Is it cheaper to form an LLC in Hawaii or Montana?

Montana is cheaper at formation ($35) than Hawaii ($51). Ongoing costs are also different: $100 vs $115 per year. Total over three years: $335 vs $396.

Can I form an LLC in Hawaii if I live in Montana?

Yes, but your Montana business will almost certainly need to register as a foreign LLC in Montana too, which means paying Montana's foreign registration fee and any ongoing Montana obligations on top of the Hawaii ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

How long does it take to form an LLC in Hawaii vs Montana?

Hawaii online: 5 business days; Montana online: 5 business days. Hawaii offers paid expedite from $25. Montana offers paid expedite from $20.

Which state has lower taxes for an LLC, Hawaii or Montana?

Hawaii: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Montana: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.

Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Hawaii and Montana both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Hawaii or Montana to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Hawaii vs Montana LLC comparison

Hawaii charges $51 to form an LLC; Montana charges $35. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Montana runs about $61 less in total state fees than Hawaii. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee

Hawaii $51

Montana $35

Montana saves $16

Year 1 total estimate

Hawaii $166

Montana $135

Montana saves $31

Ongoing per year

Hawaii $115

Montana $100

Montana saves $15

3-year total

Hawaii $396

Montana $335

Montana saves $61

Key differences at a glance

Montana costs $16 less to form ($35 vs $51).
Montana is $15 per year cheaper to maintain ($100 vs $115).

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

Hawaii Montana

Year 1

$166

$135

Year 2

$281

$235

Year 3

$396

$335

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario	Year 1	Each year after	3-year total
You live in Hawaii, business operates there No foreign LLC registration needed. You pay Hawaii fees only.	$166	$115	$396
You live in Montana, business operates there No foreign LLC registration needed. You pay Montana fees only.	$135	$100	$335
Non-resident forming in Hawaii with operations elsewhere You pay Hawaii's fees plus a typical home-state foreign LLC registration of about $200 per year.	$366	$315	$996
Non-resident forming in Montana with operations elsewhere You pay Montana's fees plus a typical home-state foreign LLC registration of about $200 per year.	$335	$300	$935

Hawaii vs Montana: full comparison

Dimension	Hawaii	Montana
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	5 business days	5 business days
Expedited option Paid fast-track filing	$25	$20
Annual report Required in addition to tax	Required, $15	Required, $0
State-imposed annual tax Franchise, privilege, or LLC tax minimum	None	None
State income tax On pass-through LLC income at member level	Yes	Yes
Publication requirement Newspaper publication after formation	No	No
Operating agreement Required by state statute	Recommended, not required	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$51	$70
State sales tax General statewide rate	None	None

Taxes in Hawaii and Montana

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

Hawaii tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 6.4%.

Montana tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 6.8%.

Ongoing compliance

The recurring filings each state requires after formation.

Hawaii

Annual report $15, due on your anniversary month. Registered agent required in Hawaii.

Montana

Annual report $0, due 04/15 each year. Registered agent required in Montana.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

Hawaii

Check business-name availability on the Hawaii entity search.
Appoint a registered agent with a physical Hawaii street address.
File Articles of Organization for Limited Liability Company (Form LLC-1) for $51.
Wait for approval. Online typically 5 business days. Paid expedite from $25.
Adopt an operating agreement (recommended, not required by Hawaii statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $15 when it comes due.

Montana

Check business-name availability on the Montana entity search.
Appoint a registered agent with a physical Montana street address.
File Articles of Organization for Domestic Limited Liability Company for $35.
Wait for approval. Online typically 5 business days. Paid expedite from $20.
Adopt an operating agreement (recommended, not required by Montana statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $0 when it comes due.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both Hawaii and Montana (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Hawaii or Montana does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

Hawaii Department of Commerce and Consumer Affairs - Business Registration Division

Website: cca.hawaii.gov/breg
Phone: (808) 586-2727
Email: breg@dcca.hawaii.gov
Mail: Business Registration Division, Department of Commerce and Consumer Affairs, P.O. Box 40, Honolulu, HI 96810
Office: 335 Merchant Street, Room 201, Honolulu, HI 96813
Hours: 7:45 AM to 4:30 PM Hawaii-Aleutian Standard Time, Monday to Friday

