How to Form an LLC in Montana: Complete 2026 Guide
Montana has the lowest LLC filing fee in the country at just $35 — and it's one of only five states with no sales tax. Forming a Montana LLC is filed online with the Montana Secretary of State for $35. Better yet, the annual report is completely free if filed on time. Montana combines rock-bottom formation costs with no sales tax for a uniquely affordable business environment.
The thing you need to know: free annual reports and no sales tax, but income tax applies. Montana is one of only five states with no statewide sales tax (alongside Alaska, Delaware, New Hampshire, and Oregon). Your annual report is free if filed between January 1 and April 15. However, Montana does have a graduated income tax (4.7%–5.9%), which is moderate compared to high-tax states but higher than the zero-income-tax states like Wyoming or South Dakota. Montana is ideal for residents who want ultra-low formation costs and no sales tax, but non-residents should weigh the income tax implications.
Montana LLC at a Glance
| Item | Detail |
|---|---|
| State filing fee | $35 |
| Annual report | Free (if filed Jan 1–Apr 15); $35 late fee |
| State income tax | 4.7%–5.9% graduated |
| Sales tax | None (no statewide sales tax) |
| Standard processing | 3–5 business days |
| Expedited processing | $20 (24-hour) or $100 (1-hour) |
| Registered agent | Required (physical Montana address) |
| Operating agreement | Not required by law, strongly recommended |
| Name reservation | $10 for 120 days |
What You Need Before Filing in Montana
Montana LLCs are filed exclusively online through the Montana Secretary of State's business portal. No paper or mail filings are accepted. You need:
- LLC name that includes "Limited Liability Company," "LLC," or "L.L.C." and is distinguishable from existing Montana entities. Search the Montana Business Entity Search to check availability. Name reservation costs $10 and holds your name for 120 days.
- Registered agent with a physical street address in Montana (P.O. boxes not accepted). The agent must be available during normal business hours. You can serve as your own registered agent if you have a Montana street address.
- Articles of Organization details: LLC name, registered agent name and Montana street address, principal office address, mailing address, organizer name and address, management structure (member-managed or manager-managed), and purpose of the LLC.
Step-by-Step: Forming a Montana LLC in 2026
Step 1: Choose and Verify Your LLC Name
Search the Montana Business Entity Search to confirm your name is available. Your name must include "Limited Liability Company," "LLC," or "L.L.C." and cannot be deceptively similar to an existing Montana entity. Optional: reserve the name for 120 days for $10 — the cheapest name reservation in the country.
Step 2: Appoint a Registered Agent
Every Montana LLC must have a registered agent with a physical street address in the state. The agent receives legal papers and state correspondence on your behalf. You can name yourself (if you have a MT address), a trusted person, or a commercial registered agent service.
Our pick: Northwest Registered Agent — $39/year and includes a Montana street address. They provide mail forwarding, compliance alerts, and annual report reminders.
Step 3: File Your Articles of Organization
File online through the Montana Secretary of State's business portal. The filing fee is $35 — the lowest in the country. Standard processing takes 3–5 business days. Expedited options: $20 for 24-hour processing or $100 for 1-hour processing.
The Articles of Organization require:
- LLC name
- Registered agent name and street address
- Principal office address
- Mailing address
- Organizer name and address
- Management type (member-managed or manager-managed)
- Purpose of the LLC
Step 4: Get Your EIN (Federal Tax ID)
Apply for a free EIN from the IRS at IRS.gov. You need an EIN to open a business bank account, hire employees, and file federal taxes. The online application takes 5–10 minutes and you receive your EIN immediately.
Step 5: Create Your Operating Agreement
Montana does not legally require an operating agreement, but you should have one. It establishes member ownership percentages, profit/loss distribution, voting procedures, and what happens if a member leaves. Banks often require a copy when opening a business account.
Step 6: Register with the Montana Department of Revenue
If your LLC will have income subject to Montana tax, register with the Montana Department of Revenue. Since Montana has no sales tax, you won't need a sales tax permit. However, you may need to register for income tax withholding if you have employees.
Step 7: Open a Business Bank Account
Keep personal and business finances completely separate. Bring your Articles of Organization, EIN letter, operating agreement, and a photo ID to the bank. Major banks in Montana include Glacier Bancorp, Stockman Bank, and Opportunity Bank.
Montana LLC Formation Costs: Full 2026 Breakdown
Required Costs
| Fee | Amount | When |
|---|---|---|
| Articles of Organization | $35 | One-time |
| Annual Report | Free (on time) / $35 (late) | Yearly |
| Registered Agent | $39–$299/year | Yearly |
Optional Costs
| Service | Cost |
|---|---|
| Name Reservation | $10 (120 days) |
| Assumed Business Name (DBA) | $20 (5 years) |
| 24-Hour Expedited Processing | $20 |
| 1-Hour Expedited Processing | $100 |
| Certificate of Good Standing | $10 |
| Amendment to Articles | $15 |
| Operating Agreement (template) | $0–$49 |
| EIN (IRS) | Free |
Year-One Cost Estimate
| Item | DIY | With Northwest | With Bizee |
|---|---|---|---|
| State filing fee | $35 | $35 | $35 |
| Registered agent (year 1) | $0 (self) | $39 | $0 (included) |
| Formation service | $0 | $0 (included) | $0 |
| Year-one total | $35 | $74 | $35 |
Ongoing annual costs: $0 (annual report, if filed on time) + $39–$299 (registered agent renewal). Montana is one of the cheapest states to maintain an LLC.
