How to Form an LLC in Montana — 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 to accept service of process

Can I serve myself?

Yes

Commercial RA cost

~$100/yr

Self-serving as RA 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 — at $15/yr, missing the deadline for such a low-cost filing is an avoidable outcome.

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. The name must include 'LLC', 'L.L.C.', 'Limited Liability Company', 'Limited Liability Co.', or 'LC' 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 who is available during normal business hours. MT residents with an MT address may self-serve, but self-serving places your home address on the public SOS record. Commercial RA services ($50–$150/yr) preserve privacy and ensure the April 15 Annual Report deadline is flagged.
3. File Articles of Organization with Montana SOS File online at sosmt.gov ($70 fee). Standard online processing is typically 2–5 business days.
4. Draft an Operating Agreement An Operating Agreement governs member rights, profit allocation, voting, and dissolution under MCA § 35-8-110. Not filed with the state. Montana's agriculture, ranching, natural resource, tourism, and real estate LLC ecosystem frequently involves multi-member arrangements requiring a detailed Operating Agreement.
5. Obtain an EIN from the IRS Apply for an EIN at irs.gov/ein after Articles of Organization approval. The online application issues the EIN immediately.
6. Register for Montana income tax (if applicable) Montana has no state sales tax — no sales tax permit is required. If the LLC has Montana employees, register for payroll withholding with the Montana Department of Revenue (MTRevenue.gov). Montana's individual income tax rate ranges from 1.0% to 6.9% on Montana-source income.
7. Open a business bank account Bring your EIN Confirmation Letter, Articles of Organization approval, photo ID, and Operating Agreement. Montana's banking market includes Glacier Bank (Kalispell-headquartered, strong MT presence), First Interstate Bank (Billings-headquartered), and national banks.
8. File the Annual Report each April 15 Montana LLCs must file an Annual Report with the SOS by April 15 each year ($15 fee). File at sosmt.gov. At $15/yr — one of the lowest in the US. Failure to file results in administrative dissolution. Reinstatement requires additional fees.

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

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

Formation context

Who should form in Montana?

Recommended for

Montana-based businesses in agriculture, ranching, natural resources, tourism, real estate, and construction; Retail and e-commerce LLCs that benefit from Montana's no-sales-tax environment; Remote workers and Bozeman/Missoula-area founders seeking low-cost, low-burden LLC formation in the Intermountain West

Tax treatment (default)

Pass-through by default: single-member LLCs are disregarded entities (Schedule C); multi-member LLCs are partnerships (Form 1065). Montana imposes individual income tax at graduated rates (1.0%–6.9%) on Montana-source pass-through income. Montana has no state sales tax — no sales tax permit required. Montana imposes no franchise tax on LLCs. Annual report: $15/yr — tied for lowest in the coverage set.

If you live outside Montana but form here, you will likely need to register as a foreign LLC in your home state. Montana's no-sales-tax benefit applies only to sales of goods into Montana — remote e-commerce businesses still have nexus obligations in their customers' states. For non-residents seeking low annual cost, Idaho ($100 form + $0/yr) or New Mexico ($50 form + $0/yr) may offer lower ongoing state 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 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.