How to Form an LLC in Montana (2026)

1. 1Choose a name for your LLC and verify availability by searching the Montana Secretary of State business entity database. Your name must include "Limited Liability Company," "LLC," or "L.L.C."
2. 2Appoint a registered agent with a physical street address in Montana.
3. 3File Articles of Organization with the Montana Secretary of State. The filing fee is just $35 — the cheapest in the entire US. Online filing is available.
4. 4Obtain an EIN (Employer Identification Number) from the IRS at no cost.
5. 5Create an operating agreement. Not legally required in Montana but strongly recommended.
6. 6Open a business bank account with your Articles of Organization, EIN, and operating agreement.
7. 7Obtain any required state and local business licenses or permits.
8. 8File your first annual report on the anniversary of formation. The fee is $20.

• ✓Obtain an EIN from the IRS (free, apply online at irs.gov)
• ✓Open a dedicated business bank account
• ✓Register for Montana state taxes with the Department of Revenue
• ✓Get business insurance (general liability at minimum)
• ✓Set up an accounting system to track income and expenses
• ✓Apply for any local business licenses or permits
• ✓File your first annual report ($20) on the anniversary of formation

Your Montana LLC name must contain "Limited Liability Company," "LLC," or "L.L.C." Restricted words like "Bank," "Insurance," or "Trust" require additional licensing. The name must be distinguishable from existing business entities in Montana.

Montana LLCs are pass-through entities by default. Members pay Montana individual income tax on their share of profits (top rate of 6.75%). Montana does not impose a franchise tax on LLCs. Montana has no sales tax — one of only 5 states without one — which benefits retail and e-commerce LLCs. The annual report is just $20.

LLC vs. other structures in Montana

Montana has the cheapest LLC filing fee in the US at $35, with a $20/year annual report. Total first-year cost is just $55. Montana's lack of sales tax makes it particularly attractive for certain business types. Montana is also popular for vehicle registration LLCs to avoid sales tax in other states, though this practice is controversial and may be challenged.

• •File an annual report on the anniversary of formation — $20 fee
• •Maintain a registered agent with a physical address in Montana at all times
• •Keep your operating agreement current and update it when membership changes
• •File Montana state income tax returns for all members receiving pass-through income
• •Renew any local business licenses or permits as required

Montana offers a reasonable cost structure for LLCs. The $35 filing fee is competitive, and ongoing costs are manageable. If you operate in Montana, forming your LLC here makes the most sense.

In general, you should form your LLC in the state where you physically live and conduct business. Forming in a "tax-friendly" state like Wyoming, Delaware, or Nevada sounds appealing, but if you operate in Montana, you will still need to register as a foreign LLC there — paying fees in both states.

An LLC is almost always a better choice than operating as a sole proprietorship because of the personal liability protection it provides. However, if your LLC is highly profitable, you should talk to a CPA about electing S-Corp tax treatment to potentially reduce your self-employment tax burden.

What Montana LLC Owners Need to Know

• •Montana has the cheapest LLC filing fee in the entire US at just $35
• •Annual report is only $20, making total first-year cost just $55
• •Montana has no sales tax — one of only 5 states without one
• •Popular state for vehicle registration LLCs (to avoid sales tax), though this practice is controversial

Official Montana Resources

• Montana Secretary of State — Business Services
• Montana Online Business Filing