Want to know the number one reason Montana LLCs die? It’s not bad business decisions, market crashes, or even tax problems. It’s forgetting to file a simple $20 annual report by April 15th.
After helping over 200 Montana business owners—many of whom formed their LLCs for those famous vehicle registration benefits—I can tell you this: Montana’s annual report is the easiest compliance requirement in America. It’s also the most commonly forgotten.
Here’s the brutal irony: entrepreneurs will spend thousands setting up Montana LLCs for tax advantages, then lose everything because they forgot about a twenty-dollar filing. It’s like buying a Ferrari and letting it get repossessed because you forgot to renew the registration.
The $20 Filing That Isn’t About Twenty Dollars
Montana’s annual report costs $20. That’s it. Cheapest in the nation alongside states like Arizona. For context, California charges $800 minimum tax, Massachusetts wants $520, and even tiny Delaware hits you for $300.
But here’s what that $20 really costs when you forget:
- Miss April 15th: $35 total ($20 + $15 late fee)
- Miss September 1st: Warning letter arrives
- Miss December 1st: LLC gets dissolved
- Want it back: $35 reinstatement + all missed reports
A Billings real estate investor with five Montana LLCs forgot about them for two years. Reinstatement cost: $275 per LLC, plus the nightmare of explaining to his bank why his businesses temporarily didn’t exist.
The April 15th Pattern You’re Already Seeing
Yes, another April 15th deadline. Montana, like North Carolina and others, decided tax day needed more stress. At least Montana gives you from January 1st to April 15th to file, not just one specific day.
But here’s the trap: if you’re using a Montana LLC for vehicle registration (and let’s be honest, many of you are), you probably don’t think about it as a “real” business. You formed it, registered your RV or exotic car, and forgot it existed. Until December, when you get that dissolution warning.
One California tech executive with a Montana LLC for his collection of supercars nearly lost the LLC (and the vehicle registrations) because he forgot about the annual report. His assistant now has three calendar reminders starting in January.
The Death of Paper Filing (And Why That’s Actually Good)
Montana killed paper filing in 2017, going fully digital. No more printing forms, finding stamps, or trusting USPS with your LLC’s existence. Everything happens online through their SOS Enterprise system.
The transition was rough—their old ePass system was actually decent—but the new system works fine once you figure it out. The interface looks like someone’s nephew designed it in 2012, but it functions.
Pro tip: If you had an old ePass account, you need to convert it. Don’t create a new account—reset your password using your old username. Creating a duplicate account causes problems that require calling the Secretary of State to fix.
When Your First Report Actually Comes Due
Montana keeps this simple, which I appreciate:
LLC formed anytime in 2024: First report due April 15, 2025
LLC formed January 2, 2025: First report due April 15, 2026
LLC formed December 31, 2025: Also due April 15, 2026
You always get at least one full January-to-April cycle. No pro-rating, no monthly calculations, no confusion. Form your LLC in December? Congratulations, you get 16 months before your first report.
The Email Reminder System That Sort Of Works
Montana sends email reminders every two weeks from January through April 15th. Sounds great, right? Here’s the reality:
- Emails go to whatever address was listed during formation
- That address might be your registered agent’s
- Registered agents don’t always forward these
- Spam filters love eating Montana government emails
- You probably used an email you never check
A Missoula brewery owner used his “business email” when forming his LLC—an address he created specifically for the formation and never checked again. Three years later: dissolved LLC, confused owner, annoyed accountant.
The September Warning Letter: Your “Oh Sh*t” Moment
Miss the April 15th deadline and coast through summer thinking everything’s fine? September brings reality. Montana sends a warning letter—an actual paper letter—saying your LLC faces dissolution.
This letter is surprisingly effective at getting attention. Nothing says “pay attention” like government letterhead threatening to kill your business. You have until December 1st to fix it, which sounds like plenty of time until you realize it’s the holidays and you’ll definitely forget again.
One Bozeman consultant got her warning letter while on vacation in October. By the time she got home in November, she had three weeks to figure out the online system and file. She made it with two days to spare.
The December 1st Dissolution: Less Scary Than It Sounds
If you blow through all the deadlines and your LLC gets dissolved December 1st, don’t panic. Montana gives you five years to resurrect it. That’s incredibly generous—most states give you two years max.
Reinstatement requires:
- $35 reinstatement fee
- All missed annual reports ($20 each)
- Filling out reinstatement forms
- Explaining to everyone why your business temporarily didn’t exist
The last part is the real pain. Try explaining to a bank, insurance company, or the DMV that your LLC was dead but is now alive again. It’s like explaining a zombie business.
