How much does it cost to form an LLC in Montana in 2026?

The state filing fee is $35, paid online through biz.sosmt.gov when you file Articles of Organization. Expedited service costs $20 extra for 24 hours-hour turnaround. Ongoing, the annual report fee is currently waived (no annual fee) for on-time filings through 2027. Add $50 to $125 per year for a commercial registered agent if you do not have a Montana street address of your own.

Does Montana have an annual report?

Yes, due every year by April 15 and filed online only. The Secretary of State has waived the fee for on-time filings for tax years 2024 through 2027, so it is currently no annual fee to file on time. The base fee when the waiver expires is $15 to $20. Miss April 15 and the late fee is $35 regardless of the waiver.

Do Montana LLCs pay state income tax?

Pass-through LLCs owe no entity-level income tax in Montana. Members who are Montana residents pay the state's individual income tax (graduated 4.7% to 5.9%) on their distributive share. An LLC that elects C-corp treatment pays Montana's 6.8% corporate income tax with a $50 minimum. Non-resident members pay Montana tax on Montana-source income plus whatever their home state charges.

Does Montana have a sales tax?

No. Montana has no general statewide sales tax, which is one of only four states with that setup. Narrow industry taxes still apply (7% on lodging, 4% on rental cars) but a standard LLC selling goods or services to Montana customers collects no state sales tax. Combined with the 2026-2027 annual report waiver, this makes Montana unusually cheap for an operating business.

How long does it take to form a Montana LLC?

Standard online filings through biz.sosmt.gov typically clear in about 5 business days. Expedited service at $20 drops that to roughly 24 hours-hour turnaround; one-hour service costs $100. Montana does not accept mail filings for Articles of Organization, so online is the only path.

Does Montana require an operating agreement?

No. Montana's LLC Act (MCA Title 35, Chapter 8) does not require a written operating agreement and lets the statute's default provisions govern if you do not adopt one. Having a written agreement is still worth the effort for multi-member LLCs or anyone who wants to customize voting, distributions, or transfer rules.

Should I form my LLC in Montana instead of my home state?

Usually no, unless you live in Montana or have real Montana operations. The no-sales-tax advantage helps Montana residents and businesses selling into Montana; it does not erase your home state's income tax on you as a resident. Forming here while operating elsewhere stacks the $35 plus a Montana registered agent on top of your home state's foreign-LLC registration, and the home state's tax obligations still apply.

Can I use a Montana LLC to register a vehicle and avoid sales tax?

You can form the LLC and register the vehicle under it in Montana, but most home states treat that structure as tax avoidance when the vehicle is actually garaged out of state. California, Colorado, Massachusetts, and others have pursued back sales tax plus penalties against residents using Montana LLCs for this. Forming an LLC does not change where the vehicle physically lives or where use tax applies.

Montana LLC: fees, filing steps, and 2026 costs

$35 Filing fee Online filing available

$135 Year 1 estimate Filing + first year tax + RA

5 days (expedited 24h) Approval

No annual filing Ongoing Due 04/15 annually

Where Montana fits, and where it doesn't

Good fit for Montana

You live in Montana: Bozeman, Missoula, Billings, or anywhere the 406 area code reaches. You run a Montana-based outfit (outfitter, ranch LLC, trades business, remote tech consultancy) and want the cheapest possible compliance footprint. You sell physical goods to customers in Montana and like that there is no statewide sales tax to collect. Online-only filing through biz.sosmt.gov is fine by you; Montana stopped accepting paper Articles of Organization years ago.

Skip Montana when

You live outside Montana and hope to escape your home state's income tax by forming here. Montana income tax still applies to Montana-source income, your home state still taxes residents on their distributive share, and you end up with two filings instead of one. You need same-week approval with no extras; standard processing runs about 5 business days and the cheapest expedited tier is $20 for 24 hours-hour service. You want a mail-in paper option; Montana no longer offers one.

What a Montana LLC actually costs

Formation filing fee Paid once at formation $35
Commercial registered agent Annual, estimate $100
Annual state obligations None in this state $0
Year 1 total estimate Formation plus first-year ongoing $135

Registered agent estimate uses a $100 midpoint. Specialist agents start around $50 per year. Full-service formation companies bundle RA for $125 to $200.

