{"id":3531,"date":"2016-05-06T13:01:57","date_gmt":"2016-05-06T20:01:57","guid":{"rendered":"http:\/\/evergreensmallbusiness.com\/?page_id=3531"},"modified":"2019-06-27T13:21:44","modified_gmt":"2019-06-27T20:21:44","slug":"setting-up-a-montana-s-corporation","status":"publish","type":"page","link":"https:\/\/evergreensmallbusiness.com\/s-corporation-kits-for-all-fifty-states\/setting-up-a-montana-s-corporation\/","title":{"rendered":"Setting Up a Montana S Corporation"},"content":{"rendered":"

\"montana\"<\/a>If you\u2019re a Montana\u00a0entrepreneur or business owner operating a profitable small business, you probably ought to consider forming either a limited liability company or a\u00a0corporation and then electing to use the Subchapter S tax accounting rules.<\/p>\n

Here is why: with other entity types, you\u2019re not only paying federal and state income taxes on all your business profits, but you are paying self-employment taxes on those very same profits too. These aren’t just a couple percentage points either. We are talking about 15% on the first $120,000 of profit. If you’re lucky to earn more than that, you’re looking at saving five figures\u00a0annually.<\/p>\n

Making the s-election on an eligible entity allows\u00a0you sidestep some of (well, actually, a lot of) the self-employment taxes you pay.<\/p>\n

Our Montana\u00a0S Corporation kit<\/h2>\n

Now that you know the tax reasons why you should consider this, let’s look at the next option. Which entity type is right for me to use as a base? You mentioned LLCs and corporations? I thought it was an s-corporation?<\/p>\n

If you are asking these types of questions, we would urge you to go with the limited liability company option. This is because there are generally fewer filing and annual requirements while still maintaining separation of personal and business assets.<\/p>\n

Click below to purchase our recommended\u00a0LLC option:<\/p>\n