How to Start an LLC in Montana
How to Start an LLC in Montana
Forming a Montana LLC means filing one document with the Secretary of State, paying a $35 fee, and keeping up with a short list of ongoing requirements. Montana has no state sales tax and, for 2026 and 2027, the LLC annual report fee is waived. That makes this one of the more affordable states to form and maintain an LLC, provided you know exactly what paperwork to file and when. This guide walks through every step of Montana LLC formation, what it costs, and the mistakes that trip people up along the way.
What You'll Need Before You Start
Before you file, gather the following. Having these ready turns a multi-day process into a same-day filing.
- A compliant LLC name. Under Montana Code Annotated (MCA) 35-8-103, the name must include "limited liability company," "limited company," or an abbreviation such as LLC, L.L.C., LC, or L.C. It must also be distinguishable from every other business name on file with the Secretary of State.
- A registered agent with a Montana address. This can be a person who lives in Montana or a commercial registered agent service with a physical business address in the state. P.O. boxes do not qualify.
- Your business address and member/manager information. You'll need the names and addresses of the LLC's organizers.
- $35 for the filing fee, payable online. Have a credit card or bank account ready for the Secretary of State's online portal.
- An account on the Montana Secretary of State's Business Filing Portal at biz.sosmt.gov. All Montana LLC filings, including the Articles of Organization, go through this portal.
- An operating agreement template (optional to file, but you should have one in place before you open a bank account).
Step-by-Step: How to Form an LLC in Montana
Step 1: Choose and verify your LLC name
Search the Montana business name database at biz.sosmt.gov/search/business to confirm your desired name isn't already taken by another Montana entity or registered foreign company. Remember the name must contain an LLC designator (LLC, L.L.C., LC, or the full phrase) and can't imply the business is a corporation, bank, or something it isn't.
If you've settled on a name but aren't ready to file the Articles of Organization yet, you can reserve it for $10 through the Secretary of State. A name reservation lasts 120 days and cannot be renewed, so only reserve a name once you're close to filing.
Step 2: Appoint a Montana registered agent
Every Montana LLC must have a registered agent on file, and the Articles of Organization filing itself serves as confirmation that the agent has agreed to the role, per MCA 35-7-105. You have two options: name yourself or another individual with a Montana street address as a noncommercial registered agent, or hire a commercial registered agent service that's already listed with the Secretary of State under MCA 35-7-106.
If you change registered agents later, filing a Statement of Change costs nothing, so don't hesitate to switch agents if your current one stops working out.
Step 3: File the Articles of Organization
This is the core step of Montana LLC formation. Log in to the Business Filing Portal and complete the Articles of Organization for Domestic Limited Liability Company. You'll enter your LLC's name, registered agent information, principal office address, and management structure (member-managed or manager-managed). The filing fee is $35.
The Secretary of State doesn't publish a standard processing turnaround for standard filings, so if timing matters, pay for expedited handling: 24-hour priority processing costs an extra $20, and 1-hour expedited processing costs an extra $100, both on top of the base $35 fee.
Step 4: Draft an operating agreement
Montana doesn't require you to file an operating agreement with the state, but you should still write one. It documents ownership percentages, how profits and losses are split, and how decisions get made, which matters if you ever have a dispute with a co-owner or need to open a business bank account. Most banks will ask to see one.
Step 5: Get an EIN from the IRS
An Employer Identification Number (EIN) from the IRS is free and can be obtained online in minutes once your Articles of Organization are approved. You'll need it to open a business bank account, hire employees, and file federal taxes, even if you're a single-member LLC with no employees.
Step 6: Check local licensing requirements
Montana issues no general statewide business license. Instead, city and county governments handle local business licensing, and the state issues licenses for specific regulated professions and activities. Check with the city or county where you'll operate, and if your business involves alcohol, cannabis, or certain food service, look into the Department of Revenue's eStop Business Licenses program for state-level licensing in those areas.
