By Jake Lawson, LLC Formation Strategist
Thinking about forming an LLC in Montana? Smart choice. Big Sky Country offers one of the most business-friendly environments in the U.S., and the costs are refreshingly reasonable. Let me break down exactly what you’ll pay—both upfront and ongoing—so there are no surprises down the road.
After helping over 1,200 entrepreneurs through the formation process, I’ve learned that understanding all the costs upfront prevents those “wait, I have to pay for what?” moments later.
The Bottom Line: Montana LLC Formation Costs
Here’s what forming a Montana LLC will actually cost you:
| Expense | Cost | When You Pay |
| Montana filing fee | $35 | One-time (formation) |
| Registered agent | $0-$150/year | Annually |
| Operating agreement | $0 | One-time (optional but recommended) |
| EIN (tax ID) | $0 | One-time |
| Annual report | $20 | Every year |
| Business licenses | Varies | Depends on your business |
Total to get started: $35 (if you handle everything yourself)
Annual ongoing costs: $20-$170 (depending on registered agent choice)
Montana State Filing Fee: $35
The only mandatory cost to form your Montana LLC is the $35 state filing fee. This pays for filing your Articles of Organization with the Montana Secretary of State.
Here’s what that $35 gets you:
- Legal creation of your LLC
- Protection of your chosen business name
- Official state recognition of your business entity
Pro tip from Jake: Montana used to charge $70 for this same filing until 2022. At $35, it’s now one of the cheapest LLC formation fees in the country. Wyoming charges $100, Delaware charges $90, and don’t get me started on Massachusetts at $520.
The filing is processed online, and you’ll typically get approval within 5-6 business days. No expedited processing needed—Montana’s standard timing is already pretty fast.
Registered Agent: Free or $100-$150/Year
Montana law requires every LLC to have a registered agent—someone who receives legal documents and official state correspondence on behalf of your business.
Option 1: Be Your Own Registered Agent ($0)
You can serve as your own registered agent if you meet these requirements:
- Have a physical Montana address (not a P.O. box)
- Be available during normal business hours
- Be comfortable having your address on public record
When this works: If you’re a Montana resident running a local business and don’t mind your home address being publicly searchable.
When this doesn’t work: If you live outside Montana, travel frequently, or value privacy.
Option 2: Hire a Professional Registered Agent Service ($100-$150/year)
I typically recommend professional registered agent services for most of my clients. Here’s why:
Privacy protection: Your home address stays off public records
Reliability: No missed documents because you were out of town
Professionalism: Official documents go to a business address, not your kitchen table
Mail scanning: Many services scan and email documents immediately
My top recommendation:
For Montana LLCs, I consistently recommend Northwest Registered Agent. They charge $125/year, provide excellent service, and include mail forwarding. I’ve worked with them on hundreds of formations and they’re reliable.
Operating Agreement: Free (But Essential)
Technically, Montana doesn’t require LLCs to have an operating agreement. Practically speaking, you’re making a mistake if you skip this document.
What an operating agreement does:
- Defines ownership percentages
- Outlines how decisions get made
- Establishes profit distribution rules
- Provides protection in disputes
- Proves your LLC is a separate entity (important for liability protection)
The cost reality: Many services charge $200-$500 for operating agreements. You can find free templates online, but make sure they’re specific to Montana law and your business structure.
Jake’s take: Even single-member LLCs need operating agreements. I’ve seen too many business owners lose liability protection because they couldn’t prove their LLC was operating as a separate entity. Don’t skip this step.
EIN (Federal Tax ID): Always Free
Your LLC will need an Employer Identification Number (EIN) from the IRS, also called a Federal Tax ID number.
You need an EIN to:
- Open a business bank account
- File tax returns
- Pay employees (if you hire any)
- Apply for business credit
How to get it for free: Go directly to the IRS website (irs.gov) and apply online. Takes about 10 minutes, and you’ll get your EIN immediately.
