How to Start an LLC in Montana

Step 1: Name Your Montana LLC

Before you get started, you will need to pick a suitable name for your Montana LLC. 

This will need to comply with all Montana naming requirements, be available, and (ideally) have a matching domain that you’ll use for your website.

1. Montana LLC Naming Guidelines

• Your name must include the phrase “limited liability company” or one of its abbreviations: “LLC, L.L.C., Limited, Ltd., Company or Co.”
• Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
• Names must be distinguishable from other business entities in the state, including assumed names (DBAs).
• Your name cannot include certain restricted words without prior written approval from the relevant state body (e.g., bank, olympic, college, etc).

For a full list of naming guidelines in Montana, see Section 35-8-103 of the Montana Limited Liability Company Act.

2. Montana Name Availability Search

To check whether your desired name has already been taken by another business entity in Montana, you can perform a name search on the Montana Secretary of State website.

If you’re not going to start your LLC right away, it might be a good idea to consider reserving your name for up to 120 days  ($10 processing fee). 

For more information, you can have a look at our Montana LLC Name Search guide.

3. Finding the Right Domain

You should check online to see if your business name is available as a web domain. Even if you don’t plan to make a business website right away, this is an extremely important step as it will prevent others from acquiring it, potentially saving you both time and money in the long term. 

Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.=

FAQ: Naming a Montana LLC

Step 2: Choose a Registered Agent in Montana

After you find the right name for your LLC, you will need to assign a Montana registered agent. This is a necessary step in your Articles of Organization, which is the document used to file and register your LLC with the Secretary of State.

What is a registered agent?

A registered agent is an individual or business entity responsible for receiving important legal documents on behalf of your business. You can think of your registered agent as your business’s primary point of contact with the state.

Who can be a registered agent? 

A registered agent must be a resident of Montana or a corporation authorized to transact business in the state. You can choose to elect an individual within the company (e.g., yourself, etc.), use an attorney (not recommended due to the high cost), or go with a registered agent service.

FAQ: Nominating a Registered Agent

Step 3: File the Montana LLC Articles of Organization

To register your Montana LLC, you will need to file the Articles of Organization with the Secretary of State. You can do this online.

Before filing, make sure you have completed your Montana Articles of Organization correctly. You will need to have the following information on hand to get started:

• Your LLC’s name and principal office address
• The information of your registered agent (i.e., name, street address, etc.)
• The management structure of your LLC (e.g., member-managed, etc.)

File the Articles of Organization

File Online With the Montana Secretary of State

File Online

Fee: $35, payable to the Secretary of State (Nonrefundable)

Instructions: Select “Articles of Organization for Domestic Limited Liability Company,” log in or create an ePass account, and fill out the required fields.

For help with completing the form, visit our Montana Articles of Organization guide.

Note: If you’re expanding your existing business to the state of Montana, you’ll need to register as a foreign limited liability company (LLC).

FAQ: Filing Montana LLC Documents

Step 4: Create a Montana LLC Operating Agreement

An operating agreement is not required in Montana, but it’s a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all LLC owners are on the same page and reduces the risk of future conflict.

You can use the free tool in our Business Center to create a custom operating agreement in minutes — or download our free templates:

• Montana Single-Member LLC Operating Agreement
• Montana Multi-Member LLC Operating Agreement

FAQ: Creating a Montana LLC Operating Agreement

Step 5: Get an EIN for Your Montana LLC

You can get an Employer Identification Number (EIN) from the IRS for free. It is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a Social Security number (SSN) for the company.

Why do I need an EIN? An EIN is required for the following:

• To open a business bank account for the company
• For federal and state tax purposes
• To hire employees for the company

Where do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.

FOR INTERNATIONAL APPLICANTS: You do not need an SSN to get an EIN. Learn more here.

Get an EIN

Option 1: Request an EIN from the IRS

Apply Online

– OR –

Option 2: Apply for an EIN by Mail or Fax

Download Form

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

FAQ: Getting an EIN

Best LLC Services in Montana Compared

For a comprehensive comparison, read our Best LLC Service guide. We reviewed and ranked the top LLC formation services to help you determine the best fit for your new business.

Important Next Steps to Protect Your Montana LLC

After you’ve formed your LLC, you’ll need to complete several key steps in order to:

• Separate your personal and business assets
• Stay compliant with state and federal laws

1. Get a Business Bank Account and Credit Card

Getting a dedicated business bank account is an essential part of operating legitimately as it keeps your personal and business assets separate, and therefore helps shield your personal limited liability. 

Skipping this step can often lead to:

• Courts determining that you haven’t been treating your LLC as a separate entity
• Your “corporate veil” being pierced, meaning that you will no longer benefit from limited liability in law. 

