Montana Corporation

For Montana Corporation prices and State fees, please visit the costs page for forming a Corporation in Montana.

A Montana corporation is a separate legal entity and is owned by shareholders and managed by directors. The Montana corporation directors appoint officers to run the corporation on a day-to-day basis and determine policies and actions to be taken by the corporation. In order for the corporation to be operated correctly, some formalities must be observed. These include, issuing stock, meeting of the shareholders and maintaining meeting minutes. When these formalities are observed, the corporation will be recognized as a separate "e;person" from those who own it, in the eyes of a court, creditor and the IRS.

Montana corporation must observe some operating formalities and maintain its separate legal status. Holding shareholder meetings, at least annually, is one of these formalities. At these meetings the corporation shareholders discuss and decide on critical business matters and approve actions taken by the corporation for the operating period. These meetings should be recorded in the form of meeting minutes, this is a legal record that shows the shareholders are approving actions and the officers are indemnified by the stockholder approval of the business actions.

The board of directors acts as a managerial body for the corporation. A corporate director is a member of this body and is generally elected by the shareholders. Each director must attend meetings of the board, which must be held no less than once a year. Directors must make sure that major corporate actions are clearly written and were taken behalf of the corporation. Directors have a fiduciary responsibility to the shareholders to keep their best interests in mind.