Benefits of Starting an LLC in Montana
Montana offers several genuine advantages for LLC owners that set it apart from most other states. Here is why forming your LLC here makes financial sense.
$0 Annual Reports
Montana is one of the few states that charges nothing for annual reports, saving you a recurring fee every year your LLC is active.
No State Sales Tax
Montana has no state sales tax, which simplifies compliance and keeps costs down for businesses selling goods or services.
$35 Formation Fee
At just $35, Montana’s filing fee is well below the national average, making it one of the most affordable states to form an LLC.
Series LLC Available
Montana allows series LLCs, letting you create separate liability-protected divisions within a single LLC structure.
Quick Facts About Montana LLCs
1Name Your Montana LLC
Your LLC name must be distinguishable from every other business entity registered with the Montana Secretary of State. Before you commit, run a search using the Montana business name search tool to confirm availability.
Montana LLC naming rules require your name to include one of these identifiers:
- “Limited Liability Company”
- “LLC” or “L.L.C.”
Your name cannot include words that imply the LLC is a government agency or use restricted terms (like “Bank,” “Insurance,” or “University”) without proper authorization.
If you find a name you like but are not ready to file, you can reserve it for 120 days for $10 through the Secretary of State’s online portal.
Yes. You can amend your articles of organization through the Secretary of State’s online portal to change your LLC name. There will be an amendment filing fee.
2Choose a Registered Agent in Montana
Every Montana LLC must designate a registered agent to receive legal documents, lawsuits, and official state correspondence on the LLC’s behalf. This is a legal requirement and your LLC cannot be formed without one.
Your registered agent must meet these requirements:
- Be an individual who is a Montana resident, or a business entity authorized to operate in Montana
- Have a physical street address in Montana (P.O. Boxes are not allowed)
- Be available during normal business hours to accept service of process
You have three main options:
- Be your own registered agent. Free, but your name and home address become public record, and you must be available at that address during business hours.
- Appoint a friend or family member. Also free, but the same availability and public record issues apply.
- Hire a professional registered agent service. Typically $50 to $300 per year. Keeps your personal address off public filings and ensures reliable handling of legal documents. You can compare Montana registered agent services to find the right fit.
Yes. Montana law requires every LLC to maintain a registered agent with a physical street address in the state. Without one, you cannot file your articles of organization.
Our Pick for Registered Agent
Northwest Registered Agent
Northwest provides a Montana street address, scans and forwards all legal documents, and shields your personal address from public filings.
We recommend Northwest for their transparent pricing, privacy-first approach, and responsive customer support.
3File Your Montana Articles of Organization
This is the step that officially creates your LLC. In Montana, all formation filings must be submitted online through the Secretary of State’s online portal. Paper filings are not accepted.
You will need to provide:
- Your LLC’s name
- The name and street address of your registered agent
- The principal office address
- Whether the LLC is member-managed or manager-managed
- The name and address of at least one organizer
| Filing Method | Fee | Processing |
|---|---|---|
| Online | $35 | 5-6 business days |
| Online (Expedited) | $55 | 24 hours |
If you would rather have someone handle the filing for you, you can compare Montana LLC formation services to find an option that fits your budget.
Want someone to handle all this for you?
ZenBusiness
ZenBusiness prepares and files your Montana articles of organization, handles compliance reminders, and gets you up and running without the paperwork.
Their free starter plan covers formation filing and a year of registered agent service, making it the most affordable hands-off option.
4Get an EIN for Your Montana LLC
An Employer Identification Number (EIN) is a federal tax ID for your business. You need one to open a business bank account, hire employees, and file taxes. The IRS issues EINs for free, and you can apply online at IRS.gov and receive yours immediately.
5Create a Montana LLC Operating Agreement
Montana does not legally require an operating agreement, but operating without one is a significant risk. This internal document defines how your LLC is owned, managed, and operated. Without it, Montana’s default LLC statutes govern your business, and those defaults may not align with what you and your co-members actually agreed to.
Your operating agreement should cover:
- Ownership percentages and capital contributions
- How profits and losses are divided
- Member voting rights and decision-making procedures
- Rules for adding or removing members
- What happens if a member leaves, dies, or becomes incapacitated
- Dissolution procedures
Even single-member LLCs should have an operating agreement. It strengthens your liability protection by documenting that the LLC operates as a separate legal entity from you personally.
It is not legally required, but strongly recommended. An operating agreement protects your limited liability status, prevents disputes between members, and overrides Montana’s default LLC rules with terms you actually chose.
6Open a Business Bank Account
Keeping personal and business finances separate is essential for maintaining your LLC’s liability protection. Open a dedicated business checking account as soon as your LLC is approved.
Bring these to the bank:
- Your approved articles of organization
- Your EIN confirmation letter
- Your operating agreement
- A government-issued photo ID
How Much Does a Montana LLC Cost
Montana is one of the most affordable states for LLC formation and ongoing maintenance. Here is a complete breakdown of what you can expect to pay.
