How to Start an LLC in Montana

Montana is a business-friendly state with one standout advantage: no sales tax. Combined with a $70 filing fee and fast 3-5 business day processing, forming a Montana LLC is both affordable and efficient. Montana’s graduated income tax ranges from 1% to 6.75%, and the state requires an annual report costing just $20 due each April 15. The absence of sales tax makes Montana particularly attractive for e-commerce businesses and companies that sell physical products.

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 Montana LLC name must be distinguishable from any existing business entity on file with the Montana Secretary of State. The name must include a designator such as “Limited Liability Company,” “LLC,” or “L.L.C.” You can search for available names using the Montana Secretary of State business entity search.

If you find an available name but aren’t ready to file your Articles of Organization, you can reserve it for 120 days by filing a Name Reservation with the Secretary of State for $10. Before finalizing your name, check whether the matching domain name and social media handles are available, and search the USPTO trademark database to make sure your desired name doesn’t infringe on an existing trademark.

Montana naming rules:

• Must include “Limited Liability Company,” “LLC,” or “L.L.C.”
• Must be distinguishable from other business names on file with the Montana Secretary of State
• Cannot include words suggesting the LLC is a bank, insurance company, or government agency without proper authorization
• Cannot contain language implying a purpose the LLC is not authorized to pursue

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 — including lawsuits, subpoenas, and official state correspondence — on behalf of your LLC. This is a legal requirement, and your LLC cannot be formed without designating a registered agent.

You can serve as your own registered agent if you have a Montana address and are available during business hours, or you can hire a professional registered agent service. Acting as your own agent saves money, but your personal address becomes public record and you must be available at that address during all normal business hours.

Our top recommendation is Northwest Registered Agent ($39/year), which also handles LLC formation for $39 + the $70 state fee. Using a professional service provides privacy, ensures you never miss an important document, and frees you from having to be physically present at a fixed address during business hours.

Step 3: File Your Articles of Organization

To officially create your Montana LLC, you need to file Articles of Organization with the Montana Secretary of State. The fastest way to file is online through the Montana Secretary of State’s website. You can also file by mail, but online filing is recommended for faster processing.

When completing the form, you’ll provide your LLC’s name, registered agent, principal office address, and management structure. You’ll choose between member-managed and manager-managed. In a member-managed LLC, all owners participate in running the business. In a manager-managed LLC, designated managers handle daily operations while other members remain passive investors. Most small LLCs choose member-managed.

Filing details:

• Filing fee: $70
• Online filing: Montana Secretary of State (recommended)
• Processing time: 3-5 business days

Information required:

• LLC name
• Registered agent name and address
• Principal office address
• Mailing address
• Management structure (member-managed or manager-managed)
• Duration of the LLC (typically perpetual)
• Organizer name and address

Step 4: Create an Operating Agreement

Montana does not legally require an operating agreement, but having one is strongly recommended for every LLC. An operating agreement is an internal document that establishes how your LLC is run, including ownership percentages, profit and loss distribution, voting rights, and what happens if a member wants to leave or if the LLC is dissolved.

Without an operating agreement, your LLC will be governed by the default rules in the Montana Limited Liability Company Act, which may not match your intentions. For instance, default rules typically assume equal profit sharing regardless of capital contributions. An operating agreement lets you customize these terms. Most banks also require a copy of your operating agreement before opening a business bank account for your LLC.

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. An EIN is a nine-digit number assigned by the IRS that serves as your LLC’s tax identification number. You need an EIN to open a business bank account, hire employees, file federal taxes, and apply for business permits. Even single-member LLCs with no employees should get an EIN to keep their personal Social Security Number off business documents.

Step 6: File Your Montana Annual Report

All Montana LLCs must file an annual report with the Secretary of State. The report is due by April 15 each year and costs $20 to file. You can file your annual report online through the Montana Secretary of State’s website. The annual report updates the state on your LLC’s current registered agent, principal office address, and member or manager information.

Failure to file your annual report can result in administrative dissolution of your LLC. If your LLC is dissolved for noncompliance, you can apply for reinstatement by filing the overdue reports and paying any outstanding fees. Montana’s $20 annual report fee is one of the lowest in the nation, making ongoing compliance very affordable.

