How to Form an LLC in Montana | 2025 Guide

If you're ready to turn your business idea into a reality, Montana offers one of the most straightforward and affordable paths to success. Learn how to form an LLC in Montana so you can protect your personal assets, simplify taxes, and give your business a solid legal foundation.

Join over 136,000 small businesses in Montana, which is 99.3 percent of all the businesses in the state¹, by following this step-by-step guide.

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How to Start an LLC in Montana (Step-by-Step)

1. Choose a Name for Your Montana LLC

Your LLC’s name is the first impression your business makes. Montana law requires that every LLC name include "Limited Liability Company," "LLC," or "L.L.C." It must also be distinguishable from existing business entities registered with the Montana Secretary of State.

Use the Montana Business Search² to confirm availability. If you want extra time to finalize your business setup, you can reserve your chosen name for 120 days for a $10 fee.

Tip: Avoid restricted words³ like "bank" or "attorney" unless you receive prior authorization.

2. Appoint a Registered Agent Service

Every Montana LLC must designate a registered agent. This individual or company agrees to accept legal documents and official correspondence on behalf of your LLC.

Your registered agent must:

• Have a physical street address in Montana (no P.O. boxes).
• Be available during normal business hours.
• Be either a Montana resident or a business entity authorized to operate in the state.

Many companies choose to hire a professional registered agent service to ensure compliance and maintain privacy. This is mandatory if you want to run a Montana business without being a Montana resident.

3. File the Articles of Organization with the Montana Secretary of State

To officially form your LLC in Montana, you must file the Articles of Organization⁴ online with the Montana Secretary of State. Montana no longer accepts paper filings.

Key details you’ll need to provide include:

• Your LLC's name and address.
• Registered agent’s name and physical address.
• Whether the LLC is member-managed or manager-managed.
• The LLC’s purpose (a broad statement like “to engage in any lawful business” is acceptable).

The filing fee is $35. After approval, you’ll receive a Certificate of Filing confirming your LLC’s formation.

4. Draft an Operating Agreement

Montana does not legally require LLCs to have an operating agreement, but it is highly recommended. This internal document outlines the structure of your LLC, including:

• Ownership percentages.
• Management duties.
• Profit and loss distribution.
• Voting rights.
• Procedures for adding or removing members.
• Rules for dissolving the LLC.

An operating agreement provides clarity among members and helps preserve limited liability protections by demonstrating that the LLC is a separate business entity.

5. Obtain a Federal Tax Identification Number (EIN)

Most LLCs will need an Employer Identification Number (EIN)⁵—sometimes called a Federal Tax Identification Number—from the IRS. An EIN is required if your LLC has more than one member, hires employees, or elects to be taxed as a corporation.

You can apply for an EIN for free on the IRS website. Having an EIN also allows you to open a business bank account and file necessary tax documents.

6. Open a Business Bank Account

After securing your EIN, open a dedicated business bank account. This keeps your business finances separate from personal ones, maintaining liability protection.

To open a business bank account, you typically need:

• A copy of your Articles of Organization.
• Your LLC’s EIN.
• A copy of your Operating Agreement.

Separating finances also simplifies bookkeeping and protects your LLC's legal standing.

7. Register for State Taxes and Obtain Necessary Business Licenses

While Montana does not have a general sales tax, your LLC may still need to register for specific state taxes depending on your business type. Common taxes include employer withholding tax or lodging tax.

Your LLC might also need local or industry-specific business licenses. Check with city and county offices where your business operates to ensure compliance.

If you plan to operate the LLC under a name different from its registered name, you must file for an Assumed Business Name—sometimes referred to as a DBA, “Doing Business As”—with the Montana Secretary of State.

8. File Annual Reports

Every Montana LLC must file an annual report to remain in good standing. Reports are due each year by April 15th and must be filed online.

Key details include:

• Updated business address.
• Registered agent information.
• Names and addresses of managers or members (if applicable).

The filing fee is $20 if submitted on time, increasing to $35 if filed late.

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What Are the Business Requirements for a Montana LLC?

To form and maintain an LLC in Montana, you must meet several basic requirements:

• File the Articles of Organization with the Montana Secretary of State.
• Appoint and maintain a registered agent with a Montana address.
• Create and maintain an internal operating agreement.
• Obtain a Federal Tax Identification Number (EIN).
• File an annual report each year.
• Maintain proper business records and separate finances by using a business bank account.
• Apply for relevant business licenses and pay applicable taxes.

Compliance with federal regulations, including reporting under the Financial Crimes Enforcement Network (FinCEN) if applicable, may also be necessary depending on your business activities.

