LLC
Annual Report

All corporations must provide a list of corporate officers to the Secretary of State.

Annual Report

Fee $15

Business Property Tax

Business Property Tax

Business real property (land, buildings, etc.) and business equipment are subject to an ad-valorem tax in the State of Montana. All non-exempt property is taxed based on its full market value. Different classes of property are subject to different assessment rates. As an example, real property (land and buildings) in the City and County of Butte-Silver Bow is currently taxed at 1.54% of its market value annually (prior to any incentives).

Equipment taxes

Business equipment taxes have been declining in recent years because of actions of the Legislature. In 1995, the Legislature enacted a law which results in a continued decline in business equipment property taxes. In 1999, this legislative action has resulted in a decrease in business equipment taxes to 2.39% of the market value annually, prior to the application of any tax incentives.

Tax on inventory

Business inventories, goods-in-transit, intangible assets and freeport merchandise are statutorily exempt from property taxation. In addition, business equipment belonging to qualified research and development companies may be taxed at approximately 1% of market value in perpetuity.

1099M Statement for Independent Contractors

This form is used to report business you have done with independent contractors (who are not corporations) and medical corporations. Complete Form 1099-Misc:

  • For every individual, sole proprietorship, partnership or medical corporation which you purchased $600 or more for services (not products);
  • If you purchased $5,000 or more of consumer products from a non-corporation that you intend to resell outside a permanent retail establishment;
  • If you paid a non-corporation $10 or more in royalties; or
  • If you paid a landlord $600 or more (and your landlord is not a corporation).

If you paid over $600 in interest (to a non-corporation), you must file IRS form 1099-I. To request this form, call the IRS at (800) 829-3676 or go to http://apps.irs.gov/app/picklist/list/formsPublications.html

Forms to use

1099-M Annual Information Form for Independent Contractors

1096 Transmittal Form

Preparing 1099s is not user-friendly. The IRS does not have a direct way to input the information online. Instead, it has authorized companies to be 1099 providers. Do a search on the Internet for current providers and prices.

How often?

Annual reporting requirement

Due date

January 31 to the recipient

February 28 to the IRS

To do it yourself

Doing it yourself is possible, but not user-friendly. You have to use official IRS forms and must prepare them using a computer or typewriter (remember those?). Here is how to do it:

Prepare 1 form for each payee.

Lines and what to do

Left side

  • Payer is your company
  • Recipient is the person you paid.
  • Payer's federal identification number is your social security number.
  • Recipients' identification number is their social security (if you paid an individual or sole proprietorship), or their SS-4 number if you paid a partnership.
  • Remember, if you paid a corporation, you do not have complete a 1099-Misc.
  • Leave "Account Number" blank unless you use vendor account numbers.

Right side

  • Fill in the relevant boxes. Here are the most commonly used.
  • 1. Rent to landlords (if you paid more than $600).
  • 7. Compensation to independent contractors for services (if you paid them more than $600).
  • 9. Check the box if you purchased over $5,000 of products for resale from this (non-corporate) vendor.

How to complete form 1096

1096 is the transmittal form. It must also be prepared on a computer or typewriter. Prepare one form to transmit all the 1099-Misc.

Lines and what to do

Top

  1. Leave blank
  2. Your social security number
  3. Enter the number of 1099s you are enclosing
  4. 0, unless you withheld income tax (line 4 on each 1099-Misc)
  5. Add up boxes, 1,2,3,5,6,7,8, and 10 for all the 1099-Misc's Usually all but 1 and 7 are 0.

Bottom Check box 1099-MISC - 95

How to submit

  1. Mail Copy A of 1099-M (the red page) to the IRS with transmittal Form 1096
  2. Mail or deliver Copy B and Copy 2 to the receipient (the person or company you paid)
  3. Keep copy C for your records
  4. The IRS will automatically send your 1099-M information to the state tax authority.

A few more rules $50 fine for ignoring these rules:

  • Type forms - regular type style
  • Use original forms - no copies
  • Submit entire 8 x 11 page - don't cut it up
  • Don't staple
  • Don't use dollar signs, commas or other symbols, except you should use decimal points to show dollars and cents.

Questions? For forms call (800) 829-3676. You cannot obtain original forms from the Internet. For information, call (800) 829-4933 or read Publication 937 Business Reporting.