How to Start an LLC in Montana (Step-by-Step) 2024 Guide

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Starting a Montana LLC, step-by-step

Starting a Montana LLC costs $35. And it takes 6 days to get an LLC in Montana.

How to start an LLCHere are the 5 steps to forming an LLC in Montana:

  1. Choose an LLC Name
  2. Select a Registered Agent
  3. File Articles of Organization
  4. Create an Operating Agreement
  5. Get an EIN

If you want to form your LLC yourself, follow our free guide below.

If you want someone to take care of it for you, we recommend hiring Northwest Registered Agent

Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(We recommend Northwest. We've reviewed all the top companies in the industry. And Northwest is our #1 pick for prices, customer support, and address privacy. Check out Northwest vs LegalZoom to learn more.)

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

LLC CostIt costs $35 to start an LLC in Montana.

And then it costs $20 per year.

What are these fees for?

  • The $35 is to file the Articles of Organization – the document that creates an LLC.
  • The $20 per year is for your Annual Report – a mandatory filing that keeps your LLC in good standing.

To learn more about LLC Costs, see LLC Costs in Montana.

How long does it take to get an LLC in Montana?

If you file online, your LLC will be approved in 5-6 business days.

Montana doesn’t accept LLC filings by mail.

Please see How long does it take to get an LLC in Montana to check for any delays.

Here are the steps to forming an LLC in Montana

1. Search your Montana LLC Name

LLC namesSearch your Montana LLC Name to make sure it’s available in the state.

You need to do this because two businesses in the state can’t have the same name.

First, search your business name and compare it to existing businesses in Montana. You can make sure the business name you want is unique from any existing legal business entity using the Montana Business Search.

Second, familiarize yourself with the Montana LLC naming guidelines (so your Montana LLC gets approved).

We’ll explain both in more detail here: Montana LLC Name.

2. Choose a Montana LLC Registered Agent

The next step is to choose a Montana Registered Agent for your LLC.

Registered AgentA Montana Registered Agent is a person or company who accepts legal mail and state notices on behalf of your Montana Limited Liability Company.

Who can be the Registered Agent for a Montana Limited Liability Company?

You have 3 options for who can be the Registered Agent:

  • You
  • A friend or family member
  • A Registered Agent Service

Montana law requires that all LLC Registered Agents have a physical street address in Montana. PO Boxes aren’t allowed.

And the Registered Agent’s name and address will be listed on public records.

If you don’t have an address in Montana, or you want more privacy, you can hire a Registered Agent Service for your LLC.

We recommend Northwest Registered Agent

Our favorite feature about Northwest is they’ll let you use their business address throughout your LLC filing. This way, you can keep your address off public records.

They’ll also scan any mail sent to your LLC and upload it to your online account.

Northwest has excellent customer service, and they’re who we trust to be our own Registered Agent.

Special offer: Hire Northwest to form your LLC ($39 + state fee), and you'll get a free year of Registered Agent service.

(Why is Northwest the best? Read our Northwest Registered Agent review)

3. File Montana LLC Articles of Organization

Articles of OrganizationTo start an LLC, you need to file the Montana LLC Articles of Organization.

This gets filed with the Montana Secretary of State.

The Montana Articles of Organization costs $35 if you file online.

This is a one-time fee to create your LLC.

If you want to file this yourself, see our step-by-step guide: Montana Articles of Organization.

Or, you can hire a company to do it for you.

Need to save time? Hire a company to form your LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(Learn why Northwest is #1 in Northwest vs LegalZoom)

4. Create a Montana LLC Operating Agreement

Operating AgreementA Montana LLC Operating Agreement serves as a “companion” document to the Articles of Organization.

The Articles of Organization creates your LLC, and the Operating Agreement shows who owns the LLC.

Additionally, some banks require an Operating Agreement when you open an LLC bank account.

And having an Operating Agreement will be very helpful if you ever end up in court. Reason being, it helps prove that your LLC is being run properly.

That’s why we recommend that all LLCs have an Operating Agreement – including Single-Member LLCs.

Furthermore, an Operating Agreement is an “internal document“. Meaning, you don’t need to file it with any government agency (like the Montana Secretary of State or the IRS (Internal Revenue Service). Just keep a copy with your business records.

You can download a free template below.

Then, learn how to fill it out by watching our step-by-step Montana Operating Agreement video.

Download a free LLC Operating Agreement:
Member-managed: Google DocWordPDF
Manager-managed: Google DocWord

(What's better? See Member-managed vs Manager-managed LLC)

5. Get an EIN for your LLC

The next step is to get a Montana EIN Number from the IRS for your LLC.

Note: An EIN Number is also called a Federal Tax Identification Number or Federal Employer Identification Number.

EIN Number for an LLCAn EIN Number is used to:

  • identify your LLC for tax purposes
  • open a business bank account
  • apply for business licenses and permits
How much does an EIN cost?

Getting an EIN Number from the IRS is completely free.

How long does it take to get an EIN?

If you apply online, it takes 15 minutes.

If you apply by mail or fax, it can take 1-3 months.

How can I get an EIN?

US Citizens/US Residents: If you have an SSN or ITIN, you can apply for an EIN online. Follow these instructions: Apply for an EIN online.

Non-US Residents: You can’t get an EIN online, but you can still get one by fax or by mail. Follow these instructions: How to get an EIN without an SSN or ITIN.

What do I do after my LLC is approved?

After your Montana LLC is approved, there are some additional steps.

Open an LLC business bank account

You’ll want to open a business bank account for your LLC.

