How To Start An LLC In Montana In 2024

John Cagle

BLUEPRINT

Updated 8:56 a.m. UTC June 19, 2024

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Forming a limited liability company (LLC) in Montana is a smart way for small business owners to secure personal liability protection from new business debts and liabilities. At the same time, an LLC structure keeps companies from having to abide by the rigid rules and regulations that come along with forming a corporation.

In this guide, we’ll cover everything you need to know to form your LLC in Montana, including costs you’ll encounter and what resources can make the process easier.

Here are the seven steps to start an LLC in Montana:

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7 steps to start an LLC in Montana

1. Choose your LLC business name

You probably already have a shortlist of names in mind for your new LLC business venture. As you narrow down your list, incorporate Montana’s LLC naming guidelines. Also read our guide on how to name a business to ensure the name you choose meets your business needs throughout the lifecycle of your LLC.

Once you’ve chosen a name, you must check its availability. Montana does not allow duplicate business names for LLCs, so head over to Montana’s online business services page. Click “search for a business” to search your business name. In addition, use the United States Patent and Trademark Office’s search trademark database to determine if the name is nationally protected against infringement.

If the name appears in either of these databases, change it slightly to distinguish it or choose another name and try again. Refer to Montana’s name distinguishing guidelines as needed during this process.

Once you’ve decided on a fitting and available name for your LLC, it’s a good idea to reserve it. This will give you time to officially register your LLC (and its name) without someone claiming your selected name in the meantime. You can reserve the name online by clicking the “reservation of name” link on the bottom of the Secretary of State’s business page. A Montana LLC name reservation costs $10 and reserves the name for 120 days.

2. Determine who your registered agent will be

All LLCs in Montana must appoint a registered agent. A registered agent receives legal and tax correspondence on the LLC’s behalf.

Appointing an in-house registered agent (such as yourself) can help you avoid startup fees and ongoing costs. However, the role can be demanding. You must be available during all regular business hours at a set location to receive legal correspondence for your business. Failing to follow this law can lead to penalties or forfeiting your right to defend your LLC in court.

If you’re registering a foreign (out-of-state) LLC or if you don’t want the burden of fulfilling the registered agent role in house, you can hire a registered agent service. Check out our best registered agent service list for guidance on finding the best fit for your business.

3. File your Montana LLC articles of organization

Once you’ve chosen a registered agent and an available LLC name, you have the information you need to legally form your LLC with Montana state. To do so, head over to the Montana Secretary of State’s business page to register your LLC online. Click the “articles of organization for domestic limited liability company” link and follow the prompts to set up an account and file your articles. There is a $35 filing fee to submit the form.

Our LLC articles of organization guide walks you through what you need to prepare this form.

New LLC reporting requirement alert

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a new reporting requirement for all non-exempt LLCs starting on January 1, 2024.

The requirement is called the Beneficial Ownership Information (BOI) report and it is estimated to only take about 20 minutes to complete.

Here’s what you need to know:

LLCs formed before January 1, 2024 have until January 1, 2025 to file.

LLCs formed between January 1, 2024 and January 1, 2025 have 90 days to file from the confirmed date of the businesses’ registration.

New LLCs formed after January 1, 2025 will have 30 days to file from the confirmed date of formation.

For all details, FAQs and to file, visit FinCEN’s BOI website.

4. Obtain an EIN from the IRS

An employer identification number (EIN) is a nine-digit number issued by the IRS to identify a business. Companies use this number to complete tax and financial business tasks such as hiring employees, opening a business bank account and applying for business funding. It is also often used to apply for business licenses or permits as needed.

You can apply for an EIN for free using the IRS’s EIN application portal from Monday to Friday, 7 a.m. to 10 p.m. EST. Our EIN guide offers more information about how to apply for an EIN and then put one to use for your business.

5. Create an LLC operating agreement

Montana doesn’t require businesses to create and submit an operating agreement, but that doesn’t mean your LLC doesn’t need one. Operating agreements help you establish the terms of your business at the onset by putting the guidelines, rules and regulations of your LLC in writing.

These guidelines clarify how your business plans to operate while helping you get ahead of potential member conflicts or confusion that could otherwise lead to the LLC’s dissolution. It can even help your LLC override state LLC rules you may not want to follow, defend your members’ limited liability protection in court and attract investors.

