Articles of Organization Requirements for a Montana LLC
Updated: Oct 26, 2020
Incorporating your business as an LLC can provide many benefits. If you are preparing to incorporate your business as an LLC in Montana, one essential step to understand is drafting and filing your Articles of Organization. We’ve provided an in-depth discussion of the requirements around the Articles of Organization below, but if you find you need additional support, LLCTLC is always here to help.
When forming an LLC, several steps must be taken. One of the most critical is to prepare and file the Articles of Organization. The information that must be included in the Articles of Organization is detailed in Section 35, Chapter 8 of the Montana Code Annotated 2017.
Paying close attention to the Articles of Organization is essential because preparation and filing of these documents with the Secretary of State constitute official formation of the LLC. An important element of filing the LLC is the question of whether the company should be member-managed, or manager-managed.
What is Member Managed s. Manager Managed?
There are two management choices for your LLC, and this choice must be declared in the Articles of Organization – member-managed or manager-managed.
Member-Managed:Under this structure, all members of the LLC participate in running the business.
Manager-Managed:Only designated members and/or certain nonmembers of the LLC are responsible for running the business.
Member-managed LLCs are much more common because most LLCs are small businesses without the resources to employ a separate management structure. LLCs are more often formed by individuals who plan to be directly involved in the management and operation of the business.