This makes accounting and record-keeping much easier for your business finances.

Having a separate business bank account also maintains your personal liability protection. This is because it keeps your business finances separate from your personal finances.

Get Montana business licenses and permits

Business LicenseGood news, Montana doesn’t have a state general business license.

However, depending on where your LLC is located, you may need a local business license or permit.

For example, if you want to start a daycare, you may need a business license from the city or county.

You can learn more on our Montana Business License page.

File your Montana LLC Annual Report

LLC Annual ReportAll Montana LLCs must file an Annual Report every year.

The Annual Report keeps your LLC in good standing with the state.

How much does a Montana LLC Annual Report cost?

The Annual Report filing fee is $20 per year.

When is the Annual Report due?

The Annual Report is due by April 15 every year.

When is my first Annual Report due?

Your first Annual Report is due the year after your LLC was approved.

For example, if your LLC was approved on February 3, 2024, your first Annual Report is due by April 15, 2025.

How do I file my LLC Annual Report?

Your LLC’s Annual Report can only be filed online.

Follow our step-by-step guide here: Montana LLC Annual Report.

File and pay taxes

LLC TaxesLLCs don’t pay federal taxes. Instead, the LLC Members pay the taxes for the LLC.

Said another way, each business owner pays taxes for the LLC as a part of their personal tax return.

How will my LLC be taxed?

By default, a Montana LLC is taxed by the IRS based on the number of owners your LLC has:

  • A Single-Member LLC is taxed like a Sole Proprietorship.
  • A Multi-Member LLC is taxed like a Partnership.

Alternatively, you can ask the IRS to tax your LLC like a C-Corporation or S-Corporation.

Besides federal taxes, there are also state and local income taxes.

Learn more in Montana LLC Taxes.

How to Start an LLC in Montana FAQs

Can I start an LLC online in Montana?

Yes, you can file your LLC online in Montana. The Articles of Organization filing fee is $35.

When you start your LLC online, it will be approved in 5-6 business days.

What are the benefits of an LLC?

The first benefit of an LLC is protecting your personal assets. Meaning, if your business is sued, your personal assets – like your home, cars, and bank accounts – are protected.

This protection applies to all LLC owners (called LLC Members). It doesn’t matter if you have a Single-Member LLC or Multi-Member LLC. All of the LLC owners are protected from the business debts and liabilities.

This type of protection wouldn’t apply if you operate as a Sole Proprietorship or Partnership. With these types of informal business structures, the owners aren’t protected in the event of a lawsuit. For that reason, Limited Liability Companies (LLCs) are a much more popular business structure.

Another benefit is LLC pass-through taxation. This means the LLC itself doesn’t pay federal income taxes. Instead, the profits “pass through” to the LLC Members. And the Members pay the taxes on their personal tax return.

And Montana state income taxes are very similar, since the state honors the federal tax treatment of your LLC.

To learn more, please see How are LLCs taxed.

Is Montana a good state to start an LLC?

Whether Montana is a good state to start an LLC depends on where you live – and where you’re doing business.

Meaning, if you live in or do business in Montana, then you should start your LLC in Montana. While many websites talk about tax rates and advantages of certain states, none of that applies if it’s not the state where you live and do business.

For example, if you form an LLC in Wyoming, but live in and conduct business in Montana, you’ll also need to register your Wyoming LLC in Montana (and pay extra fees). And you’ll end up paying Montana taxes anyway. This ends up leading to more costs and more headaches with no advantages.

In summary, if you live in and conduct business in Montana, then yes, Montana is a good state to start a business. If you don’t live in and do business in Montana, then no, Montana isn’t a good state to start a business.

Real estate exception: If you’re purchasing real estate outside of Montana, you should form your LLC in the state where the property is located.

For more information, please see Best State to Form an LLC.

What is the difference between a Domestic LLC, a Foreign LLC, and a PLLC?

The main differences between Domestic LLCs, Foreign LLCs, and Professional LLCs are where they are formed and their business purpose.

A Domestic Limited Liability Company is an LLC that is formed in its “home state”, meaning, where the business owner lives and does business.

For example, if you live in and do business in Montana, you would form your Domestic LLC in Montana.

A Foreign Limited Liability Company is an LLC that is formed in a state that isn’t its home state. In this case, the term “foreign” simply means that the LLC is foreign to its “home state”.

For example, if you live in and do business in Montana, you would form a Domestic Montana LLC. If you later expand into Iowa, you would register your Montana LLC as a Foreign LLC in Iowa.

Said another way, LLCs are created at the state-level.

And if you want your LLC to do business in two separate states, you have to form or register an LLC in both states.

This works by forming a Domestic LLC in your home state, and a Foreign LLC in the other state.

What is a Professional LLC?

A Professional Limited Liability Company (PLLC) is a type of LLC formed for the purpose of providing “professional services”.

In this case, “professional” refers to business types that require special permissions (like a license, registration, or certification from the state) in order to do business legally.

For example, architects, attorneys, and social work counselors, doctors, and veterinarians often form their business practices as PLLCs.

You can read more about PLLCs, their availability, and their stricter requirements in: What’s a Professional LLC?

And for more information on Foreign and Domestic LLCs, please see:

Matt Horwitz
Matt Horwitz
Matt Horwitz is the leading expert on LLC education, and has been teaching for 15 years. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
 
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.

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2 comments on “Montana LLC”

Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

  1. This was quite helpful as I filled out my LLC application.
    Thank you for the info!

    • Hey Merrit, that’s awesome to hear! You are very welcome :)

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