STARTING A BUSINESS IN MONTANA:
STEPS TO MAKE IT SUCCESSFUL

By: Jeffrey A. Weldon

(as published in the Western Business Journal)

Starting a new business or reorganizing an existing business can be an exciting, but nerve-racking time. The first steps taken by a new business owner can determine the future success or failure of the business. Those first steps should include the following:

Step One: Reserve a Business Name. Once you have selected your business name, make sure the name is available for use by calling the Montana Secretary of State. You may reserve your business name, which "holds" it for 120 days to allow you time to finish the legal organization of your business.

Step Two: Chose the Most Appropriate Business Form for Your Enterprise. Montana law provides a wide selection of business entities or structures through which you may enter into business. Ask yourself:

• How much control do I want over the operation and ownership of the business?
• How important is protecting myself from potential legal liability from the operation of the business?
• Will other people become involved in the business in the future as owners?
• What are the tax consequences of my business operation?
• Whom do I want involved in the business as directors and officers, if necessary?

Step Three: File the Appropriate Legal Forms or Documents with the Secretary of State. Your attorney can prepare and file these documents.

Step Four: Apply for a Tax Identification Number. This is a federal number that is also used by the state. Accountants and attorneys are familiar with this process.

Step Five: Apply for All Necessary Local, State. or Federal Licenses, Permits, and State Accounts. Among other things, you may need unemployment insurance and workers' compensation insurance. Depending on the nature of your business, you may need permits, licenses, copyrights, patents, or trademarks.

Step Six: Complete Annual Reports and other State Requirements as Necessary.

You may have to focus on several of these steps at once. However, help is available! Call Montana Secretary of State Mike Cooney (406-444-3665) for information, including the "Montana . . . We Mean Business" booklet. The Small Business Development Center in the Montana Department of Commerce (406-444-2463) provides information about business licencing and registration. Local attorneys experienced in business law are also available to help.

These notes concerning the selection and organization of various business entities are hardly complete. They are offered to give you an idea of the kinds of things to think about when forming a new business. Before you undertake your business activity, contact a legal professional with experience with Montana's business laws.