How to Start an LLC in Montana (2026)
Montana is one of the cheapest, simplest states to form an LLC: just $35 to file, no sales tax, no franchise tax, and an annual report fee that's currently waived through 2027. It's a genuinely great deal — if you actually live or operate here. This guide walks all 8 steps, with a cost calculator and an honest look at when Montana is right for you (and when it isn't).
It costs $35 to form a Montana LLC (Articles of Organization) and there's a $20 annual report — but that fee is waived for on-time filers through 2027. Montana has no sales tax and no franchise tax, though it does have a state income tax (4.7%–5.65% for 2026). It's one of the lowest-cost states to start and maintain an LLC, especially for residents and no-sales-tax businesses.
- Filing fee
- $35
- Annual report
- $0 thru 2027
- Sales tax
- None
- Franchise tax
- None
- Income tax
- 4.7%–5.65%
- Processing
- ~5–10 days
- Formation doc
- Articles of Org.
Why Form an LLC in Montana?
Montana's pitch is simple: it's cheap, it's fast, and there's no sales tax. While states like California pile on annual minimum taxes and states like New York add publication costs, Montana keeps the bill about as low as it gets in the country. Here's what draws people:
- One of the lowest filing fees in the US — just $35 to file your Articles of Organization (reduced from $70 back in 2022).
- No state sales tax — Montana is one of only five states with no statewide sales tax, which removes a whole layer of compliance for retail and ecommerce.
- No franchise tax or annual minimum tax — if your LLC earns nothing, your state floor is $0 (unlike California's $800/year).
- Annual report fee waived — the $20 annual report is free for on-time filers through 2027, a multi-year waiver from the Secretary of State.
- Open to non-residents — there's no residency or citizenship requirement to form a Montana LLC.
For a Montana resident, a remote business owner who genuinely operates here, or anyone running a no-sales-tax retail operation, it's one of the most cost-effective states in the country. But the picture changes if you live elsewhere — which brings us to the catch.
The catch most guides skipMontana has no sales tax — but it does have an income tax, and it isn't a tax shelter for out-of-state owners. If you live and run your business in another state, you'll typically register your Montana LLC as a foreign LLC at home and pay that state's taxes anyway. And the heavily-marketed "form a Montana LLC to register your car or RV sales-tax-free" play is legally risky for non-residents — your home state can pursue use tax plus penalties on vehicles primarily used there. Montana shines when you actually live or operate here. For pure low-cost privacy as a non-resident, Wyoming is usually the cleaner choice.
Montana LLC Cost Calculator
Montana's costs are low and predictable. Toggle the options to see your one-time formation cost and your ongoing annual cost:
Estimates only. "One-time to form" is your formation cost; "per year" is mainly the registered agent if you hire one. The $20 annual report is waived for on-time filers through 2027, then resumes (a $15 late fee applies if you miss the April 15 deadline). If you act as your own registered agent, your ongoing cost can be $0 through 2027. Registered agent pricing varies by provider. Not legal or tax advice.
The 8 Steps to Start Your Montana LLC
Here's the full path from name to taxes. Each step has its own detailed guide with a tool to make it easier — the one that legally creates your company is Step 3: Articles of Organization:
No Sales Tax — But There Is Income Tax
Montana's headline tax feature is real: it's one of only five states with no statewide sales tax. For a retailer or ecommerce seller making in-state sales, that removes sales-tax registration, collection, and filing entirely.
What Montana does have is a state personal income tax. For 2026 it uses two brackets — 4.7% on lower income and 5.65% above the threshold (the top rate is scheduled to fall to 5.4% in 2027). Because an LLC is pass-through by default, that income tax applies to your share of the profits on your personal Montana return, on top of federal income and self-employment tax. We break the full picture down in Step 8: Montana LLC Taxes.
The annual report is the one date to rememberEvery Montana LLC files an annual report by April 15 through the state's online portal (paper isn't accepted). The $20 fee is waived for on-time filers through 2027, but filing itself is still required — miss it and you'll owe a $15 late fee, and continued non-filing can lead to administrative dissolution. Set a reminder for mid-March each year. See Step 6 for the walkthrough.
- ✓Forms your Montana LLC for $39 + the $35 state fee
- ✓Free Montana registered agent the first year
- ✓Keeps your home address off the public record
- ✓No upsells · No data selling · Privacy by Default
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Montana LLC — FAQ
Ahmad Adil is the founder and CEO of LLC School. The figures here — the $35 Articles of Organization fee, the $20 annual report waived for on-time filers through 2027, no sales tax, no franchise tax, and Montana's 2026 income-tax brackets of 4.7% and 5.65% — reflect current Montana Secretary of State and Department of Revenue information. This is educational content, not legal or tax advice.
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