How to Incorporate a Corporation or LLC in Montana
Learn how to incorporate in Montana — from choosing a business name to filing Articles of Incorporation. See state fees, processing times, and formation steps for corporations and LLCs.
Bizee Editorial Staff
Editorial Team
Montana at a glance
Filing fee: $70 for corporations (Articles of Incorporation); $35 for LLCs (Articles of Organization)
Processing time: Typically 5–7 business days for standard filing; expedited options available
State agency: Montana Secretary of State (sosmt.gov/business)
Annual report due: Annual report due by April 15 each year
State tax rate: Montana has no state sales tax. Corporate income tax rate is 6.75%. No franchise tax.
How to incorporate a corporation or LLC in Montana
To incorporate in Montana, you file Articles of Incorporation or Articles of Organization with the Montana Secretary of State, pay the state filing fee, appoint a registered agent, and get a federal Employer Identification Number (EIN) from the IRS. The process applies whether you're forming a C Corporation, S Corporation, or LLC.
Why incorporate in Montana
Montana has no state sales tax, which lowers the cost of doing business compared to most states. The corporate income tax rate is 6.75%, and there's no franchise tax — a combination that's worth paying attention to if you're weighing where to form your business.
The state also offers targeted economic development programs. The Big Sky Economic Development Trust Fund, for example, can provide up to $5,000 per eligible job created for qualifying business expansion projects. Whether those incentives apply to your business depends on your industry and county — a tax professional can help you figure out what you qualify for.
LLC vs. corporation in Montana
For most small businesses, an LLC is the simpler choice. It's easier to form, has fewer ongoing requirements, and still gives you personal liability protection. A corporation makes more sense if you plan to raise outside investment, issue multiple classes of stock, or eventually go public.
The right structure depends on your goals, not a general rule. If you're unsure, talk to a legal or tax professional before you file.
Montana C Corporation benefits
A C Corporation gives you the strongest personal liability protection available. It can issue multiple classes of stock, has no limit on the number of shareholders, and lets you retain earnings in the business at the corporate tax rate rather than passing them through to your personal return.
C Corps are also the structure most investors and venture capital firms expect. If outside funding is part of your plan, a C Corporation is worth considering from the start.
Montana S Corporation benefits
An S Corporation passes income and losses through to shareholders' personal tax returns, which avoids the double taxation that C Corps face. Owners who work in the business can also pay themselves a reasonable salary and take additional profits as distributions — which aren't subject to self-employment tax.
S Corps have stricter eligibility rules: no more than 100 shareholders, one class of stock, and shareholders must be U.S. citizens or residents. You elect S Corp status with the IRS after forming your corporation — it's not a separate entity type at the state level.
FAQ
The state filing fee is $70 for a corporation (Articles of Incorporation) and $35 for an LLC (Articles of Organization), paid to the Montana Secretary of State. You'll also need to budget for a registered agent if you use a service, and an annual report fee to maintain your business's good standing each year.
First, form a corporation with the Montana Secretary of State by filing Articles of Incorporation and paying the $70 state fee. Then elect S Corporation tax status with the IRS by filing Form 2553. Montana doesn't have a separate S Corp designation at the state level — the election is federal only. You'll also need an EIN before you can file Form 2553.
Yes. Montana has a corporate income tax rate of 6.75%. However, Montana has no state sales tax and no franchise tax, which makes it a relatively business-friendly tax environment compared to many other states. LLCs taxed as pass-through entities pay individual income tax rates on their share of business income. Talk to a tax professional to figure out how Montana's tax structure applies to your situation.
Yes. Every Montana corporation and LLC is required to maintain a registered agent with a physical Montana address. The registered agent receives legal documents and official state notices on your behalf during business hours. You can serve as your own registered agent if you have a Montana address, or you can use a registered agent service.
Yes. Montana corporations and LLCs must file an annual report with the Montana Secretary of State by April 15 each year to stay in good standing. Missing the deadline can result in your business losing its good standing with the state. File through the Secretary of State's online portal at sosmt.gov/business.
It depends on your goals. An LLC is simpler to form and run, with fewer ongoing requirements — it's the right fit for most small businesses. A corporation makes more sense if you plan to raise investment, issue stock, or eventually go public. Both structures give you personal liability protection. If you're not sure which fits your situation, talk to a legal or tax professional before you file.
Yes, in most cases. Most Montana LLCs and corporations need a federal EIN from the IRS — even with no employees. You'll need an EIN to open a business bank account, file federal taxes, and hire anyone. Apply at irs.gov/ein for free. Single-member LLCs with no employees may be able to use the owner's Social Security number instead, but an EIN keeps your personal number off business documents.