Montana Secretary of State - Business Services Division

Website: sosmt.gov
Phone: (406) 444-3665
Email: sosbusiness@mt.gov
Mail: Business Services, Montana Secretary of State, P.O. Box 202801, Helena, MT 59620-2801
Office: State Capitol, Room 260, 1301 6th Avenue, Helena, MT 59620
Hours: 8:00 AM to 5:00 PM Mountain, Monday to Friday

Hawaii Department of Taxation

Website: tax.hawaii.gov
Phone: (808) 587-4242
Mail: Department of Taxation, P.O. Box 259, Honolulu, HI 96809-0259
Office: 830 Punchbowl Street, Honolulu, HI 96813-5094
Hours: 7:45 AM to 4:00 PM Hawaii-Aleutian Standard Time, Monday to Friday

Montana Department of Revenue

Website: mtrevenue.gov
Phone: (406) 444-6900
Mail: Montana Department of Revenue, P.O. Box 8021, Helena, MT 59604-8021
Office: 125 N Roberts Street, Helena, MT 59601
Hours: 8:00 AM to 5:00 PM Mountain, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in Hawaii or Montana?

Montana is cheaper at formation ($35) than Hawaii ($51). Ongoing costs are also different: $100 vs $115 per year. Total over three years: $335 vs $396.
Can I form an LLC in Hawaii if I live in Montana?

Yes, but your Montana business will almost certainly need to register as a foreign LLC in Montana too, which means paying Montana's foreign registration fee and any ongoing Montana obligations on top of the Hawaii ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
How long does it take to form an LLC in Hawaii vs Montana?

Hawaii online: 5 business days; Montana online: 5 business days. Hawaii offers paid expedite from $25. Montana offers paid expedite from $20.
Which state has lower taxes for an LLC, Hawaii or Montana?

Hawaii: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Montana: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Hawaii and Montana both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Hawaii or Montana to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

HawaiiOpen Hawaii LLC guide →
MontanaOpen Montana LLC guide →

More Hawaii and Montana comparisons

More Hawaii vs ...

More Montana vs ...

