42.23.702    TAXATION OF A LIMITED LIABILITY COMPANY

(1) The taxation of a limited liability company in Montana depends upon its federal classification as a corporation or a partnership as determined by the IRS, regardless of whether an entity is recognized as a limited liability company under the Montana Limited Liability Company Act. For example, a limited liability company may be formed in Montana with one member; however, in order to be taxed as a partnership for federal purposes, and consequently for Montana purposes, the limited liability company must have at least two members. If the limited liability company is taxed as a "C" or "S" corporation for federal tax purposes, then it must file the corresponding Montana corporate income tax return with the department as provided for under Title 15, chapter 31, MCA. If a limited liability company is treated as a partnership for federal tax purposes, then it must file a partnership return reflecting each member's share of the income/loss, and also, the members must file Montana individual income tax returns reflecting their share of the income/loss of the limited liability company. These returns are to be filed with the department as provided for under Title 15, chapter 30, MCA.

(2) A copy of the limited liability company's federal return must be attached with the tax return required for Montana purposes.

History: 15-1-201, MCA; IMP, 15-31-101, 15-30-2620, 15-31-501, MCA; NEW, 1994 MAR p. 1721, Eff. 6/24/94; AMD, 2001 MAR p. 2046, Eff. 10/12/01; AMD, 2016 MAR p. 2198, Eff. 11/26/16; AMD, 2020 MAR p. 395, Eff. 2/29/20.