The process of Legally Closing a Corporation in Montana is called Dissolution.  After a Montana Corporation has been Dissolved, it ceases to be Legally Active in the Montana Secretary of State's records and may no longer Legally conduct business in the state of Montana.

A Montana Corporation is created when the MT Secretary of State approves the Formation Documents - Articles of Incorporation.  A record of the Montana Corporation is added to the list of Corporations which have officially registered with the Montana Secretary of State.  Once a Corporation is registered with the Montana Secretary of State, that Corporation immediately has both reporting and tax obligations which incur penalties if the obligations are not met by the required deadlines.

If you've registered a Montana Corporation with the Montana Secretary of State and want to cease business activities you have to let the MT Secretary of State know that you intend to close your company.  Only after the MT Secretary of State has made sure that all of the obligations of the Montana Corporation have been fulfilled will the Secretary of State approve of the closure of the company.

When the Montana Secretary of State approves the closing of a MT Corporation, that Montana Corporation is said to be Dissolved.  The process of Dissolving a Montana Corporation is called Montana Corporation Dissolution.

A certificate from the Montana Department of Revenue stating that all taxes owed by the Montana Corporation seeking Dissolution have been paid. The MT Department of Revenue takes 10-15 business days to process a tax clearance request.

As soon as a Montana Corporation is registered with the MT Secretary of State, that Corporation is responsible for recurring obligations of the Montana Secretary of State and the Montana Department of Revenue.  If a Montana Corporation does not file its required reports or pay its tax obligations, then that MT Corporation could be responsible for penalties which compound as time goes by.

Unless you Dissolve (Legally Close) your Montana Corporation with the Montana Secretary of State that MT Corporation will be responsible for all recurring fees and penalties until the company has been legally closed.

Montana Corporation Dissolution is one part of a larger process commonly called the "Winding Up" process.

There are things you need to do before you can request approval of Corporation Dissolution from the Montana Secretary of State; and things that you have to do after the MT Secretary of State has approved Dissolution of the Montana Corporation. 

When a Montana Corporation is originally created, the Organizers may create Bylaws that define how the Corporation will be run.  The Bylaws may include pretty much anything that has to do with running the Corporation, including specific requirements which need to be followed before the Corporation may be Legally Closed.  Before you do anything else, you should review the Bylaws for anything that needs to be done before the Business is Legally Closed.

What you have to do both before and after the Montana Corporation is Dissolved largely depends on how much stock, if any, has been issued and how much and what kind of debts and liabilities that the Montana Corporation has.  If the Montana Corporation has not commenced business then the MT Corporation Dissolution process is easier.

1. Hold a Board of Directors meeting and record a resolution to Dissolve the Montana Corporation
   
   
   If a Board of Directors has been appointed for the Montana Corporation, then the Board is required to adopt a resolution to Dissolve the MT Corporation.  There should be a majority of Board Members who vote Yes to Legally Close the company.  A formal date on which the Corporation will be closed should be specified.  Minutes of the meeting should be recorded and retained in the business records.  If the Board of Directors has not been appointed then the Incorporator(s) have to apply for Dissolution of the Montana Corporation.
   
   
   We can transcribe and compile any minutes or approvals into a form that is legally recognized by the Montana Secretary of State.
   
   
2. Hold a Shareholder meeting to approve Dissolution of the Montana Corporation
   
   
   If a Montana Corporation has issued shares of stock then a meeting of the Shareholders (owners) must be held and recorded. A majority of Corporate Shareholders must approve the Dissolution plan.  The approval actions should be documented and kept in the business records.
   
   If no shares have been issued then the Montana Corporation Dissolution process is easier.
   
   
   
3. File all required Annual Reports with the Montana Secretary of State
   
   
   The Montana Secretary of State will not approve the Dissolution of a MT Corporation until all required administrative reports have been filed.
   
   
   We can file any required Annual Reports with the MT Secretary of State.
   
   
4. File all required tax returns with the Montana Department of Revenue
   
   
   The Montana Secretary of State will not approve the Dissolution of any MT Corporation until that Corporation has fulfilled all its tax obligations with the Montana Department of Revenue.
   
   
5. Clear up any business debts
   
   
   All creditors of a Montana Corporation should be given notice of the pending Corporation Dissolution. Each creditor should be given a mailing address to which they may submit claims as well as a deadline by which claims may be submitted.
   
   While the Montana Secretary of State does not legally require the publication of a Notice of Dissolution of a Montana Corporation, publication is a good way to notify anyone who might have a claim against the Montana Corporation.  Evidence of publication might prove useful down the line if someone makes a claim against the MT Corporation after the Montana Corporation has been dissolved.
   
   
   
6. Pay all taxes and administrative fees owed by the Montana Corporation
   
   
   The Montana Secretary of State will definitely not approve the Dissolution of a Montana Corporation until all outstanding taxes and applicable registration and administrative fees have been paid.

1. Distribute all remaining assets of the Montana Corporation
   
   
   If the Montana Corporation has any remaining assets, these may be divided according to the Shareholders' ownership interests in the MT Corporation. All distributions to Corporate Shareholders must be reported to the IRS.  Refer to the Corporation Bylaws for specific requirements, if any, for asset distribution.
   
