Montana has the cheapest LLC filing fee in the country at $35, and the annual report is just $20. Online approval through Montana ePass takes 7–10 business days, with expedited 24-hour ($20 extra) and 1-hour ($100) options available. The standout tax feature is no statewide sales tax (one of only five U.S. states without one). Montana's top individual income tax is 5.9%. Historically, Montana became famous for "Montana LLC" vehicle registration — out-of-state buyers would form a Montana LLC purely to register expensive vehicles (RVs, exotic cars) without paying their home state's sales tax. Most home states have since cracked down on this practice (Texas, Massachusetts, California, and others actively pursue these LLCs). For genuine Montana-based businesses — agriculture, ranching, outdoor brands, tourism — the low fees make Montana exceptionally cost-efficient.
How much does a Montana LLC cost?
Montana keeps LLC costs refreshingly low. Budget roughly $219 for Year 1 if you hire a registered agent service: a $70 state filing fee to the Secretary of State plus approximately $149 per year for registered agent coverage. On their own, those are two of the smaller line items you will find anywhere in the country. After that, ongoing costs shrink to just $15 per year for the annual report — Montana imposes no state sales tax and no minimum business tax, so there is no hidden floor charge waiting to sting you the way California's $800 franchise tax or Tennessee's $300 annual fee does. By the end of Year 5, a typical Montana LLC spends around $289 total in mandatory state costs ($70 filing plus four $15 renewals at $60), with registered agent services adding roughly $745 over that same window. All told, Montana is one of the most affordable states in which to maintain a legitimate LLC long-term.
Why form your LLC in Montana
Popular among out-of-state vehicle buyers because Montana has no sales tax and historically allowed easy LLC vehicle registration. (Tighter rules now — verify with a CPA.) Otherwise solid for outdoor brands and agriculture.
- $35 filing fee — cheapest in the U.S.
- No state sales tax (one of only 5 such states)
- $20 annual report — among the lowest
- Strong agriculture, ranching, and outdoor industries
- Yellowstone and Glacier National Park tourism economy
- Low cost of living and operating
Best fit for: Agriculture & ranching · Outdoor industry · Tourism
Don’t want to file yourself? Northwest Registered Agent files your Montana LLC for $39 + state fee and acts as your registered agent the first year free.
How to form a Montana LLC in 7 steps
- 1Search the Montana business name database
Use the Montana ePass business search to confirm name availability. The name must include "Limited Liability Company", "L.L.C.", or "LLC". Reserve a name for $10 (held 120 days) if needed.
- 2Appoint a Montana registered agent
Required to have a physical Montana street address. Can be the LLC owner if they're a Montana resident, or a commercial registered agent service.
- 3File Articles of Organization
File online through Montana ePass for $35 — the cheapest filing fee in the U.S. Standard processing is 7–10 business days; 24-hour expedited is $20 extra ($55 total); 1-hour is $100 extra ($135 total). The Articles include LLC name, registered agent, principal office, and management structure.
- 4Draft an Operating Agreement
Not required by Montana law but strongly recommended. Defines membership interests, voting, profit/loss splits, and dissolution. Banks routinely ask for it.
- 5Apply for an EIN with the IRS
Free at irs.gov, takes 10 minutes online. Required for opening a business bank account, registering with the Montana Department of Revenue, and filing federal taxes.
- 6Register with the Montana Department of Revenue
Register through Montana TransAction Portal (TAP) for withholding tax (if you have employees) and any industry-specific accounts. Note: Montana has no statewide sales tax, so most LLCs don't need a sales tax registration.
- 7Calendar the annual report
Montana LLC annual reports are due by April 15 each year. The fee is $20. File through Montana ePass. Late filings incur a $15 penalty and can lead to administrative dissolution.
File directly with Montana Secretary of State →
Montana LLC taxes & compliance
No state sales tax (one of only 5 states) and a $35 filing fee — among the cheapest in the country to start. The 5.9% income tax is moderate.
Ongoing compliance checklist
- Annual report — $20, due April 15
- No franchise tax
- No state sales tax — no recurring sales tax filings for most LLCs
- Withholding tax filings if you have MT employees
- Federal income tax (Form 1065 multi-member, Schedule C SMLLC)
Registered agent rules
Required — MT street address.
Hidden costs new Montana LLC owners forget
- Standard processing of 7–10 business days — pay $20 for 24-hour, $100 for 1-hour
- Top individual income tax rate of 5.9%
- Foreign LLC qualification: $70
- Some industries require additional state licensing
- Out-of-state vehicle registration via Montana LLC is increasingly scrutinized
- Property tax can be material in some counties
Should you use a formation service in Montana?