Montana LLC Taxes: What to Expect
Graduated Income Tax: 4.7%–5.9%
Montana has a two-bracket graduated income tax system:
| Filing Status | 4.7% Rate (up to) | 5.9% Rate (above) |
|---|---|---|
| Single / Married Filing Separately | $0–$21,100 | Over $21,100 |
| Head of Household | $0–$31,700 | Over $31,700 |
| Married Filing Jointly | $0–$42,200 | Over $42,200 |
The top rate of 5.9% is moderate compared to high-tax states (California: 13.3%, New York: 10.9%) but higher than neighboring Wyoming (0%) and South Dakota (0%).
No Sales Tax
Montana is one of only five states with no statewide sales tax. This is a significant advantage for retail and service businesses — you don't need to collect, track, or remit sales tax. Some resort communities may impose local resort taxes on lodging and restaurants, but general merchandise and services are sales-tax-free.
Capital Gains Tax
Montana taxes long-term capital gains at reduced rates: 3.0%–4.1%, which is lower than the ordinary income tax rates. This is favorable for investors and business owners selling appreciated assets.
Self-Employment Tax
Like all states, LLC members pay 15.3% federal self-employment tax on net earnings (12.4% Social Security + 2.9% Medicare). This applies regardless of state tax policy.
Montana Annual Report Requirements
Every Montana LLC must file an Annual Report with the Secretary of State. Key details:
- Fee: Free if filed January 1–April 15; $35 if filed late
- Due date: April 15th each year
- Filing window: Opens January 1st
- Filing method: Online only through the Secretary of State's business portal
- First report: Due between January 1 and April 15 of the year after formation
- Late penalty: $35 fee if filed after April 15. Failure to file by December 1 can lead to administrative dissolution.
The annual report updates your LLC's basic information: principal address, registered agent, and member/manager details. File early in January to avoid forgetting — it's free, so there's no reason to wait.
DIY vs. Formation Service: What Makes Sense?
Montana's online-only filing is straightforward and affordable at just $35. DIY is an excellent option here — you're saving very little by using a free formation service when the state fee itself is so low.
However, a formation service adds value when:
- You want a professional registered agent address (not your home address in public records)
- You want automatic annual report reminders (even though it's free, missing the deadline costs $35)
- You're forming an LLC in Montana from out of state
- You want compliance tracking and document storage
Our Recommended Formation Services
Northwest Registered Agent — $39 + $35 state fee. Total year-one cost of just $74 — one of the cheapest LLC formations in the country. Includes registered agent for one year, a Montana street address for privacy, mail forwarding, and compliance alerts.
Bizee (formerly Incfile) — $0 + $35 state fee. Free LLC formation with first-year registered agent included. At $35 total for year one, this is the absolute cheapest LLC formation in America. Renewal registered agent is $199/year.
Frequently Asked Questions
How Much Does It Cost to Form an LLC in Montana?
The state filing fee is just $35 — the lowest in the country. With a registered agent service like Northwest ($39), your total year-one cost is $74. If you serve as your own agent, the cost is $35 total. Annual reports are free if filed on time.
Does Montana Have Sales Tax?
No. Montana is one of only five states with no statewide sales tax. This means you don't need to collect or remit sales tax on goods and services sold in Montana. Some resort communities may have local lodging/restaurant taxes.
What Is Montana's Income Tax Rate?
Montana has a two-bracket graduated income tax: 4.7% on income up to $21,100 (single) and 5.9% on income above that threshold. Long-term capital gains are taxed at reduced rates of 3.0%–4.1%.
Is Montana's Annual Report Really Free?
Yes. If you file your annual report between January 1 and April 15, there is no fee. If you file after April 15, a $35 late fee applies. This makes Montana one of the cheapest states to maintain an LLC long-term.
How Long Does It Take to Form a Montana LLC?
Standard processing takes 3–5 business days. Expedited options are available: $20 for 24-hour processing or $100 for 1-hour processing. All filings are online only — no mail or in-person options.
Is Montana a Good State for an LLC?
For Montana residents, absolutely. The $35 filing fee, free annual reports, and no sales tax make Montana one of the most affordable states to form and maintain an LLC. For non-residents, the 4.7%–5.9% income tax is a consideration — if tax avoidance is your priority, Wyoming or South Dakota may be better options. But if you value ultra-low formation costs and no sales tax, Montana is hard to beat.
Next Steps: Form Your Montana LLC
If Montana is the right fit:
- Use an online formation service to file through the Secretary of State's portal correctly
- Budget just $74 for year one: $39 (Northwest) + $35 (state filing fee)
- File your free annual report between January 1 and April 15 each year to avoid the $35 late fee
→ Form Your Montana LLC with Northwest for $39 + State Fees
→ Form Your Montana LLC with Bizee for $0 + State Fees
Related guides: How to Form an LLC · LLC Formation Cost · Best LLC Formation Services · LLC Formation Comparison · Northwest Registered Agent Review · Wyoming LLC · South Dakota LLC · Alaska LLC · Idaho LLC · Washington LLC · Colorado LLC
Frédéric Deltour
Entrepreneur · Business Consultant · Certified Professional Trainer
22+ years of entrepreneurship & 3 international companies founded, Frédéric brings real-world business expertise to our site. Certified holistic coach & therapist trainer, published author, and recognized authority featured in Le Parisien, IMDb, Goodreads, and international encyclopedias.