How to Start an LLC in Montana (Step-by-Step Guide)

Forming an LLC in Montana requires filing Articles of Organization with the Montana Secretary of State and paying a $35 filing fee. The process takes about 1-4 business days for online filings, making Montana one of the fastest and most affordable states to form an LLC.

Montana stands out for its combination of low formation costs, no state sales tax, and relatively simple ongoing requirements. Whether you’re starting a small business, freelancing, or investing in real estate, a Montana LLC provides personal liability protection while keeping your costs low.

Follow these steps to start your Montana LLC in 2026.

How to Start an LLC in Montana (6 Steps)

Step 1: Name Your Montana LLC

Your LLC name must be distinguishable from other business names registered in Montana. The name must include “Limited Liability Company,” “LLC,” or “L.L.C.” Choosing the right name is an important first step because it becomes part of your brand identity and must meet state legal requirements.

Search the Montana Secretary of State’s business name database to check availability. You can also reserve a name for 120 days by filing a Name Reservation with the Secretary of State ($10 fee). This gives you time to prepare your formation documents without worrying about someone else taking your desired name.

Montana naming rules:

• Must be distinguishable from any existing business entity registered in Montana
• Cannot include words suggesting it’s a bank, insurance company, or government entity without proper authorization
• Must include an LLC designator (“Limited Liability Company,” “LLC,” or “L.L.C.”)
• Cannot contain language implying the LLC is organized for a purpose not permitted by Montana law

Tips for choosing a good LLC name:

• Check if a matching domain name is available for your website
• Search the USPTO trademark database to avoid potential trademark conflicts
• Choose a name that’s easy to spell, pronounce, and remember
• Avoid names that are too similar to existing businesses in your industry

Step 2: Choose a Registered Agent

Montana requires every LLC to have a registered agent with a physical street address in Montana. The registered agent receives legal documents, tax notices, and official government correspondence on behalf of your LLC. A P.O. Box is not acceptable — the agent must maintain a physical address and be available during normal business hours.

You have three options for your registered agent:

Option 1: Be your own registered agent. If you have a Montana address and are available during business hours, you can serve as your own agent. This costs nothing but means your home address becomes public record and you must always be available to accept documents.

Option 2: Appoint a friend or family member. Any Montana resident with a physical address can serve as your registered agent. This is free but puts responsibility on someone else.

Option 3: Use a professional service. Our top recommendation is Northwest Registered Agent ($39/year), which also handles LLC formation for $39 + the $35 state fee. A professional service keeps your personal address off public records and ensures documents are always received promptly.

Step 3: File Your Articles of Organization

File Articles of Organization with the Montana Secretary of State. You can file online through the Montana Business Portal or by mail. Online filing is strongly recommended for faster processing and immediate confirmation of your submission.

Filing details:

• Filing fee: $35
• Online filing: Montana Business Portal at biz.sosmt.gov (recommended — faster processing)
• Processing time: 1-4 business days (online), 5-6 business days (mail)
• Expedited options: 24-hour processing ($20 extra) or 1-hour processing ($100 extra)

Information required on the Articles of Organization:

• LLC name
• Registered agent name and physical address
• Principal office address
• Whether the LLC is member-managed or manager-managed
• Organizer name and address
• LLC purpose (use “any lawful purpose”)
• Duration (perpetual is standard)

Member-managed vs. manager-managed: In a member-managed LLC, all owners participate in daily business decisions. In a manager-managed LLC, designated managers handle operations while other members are passive investors. Most small LLCs choose member-managed.

Step 4: Create an Operating Agreement

Montana doesn’t legally require an operating agreement, but having one is strongly recommended. This internal document establishes ownership structure, profit distribution, voting rights, and management responsibilities.

An operating agreement also helps maintain your LLC’s liability protection by demonstrating that your business is a separate legal entity from you personally. Without one, your LLC will be governed by Montana’s default LLC rules, which may not align with your preferences.

Your operating agreement should cover:

• Ownership percentages and capital contributions
• How profits and losses are distributed
• Member voting rights and decision-making procedures
• Rules for adding or removing members
• What happens if a member leaves, dies, or becomes incapacitated
• Procedures for dissolving the LLC

Even single-member LLCs should have an operating agreement. It helps maintain your liability protection and most banks require one to open a business bank account.

Step 5: Get an EIN

Apply for an Employer Identification Number (EIN) through the IRS website. It’s free and takes about 15 minutes online. Your EIN is like a Social Security number for your business — you need it to open a business bank account, hire employees, and file taxes.

Even if you don’t plan to hire employees right away, you should still get an EIN. Most banks require one to open a business account, and using an EIN instead of your personal Social Security number helps protect your identity.

Step 6: File Your Annual Report

Montana LLCs must file an annual report with the Secretary of State by April 15 each year. The filing fee is $20. You can file your annual report online through the Montana Business Portal.

