Add Formulas and Calculations Legal Montana Startup for Sole Proprietorship Forms For Free

Both are a kind of business, but only an LLC is considered a separate entity with its own existence, separate from its owners. A sole proprietor, on the other hand, is legally one and the same as their business—they share the same debts, liability, and profits.

But good news: Montana doesn't require a general license to do business in the state. Meaning, your Montana LLC doesn't need a general state business license. But depending on what type of business you run, your LLC might need an occupational license (aka “industry-specific” license).

The IRS uses the EIN to identify the taxpayer. Business entities—corporations, partnerships, and limited liability companies—must use EINs. But most sole proprietors don't need to get an EIN and use their Social Security numbers instead. Even so, you might want to obtain an EIN anyway.

Use Schedule C (Form 1040) to report income or loss from a business you operated or a profession you practiced as a sole proprietor.

Transition adjustments A taxpayer may make an election on a timely filed (including extensions) 2024 Form 2 to reconcile the difference in the federal and Montana amounts of passive activity losses, short-term and long-term capital losses, and any differing bases.

Choose a Business Name. In Montana, a sole proprietor can use their own legal name or a trade name—also sometimes known as an "assumed business name" or "doing business as" (DBA)—to conduct business. File a Registration of Assumed Business Name With Montana. Apply for Licenses, Permits, and Zoning Clearance. Obtain an EIN.

Transition adjustments A taxpayer may make an election on a timely filed (including extensions) 2024 Form 2 to reconcile the difference in the federal and Montana amounts of passive activity losses, short-term and long-term capital losses, and any differing bases.

What is the 183-day rule?: If you spend 183 days or more in Montana in a calendar year, you may be considered a resident for tax purposes, even if you've moved to another state. This means you could be liable for state income taxes.

Montana Tax Brackets for Tax Year 2022 Tax Rate:1% Income Range:$0 - $3,300. Tax Rate:2% Income Range:$3,300 - $5,800. Tax Rate:3% Income Range:$5,800 - $8,900. Tax Rate:4% Income Range:$8,900 - $12,000. Tax Rate:5% Income Range:$12,000 - $15,400. Tax Rate:6% Income Range:$15,400 - $19,800. Tax Rate:6.75%