How to Start a Montana LLC (2026): Cost, Steps & Fees

Q: Does Montana have a sales tax?

No. Montana is one of only five states with no statewide sales tax. You won't collect, remit, or file sales tax on in-state sales — a real simplification for retail and ecommerce businesses operating in Montana.

Q: How long does it take to form a Montana LLC?

Online filings typically process in about 5–10 business days, though timing varies with demand. Montana offers expedited options (such as 24-hour and 1-hour service) for an added fee if you need approval faster.

Q: Do I need an operating agreement in Montana?

It's not legally required, but strongly recommended. An operating agreement sets out ownership, management, and profit-sharing, helps protect your limited-liability status, and is often requested when you open a business bank account. See Step 4 for a free template.

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: required; $0 for January 1–April 15,2026 filing, $35 afterward. A 2027 waiver has been announced; check that year’s instructions.
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:

Montana LLC Cost Calculator

One-time formation + recurring annual

Articles of Organization RequiredOne-time state filing fee$35

Annual report Required2026: $0 January 1–April 15; $35 afterward. Filing is required.$0/yr

2026 report filed after April 15Select only for an after-deadline report; adds the $35 filing total+$35

Optional registered agent service fees are excluded from these government-fee totals. Verify current service and renewal pricing directly with the provider.

Name reservationOptional — holds your name for 120 days$10

DBA (assumed business name)Optional — register a trade name with the state$20

Expedited processingOptional — 24-hour turnaround (1-hour also available)$20

One-time to form

$35

paid once

Per year after

$125

ongoing

Montana LLC annual reports remain required. For 2026, the filing fee is $0 for reports filed January 1–April 15 and $35 after April 15. The $35 is the after-deadline filing total, not a $15 late charge standing alone. The SOS has also announced a 2027 waiver; confirm that year’s instructions rather than treating a waiver as permanent or linked to agent choice. Government taxes, permits, optional filings and provider charges are separate.

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:

1Name Your LLCPick a compliant, available name and check it with the Secretary of State.Step 1 → 2Registered AgentAppoint a Montana agent with a physical in-state address.Step 2 → 3Articles of OrganizationFile the $35 form that legally creates your LLC.Step 3 → 4Operating AgreementSet ownership and management rules (recommended).Step 4 → 5Get an EINYour free federal tax ID from the IRS.Step 5 → 6Annual Report2026: file January 1–April 15 for $0; $35 after April 15. Check later-year guidance.Step 6 → 7Business LicensesState and local licenses depending on your work.Step 7 → 8LLC TaxesPass-through; no sales tax, but Montana has income tax.Step 8 →

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.

Ahmad Adil's Take: Montana is a genuinely excellent, low-cost state to form in — if you live there, operate there, or run a no-sales-tax retail business. The $35 filing fee plus a waived annual report make it one of the cheapest states in the country to start and maintain an LLC right now. Where people get into trouble is the supercar- and RV-registration marketing aimed at non-residents: if you don't actually live or use the vehicle in Montana, your home state can treat that as use-tax evasion. So be honest about your situation. If you're a Montanan or genuinely operate here, this is a great pick. If you're out of state and just want cheap privacy, Wyoming is the cleaner path. Either way, match the state to where you actually live and work — see our best state to form an LLC guide if you're still deciding.

Optional Provider Service

Northwest: Optional Formation Assistance

Verify current customer feedback directlyOptional filing assistance · Verify current terms directly

✓Optional formation assistance; confirm filing scope, service pricing and submission responsibilities.
✓Confirm registered-agent eligibility, coverage, included periods and renewal charges.
✓Review address-use rules and privacy policies; a service does not remove all information from public filings.
✓Review address-use rules and privacy policies; a service does not remove all information from public filings.

Current offer+ $35 MT state fee

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Name Your Montana LLC

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Step 1: Name Search

Annual Report: Timely and After-Deadline Filing

Montana SOS current filing fees.

Frequently Asked Questions

Montana LLC — FAQ

How much does it cost to start an LLC in Montana?

Articles of Organization cost $35. Montana LLC annual reports remain required. For 2026, the filing fee is $0 for reports filed January 1–April 15 and $35 after April 15. The $35 is the after-deadline filing total, not a $15 late charge standing alone. The SOS has also announced a 2027 waiver; confirm that year’s instructions rather than treating a waiver as permanent or linked to agent choice.

Does Montana have an annual report fee?

Does Montana have a state income tax?

Does Montana have a sales tax?

No. Montana is one of only five states with no statewide sales tax. You won't collect, remit, or file sales tax on in-state sales — a real simplification for retail and ecommerce businesses operating in Montana.

Can a non-resident form a Montana LLC?

Yes — there's no residency or citizenship requirement. But if you live and operate elsewhere, you'll usually register as a foreign LLC in your home state and be taxed there. The popular "Montana LLC for sales-tax-free vehicle registration" approach is legally risky for non-residents, since your home state can assess use tax and penalties.

How long does it take to form a Montana LLC?

Online filings typically process in about 5–10 business days, though timing varies with demand. Montana offers expedited options (such as 24-hour and 1-hour service) for an added fee if you need approval faster.

Do I need an operating agreement in Montana?

It's not legally required, but strongly recommended. An operating agreement sets out ownership, management, and profit-sharing, helps protect your limited-liability status, and is often requested when you open a business bank account. See Step 4 for a free template.

About the Author

Ahmad Adil

Ahmad Adil is the founder and CEO of LLC School. For filing and ongoing compliance, confirm the requirements with the responsible state agency. This is educational information, not legal or tax advice.

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How to Start an LLC in Montana (2026)

Why Form an LLC in Montana?

Montana LLC Cost Calculator

The 8 Steps to Start Your Montana LLC

No Sales Tax — But There Is Income Tax

Annual Report: Timely and After-Deadline Filing

Montana LLC — FAQ

LLC School Guide