To move your business operations to Montana, you’ll probably want to go through a process called domestication. Here’s what you need to know:
What is domestication in Montana?
Domestication is the state-assisted process of changing a company’s state of formation (also known as its state of domicile). While you could technically dissolve your current company then form a new Montana Corporation, domestication is often easier and more cost effective.
Do I need to domesticate my corporation in MT?
If you have a business presence in Montana (aka “nexus”), then you’ll have to register your corporation in Montana. However, domestication isn’t your only option. You might instead:
- Form a new corporation – This requires dissolving your current corporation then forming an entirely new corporation in Montana.
- Foreign register – If you intend to keep your corporation registered in its current state of domicile, you can Register a Foreign Corporation in Montana. (“Foreign,” in this case, just means out-of-state.)
There are pluses and minuses to each option, largely dependent on the needs and circumstances of your corporation.
How do I domesticate my corporation in Montana?
To domesticate your corporation in Montana, you can file domestication papers with the secretary of state. According to Montana Code Annotated § 35-14-920, this filing must include a plan of domestication that lists:
- Your corporation’s current name
- The name and location of your corporation after domesticating to Montana
- How you plan to reclassify and/or redistribute corporate shares upon domestication
- Your proposed Montana articles of incorporation and corporate bylaws
- Other terms and conditions of the domestication
What if my state doesn’t recognize domestication?
You will only be able to domesticate your corporation in Montana if your current state of domicile recognizes the legal process of domestication. According to § 35-14-920, you will have to provide a statement from that governing agency “that the domestication was approved in accordance with its organic law.”
If you have further questions about the domestication process or how to proceed with your business, it’s a good idea to talk to a business attorney or adviser.