Are you planning to start a business in Big Sky Country? Starting your own business and following your passion is exciting. Whether you are starting a business as a part-time job on top of your 9-5 job or want to dedicate all of your time to your business, one of the first things you should do is think of a business name.
Compared to other states, Montana does not have many businesses. However, there is a slight chance that the name you want for your business is not available. If a name is already in use by another business, it’s considered “unavailable” and forces you to pick another.
To check name availability, you can use a search tool on the state website. We’ll explain how to use this tool and provide some useful facts and tips to launch a business in Montana.
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How to check business name availability in Montana
Thinking of a name is the hardest part, and everything is downhill from there. The next step is to check if the name you want for your business is available. Here are the necessary steps you need to take to find out if the potential name of your business is available:
1. Go to the Secretary of State website in Montana
To find out if your business name is available, you need to visit the SOS website in Montana and do a quick search with their convenient business entity name search tool.
2. Search for a business name
On the name search tool, you can type in the potential names of your business to see if it is available. Simply type in the name of the business on the search bar and press enter to get fast results.
3. Choose a name
If the search results had exact matches to the names you thought about, you cannot choose that name for your business because the state of Montana does not allow two businesses to have the exact name. Fortunately, you can find all registered businesses in Montana in one database, which makes it easier for you to find out if the business name is available.
4. Choose the name with no matches
If the name you typed in has zero results, the name is free to use.
If you are not planning on registering the business immediately, you can reserve the name to make sure no one beats you to it. Name reservations only last for a limited time, so you will need to renew the reservation if you haven’t had the chance to register your business.
5. Consider reserving a name
After running a Montana business name search, you have two options: You can reserve a name or you can register the name. You should create an account on the Secretary of State website in Montana and reserve a name if you aren’t planning to set up the business immediately.
Montana allows business owners to reserve a name for 120 days for $10 and an extra $100 for the 1-hour expedite handling fee.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Montana, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
6. Check domain name availability
We created a tool that makes it easy.
How to name your Montana business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Montana company?
As you research available business names in Montana, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Montana business
Ready to set up your business in MT? Here’s what you do:
1. File your Articles of Organization
Visit the Montana Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Montana, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Montana, the cost is $20 and an extra $100 for the 1-hour expedite handling fee.
4. Wait for approval
Montana will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Montana small business facts
Before you search for a name, you want to make sure your business is in a market with fewer competitors but in high demand. These statistics from the U.S. Business Administration might help you gain insight on what industry and what nature of business is best:
- There are 6,411 self-employed minorities in the state of Montana, which is significantly fewer than other states.
- There are 123,419 small businesses in Montana. But despite the low number of small businesses compared to other states, the percentage of all businesses in Montana takes over 99% of all businesses in the state.
- There are 1,210 small businesses that export local products to other states or overseas.
- In 2019, Montana’s economy grew at an annual rate of 2.2% from 2.1%. However, the previous years went from 2.6% to 2.1%.
- In April 2020, Montana experienced a spike in unemployment as it grew from 3.5% to 11.3% in April 2019. It is still lower than the national average of unemployment in the same year at 14.7%.
- In 2017, Montana small businesses employed 245,758 people or 65.3% of the entire private workforce.
- Firms with fewer than 20 employees have the largest share of small business employment in the state of Montana.
- The private sector employment decreased 13.6% during the 12-month period from April 2019 to April 2020.
- In 2018, the number of proprietors increased by 2.4% from the previous year.
- Small businesses in Montana created 3,772 net jobs in 2019.
- Unlike other states, the most employees in Montana are under the accomodation and food services industry with a total of 42,987 employees. Following at second is the healthcare and social assistance industry with 39,680 employees.
- Most states have more employees working in the healthcare industry, but that is not the case for Monatana.
- The highest number of firms in Montana are part of the construction industry with a total of 17,956 firms overall.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Montana:
Why is it so important to check on business name availability?
Montana will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
Is it safe to open a small business in Montana?
Opening up a business in any state is risky. The key to a successful business is creating a solid business plan that examines everything from market demand and revenue streams to marketing strategies and growth potential.
What are the most popular industries in Montana?
Construction and healthcare are the two most popular industries in Montana, according to the U.S. Small Business Administration. Because they are popular industries, you might want to choose a different industry with fewer competitors.
Is Montana a destination for tourists?
Montana is not much of a tourist destination, but Glacier National park is one of Montana’s most famous landmarks. Many businesses that are focused on tourism are set up in and around that area.
Does a business owner need an EIN to operate in Montana?
Most businesses do need an EIN, which is issued on the federal level by the IRS. A business needs an EIN to open bank accounts, hire employees, and file taxes. You can obtain this nine-digit number by visiting the IRS website.
Is it possible to operate without a business license in Montana?
Montana does not have a standard state business license or sales tax, which makes it easier and faster to operate once your business is ready. However, you will need to obtain the necessary permits to sell products or services legally.
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