Warning:
Dozens of third-party websites charge $50-$300 for this same free service. Don’t fall for it. The IRS doesn’t charge anything for EINs.
Annual Report: $20/Year
Montana requires all LLCs to file an annual report to keep their registration current. The fee is $20, due by the anniversary date of your LLC formation.
What the annual report includes:
- Current business address
- Registered agent information
- Member/manager details
- Principal business activity
Filing deadline: By the anniversary month of your LLC formation
Late penalties: $10 late fee, plus risk of administrative dissolution if you’re really late
Pro tip:
Set a calendar reminder for two months before your anniversary date. Don’t let a $20 report turn into a bigger headache.
Business Licenses: Varies by Industry
Depending on your business type and location, you might need additional licenses or permits. These costs vary widely based on what you do and where you operate.
Common Montana Business License Types:
Professional licenses: If you’re a contractor, real estate agent, or other licensed professional, expect $100-$500+ annually
Sales tax permit: Free from Montana Department of Revenue if you sell taxable goods
City/county business license: Usually $25-$100 annually, varies by municipality
Federal licenses: Required for certain industries (firearms, aviation, etc.) – costs vary dramatically
My advice: Check with your city/county clerk’s office and the Montana Department of Commerce to identify what licenses apply to your specific business. Don’t guess—the penalties for operating without required licenses can be substantial.
Optional Costs That Might Be Worth It
Expedited Processing
Montana’s standard 5-6 business day processing is already fast, so expedited service usually isn’t necessary. If you absolutely need faster processing, contact the Secretary of State directly about options.
DBA (Doing Business As): $20
If you want to operate under a name different from your official LLC name, you can file a DBA for $20. This is completely optional—many businesses never need one.
Professional Formation Service: $39-$300+
You can hire a company to handle the formation paperwork for you. Costs range from $39 (Northwest’s current promotion) to $300+ for premium packages.
When it’s worth it: If you value your time, want to avoid paperwork mistakes, or need registered agent service anyway.
When to skip it: If you’re comfortable with forms and want to save money.
Montana vs. Other States: Cost Comparison
Here’s how Montana stacks up against other popular LLC states:
| State | Filing Fee | Annual Fee | Total Year 1 |
| Montana | $35 | $20 | $55 |
| Wyoming | $100 | $60 | $160 |
| Delaware | $90 | $300 | $390 |
| Nevada | $75 | $350 | $425 |
| Texas | $300 | $0 | $300 |
Bottom line: Montana offers excellent value. Low formation costs, reasonable ongoing fees, and straightforward requirements.
Hidden Costs to Watch Out For
After reviewing dozens of formation services, here are the sneaky costs that catch people off guard:
State Tax Requirements
Montana has no sales tax, but you’ll still owe:
- Federal income taxes
- Montana state income tax (on profits)
- Self-employment taxes (if you’re actively involved)
Banking Fees
Most business bank accounts charge $10-$25/month in maintenance fees. Shop around—some banks waive fees if you maintain minimum balances.
Accounting Costs
Unless you’re doing your own books, expect to pay $200-$500+ annually for basic tax preparation. Complex businesses need more help and pay accordingly.
Insurance
Professional liability, general liability, or other business insurance can run $200-$2,000+ annually depending on your industry.
Money-Saving Strategies
Here’s how to minimize your Montana LLC costs without cutting corners:
DIY Formation
File the Articles of Organization yourself and save $200-$500 in service fees. Montana’s forms are straightforward.
Be Your Own Registered Agent (If Possible)
Save $100-$150 annually if you meet the requirements and don’t mind the privacy trade-off.
Free Resources
- Use IRS.gov for your free EIN
- Download free operating agreement templates (make sure they’re Montana-specific)
- Research license requirements through official state websites
Annual Bundles
Some registered agent services offer discounts if you pay for multiple years upfront.