Step 7: Register a DBA if you'll operate under a different name
If you plan to do business under a name other than your official LLC name, you'll need to file an Assumed Business Name (ABN) with the Secretary of State. This is filed statewide, not by county, costs $20 to register, and runs for 5 years. Renewal also costs $20 and must be filed in the 90 days before expiration, or the state cancels the registration.
Step 8: File your annual report every year
Montana requires every LLC to file an annual report by April 15 each year, starting the year after formation. For 2026 and 2027, the Secretary of State has waived the annual report fee entirely. In a normal year, it costs $20 if filed by April 15 and $35 if filed after the deadline, and that late fee still applies even during the current fee waiver.
Montana LLC Costs at a Glance
| Item | Cost |
|---|---|
| Articles of Organization (LLC formation) | $35 |
| Name reservation (optional, 120 days) | $10 |
| 24-hour priority processing (optional) | $20 |
| 1-hour expedited processing (optional) | $100 |
| Annual report (2026 and 2027) | $0 (waived) |
| Annual report, normal years, filed by April 15 | $20 |
| Annual report, filed after April 15 | $35 |
| Assumed Business Name (DBA) registration | $20 |
| Registered agent change (Statement of Change) | $0 |
Confirm current figures against the Secretary of State's official fee schedule at sosmt.gov/business/fees before you file, since fee schedules can change.
Montana LLC Taxes
Montana has no state sales tax, which simplifies things for retail and service businesses. By default, a Montana LLC is a pass-through entity: profits flow to the members' individual tax returns. For 2025 rates, Montana taxes ordinary personal income at 4.7% on the first $21,100 for single filers ($42,200 for married filing jointly, $31,700 for head of household), and 5.9% above those thresholds. Long-term capital gains are taxed separately at 3.0% and 4.1%.
If your LLC elects to be taxed as a corporation, it instead pays Montana's flat 6.75% corporate income tax (or 7% under a water's edge election), with a $50 minimum tax. Most small LLCs stick with default pass-through taxation, but talk to a CPA before making an election, since it affects how you're taxed at both the state and federal level.
Common Mistakes to Avoid
- Using a P.O. box for your registered agent address. Montana requires a physical street address where documents can actually be delivered.
- Forgetting the annual report. Even with the fee waived for 2026 and 2027, you still have to file the report itself by April 15, or you'll owe the $35 late fee and risk administrative dissolution if it's neglected long enough.
- Assuming a name reservation is required. It's optional and only useful if you need extra time before filing. Since it's nonrenewable at 120 days, don't reserve a name too far in advance of when you plan to file.
- Skipping the operating agreement because Montana doesn't require filing one. Banks and courts will still expect to see one if questions about ownership or authority come up.
- Assuming Montana has a general business license. It doesn't. Licensing is handled locally by cities and counties, plus separate state licensing for certain professions and regulated goods, so check with your local government directly.
- Mixing personal and business finances. Get your EIN and open a dedicated business bank account early to keep the liability protection an LLC is supposed to provide.
What to Expect After Filing
Once your Articles of Organization are approved, your Montana LLC generally appears in the Secretary of State's business search database, which you can check at biz.sosmt.gov/search/business. Processing times for standard (non-expedited) filings can vary, since the state doesn't publish a fixed turnaround target, so if your timeline is tight, budget for the 24-hour or 1-hour expedited options. After approval, most new LLC owners can typically expect to obtain an EIN and open a business bank account within the same week, though bank-specific documentation requirements may add some time.
Helpful Resources
- Montana Secretary of State business filings: sosmt.gov/business
- Online filing portal: biz.sosmt.gov
- Montana Department of Revenue: revenue.mt.gov
- Montana Small Business Development Center Network: commerce.mt.gov SBDC
- SBA Montana District Office: sba.gov/district/montana
This article is informational content only and does not constitute legal or tax advice. Montana LLC requirements can change, and individual circumstances vary. Consult a licensed Montana attorney or CPA before making formation, tax election, or licensing decisions for your business.