Take control of action items, eliminating risks before they become penalties.
Start the AbstractOps product demo to see how easy this can be.
Note: For the avoidance of doubt, nothing provided here shall contemplate, constitute or include tax or legal advice. Always double check with state agency websites for the most up-to-date requirements.
