How to Form an LLC in Montana (Billings) — 2026 Filing Guide

Required?

Yes

Who can serve

Montana resident or MT-authorized business entity with a physical MT street address, available during normal business hours

Can I serve myself?

Yes

Commercial RA cost

~$100/yr

Self-serving places your home address on the public Montana SOS record. Commercial RA services preserve privacy and ensure the April 15 Annual Report deadline is flagged.

Renewing or switching? Compare standalone registered agent services — Northwest, Harbor Compliance, Registered Agents Inc., InCorp, and more.

1. Search for name availability through Montana SOS Use the Montana SOS entity search at sosmt.gov to confirm your desired LLC name is available. Name must include an LLC designator under MCA § 35-8-202. Optional: reserve the name for 120 days ($10).
2. Appoint a Montana registered agent Designate a registered agent with a physical Montana street address. Billings residents may self-serve. Commercial RA services ($50–$150/yr) preserve privacy and ensure the April 15 deadline is flagged.
3. File Articles of Organization with Montana SOS File online at sosmt.gov ($70 fee). Standard processing: 2–5 business days.
4. Verify City of Billings business license requirements Check with the City of Billings (ci.billings.mt.us) whether your business type requires a local license or permit. Montana has no sales tax, so no sales tax registration is needed at the state or local level.
5. Draft an Operating Agreement An Operating Agreement governs member rights, profit allocation, voting, and dissolution under MCA § 35-8-110. Billings' energy, agriculture, healthcare, and construction LLC ecosystem frequently involves multi-member structures.
6. Obtain an EIN from the IRS Apply for an EIN at irs.gov/ein after Articles of Organization approval. Issues immediately.
7. Register for Montana income tax if applicable Montana has no sales tax — no permit needed. If the LLC has Montana employees, register for payroll withholding with the Montana Department of Revenue (MTRevenue.gov). Montana individual income tax: 1.0%–6.9%.
8. Open a business bank account Bring your EIN, Articles of Organization, photo ID, and Operating Agreement. Billings' banking market includes First Interstate Bank (Billings-headquartered), Glacier Bank, Stockman Bank, and national banks.
9. File the Annual Report each April 15 File the Montana Annual Report at sosmt.gov each year by April 15 ($15 fee). At $15/yr — tied for lowest nationally alongside Hawaii. Failure to file results in administrative dissolution.

Montana Code Annotated (MCA) §§ 35-8-101 et seq. (Montana LLC Act); MCA § 15-30-2101 et seq. (Montana income tax); IRS Rev. Rul. 77-137; FinCEN CDD Rule, 31 CFR § 1010.230.

Direct filing portal: https://sosmt.gov/

Formation context

Who should form in Montana?

Recommended for

Billings-area businesses in energy (petroleum, oil field services), agriculture, healthcare, retail, and distribution; Intermountain West founders seeking no-sales-tax environment with low annual LLC costs; Energy sector LLCs serving the Bakken, Powder River Basin, and Montana oil/gas markets

Tax treatment (default)

Pass-through by default: single-member LLCs are disregarded entities (Schedule C); multi-member LLCs are partnerships (Form 1065). Montana individual income tax: 1.0%–6.9% on Montana-source income. No state sales tax. Annual report: $15/yr due April 15.

If operating in Montana but formed in another state, register as a foreign LLC with Montana SOS. For non-residents without Montana operations, the $15/yr annual report benefit is partially offset by dual-state registration costs.

No publication requirement in Montana — unlike New York or Nebraska, you do not need to publish notice in a newspaper after filing.

FAQ

Common Montana (Billings) LLC formation questions

Still deciding between an LLC, sole proprietorship, S-Corp, or C-Corp? Our entity-type comparison breaks down formation cost, tax treatment, liability shield, and compliance complexity for all four structures side by side.

Once your LLC clears ~$80K in annual net profit, an S-Corp election (IRS Form 2553) typically saves $5,000–$15,000/year in self-employment taxes by splitting owner income into a W-2 salary + tax-free distributions. The election is free — Form 2553 has no IRS filing fee. The key decision factors: your net income level, a defensible reasonable-compensation salary, and the 75-day Form 2553 filing window after LLC formation.

Already operating as a sole proprietor, or wondering whether a cheap county DBA filing ($10–$100) is enough instead of forming an LLC? A DBA lets you operate under a trade name — but provides zero liability protection. Our DBA vs LLC comparison breaks down exactly when a DBA is sufficient and when you need a state LLC filing.

Missing your annual report deadline triggers late fees and — if left long enough — administrative dissolution, which voids your LLC's liability shield until reinstated. Know your Montana deadline, fee, and the consequences of missing it.

Also see the LLC annual report requirements hub for state-by-state deadlines, fees, late penalties, and reinstatement rules.

If your LLC opens an office, hires employees, or regularly does business in another state, you must foreign-qualify there — or face fines, back taxes, and loss of standing to sue. Our foreign qualification guide covers when you need it, how to file a Certificate of Authority, and what it costs.

Your Articles of Organization are filed — now make your LLC operational. Four actions every new LLC owner needs to take:

Formation gets your LLC into existence; contracts, trademark protection, operating agreement review, and vendor-document review keep it usable. Compare subscription and per-document legal platforms before you rely on a template or pay a local attorney retainer.

Commingling personal and business funds is the #1 way LLC owners lose their liability shield. A separate business account — in your LLC's legal name, with your EIN — is the foundational act of corporate formality. Mercury, Novo, Bluevine, Relay, and Found open same-day with no monthly fees. Compare online banks vs. Chase and Bank of America.

How you pay yourself depends on your LLC's tax classification — not what you call the transfer. A disregarded single-member LLC pays via owner draw with SE tax on all net profit. An S-Corp-elected LLC splits income between a W-2 salary (FICA applies) and tax-free distributions. Getting this wrong triggers IRS audit risk and SE-tax errors.

Single-member LLCs file Schedule C with their personal Form 1040 (due April 15). Multi-member LLCs file Form 1065 by March 15. S-Corp-elected LLCs file Form 1120-S by March 15. Know your form, your deadline, and the common deductions — home office, vehicle, retirement contributions, and startup costs — before your first April filing.