Quick answer

Quick Answer

To start a Montana LLC, you must file Articles of Organization with the Montana Secretary of State and pay a $35 filing fee. You are legally required to appoint a registered agent with a physical street address in Montana. Every year, your LLC must file an Annual Report by April 15, which costs $20. Montana famously does not charge a state sales tax or state franchise tax. However, pass-through LLC profits are subject to a graduated personal income tax with a top rate of up to 5.9%.

Montana LLC filing fee

The state filing fee for your Articles of Organization is a very affordable $35. Montana requires you to file this document online through the Secretary of State's SIMS business portal. Standard online processing usually takes 1 to 3 business days.

Step 1: Choose a name

Your LLC's name must be perfectly unique and distinguishable from other business entities registered in Montana. Furthermore, state law mandates that the name includes an appropriate LLC designator, such as "Limited Liability Company" or "LLC". You can perform a business search on the Montana Secretary of State's portal to verify your name is available.

Step 2: Appoint a registered agent

Every Montana LLC must appoint a registered agent. This is an individual or authorized business entity responsible for receiving service of process, lawsuits, and official state correspondence on behalf of the LLC. The agent must have a physical street address in Montana (P.O. Boxes are not accepted) and must be available during normal business hours.

Step 3: File formation documents

Your business is officially created when you file the Articles of Organization with the Montana Secretary of State via the SIMS online portal. You must provide your LLC's name, the name and address of your registered agent, and whether the LLC will be member-managed or manager-managed. The state fee is $35.

Step 4: Create an operating agreement

Montana law does not require you to file an operating agreement with the state. However, drafting an operating agreement is highly recommended. It serves as the governing contract for your LLC, establishing ownership structures, voting rights, and how profits are distributed. In addition, nearly all banks will require a copy of your operating agreement to open a business checking account.

Step 5: Get an EIN

An Employer Identification Number (EIN) is a free 9-digit tax ID assigned by the IRS. It acts as a social security number for your business. You will need an EIN to hire employees, open a business bank account, and file federal tax returns. You can apply for an EIN online directly through the IRS website.

Step 6: Register for state taxes if needed

Montana is one of the very few states with no general state sales tax (0%). However, some tourist-heavy localities resort to local options taxes (up to 3%), so you must check your local jurisdiction's rules. For income tax, standard LLC profits pass through to your personal return and are taxed at Montana's graduated rates, which can reach up to 5.9%.

Step 7: File annual reports and stay compliant

Every Montana LLC must file an Annual Report to maintain its active status with the Secretary of State. The report updates the state on your current address and registered agent information. It is due every year by April 15, starting the calendar year after formation. The filing fee is $20. If you file late, the fee jumps to $35, and continued failure to file will lead to administrative dissolution.

Montana LLC Cost

Fee Type Amount
Formation fee $35
Registered agent estimate $39 - $150 / year
Annual report fee $20 / year
Late annual report fee $35
Franchise tax $0 (None)
WHEN THIS MAY NOT APPLY

If you do not live in Montana, do not operate from Montana, and do not have a specific Montana-related reason for forming there, a Montana LLC may not be the best default choice. You may still need to register the LLC as a foreign LLC in the state where you actually operate, which can create duplicate filing fees, registered agent costs, and annual compliance requirements.

Montana currently charges $35 to form a domestic LLC. Annual reports are currently $35 (or $0 if filed early). For many purely online businesses, it is usually worth comparing your home state with commonly used business-friendly states such as Wyoming, which charges $100 to form an LLC and has a $60 minimum annual license tax, before choosing Montana.

Should you form your LLC in Montana?

A Montana LLC usually makes sense if you live in Montana, operate your business from Montana, or have a clear legal or tax reason to use Montana. If you live and operate somewhere else, forming in Montana may create extra registered agent costs, foreign qualification requirements, and duplicate compliance obligations. Montana may appeal to some owners, but compare it with Wyoming, Delaware, Nevada, and your home state in our guide to the best state for an online business LLC. For a comprehensive overview of starting a business, visit our LLC formation hub.

Situation Is a Montana LLC usually a good fit?
You live in Montana Usually yes
Your business operates in Montana Usually yes
You want privacy Depends on state rules
You live in another state Usually only if you have a specific reason
You are a non-US resident Depends on banking, taxes, and compliance needs

Montana LLC vs Wyoming LLC

For non-resident business owners not interested in the vehicle registration loophole, Wyoming is generally superior to Montana. While Montana is slightly cheaper to maintain ($20/year vs Wyoming's $60 minimum/year) and cheaper to start ($35 vs $100), Wyoming has zero state income tax compared to Montana's graduated rate of up to 5.9%. Furthermore, Wyoming offers strong statutory anonymity, keeping LLC owner names off public registries. Montana provides no such privacy protections. If you operate a brick-and-mortar business inside Montana, you must register a Montana LLC. For purely online holding companies, Wyoming is the better choice.