A limited partnership (LP) is a type of partnership that divides its partners into two types. These two types of partners are general partners, who are in charge of and liable for the LP’s actions, and limited partners, who are typically not involved in running the LP in exchange for not being held personally liable for the LP’s actions. If you want your company to be an LP, then you will need to register your company as an LP with the Montana Secretary of State.
What Are the Requirements for an LP?
The first requirement you must satisfy is selecting a name for your LP that includes one of the following terms: "Limited Partnership,” "L.P.", or "LP". A registered agent who is capable or being served on behalf of the LP must also be selected. The business also has to have at least one general partner in the LP to manage the company, as all limited partners are prohibited under Montana law from having any significant involvement in the LP other than providing money.
What Paperwork Do I Need to Form an LP?
You can file the necessary paperwork with the Montana Secretary of State either online or by mailing in the completed paperwork. To register a domestic LP, which is an LP created in Montana, you will need to fill out a Domestic Certificate of Limited Partnership. The form requires you to provide the LP’s name, as well as the names and addresses of the registered agent and the general partners. Also, all of the general partners need to sign the form before it is sent in.
A foreign LP is required to file an Application for Registration of Foreign Limited Partnership if it wishes to do business in Montana. Otherwise, it will not be allowed to have its own registered agent or file a lawsuit in Montana’s court system. An LP is foreign if it initially began in another state or country. In order to fill out the required paperwork, the foreign LP has to list its name, a new name if the original name does not meet Montana’s name requirements, its mailing address, and where and when it was formed. You will also be asked to provide the names and addresses of the registered agent the general partners.
What Benefits Does Montana Give to an LP?
Unlike other states, Montana does not require LPs to file annual reports or pay annual fees. Also, Montana is one of the cheapest states in which to file. It only costs $20 to file the paperwork to register an LP.
What Disadvantages Does Montana Give to an LP?
Montana only allows for an LP’s certification, whether it is a Domestic Certificate of Limited Partnership or a Registration of Foreign Limited Partnership, to be valid for five years. An LP must file an Application for Renewal of Registration of Domestic or Foreign Limited Partnership within 90 days before its certification expires. Failing to file for a renewal before the expiration of an LP’s certification will result in the LP’s certification being cancelled by the Montana Secretary of State, effectively dissolving the LP.
Should I Hire a Business Lawyer?
Creating an LP can be difficult, and you can only do so by satisfying several requirements. Speaking with a local business lawyer in Montana can help you avoid any mistakes or confusion.