To learn more about what an operating agreement is, how to draft one and how to put one to work for your LLC, read our operating agreement guide.

6. Obtain required business licenses or permits

Montana does not require businesses to obtain a general business license. Instead, many licenses or permits LLCs must acquire before operating are offered at the county or city level. Professional licensure, however, must be obtained through the state.

To find out what types of licenses you must obtain on the local level, the Montana Association of Counties (MACo) offers an android app and an iOS app that allows you to find the necessary contact information to apply for licenses or permits at the county level. To find out what types of professional licenses you may need, Montana also offers a license search page with licenses by industry.

We recognize that finding and obtaining the right business licenses to operate your LLC can be stressful and tedious. For this reason, we’ve created a business licensing guide to help you through the process.

7. File an LLC annual report

All Montana LLCs must submit an annual report with the Montana Secretary of State. An annual report updates the state on business information such as your LLC’s mailing address and registered agent. Regardless of whether you need to make changes or not, the filing fee is $20 and the report is due by April 15 each year. However, for 2024, the state is waiving all annual report filing fees.

In Montana, if your business information has not changed, this annual report must be filed using the online filing portal. Montana does not request you go through the steps of creating an account and logging in if no information needs to be changed. Instead, click “file annual report” and follow the prompts to complete your information confirmation.

If, however, you must make changes to your annual report, on the same page, click “login” and search for your business after creating and logging into the account. Finally, follow the prompts to file your annual report.

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Find the best LLC services for Montana: Best LLC service of 2024

Frequently asked questions (FAQs)

No, the Montana Secretary of State’s office charges $35 for forming a domestic LLC.

Other LLC formation costs you may need to cover when forming your Montana LLC include the following fees:

Hiring a registered agent ($0 to $300 per year).
Reserving your Montana LLC name ($10).
Hiring a business lawyer to finalize your LLC operating agreement (varies).
Obtaining business licenses or permits (varies).
Filing your Montana LLC annual report ($20).

By default, LLCs are taxed as pass-through entities upon registration, meaning taxes are paid on members’ personal tax returns based on their LLC ownership percentages. However, other direct business taxes may apply, such as industry-specific taxes or employment taxes (if you hire employees).

Yes, all LLCs in Montana need a registered agent — either a person or a business that is responsible for receiving legal and government documents and notices on the LLC’s behalf. Some LLCs fulfill this role in house while others hire a registered agent service provider.

Yes, all Montana LLC owners are required to file an annual report by April 15 of each year and pay a $20 fee to stay in good standing with the state. However, for 2024, the state has waived all annual report filing fees. Annual reports can be filed using Montana’s online filing portal.

To dissolve an LLC in Montana, first follow the dissolution instructions within your LLC’s operating agreement. Then, file LLC articles of termination on the Montana Secretary of State’s business services page using the “cancel a business” option. Unlike in most states, filing this form is free in Montana. However, you should pay all owed LLC taxes and outstanding debt. Finally, close any tax accounts you have with the state (such as unemployment insurance tax or employee withholding tax accounts).

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

John Cagle

BLUEPRINT

For over a decade John has worked as a marketing consultant and copywriter for companies ranging from small and midsize businesses (SMB) to Fortune 500 tech firms like Adobe. He has helped countless brands across a variety of industries develop content marketing strategies to create value-driven experiences that better connect with audiences, build brand loyalty and improve customer retention. John is also an entrepreneur, small business owner and licensed real estate advisor. He graduated from Western Governors University with a B.S. in Business Administration.

Alana Rudder

BLUEPRINT

Alana is the deputy editor for USA Today Blueprint's small business team. She has served as a technology and marketing SME for countless businesses, from startups to leading tech firms — including Adobe and Workfusion. She has zealously shared her expertise with small businesses — including via Forbes Advisor and Fit Small Business — to help them compete for market share. She covers technologies pertaining to payroll and payment processing, online security, customer relationship management, accounting, human resources, marketing, project management, resource planning, customer data management and how small businesses can use process automation, AI and ML to more easily meet their goals. Alana has an MBA from Excelsior University.