Inspiring thoughts from
OUr CEO, Sarah Gould
OUr CEO, Sarah Gould
Starting a New Business in Montana
Are you starting a new business? First off - congratulations! Starting a new business is exciting, and doing it in Montana makes it even better.
Despite all the good stuff, the line between success and failure as a new business is narrow, and it’s essential to understand how to set yourself up for success.
In this blog, we’ll outline the biggest things you need to know before starting a new business and how you can get your venture off on the right foot.
Let’s dive in.
First Things First: Why Start a Business in Montana?
When it comes to launching a business, Montana is a great state to do it.
In 2020, Montana ranked 5th on Tax Foundation’s 2020 State Business Tax Climate Index, thanks to low property taxes and lack of statewide sales tax.
This is excellent news for new business owners: when you pay less tax, you’ll have more cash available to grow your business.
Here are a few additional Montana business stats to keep in mind:
6 Steps to Start a Business in Montana
You know Montana is a great place to start a business, so let’s talk about how to do it. Here are five steps to get you on your way to business ownership:
1. Come up with a business plan
You’ve got an idea, you’ve done some research, and now it’s time to develop a business plan. Think of a business plan like a roadmap: it tells you where you’re going and when you can expect to get there.
A good business plan should include the following sections:
2. Organize and register your business
Next, you’ll need to determine your formal business entity and register your company with the state.
This is undoubtedly one of the toughest parts of forming a business - mainly because it has so many tax and financial implications.
When it comes to business entity formation, there are a few main options to choose from:
Clear as mud? Don’t worry - you’re not alone. Deciding on the correct entity for your business can be tricky.
Because the tax implications are complex and long-standing, we highly recommend consulting a business accountant before you put anything in writing. An accountant will help you understand the pros and cons of the different entities and choose the one that best suits you and your goals.
Once you’ve decided on a business entity, you’ll need to register your business with the state of Montana. You can do this through the Montana Secretary of State’s Online Business Portal.
3. Get your federal and state tax ID
Next, you’ll need to obtain a Federal Employer Identification Number (EIN). An EIN is similar to a social security number, but for businesses. It allows you to open business bank accounts, initiate payroll, and file your taxes. You can apply for an EIN online via the IRS website.
4. Open business banking and credit accounts
Once you receive your EIN, you’ll need to open a bank and credit card account for your business.
This is a critical step even if you choose to operate as a sole proprietorship. Having designated business accounts allows you to track and manage expenses and navigate payroll and taxes easily.
5. Get all needed licenses and permits
The next important step is to obtain all the licenses and permits needed to operate in your area.
Restaurants, for example, will need a liquor license, while businesses like pawn shops will need reseller’s licenses.
If you’re unsure what licenses or permits you need, check out the MT Department of Commerce’s Business Checklist Tool.
6. Hire an accountant
Last, but certainly not least, you’ll need to hire an accountant to handle your business’s finances.
Business finances can get complicated and stressful in a hot minute, and it’s critical to get it right from the start.
Nobody wants to find themselves in the midst of an audit, scrambling to produce receipts (or else!), or lagging on profits simply because of money mismanagement.
Hiring an accountant can help you avoid all that nonsense from the beginning and take full advantage of the financial guidance and support you need to grow a thriving business.
Elevated Advisory and Accounting: Here to Help you Get Down to Business
Starting a new business in Montana is a major step, and our team is here to help.
We offer accounting and advisory services for companies throughout Montana’s Flathead Valley, with offices located in Whitefish and Kalispell. Our team will help you navigate all the financials - from payroll to profits and beyond!
Give us a call today to learn more.
When you need some support...
I met face-to-face with a client last week. We were still 6 feet apart, but I actually saw her face! During our meeting, she admitted she was stepping out of her business. The exhaustion of starting a business and then immediately having to pivot and homeschool children at the same time was too much. We shared stories of hitting “survival mode” during times of stress this past year — it’s insane trying to keep life together in uncertainty. It’s even harder when you don’t know if your business will make it…or what help is available to help you through.
What really struck me was her honesty. So many people are “fine”, but are we really? She was open enough to admit that she survived through the hardest times by sticking her nose in the sand and focusing on just getting it done. When she finally lifted her head up to take stock, she was amazed at the toll it took on her.
This hit home.
My partner and I both own businesses. Thankfully, they support two kids, three dogs, and two guinea pigs named Captain Picard and William Reiker (ha!). In reality, our businesses not only support our households, but our valued employees, and clients.
We’re grateful for the opportunity to help others, but sometimes during the darkest times in the last few months, even that just felt heavy. Phrases I often heard from clients echoed in my own mind over and over: “Just keep going” “It’ll get better soon” “You’re strong” “You’ve got this”.
Somehow these mantras worked, and here I am.
My partner and I got through the worst of it by adjusting school schedules and communicating actual expectations for the kids. We saw grace (and even humor!) when there were interruptions in Zoom meetings. There were some sunny patches with solo walks in the woods or a wave and a smile from a neighbor. Elevated Accounting’s team even had a few Zoom happy hours filled with encouragement and laughter. And although it sounds so mundane, this was a big deal to us here at the office: We FINALLY received actual direction for the PPP Loans, UI filings, and SBA Grants.