You can absolutely file directly with the Montana Secretary of State for the $35 state fee. The reasons most Montana owners use a service anyway are (1) registered-agent privacy — keeping their home address off public filings — and (2) calendar reminders for ongoing compliance.
Have Northwest form your Montana LLC for $39 + state fee
Free registered agent for the first year. Real human support. Privacy-by-default — your home address stays off public filings.
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See the real 5-year cost of a Montana LLC
Filing fee · registered agent · annual report · franchise tax — all calculated, year by year.
Open cost calculator for Montana →Montana's no-sales-tax advantage and why out-of-state owners exploit it
Montana is one of only five states with no statewide sales tax, and this shapes who forms LLCs here and why. The state actively attracts vehicle and RV purchases through Montana LLCs — a legally gray but widespread strategy where out-of-state residents register expensive cars, motorhomes, and boats under a Montana LLC to avoid their home state's sales tax. Montana itself imposes no sales tax on the transaction, so buyers in states like California (7.25% base rate) or Texas (6.25%) can save tens of thousands of dollars. However, Montana does not protect you from your home state's use tax enforcement, and states like California have aggressively pursued residents who exploit this loophole. For legitimate Montana businesses, the tax environment is genuinely favorable: no sales tax, no franchise tax, and a corporate income tax that does not apply to single-member LLCs treated as disregarded entities. The state does impose a $15 annual report fee due April 15 — one of the lowest in the country — making Montana among the cheapest states to maintain an LLC long-term, provided your actual operations are based there.
Year 1: $70 (state filing fee) + $149 (registered agent) + $0 (no annual report due until the following April) = $219 total. Year 2 onward adds $15/year for the annual report. By Year 5: $70 + ($149 × 5) + ($15 × 4) = $70 + $745 + $60 = approximately $875 total over five years — among the lowest five-year LLC costs of any U.S. state.
Out-of-state owners who form a Montana LLC solely to register a vehicle often forget their home state's use tax still applies once the vehicle crosses state lines. California, for instance, imposes use tax on vehicles principally garaged in-state regardless of where the LLC was formed. The Montana LLC provides no legal shelter from a home-state audit, and penalties plus back taxes can easily exceed the original savings.
Montana LLC: frequently asked questions
How much does it cost to start an LLC in Montana?
Montana Secretary of State charges $35 to file Articles of Organization — the cheapest in the U.S. The annual report is $20, due April 15. Realistic year-one cost: $35. Ongoing yearly cost: $20.
How long does it take to form an LLC in Montana?
Online filings through Montana ePass take 7–10 business days standard. Expedited tiers: 24-hour ($20 extra), 1-hour ($100 extra). Mail filings take 2–3 weeks.
Why is the "Montana LLC" used for vehicle registration?
Historically, out-of-state buyers of expensive vehicles (RVs, sports cars, motorcycles) would form a Montana LLC purely to register the vehicle in Montana — avoiding sales tax in their home state, since Montana has no statewide sales tax. Most home states (Texas, California, Massachusetts, Pennsylvania, Colorado) have since enacted "Montana LLC" enforcement laws and actively pursue these arrangements as tax evasion. Don't do this without consulting a tax attorney first.
Does Montana have an LLC franchise tax?
No franchise tax. Pass-through LLCs pay no state-level entity tax. Owners pay personal income tax (graduated up to 5.9%) on their share of LLC profits.
Does Montana have a state sales tax?
No. Montana is one of only five U.S. states with no statewide sales tax (along with Alaska, Delaware, New Hampshire, and Oregon). Some Montana resort towns have small local "resort taxes" on lodging and dining (3–4%), but these are limited to specific tourism areas.
When is the Montana LLC annual report due?
April 15 each year. The fee is $20. File through Montana ePass. Late filings incur a $15 penalty and can lead to administrative dissolution.
Can a non-resident form an LLC in Montana?
Yes. Montana has no residency requirement for LLC members or managers. You only need a Montana-based registered agent. However, if you don't actually do business in Montana, you'll likely need to register as a foreign LLC in your home state — and many states now scrutinize "Montana LLCs" used for vehicle registration as tax avoidance.
Is Montana a good state to form an LLC?
For Montana residents and businesses tied to agriculture, ranching, outdoor industry, or tourism: yes — the $35 filing fee, $20 annual report, no sales tax, and no franchise tax make Montana exceptionally cost-efficient. For non-Montana businesses (especially those forming purely for vehicle registration), the legal scrutiny and home-state foreign-LLC fees usually outweigh the savings.