One of the few states in the union with a state income tax is Montana. In general, all citizens and non-residents who make money in Montana must file an income tax return. In this post, we will address several often asked inquiries regarding Montana income tax returns, such as who is required to file, whether or not S corporations are subject to taxation in Montana, how Montana LLCs operate, and how to modify a registered agent in Montana. Who in Montana is required to file an income tax return?
If their gross income exceeds a specific amount, Montana citizens are required to file a state tax return. The barrier for single taxpayers is $5,000, for head of household filers it is $8,200, and for married filers filing jointly it is $10,400 for tax year 2020. If a non-resident made more than $2,500 in Montana income, they are required to file a tax return. Do S Corporations Pay Tax in Montana?
S corporations are subject to net income tax in Montana. The deadline for submitting a Montana Form CLT-4S, known as a S company, is the 15th day of the third month following the conclusion of the corporation’s tax year. Shareholders of S corporations must also submit a Montana Form K-1 detailing their portion of the S corporation’s earnings, credits, and deductions.
LLCs in Montana are not subject to entity-level taxation. Instead, the LLC’s earnings, credits, and deductions are transferred to its owners, who then report the earnings on their individual tax returns. An yearly report detailing the members, managers, and registered agent of a Montana LLC must be submitted to the Secretary of State of Montana. What Performs an Agent of an LLC?
A person or business designated to receive legal notifications and other official papers on behalf of an LLC is known as its agent. These paperwork must be delivered to the managers or members of the LLC by the agent. The registered agent must be readily accessible during regular business hours and have a physical address in Montana. How Can I Modify My Montana Registered Agent?
A Statement of Change of Registered Agent, Form RA-100, must be submitted to the Montana Secretary of State in order to change your registered agent there. The paperwork must contain the name and address of the new registered agent and be signed by an authorized member or manager of the LLC. There is a $20 filing fee.
In conclusion, it is normally compulsory for both citizens and non-residents of Montana who generate money in Montana to file an income tax return. S corporations must pay taxes on their net profits, but LLCs are exempt from entity-level taxes. Legal notices and other official papers must be received on behalf of an LLC by an agent. You must submit a Statement of Change of Registered Agent to the Montana Secretary of State in order to modify your registered agent there.
There is no information in the article about whether you must register your business in Montana. It exclusively addresses who must submit a state income tax return. It is advised to speak with a legal or tax expert to learn the prerequisites for setting up a business in Montana.