Montana happens to be a bargain right now for anyone running an LLC, largely because the Secretary of State pulled the annual report fee off the books for a couple of years. That's a discretionary move rather than a change in law, so don't get too attached to the free ride — budget as though the fee comes back. Below is a state-specific walkthrough for getting a business off the ground in Montana in 2026.
1. Which business structure fits you?
Picking a structure comes down to how much liability protection and paperwork you're willing to trade off against each other.
- Sole proprietorship. You skip filing anything to get started, but legally there's no separation between you and the business, so its debts are your debts.
- Partnership. The same setup as a sole proprietorship, just with two or more owners sharing the exposure.
- LLC. What most small Montana businesses end up choosing, since it draws a legal line between your personal assets and anything the business owes or gets sued over.
- Corporation (S-corp or C-corp). Heavier on formality and filings, and generally not worth the overhead until you've got investors or a handful of shareholders to manage.
Our full rundown on choosing a business structure goes deeper into the tradeoffs if you're still on the fence.
If you land on an LLC or corporation, you'll register with the Montana Secretary of State, which handles business filings for the whole state. Sole proprietors and general partnerships never touch that office.
2. Register your business
Forming an LLC
Montana LLCs get formed by filing Articles of Organization with the Secretary of State, and it has to happen through the online portal at biz.sosmt.gov — paper filings for this document aren't accepted anymore. The fee runs $35, standard turnaround is roughly 5 business days, and you can pay extra to expedite if you're in a hurry.
Every LLC needs a registered agent holding a physical Montana address and reachable during business hours. That can be you, or a commercial registered agent service if you'd rather not use your own address.
State law doesn't force Montana LLCs to have an operating agreement, but drafting one anyway makes sense, especially with more than one member involved, since it pins down how decisions get made and profits get divided before anyone disagrees about it.
Sole proprietorships and DBAs
No Articles of Organization for sole proprietors. If you plan to operate under a name other than your own, though, you'll file an Assumed Business Name with the Secretary of State, and it only costs a small fee.
3. Get an EIN
Getting an Employer Identification Number costs nothing — apply directly through the IRS site and you'll have it in about 15 minutes. Banks want one before they'll open a business account, you'll need it to bring on staff, and most business tax filings require it too, regardless of whether you're a solo LLC with zero employees.
4. Check licenses and permits
There's no blanket statewide business license in Montana. Instead, requirements split by industry and by city: certain professions need state-level licensing, and some municipalities layer on their own local permits. See our guides on professional licensing by industry and zoning laws for home businesses for the specifics.
5. Understand Montana taxes
Personal income in Montana is taxed on a two-tier system — 4.7% and 5.9% — following the state's recent tax reform. LLCs taxed as pass-throughs don't owe a separate franchise tax on top of that; elect corporate tax treatment instead and the corporate income tax rate is 6.75%.
There's no statewide sales tax in Montana at all, putting it among just five states that skip it entirely. A few narrow carve-outs exist for specific industries — a 7% tax on lodging and 4% on rental cars — but an ordinary LLC selling typical goods or services isn't collecting state sales tax on anything.
6. Stay compliant
Montana LLCs owe an Annual Report to the Secretary of State every year by April 15. Thanks to the Secretary of State's fee waiver, reports due in 2026 and 2027 cost nothing to file on time, but that waiver is a discretionary policy, not a guarantee it sticks around after 2027. Miss the deadline and a $15 late fee kicks in right away; go long enough without filing and the state dissolves the LLC on December 1.
Montana business costs at a glance
| Item | Cost |
|---|---|
| Articles of Organization (LLC) | $35 |
| Annual Report (every year, due April 15) | Waived through 2027, then $20 |
| Registered agent service (optional) | $50 to $150/year |
| EIN | Free (IRS) |
| State income tax | 4.7% and 5.9% (two-tier) |
| State sales tax | None |
Frequently asked questions
Is Montana's Annual Report fee currently waived?
Yes — the Secretary of State waived the standard $20 fee for reports due in 2026 and 2027. That's a discretionary call, though, not a permanent change, so it isn't guaranteed to last past 2027.
How much does it cost to form an LLC in Montana?
$35. Filing happens entirely online now, since Montana stopped accepting paper filings for Articles of Organization.
Does Montana have sales tax?
No. Montana is one of just five states with no statewide sales tax whatsoever.
What's the personal income tax rate in Montana?
It's a two-tier structure: 4.7% and 5.9%, set under the state's recent tax reform.
When is Montana's Annual Report due?
April 15, every year.
Fees and rates above come from the Montana Secretary of State and Department of Revenue as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Montana-licensed attorney or CPA about your specific situation.