Montana LLC Costs

Total first-year cost: $90-$390. This range covers the required state filing fee ($70) plus the annual report ($20) and an optional registered agent service. If you serve as your own registered agent, your only mandatory costs are the $70 filing fee and $20 annual report. See our complete guide to LLC costs by state.

Montana LLC Taxes

Montana has a graduated income tax with rates ranging from 1% to 6.75%. LLC profits that pass through to members are subject to Montana personal income tax at the applicable rate based on income level. Montana uses a bracket system, with the lowest rate applying to income under $3,600 and the highest rate applying to income over $19,800.

One of Montana’s biggest advantages for businesses is that the state has no sales tax. Montana is one of only five states with no statewide sales tax, which means your LLC does not need to collect or remit sales tax on goods or services sold within the state. This can be a significant benefit for retail and e-commerce businesses.

Montana does have a corporate income tax of 6.75% for LLCs that elect to be taxed as corporations. However, most LLCs are taxed as pass-through entities, meaning the LLC itself does not pay state taxes — instead, profits pass through to members who report them on their personal tax returns.

At the federal level, all LLC members owe federal income tax and self-employment tax (15.3%) on their share of LLC profits, regardless of state tax treatment.

Montana LLC Annual Requirements

Every Montana LLC must file an annual report with the Secretary of State by April 15 each year. The filing fee is $20, and you can submit the report online. The report updates the state on your LLC’s registered agent, principal office address, and the names and addresses of members or managers. Failure to file can result in administrative dissolution of your LLC.

In addition to the annual report, you must maintain a current registered agent in Montana at all times. If your registered agent changes, file an updated statement with the Secretary of State. Keep your operating agreement, financial records, and meeting minutes up to date. If your LLC’s name, address, or management structure changes, file the appropriate amendments with the state.

Because Montana has no sales tax, you won’t need to worry about sales tax compliance. However, you must still comply with any industry-specific licensing requirements and maintain any required business permits at the state or local level.

Best LLC Formation Services for Montana

Start an LLC in Another State

Frequently Asked Questions

How much does it cost to start an LLC in Montana?

The state filing fee for a Montana LLC is $70, which is the cost to file your Articles of Organization with the Secretary of State. Additional costs may include a registered agent service ($39-$299/year), the annual report ($20), and a name reservation ($10, optional). Most people spend between $90 and $390 in their first year.

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

Standard processing for Montana LLC filings takes 3-5 business days when filed online through the Secretary of State’s website. Filing by mail takes longer. Montana’s processing time is faster than many other states.

Does Montana have a sales tax?

No, Montana is one of only five states with no statewide sales tax. This means your Montana LLC does not need to collect or remit sales tax on goods or services sold within the state. This is a significant advantage for retail businesses and e-commerce companies. However, some resort communities in Montana may levy a local resort tax.

Do I need a registered agent in Montana?

Yes, every Montana LLC is required by law to have a registered agent with a physical street address in Montana. The registered agent accepts legal documents and official state correspondence on behalf of your LLC during normal business hours. A P.O. box cannot be used as a registered agent address.

Does Montana require an operating agreement?

No, Montana does not legally require an operating agreement. However, creating one is strongly recommended because it defines member roles, profit sharing, voting procedures, and decision-making processes. Without one, your LLC is governed by default rules in the Montana Limited Liability Company Act. Most banks also require an operating agreement to open a business bank account.

How is a Montana LLC taxed?

Montana has a graduated income tax ranging from 1% to 6.75%. LLC profits that pass through to members are subject to Montana personal income tax. Montana has no sales tax. Members also owe federal income tax and self-employment tax (15.3%) on their share of profits.

When is the Montana LLC annual report due?

The Montana LLC annual report is due by April 15 each year. The filing fee is $20, which is one of the lowest in the country. You can file online through the Montana Secretary of State’s website. Failure to file can result in administrative dissolution.

Can I be my own registered agent in Montana?

Yes, you can serve as your own registered agent in Montana as long as you have a physical street address in the state and are available during normal business hours to accept legal documents. Your address becomes public record, and many LLC owners prefer a professional registered agent service for privacy and convenience.

Can a non-resident form an LLC in Montana?

Yes, you do not need to be a Montana resident or a U.S. citizen to form an LLC in Montana. However, you will need a registered agent with a physical address in Montana. Many non-residents use a professional registered agent service. If you conduct business in another state, you may also need to register your Montana LLC as a foreign LLC in that state.