You may even need to leave the security of your regular job to pursue an uncertain future. That is why you have to be 100% sure you are ready before finally pursuing a new business venture like starting a Montana LLC.
Why Form A Business Entity
Entrepreneurs have various reasons why they choose to start a business. Maybe they are not suited for a 9-5 office job. Perhaps they realize that they would rather set their own pace. Some people do it because they want to leave a mark on this world.
If you are unsure whether it is time for you to form a company, here are seven good reasons to start a business:
1. You want to defy your job description: If you think you possess a wide range of skills, then entrepreneurship may be a good way to utilize your abilities in the best way possible and maximize their potential. As a business owner, you will be facing many responsibilities. You may even fill in several roles in the company. That is especially true for those who are just starting out, so you should not be scared of doing a lot of work.
Here are some of the characteristics that you may need:
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- Strong under pressure and willing to embrace challenges
- Can adapt to an ever-changing environment and respond to possible issues and opportunities
- Confident in your ability and not scared of standing your ground
- Ambitious and willing to do your best to reach your goals
- Open to learning new skills and ideas
2. You are an expert at something that is in demand: Being an expert at something that many people need is a good reason to launch a business. It can be product design, cooking, gardening, or dressmaking among others. However, you have to make sure the market is not saturated. If you think there is room for your business, then go for it. Have a differentiated value proposition to stand out among your possible competition and attract your target consumers.
3. Your idea can be a better solution to an existing problem: If you have an idea for a service or product that will meet an unfulfilled need in the market, then it may be a great time to turn that idea into a business. You may even be the first to address that need, which will make your company profitable. If you want to earn more, you can even teach others or create a business model that you can turn into a franchise. Additionally, having a great solution to address current market needs can attract investors.
4. There is income potential: Depending on the company you want to organize, you may have access to the possibility of earning an unlimited income. That is way better than working for a company for a limited salary. A good reason to do business is when you know that your project has the potential to become a rewarding full-time career.
5. It is your passion: You must be passionate about the business you want to form. That way, you will be motivated even when you stumble upon challenges. You will also find the experience more fun and fulfilling.
6. It allows for self-expression: Being a business owner can be hectic. However, it should not limit you as a person. Make sure the business venture you are thinking of pursuing will allow you to be creative and let you express yourself. This way, you will not risk losing interest. You will also be more likely to come up with products or services that will meet the demands of your target customers.
7. Create jobs for others: Another good reason to do business is to open new opportunities for other people. You can hire and train other individuals who have the same passion and interest as you. Not only will this help you reach your goals, but it may also make a meaningful impact on your community.
Why Form A Montana LLC
When starting a business, you have to consider several factors. Among them are the location and business entity structure.
Montana has become an attractive state for many startups. It ranks 9th when it comes to startups’ early survival rate in the country. It is also among the few states that do not impose sales taxes.
Additionally, the state has multiple programs that are beneficial to Montana businesses. Here are some of them:
- New Industrial Property Benefit Program: Qualified businesses can get a 3% reduced valuation rate on new industrial properties for the first three years. It is typically open to companies in the manufacturing, mining, material production, warehousing, transportation, and agricultural industries.
- New Or Expanded Industry Credit: This is open to Montana startups. Qualified companies can get credit on 1% of the total wages that they pay new employees. It is available for three years from the start of operations.
- Empowerment Zone Tax Credit: With this program, an eligible business entity located in an empowerment zone can benefit from a $500 credit against the income tax liability on the company’s employees. Businesses can apply it to insurance premium taxes and income taxes.
- Small Business Credit Initiative Program: New Montana LLCs can benefit from this program because it offers small business lending and investment.
How To Form A Montana Business
When it comes to the business entity structure, a popular choice among new business owners is a limited liability company (LLC). That is because of the benefits it offers. It combines the limited liability protection that a corporation has with the flexibility of a sole proprietorship or partnership. Here are the main benefits that a Montana LLC has:
- Limited Liability: The personal assets of the owner, also known as a member, will be protected in case the LLC ends up incurring debts and obligations.
- Pass-Through Taxation: All LLCs will be considered as disregarded entities by default, so there will be pass-through taxation. Instead of double taxations, the members will only report the profits in their individual tax returns.
Once you decide to form a Montana LLC, you will have to go through the registration process that the state has set. You will have to file formal paperwork and complete multiple steps. If you want to better understand the process, you can consult with an expert or read our simple guide in forming a Montana LLC.
To help you get started, here are the steps you will need to follow:
- Choose a distinguishable name for your Montana LLC: Make sure no other business entity is already using it. You may need to do a business entity name search. The state also has a naming guideline that you have to follow.
- Appoint a registered agent: It can be an individual or a third-party organization like DoMyLLC. Your agent will be in charge of receiving legal documents and mail on behalf of your company. Follow the guidelines of the state for registered agents.
- File Articles of Organization: To register your LLC, you will have to file Articles of Organization with the Secretary of State. It comes with a $70 filing fee.
- Create an operating agreement: This internal document will help set the rights and responsibilities of the LLC members and managers. It can also include how your company will be managed.
- Comply with tax requirements: Depending on your activities, your LLC may need to comply with other regulatory requirements like tax filings. Check with the state, city, and county agencies.
Being a business owner can be challenging. You have to focus on various responsibilities. That is why you need to have the right reasons before you start a business. This way, you may be more motivated to achieve success.
You should also be ready to complete the registration process that will legalize your business operations. However, you do not have to face everything alone. You can turn to experts to handle the paperwork and process for you. A third-party organization like DoMyLLC can help streamline the whole ordeal. Our team is experienced with and knowledgeable about the compliance requirements in Montana. Contact us now to get started.