Montana is one of the cheapest states in the country to form and keep an LLC. The filing fee is just $35, the lowest in the US; there’s no general sales tax; and the annual report fee is currently waived for LLCs that file on time. Montana’s growing towns, outdoor economy and agriculture support a wide range of small businesses.
What a Montana LLC costs
Table of Contents
| Item | Cost | When |
|---|---|---|
| Articles of Organization | $35 | At formation |
| Annual report | $20, currently waived if filed January 1 to April 15 | By April 15, from the year after formation |
| Late annual report | Higher fee after April 15 | If filed late |
| Assumed business name (if using a DBA) | State fee | When registering |
About the fee waiver. Montana has been waiving its annual report fee for businesses that file on time, a waiver reported to run through 2027. Confirm the current status with the Secretary of State when you file, and file before April 15 either way, because late filers pay more.
Step 1: Choose your LLC name
The name must include "limited liability company", "limited company", "LLC", "L.L.C.", "LC" or "L.C." and be distinguishable from other names on file. Search the Secretary of State’s business records, then check federal trademarks, domains and social handles with our business name checklist.
To trade under another name, register an assumed business name with the Secretary of State.
Step 2: Appoint a registered agent
Every Montana LLC needs a registered agent with a physical Montana address, available during business hours. You can serve yourself, name another adult or use a commercial agent.
Step 3: File Articles of Organization
File Articles of Organization with the Montana Secretary of State, online through its business portal, and pay $35. You’ll include the LLC’s name, registered agent, principal office and mailing addresses, management structure, and the organizer’s information. Online filings are usually processed quickly.
Step 4: Create an operating agreement
Montana doesn’t require you to file an operating agreement, but every LLC should have one, covering ownership, management, profit sharing and what happens when members join or leave.
Step 5: Get an EIN and open a bank account
Apply for a free EIN from the IRS online, then open a business bank account using your filed Articles and EIN. See choosing a business bank account.
Step 6: Register for state taxes
Montana has no general sales tax, so most businesses don’t collect one. You’ll still register with the Montana Department of Revenue for:
- Employer withholding, if you hire.
- Lodging facility taxes, if you offer accommodation, including short-term rentals.
- Other specific taxes that apply to particular industries.
Some resort communities, such as Whitefish, Big Sky and West Yellowstone, levy local resort taxes on certain goods and services sold within their boundaries. Employers also register with the Department of Labor and Industry for unemployment insurance.
Step 7: Get licenses and registrations
- Construction contractors with employees must register with the state’s labor and industry department, and electricians and plumbers need state licenses.
- Many professions are licensed by state boards.
- Cities and counties handle zoning, permits and some business licenses.
Step 8: File your annual report by April 15
Every Montana LLC files an annual report with the Secretary of State between January 1 and April 15 each year, starting the year after formation. The standard fee is $20, currently waived for on-time filings. After April 15, the fee is higher, and an LLC that keeps failing to file can be involuntarily dissolved.
How a Montana LLC is taxed
By default, LLC profits pass through to the owners, who pay federal income tax, self-employment tax and Montana personal income tax, which the state simplified to two brackets in 2024. Multi-member LLCs taxed as partnerships file a Montana partnership return. LLCs electing C corporation status pay Montana corporate license tax. Ask a tax professional which option suits you.
Selling homemade food: the Local Food Choice Act
Montana’s Local Food Choice Act lets many home producers sell homemade foods directly to informed end consumers without a state license, with exceptions for certain higher-risk products such as many meat products. Products must be labeled to show they weren’t inspected. It’s a low-cost way to test a food idea; read the current rules first. See our cottage food business guide.
Hiring your first employee in Montana
Beyond the federal steps in our first employee guide, Montana employers generally:
- Register for withholding with the Department of Revenue and unemployment insurance with the Department of Labor and Industry.
- Carry workers’ compensation insurance, required for most employers once they have employees.
- Report new hires to the state.
Your Montana LLC compliance calendar
| Deadline | Filing | Paid to |
|---|---|---|
| January 1 to April 15 each year | Annual report (fee currently waived if on time) | Secretary of State |
| As assigned | Employer withholding, if you have employees | Department of Revenue |
| Quarterly | Unemployment insurance reports, if you have employees | Department of Labor and Industry |
| As assigned | Lodging facility taxes, if you offer accommodation | Department of Revenue |
| As required | Local resort tax returns, in resort towns | City or resort area |
Example: state costs for your first two years
For a single-member LLC filing on time:
| Year 1 | Year 2 | |
|---|---|---|
| Articles of Organization | $35 | — |
| Annual report | — | $0 (while the waiver lasts) or $20 |
| State total | $35 | $0 to $20 |
Add contractor registration, professional licenses and any local resort tax registration. Use our startup cost calculator to plan.
Outdoor, tourism and agriculture businesses
Montana’s mountains, rivers and national parks support guiding, outfitting, lodging and recreation businesses, alongside ranching and farming. A few considerations:
- Outfitters and guides are licensed by the state’s outfitters board, and activities on federal land need permits.
- Lodging and short-term rentals collect state lodging taxes and may face local rules and resort taxes.
- Ranching and farm businesses often deal with state livestock and agriculture agencies.
- Seasonality is significant in tourism areas; plan cash flow for the off-season with our break-even calculator.
Running a Montana LLC from home
Many Montana LLCs are home-based: remote professionals, makers, food producers under the Local Food Choice Act, and service businesses in smaller towns. A few points apply:
- Check local zoning and any home occupation rules, especially within city limits.
- Review covenants if you live in a subdivision, since many restrict business activity.
- Talk to your insurer about business equipment, inventory and customer visits.
- Use a commercial registered agent if you’d rather keep your home address out of public records.
- Work for clients in other states? Ask an accountant whether those states expect you to register or file there.
Montana compared with nearby states
| State | Filing fee | Recurring state report |
|---|---|---|
| Montana | $35 | Annual report, fee currently waived if on time |
| Wyoming | $100 | $60 minimum |
| Idaho | $100 online | Free yearly report |
| North Dakota | Moderate filing fee | Yearly report |
| South Dakota | Moderate filing fee | Yearly report |
See our Wyoming and Idaho guides.
Mistakes to avoid
- Missing April 15, which costs more and puts your LLC at risk.
- Assuming no sales tax means no local taxes, when resort towns have their own.
- Contracting with employees without state registration.
- Guiding or outfitting without the required license.
- Letting your registered agent lapse, so state notices and legal papers go astray.
Frequently asked questions
Is Montana really the cheapest state to form an LLC? Its $35 filing fee is the lowest in the country, and its on-time annual report is currently free.
When is my first annual report due? Between January 1 and April 15 of the year after your LLC is formed.
Can I be my own registered agent? Yes, with a physical Montana address where you’re available during business hours.
Will the annual report waiver last? It has been in place for on-time filings and is reported to run through 2027. Check with the Secretary of State each year, and budget $20 just in case.
Is my LLC’s information public? Your LLC’s name, registered agent, addresses and listed managers or members appear in the Secretary of State’s records.
Next steps
Read the Start a Business A–Z guide, see how to validate a business idea, and estimate costs with the startup cost calculator.
This guide is general information, not legal or tax advice. Fees, waivers and rules change; check the Montana Secretary of State and Department of Revenue before you file.
Sources
- Start Business By State, LLC cost table 2026 (Montana annual report fee waiver)
- FileForms, state annual report deadlines (Montana fee waiver window)
- LLC University, LLC annual fees by state (2026)
- Montana Secretary of State, Business Services
Last reviewed October 19, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
Leave a Reply