How to Start a Business in Montana
Everything you need to form your Montana LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
Montana offers one of the lowest business formation costs in the country, with an LLC filing fee of just $35. The state has no LLC franchise tax or separate annual tax on pass-through entities, allowing members to report income on individual returns taxed at 4.7% on the first $21,100 and 5.9% above that. Montana also has no sales tax, reducing licensing and compliance costs for most businesses.
This guide covers everything from choosing your business structure to registering with the Secretary of State and obtaining any necessary licenses for your business.
Choosing Your Montana Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most Montana small businesses.
| Entity Type | Liability Protection | Taxation | Montana Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $35 | $0 Annual Report (fee waived for 2026 and... | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $35 | $0 Annual Report (fee waived for 2026 and... | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your Montana Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the Montana Secretary of State database. Reserve for $10 (120 days, nonrenewable).
- 3
Appoint a registered agent
Must have a physical Montana street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Articles of Organization for Domestic Limited Liability Company ($35) or Articles of Incorporation for Domestic Profit Corporation ($35) with the Montana Secretary of State.
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the Montana Department of Revenue. State sales tax rate: none.
- 7
Get required licenses and permits
Montana issues no general statewide business license.
- 8
Register for Montana taxes
Personal income tax: Two rates on ordinary income for 2025: 4.7% on the first $21,100 (single or married filing separately), $42,200 (married filing jointly),...
How Much Does It Cost to Start a Business in Montana?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (Montana Secretary of State) Required | $35 | The Secretary of State does not publish a standard turnaround figure. |
| Corporation filing fee Required | $35 | If forming a corporation instead |
| Annual Report (fee waived for 2026 and... Required | $0 | April 15 each year, beginning the year after formation. Filing after April 15 costs $35 even during the waiver. |
| Name reservation | $10 | 120 days, nonrenewable |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | Montana issues no general statewide business license. |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $35 to $335 |
Start a Specific Business in Montana
Montana Business Guides
- How to Start an LLC in Montana
- How to Start a Corporation in Montana
- Sole Proprietorship in Montana: How to Start One
- Montana Business License: What You Need and How to Get It
- Montana Home-Based Business Laws: Zoning, Permits and Rules
- How to Get an EIN in Montana
- Montana Business Name Search: How to Check and Reserve a Name
- How to Get a Resale Certificate in Montana
- Montana Registered Agent: Requirements and How to Choose One
- Best LLC Services in Montana
- Montana Business Taxes Explained for New Owners
- How Much Does It Cost to Start a Business in Montana
Why Start a Business in Montana?
- Filing Articles of Organization for a Montana LLC costs $35, one of the lowest formation fees in the country, and Articles of Incorporation for a profit corporation cost the same $35.
- Montana has no general use sales tax, so most retail businesses collect no state or local sales tax and need no sales tax permit.
- The Secretary of State has waived the annual report filing fee for 2026 and 2027, a fourth consecutive year of waivers; the report is still due by April 15 and costs $35 if filed late.
- Corporate income tax is a flat 6.75% (7% under a water's edge election) with a $50 minimum, and individual income tax runs just two brackets at 4.7% and 5.9%.
- Montana has no general statewide business license: the Department of Commerce says local city and county offices provide all business licensing, and the state handles professional licenses only.
- The state's economy reached $76.0 billion in current dollar GDP in 2024, 45th among the 50 states, serving a population of 1,137,233 as of July 1, 2024.
Montana Business Resources
Frequently Asked Questions
- How long does it take to form an LLC in Montana?
- The Secretary of State does not publish a standard processing time. However, expedited filing is available: 1-hour expedited filing for $100 or 24-hour priority handling for $20, both added to the $35 filing fee.
- What does it cost to start an LLC in year one?
- The filing fee is $35. The annual report, normally $20 if filed by April 15, is waived for 2026 and 2027, so the first-year cost is $35.
- Can a non-resident form an LLC in Montana?
- Yes. Montana has no residency requirement for LLC formation.
- What is the cheapest way to start a business in Montana?
- Both an LLC and a corporation cost $35 to file. Montana has no sales tax, so retail businesses typically need no state sales tax permit.
- Is an operating agreement required in Montana?
- Montana requires only Articles of Organization to form an LLC, not an operating agreement.