Annual report details:

• Due by April 15 each year
• Filing fee: $20
• File online through the Montana Business Portal
• Your first annual report is due by April 15 of the year following your LLC’s formation
• Failure to file can result in administrative dissolution of your LLC

The annual report confirms your LLC’s basic information with the state, including your registered agent, principal office address, and member/manager details. It takes only a few minutes to complete.

Montana LLC Costs

Total first-year cost: $35-$354 (depending on whether you use a registered agent service and expedited processing). Montana has one of the lowest LLC filing fees in the country — only a handful of states charge less. See our complete guide to LLC costs by state.

Ongoing annual costs: After your first year, you’ll pay $20/year for the annual report plus any registered agent service fees. If you serve as your own registered agent, your only recurring cost is the $20 annual report — making Montana one of the cheapest states for ongoing LLC maintenance.

Montana LLC Taxes

Montana has no sales tax, making it one of the more tax-friendly states for certain types of businesses — particularly retail and e-commerce. However, Montana does have a state income tax that applies to LLC members’ profits.

• State income tax: 4.7% to 5.9% (graduated rates based on income)
• Sales tax: None — Montana is one of five states with no statewide sales tax
• Corporate income tax: 6.75% (only if your LLC elects corporate taxation)
• Self-employment tax: 15.3% federal (12.4% Social Security + 2.9% Medicare) on net self-employment income
• Federal income tax: Standard pass-through taxation — profits pass to members’ personal returns at their individual tax rate

How Montana LLC taxation works: By default, Montana LLCs are treated as pass-through entities. This means the LLC itself doesn’t pay income tax. Instead, profits and losses “pass through” to each member’s personal tax return. Each member pays Montana income tax and federal income tax on their share of the LLC’s profits, regardless of whether the profits were actually distributed.

Single-member LLCs report their income on Schedule C of their personal tax return. Multi-member LLCs file an informational return (Form 1065) and issue each member a Schedule K-1 showing their share of income.

Resort tax note: While Montana has no state sales tax, some resort communities (like Big Sky, Red Lodge, West Yellowstone, and Whitefish) impose a local resort tax of up to 3% on certain goods and services. If your LLC operates in one of these areas, you may need to collect and remit this tax.

Annual Requirements for Montana LLCs

• Annual report: Due April 15 each year, filed with the Montana Secretary of State. Filing fee is $20.
• State income tax: File and pay Montana individual income tax on LLC profits by April 15.
• Maintain a registered agent: Must have a registered agent with a Montana physical address at all times. Update the Secretary of State promptly if your agent changes.
• Update business information: Report any changes to your registered agent, principal office address, or member/manager information to the Secretary of State.
• Business licenses: Depending on your industry and location, you may need state, county, or local business licenses and permits.

Advantages of a Montana LLC

Montana offers several advantages for LLC owners:

• No sales tax: Montana is one of only five states with no statewide sales tax, which simplifies compliance for retail businesses
• Low filing fee: At just $35, Montana’s LLC filing fee is among the lowest in the nation
• Low annual costs: The $20 annual report fee keeps ongoing costs minimal
• Fast processing: Online filings are processed in 1-4 business days, with same-day expedited options available
• Strong asset protection: Montana offers favorable LLC charging order protections for members

Frequently Asked Questions

How long does it take to form an LLC in Montana?

Online filings are typically processed within 1-4 business days. Montana also offers expedited options: 24-hour processing for an extra $20 or 1-hour processing for an extra $100. Mail filings take 5-6 business days.

Does Montana have sales tax?

No. Montana is one of five states with no general sales tax. This means your Montana LLC won’t need to register for or collect state sales tax. However, some resort communities (such as Big Sky, Red Lodge, and Whitefish) may impose a local resort tax on certain goods and services.

Can I form a Montana LLC if I live in another state?

Yes. You can form a Montana LLC regardless of where you live. You’ll need a registered agent with a physical Montana address. However, if you primarily do business in another state, you may be better off forming your LLC there instead — otherwise you’ll pay fees in both states. See our how to start an LLC guide for more on choosing the right state.

Does Montana require an operating agreement?

No, Montana doesn’t legally require an operating agreement. However, we strongly recommend creating one. It clarifies ownership and management structure, protects your personal liability, and most banks require one to open a business account. Even single-member LLCs benefit from having this document.

When is the Montana LLC annual report due?

The annual report is due by April 15 each year and costs $20 to file. You can file online through the Montana Secretary of State’s business portal. Late filing or failure to file can result in administrative dissolution of your LLC.

Do I need a business license in Montana?

Montana doesn’t have a general state business license. However, you may need specific licenses or permits depending on your industry and location. Check with your local city and county government, and review any industry-specific licensing requirements with the Montana Department of Labor and Industry.

How is a Montana LLC taxed?

By default, Montana LLCs use pass-through taxation. The LLC itself doesn’t pay state income tax — instead, profits pass through to each member’s personal tax return. Members pay Montana income tax (4.7%-5.9%) and federal income tax on their share of LLC profits. LLCs can also elect to be taxed as S-corporations or C-corporations if it provides a tax advantage.

Start an LLC in Another State

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