The Vehicle Registration Angle Nobody Discusses
Let’s address the elephant in the room: many Montana LLCs exist solely for vehicle registration benefits. If that’s you, the annual report is even more critical. Lose your LLC, lose your registration validity.
One Texas collector with seven vehicles registered through his Montana LLC discovered this the hard way when he got pulled over in Arizona. The officer ran the plates, found the LLC was dissolved, and things got complicated fast. The vehicles weren’t technically unregistered, but proving that took lawyers.
If you’re using a Montana LLC for vehicles:
- Set multiple reminders for the annual report
- Consider hiring a service to handle it
- Keep proof of filing in your vehicles
- Never let it lapse
What Information You Actually Need to Update
Montana’s annual report is refreshingly simple. You’re basically confirming or updating:
- Principal office address (can be anywhere)
- Registered agent (must be in Montana)
- Members or managers (at least one required)
That’s it. No financial information, no business activity reports, no essays about your LLC’s goals. Just contact information that takes five minutes to review.
The Member vs. Manager Decision That Confuses Everyone
Montana wants to know if your LLC is member-managed or manager-managed. If you don’t know, you’re probably member-managed—it’s the default and what 95% of small LLCs use.
Member-managed: Owners run the business directly
Manager-managed: Designated managers run it (owners might be passive)
This matters for the annual report because you list different people. Get it wrong and you might accidentally remove yourself from your own LLC’s records.
Strategic Tips for Montana Annual Report Season
File January 2nd: Don’t wait. The system opens January 1st, but that’s a holiday. File January 2nd and forget about it.
Use a credit card that won’t expire: Your saved payment method might fail if the card expires. Update it proactively.
Download confirmation immediately: Montana’s system doesn’t always save historical filings properly. Get your proof while you can.
Set reminders for December: If you’re going to forget, at least catch the final warning period.
Consider automated services: For $50-100, registered agent companies will handle this automatically. Worth it for the peace of mind.
Common Montana Annual Report Disasters
The multi-LLC shuffle: Own five Montana LLCs? That’s five annual reports, all due April 15th. Miss one, and you might not notice until it’s dissolved.
The registered agent change trap: Changing registered agents in the annual report only works for commercial agents already in the system. Individual agents require separate filings.
The wrong email problem: Used your registered agent’s email? You might never see reminders. Always use an email you actually monitor.
The “I thought my accountant did it” assumption: Accountants handle taxes, not always annual reports. Clarify who’s responsible.
The vehicle-only LLC neglect: Treating your Montana LLC as “just for cars” leads to forgetting it needs maintenance.
When Hiring Help Makes Sense
For $20, you might think professional help is overkill. But consider:
- Registered agents often include annual report filing
- Services ensure it’s never forgotten
- The cost prevents dissolution headaches
- Peace of mind has value
If your Montana LLC holds valuable assets (like vehicles worth six figures), spending $100 annually for someone to handle compliance is cheap insurance.
The Five-Year Resurrection Window
Montana’s five-year reinstatement period is absurdly generous. Most states give you 1-2 years. Delaware gives you three. Montana? Five full years.
This isn’t permission to be lazy—it’s recognition that people make mistakes. But remember: during dissolution, your LLC can’t conduct business, hold assets properly, or maintain vehicle registrations effectively.
The Bottom Line on Montana Annual Reports
Montana’s annual report is the easiest, cheapest compliance requirement you’ll ever face. It’s also the most commonly missed, precisely because it’s so simple people forget it exists.
Twenty dollars. Five minutes online. Once a year. That’s all that stands between your LLC and administrative death.
The entrepreneurs who succeed with Montana LLCs aren’t necessarily the ones who understand complex tax strategies or vehicle registration laws. They’re the ones who remember to file a simple form every April.
Set your reminders now. Not tomorrow, not next week, now. Make it a recurring annual reminder for January 2nd. Title it something memorable like “Save LLC from Death – File Montana Report.”
Because losing an LLC over twenty dollars isn’t just embarrassing—it’s expensive to fix and potentially catastrophic if you’re using it for vehicle registrations or asset protection.
Montana makes it easy. Don’t make it hard by forgetting.
Jake Lawson has guided over 1,200 businesses through formation and compliance requirements, including hundreds of Montana LLCs serving various purposes from local businesses to specialized vehicle registrations. When he’s not explaining why a $20 filing matters more than thousand-dollar tax strategies, he’s probably setting up redundant reminder systems for forgetful clients. Need help keeping your Montana LLC alive? Find practical solutions at llciyo.com.