   
2. Close all business bank accounts of the Montana Corporation
   
   
   If there are any business accounts that have been opened for the Montana Corporation then those accounts must be closed.  If any Corporate business accounts are left open there may be liability and obligations of the Dissolved Montana Corporation which could lead to legal problems.
   
   
3. Cancel all local business licenses and permits of the MT Corporation
   
   
   If the Montana Corporation has obtained any state, regional, county or city business licenses or permits, there may be cancellation requirements associated with those licenses or permits.  Each of those must be cancelled to avoid any reporting or fiscal obligations the Montana Corporation may have.  This includes business registration licenses as well as reseller permits.
   
   
4. File IRS Form 966
   
   
   A Dissolved Montana Corporations may be required to file IRS Form 966 with the US Internal Revenue Service.  This filing is required within 30 days after the final Dissolution plan is approved.  Filing IRS Form 966 lets the Federal Government know that the Montana Corporation has been legally Dissolved so that it may take the appropriate actions.
   
   
   
   We can prepare IRS Form 966 for you to file.
   
   
5. Cancel the IRS account associated with the MT Corporation's Federal Tax ID (EIN)
   
   
   A Federal Tax ID, or Federal Employer Identification Number (EIN), is like a Social Security Number for the Montana Corporation.  Once the IRS links an EIN to a Montana Corporation, that EIN stays with the Montana Corporation even after the Company has been Dissolved by the Montana Secretary of State.
   
   When the IRS processes the final tax return for the Montana Corporation, they automatically make the EIN inactive.  However, the account associated with the EIN is not automatically closed.  Closing the account associated with the EIN lessens the likelihood of any problems with the EIN account, or with the IRS, in the future.
   
   If you should decide to revive the Montana Corporation down the line the IRS will reactivate the old EIN for your new Business.
   
   Before a Montana Corporation can close an EIN account, it must be in Good Standing with the IRS.  The Montana Corporation must have filed all required tax returns and paid any applicable fees and penalties due to the IRS.  The Montana Corporation cannot close its EIN account until the IRS has received payment for any tax amounts the Company may owe.
   
   
   
   We can prepare the formal documents which you can sign and submit to the IRS in order to close the account associated with your EIN.
   
   
6. Keep Records of all Pertinent Business Documents
   
   
   In order to avoid problems down the line, you should keep copies of all tax filings, contracts and employment records on file as well as Certified Copies of all company documents filed with the Secretary of State.  This includes your Formation Documents - your original Articles of Incorporation and any Amendments - and all Dissolution douments.

You notify the IRS that your Montana Corporation has been Closed on the final tax return that is filed for your Business. 

If you have employees and file taxes quarterly with IRS Form 941, Employers Quarterly Tax Return, check the appropriate box on that form to let the IRS know that your Corporation has Closed.  If you file yearly taxes do the same on IRS Form 944, Employers Yearly Tax Return. You should also attach a statement to the return showing the name of the person keeping the payroll records and the address where those records will be retained.

When you opened your Montana Corporation you most likely were assigned a Federal Employer Identification Number (EIN).  Once the IRS links an EIN to a Corporation, that EIN stays with the Corporation even after the Company has been Dissolved.  If you don't plan to reopen your Montana Corporation after it has been Closed, you should cancel the EIN account that has been assigned to your Company.

The time it takes to Dissolve a Montana Corporation varies depending on how long it takes to complete the actions that are required in each specific case - holding meetings, closing accounts, distributing assets, etc.

The Montana Secretary of State requires a Tax Clearance Certificate from the MT Department of Revenue before it will approve the Dissolution of a Montana Corporation.

The time it takes the MT Department of Revenue to process a request for a Tax Clearance Certificate depends on the tax status of the Montana Corporation. In some cases it could take 5-6 weeks to get a Tax Clearance Certificate from the Montana Department of Revenue.

Once the initial actions are completed, the Montana Secretary of State usually takes around 10 business days to process the Articles of Dissolution.

Processing times for Montana Corporation Dissolution filings vary depending on the work load of the Secretary of State's staff.  We've found that normal processing of Montana Dissolution filings takes the state around 10 business days.
We are dependent on, and have no control over, the staff and systems of the Montana Secretary of State or Montana Department of Revenue. In our experience 10 business days is the time it usually takes the Montana Secretary of State to process a Montana Dissolution filing. We get your Montana Corporation Dissolution filing to the MT Secretary of State as soon as possible after we receive your order. Once it is at the state we have no control over the Montana Dissolution approval process.

The total cost to Dissolve a Montana Corporation varies depending on exactly what is required for each specific MT Dissolution.  We charge $249 plus any state fees for our Montana Corporation Dissolution services.

We also offer these Montana Corporation Dissolution services separately.

If there are Foreign Corporations in states other than Montana that are tied to the Domestic Montana Corporation then each of those Foreign Corporations must be Dissolved before the Montana Corporation can be legally Dissolved.

Once the Montana Secretary of State has approved the Articles of Dissolution, the Montana Corporation may request revocation within 120 days of the date on which the MT Secretary of State approved the Articles of Dissolution.

The company name of a Dissolved Montana Corporation may not be used by another Montana Corporation or LLC within 120 days of the date on which the Montana Secretary of State approved the Dissolution of the MT Corporation. After 120 days the company name becomes available to any Montana Corporation or LLC. There are no protections on the use of a Montana company name after 120 days from the date of Dissolution.