Sources

Online filing portal: cca.hawaii.gov/breg/ · verified April 21, 2026
Hawaii BREG is launching a replacement business registration portal on April 27, 2026 (the legacy hbe.ehawaii.gov system went offline April 20). The new portal URL is not yet published. Until we can confirm the new direct URL, we point filers at the BREG division homepage, which lists the live online filing entry point. Re-verify once the new portal URL is announced.
Business name search: cca.hawaii.gov/business-check/ · verified April 21, 2026
DCCA Business Check is Hawaii's current live business-name search surface and remains the right entry point regardless of the BREG portal migration.
Filing fee: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Hawaii DCCA Business Registration Division Form Fee Schedule (Rev. 12/2022): Limited Liability Company Articles of Organization filing fee = $50.00. A $1.00 State Archives preservation fee (HRS Section 94-8) is also imposed on permanent documents collected by BREG, bringing the day-one total to $51.00.
Expedited filing: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Hawaii DCCA Form Fee Schedule: Expedited Review Fee = $25.00 (additional) for most LLC filings including Articles of Organization. Expedited online filings are typically processed in 1 to 3 business days per BREG guidance.
Foreign LLC registration fee: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Foreign LLC Application for Certificate of Authority filing fee = $50.00 plus $1.00 State Archives preservation fee = $51.00 day-one cost.
Operating agreement requirement: law.justia.com/codes/hawaii/title-23a/chapter-428/section-428-103/ · verified April 21, 2026
HRS Section 428-103 (Effect of operating agreement; nonwaivable provisions) permits but does not require an operating agreement. Hawaii Uniform Limited Liability Company Act does not require a written operating agreement.
Publication requirement: cca.hawaii.gov/breg/registration/dllc/ · verified April 21, 2026
Hawaii BREG LLC registration page and HRS Chapter 428 contain no publication requirement for LLCs.
Annual report fee: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Annual Report (Domestic/Foreign) LLC filing fee = $15.00 per Hawaii DCCA Form Fee Schedule. Due during the calendar quarter containing the LLC's registration anniversary per HRS Section 428-210. Late fee $10 per year. Authority confirmed via HRS Section 428-210.
Franchise tax: tax.hawaii.gov/geninfo/get/ · verified April 21, 2026
Hawaii Department of Taxation: no franchise tax on LLCs. The General Excise Tax (GET) is a gross receipts tax, not a franchise tax. LLCs owe GET on business activity, not a separate entity-level franchise or privilege tax.
Corporate income tax rate: taxfoundation.org/location/hawaii/ · verified April 21, 2026
Hawaii corporate income tax: 4.4% on income up to $25,000, 5.4% on $25,001 to $100,000, 6.4% on income above $100,000. Record top marginal rate 6.4% as the income-only max. LLCs that default to pass-through do not owe this tax.
Sales tax rate: tax.hawaii.gov/geninfo/get/ · verified April 21, 2026
Hawaii has no retail sales tax. The General Excise Tax (GET) at 4% state plus 0.5% county surcharge is a gross receipts tax on the business. Recorded salesTaxRate as 0 per schema convention (statewide retail sales rate). GET nuance captured in taxes.notes.
Business name search: hbe.ehawaii.gov/documents/search.html · verified April 21, 2026
Hawaii Business Express (HBE) document and entity search. Confirm name availability before filing. Note: HBE is being replaced by a new BREG portal on April 27, 2026; URLs may update.
Certificate of Formation form: files.hawaii.gov/dcca/breg/registration/forms/llc-1.pdf · verified April 21, 2026
Official Form LLC-1 Articles of Organization for Hawaii LLC, published by DCCA Business Registration Division. Can be filed online via HBE, by mail, fax, email, or in person.
Filing fee: sosmt.gov/business/fees/ · verified April 21, 2026
Montana SoS Business Services fee schedule: Articles of Organization filing fee = $35.00 (plus $50 per series member for a series LLC). All business filings are online-only through biz.sosmt.gov.
Expedited filing: sosmt.gov/business/fees/ · verified April 21, 2026
Expedited service: 24 hours = $20, 1 hour = $100. We record the cheapest tier (24-hour) as the default.
Foreign LLC registration fee: sosmt.gov/business/fees/ · verified April 21, 2026
Foreign LLC Certificate of Authority filing fee = $70.00 (plus $50 per series member for a series LLC).
Operating agreement requirement: archive.legmt.gov/bills/mca/title_0350/chapter_0080/part_0010/sections… · verified April 21, 2026
Montana Limited Liability Company Act, MCA Title 35, Chapter 8, does not require a written operating agreement. MCA 35-8-102 defines 'operating agreement' broadly; the statute lets the default provisions of Chapter 8 govern if no operating agreement exists.
Publication requirement: sosmt.gov/business/ · verified April 21, 2026
Montana statutes and SoS filing instructions contain no LLC publication requirement.
Annual report fee: sosmt.gov/secretary-christi-jacobsen-continues-montana-business-suppor… · verified April 21, 2026
Montana SoS announced that the annual report filing fee is waived for 2026 and 2027 for on-time filings (Jan 1 - Apr 15). Fourth consecutive year of waiver. Late filings after April 15 remain $35. Cross-referenced with the fee schedule at https://sosmt.gov/business/fees/.
Franchise tax: revenue.mt.gov/taxes/corporate-income-tax · verified April 21, 2026
Montana Department of Revenue: no franchise tax on LLCs. Only entities that elect C-corp status pay the corporate income tax, which is not a franchise tax. Pass-through LLCs owe no entity-level state tax.
Corporate income tax rate: revenue.mt.gov/taxes/corporate-income-tax · verified April 21, 2026
Montana corporate income tax: 6.75% standard rate; 7% for water's-edge election; $50 minimum tax. LLCs that default to pass-through do not owe this tax.
Sales tax rate: mtrevenue.gov/ · verified April 21, 2026
Montana has no general statewide sales tax (0%). Industry-specific taxes apply to lodging, rental cars, and a few other categories but not to general retail.
Business name search: biz.sosmt.gov/search/business · verified April 21, 2026
Montana SoS Online Business Services entity name search. Confirm name distinguishability before filing.
Online filing portal: biz.sosmt.gov/ · verified April 21, 2026
Montana SoS Online Business Services portal. Montana accepts LLC formation filings online only; mail filings are not accepted for Articles of Organization. Standard processing averages 3-6 business days; expedite tiers available.

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