What Are the Benefits of Starting an LLC in Montana?

Some of the advantages of deciding to form an LLC in Montana include:

• No Sales Tax: Montana is one of the few states that does not impose a general sales tax, reducing the overall tax burden.
• Low Filing Fees: The $35 Articles of Organization fee is significantly lower than in many other states.
• Privacy: LLC members’ names are not required to be listed publicly in the Articles of Organization.
• Flexible Management: Montana LLCs can be managed by members or managers, offering operational flexibility.
• Asset Protection: LLCs provide limited liability protection, separating personal and business liabilities.

How Much Does It Cost to Start an LLC in Montana?

Here’s a breakdown of the typical costs to form an LLC in Montana:

• Articles of Organization: $35 (one-time fee).
• Name Reservation (optional): $10.
• Annual Report: $20 if filed on time; $35 if late.
• Registered Agent Service (optional): Approximately $100–$300 per year if you hire a professional agent.

Additional costs may arise if your LLC needs specific business licenses, files an assumed business name, or requires specialized legal assistance.

Can I Open an LLC in Montana Without Living There?

Yes, you can form an LLC in Montana without residing in the state. There is no residency requirement for members, managers, or owners of a Montana LLC.

However, your LLC must maintain a registered agent with a physical street address in Montana. Many nonresidents use professional registered agent services to fulfill this requirement.

Can a Nonresident Open a Company in Montana?

Non-U.S. residents can also form an LLC in Montana. You do not need to be a U.S. citizen or have a U.S. green card. Foreign individuals and companies can establish an LLC as long as they appoint a registered agent located in Montana and follow standard formation procedures.

Nonresidents may face additional tax reporting obligations, both at the state and federal levels.

Comparison with Other States

Below is a brief comparison of Montana’s LLC formation process and costs with a few other popular states:

Feature	Montana	Idaho	North Dakota	South Dakota
Formation Fee	$35	$100 (online)	$135	$150 (online)
Annual Report Fee	$20	$0	$50	$50
State Sales Tax	None	6%	5%	4.5%
State Income Tax	Yes	Yes	Yes	No
Privacy Protections	Moderate	Low	Moderate	High
Registered Agent Required	Yes	Yes	Yes	Yes
Non-Resident Formation	Allowed	Allowed	Allowed	Allowed

• Montana offers the lowest formation fee and no general sales tax, making it cost-effective for businesses. It has a state income tax, and privacy protections are moderate.
• Idaho has a moderate formation fee and no annual report fee, which can be appealing. However, it imposes both state sales and income taxes, and privacy protections are relatively low.
• North Dakota features a higher formation fee and annual report fee. It has both state sales and income taxes. Privacy protections are moderate.
• South Dakota has a higher formation fee, which is compensated with no state income tax and strong privacy protections, making it attractive for businesses prioritizing confidentiality.

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Conclusion

Montana offers one of the most cost-effective and accessible environments for starting a Limited Liability Company, with no sales tax, a low $35 formation fee, and minimal paperwork. Make sure to stay compliant—file your annual report, maintain a registered agent, keep business finances separate, and meet any licensing or tax obligations. Do it right, and your Montana LLC will be legally sound, financially protected, and ready to grow.

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FAQs About Montana LLCs

Are There Privacy Protections for Montana LLCs?

Montana offers moderate privacy for LLC owners. While the business name and registered agent’s information are public, members’ names do not have to be listed in the Articles of Organization.

Why Do People Use Montana for LLC Formation?

Montana’s lack of a general sales tax, low filing fees, and simple reporting requirements make it attractive for entrepreneurs and small business owners. It’s especially popular for businesses buying vehicles like RVs to avoid sales tax, although owners should seek tax advice for compliance in other states.

Is Montana LLC Tax-Free?

While Montana has no general sales tax and no franchise tax, your Montana LLC may still be subject to state income taxes, federal taxes, or local licensing fees, depending on your operations.

What Are the Disadvantages of a Montana LLC?

• Montana does not offer the same level of privacy protection as states like Wyoming.
• Businesses operating outside of Montana may owe taxes in their home state even if they form an LLC in Montana.
• Annual reports are mandatory and must be filed online every year.

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Sources:

1. Small Business Profile: Montana (2024) | SBA Office of Advocacy
2. Montana Business Search | Montana Secretary of State
3. Restricted Trade Names | Montana Division of Banking and Financial Institutions
4. Montana Business Forms – Montana Secretary of State
5. Apply for an EIN – IRS