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

Montana is cheaper at formation ($35) than Ohio ($99). Ongoing costs are also different: $100 vs $100 per year. Total over three years: $335 vs $399.

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

Yes, but your Ohio business will almost certainly need to register as a foreign LLC in Ohio too, which means paying Ohio's foreign registration fee and any ongoing Ohio obligations on top of the Montana 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 Montana vs Ohio?

Montana online: 5 business days; Ohio online: 5 business days. Montana offers paid expedite from $20. Ohio offers paid expedite from $100.

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

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

Montana vs Ohio LLC comparison

Montana charges $35 to form an LLC; Ohio charges $99. 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 $64 less in total state fees than Ohio. 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

Montana $35

Ohio $99

Montana saves $64

Year 1 total estimate

Montana $135

Ohio $199

Montana saves $64

Ongoing per year

Montana $100

Ohio $100

Tied

3-year total

Montana $335

Ohio $399

Montana saves $64

Key differences at a glance

Montana costs $64 less to form ($35 vs $99).
Ohio has no annual report filing at all. Montana requires an annual (or biennial) report every reporting period.

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.

What each state offers that the other does not

Only Montana

No state sales tax

Only Ohio

No annual report

Both states

Online filing
Paid expedited tier
No entity-level franchise or LLC tax
No publication requirement
Operating agreement not statutorily required

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.

Montana Ohio

Year 1

$135

$199

Year 2

$235

$299

Year 3

$335

$399

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 Montana, business operates there No foreign LLC registration needed. You pay Montana fees only.	$135	$100	$335
You live in Ohio, business operates there No foreign LLC registration needed. You pay Ohio fees only.	$199	$100	$399
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
Non-resident forming in Ohio with operations elsewhere You pay Ohio's fees plus a typical home-state foreign LLC registration of about $200 per year.	$399	$300	$999

Montana vs Ohio: full comparison

Dimension	Montana	Ohio
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	$20	$100
Annual report Required in addition to tax	Required, $0	None
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	$70	$99
State sales tax General statewide rate	None	5.8%

Taxes in Montana and Ohio

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.

Montana tax

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

Ohio tax

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

Ongoing compliance

The recurring filings each state requires after formation.

Montana

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

Ohio

No annual state filing. Registered agent required in Ohio.

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.

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.

Ohio

Check business-name availability on the Ohio entity search.
Appoint a registered agent with a physical Ohio street address.
File Articles of Organization for a Domestic Limited Liability Company (Form 610) for $99.
Wait for approval. Online typically 5 business days. Paid expedite from $100.
Adopt an operating agreement (recommended, not required by Ohio statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
No annual state filing required in Ohio.

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 Montana and Ohio (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 Montana or Ohio 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

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

Ohio Secretary of State, Business Services Division

Website: www.ohiosos.gov/businesses
Phone: (614) 466-3910
Mail: P.O. Box 670, Columbus, OH 43216
Office: 22 North Fourth Street, Columbus, OH 43215
Hours: 8:00 AM to 5:00 PM Eastern, 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

Ohio Department of Taxation

Website: tax.ohio.gov
Phone: (888) 405-4039
Mail: Ohio Department of Taxation, P.O. Box 2678, Columbus, OH 43216-2678
Office: 4485 Northland Ridge Boulevard, Columbus, OH 43229
Hours: 8:00 AM to 5:00 PM Eastern, Monday to Friday

Frequently Asked Questions

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

Montana is cheaper at formation ($35) than Ohio ($99). Ongoing costs are also different: $100 vs $100 per year. Total over three years: $335 vs $399.
Can I form an LLC in Montana if I live in Ohio?

Yes, but your Ohio business will almost certainly need to register as a foreign LLC in Ohio too, which means paying Ohio's foreign registration fee and any ongoing Ohio obligations on top of the Montana 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 Montana vs Ohio?

Montana online: 5 business days; Ohio online: 5 business days. Montana offers paid expedite from $20. Ohio offers paid expedite from $100.
Which state has lower taxes for an LLC, Montana or Ohio?

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

MontanaOpen Montana LLC guide →
OhioOpen Ohio LLC guide →

More Montana and Ohio comparisons

More Montana vs ...

More Ohio vs ...

Sources

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.
Filing fee: www.ohiosos.gov/globalassets/business/forms/610.pdf · verified April 21, 2026
Ohio Secretary of State Form 610 Articles of Organization for a Domestic LLC. Filing fee $99 stated on the form. Authority: Ohio Rev. Code §111.16 (Secretary of State fee schedule) and §1706.16 (LLC formation).
Expedited filing: www.ohiosos.gov/businesses/filing-forms--fee-schedule/ · verified April 21, 2026
Ohio SoS expedite tiers: Level 1 $100 (2 business days); Level 2 $200 (1 business day); Level 3 $300 (4 hours, drop-off only). Ohio Rev. Code §111.16(M). Level 1 recorded as the default expedited tier.
Annual report fee: www.ohiosos.gov/businesses/information-on-starting-and-maintaining-a-b… · verified April 21, 2026
Ohio does not require LLCs to file an annual or biennial report. Ohio Rev. Code Chapter 1706 (Ohio Revised Limited Liability Company Act) imposes no recurring SoS report. Fee recorded as null accordingly.
Franchise tax: tax.ohio.gov/business/ohio-business-taxes/commercial-activities · verified April 21, 2026
Ohio has no LLC franchise tax. The Commercial Activity Tax (CAT) applies to taxable gross receipts above an exclusion of $3 million for tax year 2024 and $6 million for tax year 2025 and beyond (HB 33, 2023). Rate 0.26% of taxable gross receipts above the exclusion. CAT is classified as a gross-receipts tax, not a franchise tax, so franchiseTax.applies is false.
Operating agreement requirement: codes.ohio.gov/ohio-revised-code/chapter-1706 · verified April 21, 2026
Ohio Rev. Code §1706.08 recognizes operating agreements but does not require one to be in writing or filed. Ohio Revised LLC Act (Chapter 1706) governs default rules when no operating agreement is adopted.
Foreign LLC registration fee: www.ohiosos.gov/globalassets/business/forms/617.pdf · verified April 21, 2026
Ohio Secretary of State Form 617 Registration of a Foreign Limited Liability Company. Filing fee $99. Authority: Ohio Rev. Code §1706.511.
Publication requirement: codes.ohio.gov/ohio-revised-code/chapter-1706 · verified April 21, 2026
Ohio does not require newspaper publication for LLC formation. Confirmed via Ohio Rev. Code Chapter 1706 which contains no publication requirement.
Business name search: businesssearch.ohiosos.gov/ · verified April 21, 2026
Ohio Secretary of State Business Search tool. Used to confirm name availability before filing Articles of Organization.
Sales tax rate: tax.ohio.gov/business/ohio-business-taxes/sales-and-use · verified April 21, 2026
Ohio statewide sales and use tax rate is 5.75%. County permissive and transit authority additions can bring combined local rates up to approximately 8.00%.
Corporate income tax rate: tax.ohio.gov/business/ohio-business-taxes/commercial-activities · verified April 21, 2026
Ohio repealed its corporate franchise/income tax; there is no general corporate income tax. The Commercial Activity Tax is a gross-receipts tax, not an income tax, and is not expressed as a rate on net income. maxCorporateRate is therefore null.

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