So, as you lift up your head and look around in the next few weeks, what do you see? Although I’m still asking myself what the heck happened this year with an air of disbelief, these last blurry six months have so many bright spots of deep breathing and true connection. We are still walking on slightly unstable ground, but to me, it feels supported with more community and mindfulness.
If you find yourself without that support in your life and in your business, reach out. Here at Elevated, it’s our goal to help our clients’ dreams come true through total custom packages suited to your individual needs. On top of that? We do it all without judgement. You deserve a partner, not someone who does the least. We’re ready for you!
Sending lots of love,
An Elevated Update: PPP and UI
The 2019 filing deadline was extended from April 15th to July 15th, 2020. If you need to get an extension, make sure to get it in before the 15th of this month. The extension will allow your tax filing deadline to be October 15th, 2020. All 2019 taxes must be paid by July 15th to avoid penalties. For 2020, Quarter 1 and Quarter 2 estimated tax payments are also due on July 15.
PPP Loan Updates
Thankfully, our Government has extended the deadline to apply for PPP Loans that could possibly be forgiven from June 30th to August 8th. These loans can be used towards payroll, rent, mortgage interest, and even utilities. Contact us if you need guidance with applying for this loan or help with filling out the loan forgiveness application.
We have personally seen Clients within our Elevated Community affected by Unemployment Fraud in the last month and you don’t have to have payroll within your business to be a victim of it. It saddens us to see people taking advantage of hard times, but it is happening.
The State of Montana reported that it had paid out about $10 million of Fraudulent Unemployment Claims as of the end of April. At the beginning of June the State of Washington estimated that it had paid out between $550-$650 Million in Unemployment Fraud.
These are staggering numbers.
How is this happening?
State Unemployment offices have not seen this large of an influx in claims in such a short period of time. Suffice it to say, this was a golden opportunity for people to take advantage and create fraudulent unemployment claims. They were not just filing claims in their names. They are creating claims for other people and then routing the checks to themselves.
How do you know if someone filed a claim with your name and information? You will likely receive a letter from your State Unemployment office stating that a claim was filed. In our experience the fraudulent claims had our Client’s names misspelled, but still similar.
What to do if you receive a letter:
Last week the initial Families First Coronavirus Response Act was passed. This bill goes into effect on April 2, 2020. We continue to research the implications of this bill and will keep you updated when the IRS releases additional guidance next week. In the meantime we do know the following information:
Families First Coronavirus Response Act
If you would like to read additional information from the IRS on this Act click here. The IRS will release additional guidance next week so stay tuned.
Cash Flow is Key
During times of unease in our economy it is imperative to focus on cash management. Believe it or not we are nerds when it comes to budgeting and cash flow projections. We are creating an offering to help you out in this area. A few quick tips to consider in the meantime:
Need help now?
For small businesses requiring financial assistance during this difficult time, information on the SBA’s Economic Injury Disaster Loan program can be found here. There may be additional loans available with the next Act Congress is discussing.
What to expect from us
We are working our hardest to keep on top of all unemployment matters and will do our best to keep you in the loop. As some businesses face closure or employee layoffs, questions are inevitable. To see the FAQ page specifically for Montana Employers related to Covid-19 click here. If you are in a different State just go to your State's Unemployment website for additional guidance.
We want to support you however we can, we are a team.
Our last post started with our Core Value of Flexibility. We would like to wrap this one up with another that is just as close to our heart: Gratitude. There are specific times in life when fear and uncertainty feel as if they are a strangling cloak in which we cannot escape. However, it is in these times that Gratitude is most paramount. Take a breath, then take a step outside your thoughts. Grasp onto a happy thought. Ours is that we have the opportunity to serve you and will continue to be here as needed.
An Elevated Update: Office Changes
One of our firm’s core values is “Flexibility: Because all we have in this world is change, both within and without. We value the opportunity to flex and grow with your business, adapt to the needs of the moment.”
I feel as if this is the perfect opportunity to embrace change and enact flexibility. We are lucky because our firm has already been operating with employees who work remotely. No scrambling or major operations had to change due to our recommended societal adjustments.
With the current health concerns we have decided to close our Whitefish office to protect both our Clients and our Staff. Our Kalispell branch is minimally staffed as of now, but we are encouraging all communications going forward to be either via phone or video conferencing.
Please know we will continue to serve and support you with the same high standards that we have always delivered. Remember that we can accept sensitive documents through our secure link at the bottom of our email signatures. We are available by phone, text, email or fax if you have any questions or concerns. If you have to leave a message, know we will get back to you within 24 hours.
I would like to leave you on a positive note and share a bit from our last staff meeting. I asked each of our team to share how they have seen something positive come from this difficult situation in our world today. They each shared a common thread of seeing our community and people that we serve become more grateful, patient, and compassionate with communication. Please continue to support and hold space for those around you. We are all in this together. I hope that you may look to the light in these darker times and find ways to pause with gratitude.
Stay safe through these hard times.
Write something about yourself. No need to be fancy, just an overview.
14 W. 2nd Street, Suite 2
Whitefish, MT 59937
126 1st Ave West
Kalispell, MT 59901