Cost across the first three years

Year 1 $135

Year 2 $100

Year 3 $100

How Montana compares on the basics

Online filing File through state portal

Yes

Expedited processing $20 for 24h

Yes

Annual report required Separate report on top of tax

Yes

State-imposed annual tax None beyond income tax

Written operating agreement required Recommended, not statutorily required

Recommended

Newspaper publication requirement Not required in this state

State sales tax No general state sales tax

None

How to apply for an LLC in Montana

Pick a compliant LLC name
The name must end in "Limited Liability Company," "LLC," or an approved abbreviation, and must be distinguishable from every other entity on the Montana Secretary of State record. Check availability at the Montana entity search.
Designate a registered agent
Every Montana LLC is required to have a registered agent with a physical street address in Montana. You can serve as your own agent if you live in Montana, or hire a commercial service for $99 to $249/yr. See the Montana registered agent guide.
File Articles of Organization for Domestic Limited Liability Company
Filing fee is $35. Online filing is available through the state portal. Paid expedite is available for $20.
Apply for a federal EIN
Free directly from the IRS in about 15 minutes (see the EIN guide). Required for opening a business bank account, hiring employees, and most formation-service tax workflows.
Adopt an operating agreement
Montana does not require an operating agreement by statute, but adopting one is strongly recommended to preserve the liability shield. See the operating agreement pillar for the 12 clauses every agreement should include.

Filing walkthrough

Everything goes through biz.sosmt.gov. You create an ePass Montana login, open the business filings portal, and complete the Articles of Organization for a Domestic Limited Liability Company on screen. The fee is $35, paid by card. Standard processing averages around 5 business days, or you can pay $20 extra for 24 hours-hour turnaround, $100 for one-hour.

The form asks for the LLC name, principal office address, mailing address if different, a Montana registered agent with a physical street address in the state, the names and addresses of members or managers depending on the management structure, and the organizer's signature. Montana accepts series LLCs for an additional $50 per series member. If you want a registered agent service, budget $50 to $125 per year; if you live in Montana, you can be your own.

There is no publication requirement, no separate name-reservation step required before filing (though a $10 reservation is available if you want to lock a name in advance), and no operating agreement to submit. The full filing pipeline is one portal, one form, one payment.

Check name availability File online Montana formation guidance

How Montana taxes an LLC

Montana has no general statewide sales tax (0.0%). That is the rarest setup in the country (only four states share it) and it is the single biggest reason Montana deserves more attention than it usually gets. Narrow industry taxes still apply, 7% on lodging and campgrounds, 4% on rental cars, but a normal operating LLC selling goods or services to Montana customers collects zero state sales tax.

Montana has no franchise tax on LLCs. Pass-through LLCs owe nothing to the Department of Revenue at the entity level by default. Members who are Montana residents pay Montana individual income tax on their distributive share at graduated rates from 4.7% to 5.9%. An LLC that elects C-corp treatment pays Montana's corporate income tax at a 6.75% standard rate (7% for water's-edge election) with a $50 minimum.

As always, federal income tax still applies, and so does any home-state income tax if you live somewhere other than Montana. Montana's zero sales tax is a Montana zero; it does not erase what you owe Oregon, Washington, or California.

Ongoing compliance and costs after year one

Under the current Secretary of State waiver, the Montana annual report fee is no annual fee for on-time filings (January 1 to April 15) for tax years 2026 and 2027. The base fee when the waiver expires is $15 to $20. Late filings after April 15 still cost $35, waiver or not. For 2026 and 2027, that makes the Montana LLC practically free to maintain: just the $50 to $125 annual registered agent cost if you use a commercial one, and nothing to the state unless you miss the deadline.

There is no franchise tax, no periodic report separate from the annual report, and no publication. The compliance footprint is a single April 15 filing and a registered agent who can accept mail.

If you form a Montana LLC while living in another state and transact business there, you will foreign-qualify back home and pay that state's fees on top. Montana's near-zero maintenance cost does not change the math in your home state.

