Montana LLC Operating Agreement Template [PDF]

The Montana limited liability company (LLC) operating agreement is a legal document that the members use to define how the company will be operated and to regulate their mutual relationships within the company.

The LLC operating agreement, or business operating agreement, outlines the initial contribution of each member to the company as well as their share of the company's interests. If the members decide to personally manage the company, the document defines their managerial duties.

Is an Operating Agreement Required in Montana?

No, an operating agreement is not a required document when forming an LLC in Montana.

However, many parties choose to make an operating agreement so they can easily optimize the operations inside their company. This will save them a lot of time in the future and prevent unnecessary expenses.

4 Main Types of Operating Agreements

Here, you can find the four main types of operating agreements used in Montana:

Types of Operating Agreements

Single-member LLC operating agreement: This type of operating agreement is used for LLCs with only one member. It defines how the company will be operated without regulating the relationships between the members.
Multi-member LLC operating agreement: Here, the two or more members are forming an LLC, and the operating agreement is used to define the operating procedures of the company and the mutual relationship between the partners.
Member-managed LLC operating agreement: Used when the members want to personally manage the company. It defines the managerial rights and duties of each member of the company.
Manager-managed LLC operating agreement: Here, the members delegate their managerial powers to the professional managers. The document then defines the manager's role, rights, and duties.

Laws and Legal Requirements for LLC Operating Agreements in Montana

Title 35, Chapter 8 of the Montana Code, called the Montana Limited Liability Company Act, regulates the status of LLCs in Montana.

Moreover, Section 35-8-109 regulates the status of operating agreements, namely effects and non-waivable provisions.

Section 35-8-102(23) provides the definition of an operating agreement as follows:

“‘Operating agreement’ means an agreement, including amendments, as to the conduct of the business and affairs of a limited liability company and the relations among the members, managers, and the company that is binding upon all of the members.”

How to Form a Limited Liability Company (LLC) in Montana

The easiest way to form a limited liability company in Montana is by following the steps below:

How to Form a LLC in Montana

#1. Choose a Business Name For Your LLC

Before registering an LLC in Montana, you should choose a business name for your LLC. The business name must be distinguishable from other business names registered in Montana. Otherwise, your application will be rejected.

To check if your business name is distinguishable, you should go to the Montana Secretary of State’s database and do a business search.

#2. Choose the Type of LLC

In Montana, you can choose between two main types of LLCs:

Domestic LLC: Used for companies that are established and registered in Montana.
Foreign LLC: Used for companies that are initially established outside Montana but are registered in Montana.

#3. Nominate an Agent

Finally, you should designate an agent who will be in charge of receiving official notifications and documents on behalf of the LLC.

To qualify as an agent, one must:

Be an individual with a registered address in Montana
Be an entity with the authority to operate in Montana.

#4. File the Formation Documents

For domestic LLCs, you should file Articles of Organization. You can create an account and file your application online.

For foreign LLCs, you should file a Certificate of Authority for Foreign Limited Liability Company. Here, you can also file your application online.

#5. Pay the Required Fee

The filing fee is $35 for domestic LLCs and $70 for foreign LLCs. The payment can be completed online after completing the application.

#6. Create your LLC Operating Agreement

After filing your application, you can create the operating agreement. This document will enable you to optimize your business operations and prevent disputes between the members of the LLC.

#7. Apply For an Employer Identification Number (EIN)

If you want to open a company bank account, complete certain transactions, hire employees, and complete similar actions, you should obtain the EIN. To get this number, you can apply on the IRS website or fill out the SS-4 form.