If you’ve never heard about the benefits of starting a Montana LLC, this article will hopefully be an excellent resource. From tax savings to anonymity when making purchases, here are the top 5 reasons why a Montana LLC is a great idea.
#5: Tax Return Savings
You may have heard that our federal tax laws have recently been changed. These adjustments are currently in place for the 2018 fiscal tax year due to laws that were passed by our government. The most significant impact on taxpayers is the elimination of itemized tax deductions for individuals and joint taxpayer returns.
What this means is that line items that were once tax deductible on your federal tax return will no longer be eligible as a tax deduction. Instead, the government has implemented a blanket deduction amount for individuals as well as those who are filing jointly.
A Montana LLC can help you keep the ability to itemize certain line items on your tax return if you make purchases under your Montana LLC and file those deductions on your business’ tax return. Ask your tax professional to help you with this!
#4: Flexibility With Purchases
Business purchases in some cases can be a tax deduction, as stated above. For many people, having the flexibility to make large purchases under their LLC’s name gives them the option to purchase items as the business entity rather than as an individual. Again, this can help reduce overall tax liability at the end of the year for qualified business purchases.
If you own a Montana LLC, you can make purchases under your LLC name (such as vehicles, boats, etc.) and register them out of state without listing your own name on the invoice as the buyer. This isn’t a huge deal for some people, yet for others, they prefer to not have all of their large ticket purchases attached to their personal name for whatever reason. A Montana LLC allows you to have this anonymity when making certain purchases.
#2: Sales Tax Savings
Montana is a 0% sales tax state, which means that its residents do not pay sales tax on purchases made inside the state. As a Montana LLC owner, the IRS considers your business as a separate entity. This means that your LLC is actually a “resident” of Montana with all of the same tax benefits that in-state residents enjoy.
For example, you can buy a vehicle in your home state (under your LLC’s name) and owe no sales tax at the time of purchase! You can then register the vehicle in Montana and you would pay Montana vehicle registration fees.
#1: Ease of Set Up
Trying to set up your Montana LLC on your own is complicated and time consuming. Most of us have no experience in getting LLCs started, nor do we know how to navigate the state/federal requirements and benefits that come with owning one.
Our company will not only help you start your LLC for one flat fee, but we also handle all of the filing paperwork, serve as your Registered Agent, and can even complete your vehicle registration in Montana. All for one easy, flat fee.
Contact us today to get started!