Formation Service Comparison
If you decide to hire help, here’s my take on the major players:
Northwest Registered Agent: $39 + state fee
- Pros: Excellent customer service, includes 1 year registered agent service, transparent pricing
- Cons: Limited additional services
- Best for: Most small businesses
LegalZoom: $149 + state fee
- Pros: Brand recognition, comprehensive packages
- Cons: Expensive, aggressive upselling, customer service inconsistency
- Best for: People who don’t mind paying premium for a big name
ZenBusiness: $0 + state fee (basic package)
- Pros: Free formation option
- Cons: Heavy upselling pressure, limited free features
- Best for: DIYers who want some hand-holding
Tax Implications You Should Know
Montana LLC taxation is relatively straightforward:
Default taxation: Pass-through entity (profits/losses flow to your personal tax return)
Montana state tax rate: 1% to 6.9% on taxable income
No franchise tax: Montana doesn’t charge annual franchise taxes
Sales tax: None at the state level (some localities may have resort taxes)
Planning tip: Set aside 25-30% of profits for taxes. Montana’s rates are reasonable, but don’t get caught short at tax time.
When Montana Isn’t the Right Choice
I’m a straight shooter, so let me tell you when Montana might not make sense:
You don’t live or do business in Montana: If you’re based in California and form a Montana LLC, you’ll still need to register as a foreign LLC in California and pay California taxes. You’re just adding complexity for no benefit.
You need investor-friendly structure: If you’re raising venture capital, Delaware might be a better choice due to investor familiarity.
You have complex ownership: For multi-class ownership or complicated management structures, consider consulting with an attorney regardless of which state you choose.
Next Steps: Getting Your Montana LLC Started
Ready to move forward? Here’s your action plan:
- Choose your business name and check availability on the Montana Secretary of State website
- Decide on registered agent (yourself or hire a service)
- Prepare your Articles of Organization (either DIY or hire help)
- File with the state and pay the $35 fee
- Get your EIN from the IRS (free)
- Draft your operating agreement
- Open a business bank account
- Research any required business licenses
Frequently Asked Questions
Can I change my registered agent later?
Yes, you can change registered agents anytime by filing a statement with the Secretary of State. There’s a small filing fee.
What happens if I don’t file my annual report?
Montana will send notices, charge late fees, and eventually dissolve your LLC if you ignore the requirement long enough.
Do I need a Montana address to form an LLC?
No, but your registered agent must have a Montana address. Members can live anywhere.
Can I use a P.O. box for my registered agent?
No, Montana requires a physical street address for registered agents.
How long does my LLC last?
Montana LLCs have perpetual existence unless you specify an end date in your Articles of Organization.
The Real Talk on Montana LLC Costs
Here’s the bottom line: Montana offers one of the best cost-to-value ratios for LLC formation in the United States. Low fees, reasonable ongoing costs, and business-friendly regulations make it an excellent choice for entrepreneurs.
The total cost to get started is minimal—$35 if you do everything yourself, or $174-$185 if you hire Northwest to handle formation and registered agent services. Either way, you’re looking at very reasonable startup costs.
My recommendation: For most small businesses, spending the extra $125 for professional registered agent service is worth it for the privacy and reliability benefits. But if money is tight, starting as your own registered agent and switching later is a perfectly valid strategy.
Remember, the cheapest option isn’t always the smartest option. Invest in the basics (operating agreement, proper record-keeping, required licenses) from day one. These small upfront costs can save you thousands in legal and compliance headaches later.
Ready to get started? I’ve reviewed all the major formation services—check out my detailed service comparisons to find the best fit for your situation and budget.
This guide is for informational purposes only and doesn’t constitute legal or tax advice. Consult with qualified professionals for guidance specific to your situation.
About Jake Lawson: With over 15 years of experience in LLC formation, Jake has guided more than 1,200 entrepreneurs through the business formation process. He’s tested every major formation service so you don’t have to guess which one to trust.