24.11.2007    EMPLOYER ENTITY FORMS

(1) An employer must identify the type of legal entity under which it operates.

(2) Legal entity forms include, but are not necessarily limited to a:

(a) sole proprietorship;

(b) partnership, pursuant to the provisions of Title 35, chapter 10, MCA;

(c) limited partnership, pursuant to Title 35, chapter 12, MCA;

(d) corporation, pursuant to Title 35, chapters 1 through 4 and chapter 9, MCA;

(e) member-managed limited liability company, pursuant to Title 35, chapter 8, MCA;

(f) manager-managed limited liability company, pursuant to Title 35, chapter 8, MCA;

(g) member-managed limited liability partnership, pursuant to Title 35, chapter 10, MCA;

(h) manager-managed limited liability partnership, pursuant to Title 35, chapter 10, MCA; and

(i) governmental unit.

(3) An employer that attempts to form or operate as an entity other than a sole proprietorship will not be treated as such until the employer complies with Montana law regarding creation and/or maintenance of that entity form.  As an example, if two individuals intend to form a limited liability company but fail to properly do so, the individuals will be treated as partners for unemployment insurance purposes.  In general, two or more individuals owning a business and functioning as an employer are deemed to be in a partnership and have joint and several liability for unpaid unemployment insurance contributions.

(4) An employer that changes its legal entity form must promptly report to the department the date of the change and identify its new entity form.

(5) The department may require an employer to document its legal entity form. 

History: 39-51-301 and 39-51-302, MCA; IMP, 39-51-201 and 39-51-603, MCA; NEW, 2004 MAR p. 2808, Eff. 11/19/04.