| Item | Cost | Frequency | Notes |
|---|---|---|---|
| Articles of Organization (Online) | $35 | One-time | Online filing only; paper not accepted |
| Expedited Processing | $55 total | One-time | 24-hour turnaround |
| Name Reservation | $10 | One-time | Holds name for 120 days; optional |
| Registered Agent | $0 – $300 | Annual | Free if you serve yourself; $50-$300 for a professional service |
| EIN | $0 | One-time | Free from the IRS |
| Operating Agreement | $0 – $200 | One-time | Free with a template; $100-$200 if attorney-drafted |
| Annual Report | $0 | Annual | Due April 15 each year; free to file |
| Certificate of Good Standing | $5 | As needed | Requested through the Secretary of State |
Articles of Organization (Online)
$35 · One-timeOnline filing only; paper not accepted
Expedited Processing
$55 total · One-time24-hour turnaround
Name Reservation
$10 · One-timeHolds name for 120 days; optional
Registered Agent
$0 – $300 · AnnualFree if you serve yourself; $50-$300 for a professional service
EIN
$0 · One-timeFree from the IRS
Operating Agreement
$0 – $200 · One-timeFree with a template; $100-$200 if attorney-drafted
Annual Report
$0 · AnnualDue April 15 each year; free to file
Certificate of Good Standing
$5 · As neededRequested through the Secretary of State
How Does Montana Compare
Montana Filing Fee
$35
National Average
$127
Montana’s $35 filing fee is well below the $127 national average. Combined with free annual reports and no state sales tax, it is one of the most cost-effective states for LLC formation and ongoing compliance.
Montana LLC Taxes
Understanding your Montana LLC’s tax obligations keeps you compliant and helps you plan your finances from the start.
Federal Tax Classification
The IRS treats your Montana LLC based on how many members it has. A single-member LLC is a disregarded entity, meaning all income flows through to your personal tax return and is taxed as a sole proprietorship. A multi-member LLC is taxed as a partnership by default, with each member reporting their share of profits on their individual returns.
You can elect to have your LLC taxed as an S-corp or C-corp by filing the appropriate form with the IRS (Form 2553 for S-corp, Form 8832 for C-corp). This can offer tax advantages depending on your income level and business structure.
Montana State Income Tax
Montana does impose a state income tax. LLC income that passes through to members is subject to Montana individual income tax. If your LLC elects corporate taxation, it will be subject to the Montana corporate income tax instead.
No Franchise Tax
Montana does not impose a franchise tax or privilege tax on LLCs. Your only ongoing state obligation is the free annual report.
No State Sales Tax
Montana is one of only five states with no state sales tax. You do not need to collect, remit, or even register for sales tax on goods or services sold within the state. This significantly reduces your compliance burden compared to LLCs in most other states.
By default, a single-member Montana LLC is taxed as a sole proprietorship and a multi-member LLC is taxed as a partnership. All income passes through to members’ personal Montana state income tax returns. There is no franchise tax and no state sales tax. You can also elect S-corp or C-corp taxation with the IRS.
After You Form Your Montana LLC
Filing your articles of organization is the beginning, not the end. Stay on top of these ongoing requirements to keep your LLC in good standing.
Annual Report
Montana requires every LLC to file an annual report by April 15 each year. The report is filed through the Secretary of State’s online portal, and it costs $0. This is a calendar-year deadline, not based on your formation anniversary.
If you miss the April 15 deadline, you will be charged a $15 late fee. If the report is still not filed by December 1, the Secretary of State will administratively dissolve your LLC. Reinstatement after dissolution costs $35 plus all delinquent annual report fees, so it is far easier to just file on time.
BOI Reporting
As of March 2025, FinCEN revised the Beneficial Ownership Information (BOI) reporting rule so it only applies to companies formed outside the United States. Domestic LLCs, including those formed in Montana, are exempt from BOI reporting requirements.
Local Licenses and Permits
Montana does not require a general state business license. However, your city or county may require local business licenses, and certain professions and industries have their own licensing requirements. Check with your local government and any relevant regulatory boards to confirm what applies to your business.
Yes. Every Montana LLC must file an annual report by April 15 each year through the Secretary of State’s online portal. The filing is free, but missing the deadline results in a $15 late fee. Failure to file by December 1 leads to administrative dissolution.
Dissolving a Montana LLC
If you decide to close your Montana LLC, you need to formally dissolve it with the state. Filing articles of dissolution is free ($0), and you can submit them through the Secretary of State’s online portal.
Before filing for dissolution, you should:
- Settle all outstanding debts and obligations
- Distribute remaining assets to members according to your operating agreement
- File any outstanding annual reports
- Close your business bank accounts
- Cancel any licenses or permits
If you do not formally dissolve your LLC, the state will continue to expect annual reports and you could face late fees or administrative dissolution on the state’s terms rather than your own.
Reinstatement
If your LLC was administratively dissolved for failing to file annual reports, you can reinstate it by paying a $35 reinstatement fee plus all delinquent annual report late fees. Reinstatement is handled through the Secretary of State’s online portal.
A Montana LLC does not have an expiration date. It remains active indefinitely as long as you file your free annual report by April 15 each year. If you fail to file by December 1, the state will administratively dissolve your LLC, but you can reinstate it by paying a $35 fee plus any delinquent late fees.
Frequently Asked Questions
The minimum cost to form a Montana LLC is $35 for filing your articles of organization online. If you want expedited 24-hour processing, the total is $55. Annual reports are free, and there is no franchise tax or sales tax, making Montana one of the least expensive states for both formation and ongoing compliance.
Standard online processing takes 5-6 business days. If you need faster approval, you can pay an additional $20 for expedited processing, which brings the turnaround down to 24 hours. All filings must be submitted online through the Montana Secretary of State’s portal.
Yes. Montana allows single-member LLCs. One person can form, own, and operate an LLC. The formation process and requirements are the same as for multi-member LLCs. A single-member LLC is treated as a disregarded entity for federal tax purposes by default.
Montana is an excellent state for LLC formation. The $35 filing fee is well below the national average, annual reports are free, there is no state sales tax, and the state allows series LLCs. The only notable limitation is that all filings must be done online. If you live or do business in Montana, forming your LLC here is the straightforward and cost-effective choice.
