Montana is currently one of the cheapest states in the country to run an LLC in, partly because the Secretary of State temporarily waived the annual report fee. That's a discretionary decision, not a permanent law, so it's worth budgeting for the fee to return eventually. Here's what it takes to start a business in Montana in 2026.
1. Which business structure fits you?
Before you file anything, it helps to know what you're actually choosing between.
- Sole proprietorship. No filing required to start, and you and the business are legally the same entity. Simple, but you're personally liable for whatever the business owes.
- Partnership. Two or more people running a business together, with the same liability exposure as a sole proprietorship, just split across partners.
- LLC. The most common structure for small businesses in Montana. It separates your personal assets from the business's debts and lawsuits.
- Corporation, either S-corp or C-corp. More paperwork and more formality, usually worth it once you're bringing on investors or multiple shareholders.
For a deeper comparison, see our guide on choosing a business structure.
LLCs and corporations register with the Montana Secretary of State, the agency that handles business filings statewide. Sole proprietorships and general partnerships don't register there.
2. Register your business
Forming an LLC
You form an LLC in Montana by filing Articles of Organization with the Secretary of State through the online portal at biz.sosmt.gov; Montana no longer accepts paper filings for this document. The filing fee is $35, and standard processing takes about 5 business days, with expedited options available for an extra fee.
Every LLC needs a registered agent with a physical Montana address, available during business hours. You can act as your own agent, or hire a commercial service.
Montana doesn't require an operating agreement by law, but it's still worth writing one, particularly for multi-member LLCs, to spell out how decisions and profits get split.
Sole proprietorships and DBAs
Sole proprietorships don't file Articles of Organization. If you're operating under an assumed name, you'll register an Assumed Business Name with the Secretary of State for a small fee.
3. Get an EIN
An Employer Identification Number is free straight from the IRS and takes about 15 minutes online. You'll need one to open a business bank account, hire anyone, or file most business tax forms, even if you're a single-member LLC with no employees.
4. Check licenses and permits
Montana doesn't issue a single general statewide business license either. What you need depends on your industry and city: professional licensing for regulated fields, and local permits some cities require. Our guides on professional licensing by industry and zoning laws for home businesses cover more of this.
5. Understand Montana taxes
Montana has a two-tier personal income tax, 4.7% and 5.9%, effective under recent reform. Pass-through LLCs owe no separate franchise tax; if you elect corporate treatment, the corporate income tax rate is 6.75%.
Montana has no statewide sales tax at all, one of only five states with that policy. A handful of narrow industry taxes still apply, like a 7% tax on lodging and 4% on rental cars, but a standard LLC selling ordinary goods or services collects no state sales tax.
6. Stay compliant
Every Montana LLC files an Annual Report with the Secretary of State, due April 15 each year. The Secretary of State waived the standard $20 fee for reports due in 2026 and 2027, so filing on time currently costs nothing, though that waiver is discretionary and not guaranteed to continue past 2027. Miss the deadline and a $15 late fee applies immediately; the LLC faces dissolution on December 1 if it's never filed.
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, though that's discretionary and not guaranteed to continue past 2027.
How much does it cost to form an LLC in Montana?
$35, filed entirely online since Montana no longer accepts paper filings for this document.
Does Montana have sales tax?
No, Montana has no statewide sales tax at all, one of only five states with that policy.
What's the personal income tax rate in Montana?
A two-tier system, 4.7% and 5.9%, under recent reform.
When is Montana's Annual Report due?
April 15 each 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.