Common mistakes forming a Montana LLC

Two patterns show up. The first is the classic Montana vehicle-registration scheme leaking into general LLC advice. Out-of-state residents sometimes form Montana LLCs specifically to register RVs, exotic cars, or planes in Montana and dodge their home state's sales tax and registration fees. Montana lets you do the registration; your home state often treats the whole structure as fraudulent and pursues back taxes plus penalties when it catches on. California, Colorado, and Massachusetts have been particularly active on this. Forming an LLC does not move the tax situs of the vehicle if it is garaged in your home state.

The second is missing the April 15 annual report deadline because the filing is currently free. The $0 waiver makes it easy to forget. Miss April 15 and the $35 late fee hits immediately, waiver or not; miss it long enough and the LLC goes to involuntary dissolution. Free does not mean optional.

State agencies that handle Montana LLCs

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

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

How much does it cost to form an LLC in Montana in 2026?

The state filing fee is $35, paid online through biz.sosmt.gov when you file Articles of Organization. Expedited service costs $20 extra for 24 hours-hour turnaround. Ongoing, the annual report fee is currently waived (no annual fee) for on-time filings through 2027. Add $50 to $125 per year for a commercial registered agent if you do not have a Montana street address of your own.
Does Montana have an annual report?

Yes, due every year by April 15 and filed online only. The Secretary of State has waived the fee for on-time filings for tax years 2024 through 2027, so it is currently no annual fee to file on time. The base fee when the waiver expires is $15 to $20. Miss April 15 and the late fee is $35 regardless of the waiver.
Do Montana LLCs pay state income tax?

Pass-through LLCs owe no entity-level income tax in Montana. Members who are Montana residents pay the state's individual income tax (graduated 4.7% to 5.9%) on their distributive share. An LLC that elects C-corp treatment pays Montana's 6.8% corporate income tax with a $50 minimum. Non-resident members pay Montana tax on Montana-source income plus whatever their home state charges.
Does Montana have a sales tax?

No. Montana has no general statewide sales tax, which is one of only four states with that setup. Narrow industry taxes still apply (7% on lodging, 4% on rental cars) but a standard LLC selling goods or services to Montana customers collects no state sales tax. Combined with the 2026-2027 annual report waiver, this makes Montana unusually cheap for an operating business.
How long does it take to form a Montana LLC?

Standard online filings through biz.sosmt.gov typically clear in about 5 business days. Expedited service at $20 drops that to roughly 24 hours-hour turnaround; one-hour service costs $100. Montana does not accept mail filings for Articles of Organization, so online is the only path.
Does Montana require an operating agreement?

No. Montana's LLC Act (MCA Title 35, Chapter 8) does not require a written operating agreement and lets the statute's default provisions govern if you do not adopt one. Having a written agreement is still worth the effort for multi-member LLCs or anyone who wants to customize voting, distributions, or transfer rules.
Should I form my LLC in Montana instead of my home state?

Usually no, unless you live in Montana or have real Montana operations. The no-sales-tax advantage helps Montana residents and businesses selling into Montana; it does not erase your home state's income tax on you as a resident. Forming here while operating elsewhere stacks the $35 plus a Montana registered agent on top of your home state's foreign-LLC registration, and the home state's tax obligations still apply.
Can I use a Montana LLC to register a vehicle and avoid sales tax?

You can form the LLC and register the vehicle under it in Montana, but most home states treat that structure as tax avoidance when the vehicle is actually garaged out of state. California, Colorado, Massachusetts, and others have pursued back sales tax plus penalties against residents using Montana LLCs for this. Forming an LLC does not change where the vehicle physically lives or where use tax applies.
How do I apply for an LLC in Montana?

Apply for an LLC in Montana by filing Articles of Organization for Domestic Limited Liability Company with Montana Secretary of State - Business Services Division. The filing fee is $35. Online filing is available through the state portal. Approval typically takes 5 business days online. Before filing, pick a registered agent (see the Montana registered agent guide) and confirm your business name is available using the state's entity search.

Compare Montana to another state

Side-by-side breakdowns of fees, taxes, approval time, and compliance. Every other US jurisdiction has a dedicated compare page against Montana.

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Montana vs Louisiana

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Montana vs Pennsylvania

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Montana vs Rhode Island

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Montana vs Utah

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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.

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