Montana LLC formation: a practical guide

Why Montana

It is also a state that non-residents have occasionally tried to abuse. The "Montana LLC" was a running joke in the RV and supercar communities a decade ago: register a six-figure vehicle to a Montana shell, skip the sales tax in your home state, hope nobody notices. Several states now notice. If you do not have a genuine Montana nexus, this guide is not a loophole — it is a guide to forming a real entity in a real state.

At a glance

Filing fee (LLC)	$35
Annual report fee	$20, due by April 15
Secretary of State	sosmt.gov/business
State sales tax	None
Corporate income tax	Yes (corporate license tax, ~6.75%)
Publication requirement	None
Registered agent required	Yes — Montana street address

Step 1 — Pick a name

Your name must include "Limited Liability Company," "LLC," or "L.L.C." and must be distinguishable from every other entity on file. Search the Montana business database before you commit. You can reserve a name for 120 days for $10 if you are not ready to file.

Avoid restricted words ("bank," "insurance," "engineer") unless you have the corresponding license — the SOS will bounce the filing.

Step 2 — Appoint a registered agent

Montana requires a registered agent with a physical Montana street address (no P.O. boxes) available during business hours. You can serve as your own agent if you live in Montana. If you do not, you will need a commercial agent; expect $50–$150/year.

The registered agent's address becomes public record. If you work from home, a commercial agent is worth the money for privacy alone.

Step 3 — File Articles of Organization

Montana only accepts online filings through the ePass portal. You will need:

• Proposed LLC name
• Registered agent name + Montana street address
• Principal office address (can be out-of-state)
• Duration (perpetual unless you specify otherwise)
• Management structure (member-managed or manager-managed)
• Organizer's name and signature

Processing is typically 7–10 business days for standard, or 24 hours for a $20 expedite or 1 hour for $100.

Step 4 — Operating agreement

Montana does not require a written operating agreement, but you should have one. For single-member LLCs it establishes the separation between you and the entity that the liability shield depends on. For multi-member LLCs it is the contract that prevents future disputes.

Keep it with your records; you do not file it with the state.

Step 5 — EIN and BOI

Apply for a federal EIN directly from the IRS website — it is free and takes about ten minutes if you have a U.S. SSN or ITIN. No EIN, no bank account.

Since 2024, most LLCs must also file a Beneficial Ownership Information (BOI) report with FinCEN within 30 days of formation (90 days for entities formed in 2024). This identifies the humans who own or control the entity. Penalties for non-filing are severe; do it the same week you get your EIN.

Step 6 — Annual report

Montana's annual report is due by April 15 every year. The fee is $20. Miss it and the state charges a $15 late fee; miss it for long enough and they administratively dissolve the entity. The SOS emails a reminder to the registered agent, but do not rely on email — put it on the calendar.

Taxation

Montana has no state sales tax, which is unusual. Corporate income is taxed at roughly 6.75% (the "corporate license tax"), but single-member LLCs are disregarded for federal tax purposes by default, and Montana follows federal classification — so sole-owner LLC income flows to your personal return and is taxed at the individual rate (1% to 6.75% depending on bracket).

If you elect S-Corp or C-Corp treatment federally, Montana taxes you the same way.

When Montana is the right answer

• You or your business actually operate in Montana.
• You want the lowest all-in annual cost of any state ($20/year).
• You do not need the LLC to be anonymous (Wyoming and Delaware are stronger here).
• You are forming a holding entity for Montana real estate or ranch land.

When it is not

• You have no Montana nexus and are shopping for tax arbitrage. Your home state will require you to register as a foreign LLC anyway, and you will pay both sets of fees.
• You want strong charging-order protection for non-residents (Wyoming is better).
• You want the case-law depth of Delaware for an investor-backed startup.

The honest summary

For a Montanan filing an LLC for a real business, this is as cheap and simple as U.S. entity formation gets. For anyone else, the savings evaporate once you account for foreign-qualifying in your home state — and the legal exposure of running a sham-nexus entity is not worth the $50 a year you think you are saving.