How to Start an LLC in Montana

Filing fee: $35 (Articles of Organization, one-time)

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State agency: Montana Secretary of State — biz.sosmt.gov

Annual report due: January 1 – April 15 each year; $20 filing fee

State tax rate: No state sales tax; corporate income tax applies to C Corps; LLCs taxed at the member level by default

Forming an LLC in Montana takes 6 steps: choose a name, appoint a registered agent, file Articles of Organization with the Montana Secretary of State, get an Employer Identification Number (EIN), check for required licenses and permits, and file your annual report each year by April 15. The state filing fee is $35.

Why form an LLC in Montana

Montana has one of the lowest LLC formation fees in the country — $35 to file, with no state sales tax and no general statewide business license requirement. For entrepreneurs who want a straightforward path to legal protection without a lot of upfront cost, Montana is worth a close look.

An LLC separates your personal finances from your business. If the business is sued or takes on debt, your personal assets stay out of it. That protection is the main reason most small business owners choose an LLC over a sole proprietorship.

Step 1: Choose a name for your Montana LLC

Your LLC name must include "Limited Liability Company," "Limited Company," or an abbreviation like "LLC" or "LC." It also needs to be distinguishable from every other business entity already on file with the Montana Secretary of State.

Check name availability using the Montana Secretary of State's Business Search database before you file. Search using only the main part of your desired name — leave out the LLC designator and punctuation — so you catch names that are similar but not identical.

Step 2: Appoint a registered agent

Every Montana LLC must have a registered agent — a person or business entity with a physical street address in Montana who is available during normal business hours to accept legal documents and official notices on behalf of your LLC. P.O. boxes don't count.

You can serve as your own registered agent if you have a Montana street address, or you can appoint a registered agent service. The registered agent's name and Montana address must appear in your Articles of Organization when you file.

Step 3: File Articles of Organization

Filing Articles of Organization with the Montana Secretary of State is the step that officially creates your LLC. Montana accepts these filings only through its online Business Services portal — paper filings are no longer accepted for LLCs. The state filing fee is $35.

Your Articles of Organization need to include your LLC's legal name, your registered agent's name and Montana street address, and whether the LLC will be member-managed or manager-managed. After you submit, you can check your application status in the Secretary of State's online work queue.

Step 4: Get an EIN

An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. You'll need one to open a business bank account, hire employees, and file federal taxes. Single-member LLCs with no employees can sometimes use a Social Security number instead, but an EIN keeps your personal number off business documents.

Apply for an EIN for free at irs.gov/ein. The IRS issues EINs immediately when you apply online. There's no state fee for this step — it's a federal process.

Step 5: Get business licenses and permits

Montana doesn't issue a single statewide general business license. What you need depends on what your business does and where it operates. Most Montana cities and counties require a local business license, so check with your city or county government first.

Certain industries — health care, construction, professional services, alcohol sales, and transportation among them — require state-level occupational or professional licenses from Montana licensing boards. If your business is regulated at the federal level, check the U.S. Small Business Administration's license and permit guide for the relevant federal agency.

Step 6: File your annual report

Montana requires every active LLC to file an annual report with the Secretary of State each year between January 1 and April 15. The filing fee is $20 when filed on time. Your first annual report is due between January 1 and April 15 of the year after the calendar year in which you formed your LLC.

Annual reports must be filed online through the Montana Secretary of State's business portal — paper filings aren't accepted. Missing the April 15 deadline can put your LLC out of good standing with the state, so mark the date early.

Forming a Montana LLC as a nonresident

You don't need to live in Montana to form a Montana LLC. Montana law doesn't require LLC members or owners to be state residents. The process is the same as for residents: file Articles of Organization online, pay the $35 state fee, and appoint a registered agent with a physical Montana street address.

The registered agent requirement is the one step that catches nonresidents off guard. You can't use a P.O. box, and the agent must be available at a Montana street address during normal business hours. A registered agent service handles this if you don't have a Montana contact.