How to Syndicate an Apartment Deal in Montana

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What is the Montana Rule 506 notice filing?
How do you form the deal LLC in Montana?
What Montana landlord and tenant rules should a sponsor know?
What does Montana charge when an apartment building sells?
How does Montana property tax work for an apartment building?
Does Montana tax the deal LLC or its investors?
How DoorRaise fits in
FAQ

To syndicate an apartment deal in Montana, you form the deal LLC (or register an outside LLC) with the Montana Secretary of State, raise under Rule 506(b) or 506(c), and file a Form D notice through NASAA's EFD. Montana is one of the states where the notice fee grows with the amount offered there: DoorRaise's state data lists $200 plus 0.1% of the Montana offering above $100,000, capped at $800.

This is the Montana version of our general syndication guide. It covers what changes when the building, the investors or both are in Montana. It is general information, not legal advice.

What is the Montana Rule 506 notice filing?

Montana treats Rule 506 interests as federal covered securities and takes a notice: a copy of the SEC Form D filed through the NASAA Electronic Filing Depository (EFD) for the Commissioner of Securities and Insurance. DoorRaise's state data, from NASAA's fee schedule, lists the fee as $200 plus 0.1% of the amount offered in Montana above $100,000, with a maximum of $800. If most investors live elsewhere, the Montana fee stays low. EFD shows the exact amount before you pay, and that amount wins. See blue sky notice filings and blue sky fees by state.

How do you form the deal LLC in Montana?

A Montana LLC is formed by filing Articles of Organization with the Montana Secretary of State, and it files an annual report. Check the Secretary of State's business site for the current fee and the due date before you file. An LLC formed elsewhere that will own Montana property registers as a foreign LLC. See forming an LLC for a syndication and foreign qualification in the property state.

The Montana Residential Landlord and Tenant Act (Title 70, chapter 24) governs most leases, and the security deposit rules are in Title 70, chapter 25. Montana sets no cap on the deposit amount. The landlord returns the deposit within 10 days after the tenancy ends if nothing is withheld, and within 30 days with an itemized statement if deductions apply. Your property manager should use Montana forms for notices and keep deposit records by unit.

What does Montana charge when an apartment building sells?

Montana does not charge a general real estate transfer tax on a deed, though title, escrow and recording fees apply. Put them in sources and uses from your title company's estimate.

How does Montana property tax work for an apartment building?

The Department of Revenue appraises property for tax on a set cycle, classifies it, and applies a tax rate set by class; counties, cities and school districts add local levies. Rate rules have changed in recent legislative sessions, so underwrite from the county's current bill for a comparable building and your purchase price, not from the seller's old bill. See property tax reassessment in apartment underwriting.

Does Montana tax the deal LLC or its investors?

Montana taxes income earned in the state, and a partnership may have to withhold for nonresident partners or file a composite return. Ask your CPA early; the investor side is in state tax returns for nonresident syndication investors.

How DoorRaise fits in

DoorRaise helps sponsors raise equity for apartment buildings from their friends and followers under Rule 506(b) or 506(c), and verifies that every investor is accredited before they sign. Investors fund by wire into the deal's escrow account at Enterprise Bank & Trust. By default DoorRaise files the notice in the property's state; on new deals, the first investor from another state pays that state's filing fee by card when they sign, later investors from that state pay nothing, and the sponsor never fronts it. Sponsors pay a $1,500 setup fee (non-refundable) and a flat $5,000 a year administration fee; see pricing or how it works.

FAQ

How much is the Montana Rule 506 notice fee?

$200 plus 0.1% of the amount offered in Montana above $100,000, at most $800. EFD shows the final amount before you pay.

Does Montana cap security deposits?

No. The act sets return deadlines but no maximum amount.

How fast must a Montana landlord return a deposit?

Within 10 days if nothing is withheld, within 30 days with an itemized statement if deductions apply.

Does Montana have a real estate transfer tax?

Not a general one on deeds.

Sources

This article is general information as of November 2026, not legal, tax or investment advice. State laws and fees change: confirm with the state agency and your own attorney before you file. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.