You can also choose to acquire a corporate credit card if you’re interested in building your credit and potentially raising capital down the line. 

2. Check If You Need a Montana Business License

Montana does not require LLCs to hold a “general” business license in order to operate. 

Even so, you should know that business licensing is regulated at a local, state, and federal level, so your licensing needs will ultimately depend on your exact location and industry:

• Local Licenses: You’ll need to check with your city or county clerk’s office to identify any local licensing requirements, such as zoning permits or health department approvals you’ll need. 
• State-Level Licenses: You can apply for several common licenses — like retail food, tobacco, nursery, or petroleum sales — through the Montana eStop Business Licensing Portal. 
• Federal Licenses: While most Montana LLCs will not be subject to federal regulation, those involved in heavily regulated industries (such as agriculture, alcohol, and firearms) will. You can have a look at this Small Business Administration article for the relevant federal agency you’ll need to contact.

A few questions to ask yourself when deciding whether you need a license include:

• Will you sell taxable goods or services? While Montana doesn’t have a statewide sales tax or seller’s permit, some counties or municipalities do levy local sales taxes and could require you to register and collect tax on certain sales.
• Will you work as a licensed professional? If your LLC will focus on regulated fields — such as medicine, law, insurance, or real estate — you’ll need to ensure that you or a member of your LLC is appropriately licensed.
• Will your LLC’s activities negatively impact the environment? If so, you might need to obtain a business license or permit from the Montana Department of Environmental Quality. 
• Will you sell cannabis products to consumers in Montana? If so, you’ll need a dispensary license from the Montana Department of Revenue’s Cannabis Control Division. 

For more information, you can have a look at our Montana Business License guide.

3. Understand Your Montana LLC Tax Obligations

Montana LLCs are not all taxed in the same way; this is because LLCs are taxed as pass-through entities by default, meaning that they are largely taxed similarly to sole proprietors — the business gets paid, the profits pass to you as the owner, and you get taxed. There is no “corporate” tax involved. 

This means that:

On a Federal Level

You’ll need to submit personal income tax returns using either Form 1040 (for single member LLCs) or Form 1065 (for multi-member LLCs). If you have employees, you will also be subject to federal income tax withholding. 

On a State Level

Your LLC may have to pay additional taxes — such as lodging, transportation, or other industry-specific taxes. At the same time, Montana imposes a state income tax, which ranges from 1% to 6.75%, depending on your total taxable income. If you have employees, you’ll likely be subject to state income tax withholding.

On a Local Level

Your LLC may be required to pay property and even sales and use taxes on a county level. This is because, while Montana has no statewide sales tax, some municipalities do levy local option taxes to generate revenue.

For more information on the Montana-specific LLC tax obligations that may apply to you, we recommend having a look at our in-depth Montana LLC Taxes guide. Alternatively, you can schedule a free online consultation with 1-800 accountant for all your tax-related questions. 

4. Get Business Insurance for Your LLC in Montana

Even though an LLC offers limited liability, you’ll still likely need to purchase some form of business insurance to protect your LLC’s assets. 

This is because an LLC’s default limited liability protects your personal assets, not the business’s. Some of the most common types of business insurance include:

• General Liability Insurance: This is a broad insurance policy that protects your business from lawsuits. Most small businesses end up getting general liability insurance.
• Professional Liability Insurance: This is a business insurance policy for professional service providers (consultants, accountants, etc.) that covers against claims of malpractice and other business errors.
• Workers’ Compensation Insurance: A type of insurance that covers employees for work-related injuries, illnesses, or deaths, and is legally required for any Montana business with one or more employees.

5. Learn How to Properly Sign Your LLC’s Legal Documents

Improperly signing a document as yourself and not as a representative of the business can leave you open to personal liability. 

When signing legal documents on behalf of your company, you we recommend following this formula to avoid any problems:

• Formal name of your business
• Your signature
• Your name
• Your position in the business as its authorized representative

6. Submit an Annual Report for Your Montana LLC

In order to ensure that your Montana LLC maintains its good standing with the state, you’ll be required to file an Annual Report by April 15 of each year.

This is meant to ensure that the state’s records of your business are up to date, and will require you to provide details such as your registered agent information and principal business address. 

You’ll need to file online through the Montana Secretary of State’s portal. There’s no filing fee if you submit the report on time; if you miss the April 15 deadline, a $35 late fee will apply.

Note: If your LLC doesn’t file its Annual Report by the extended deadline, the state may administratively dissolve your business any time after December 1 of that same calendar year.

To stay on top of this deadline and other important compliance tasks, we recommend hiring a professional registered agent service — they can help ensure you never miss a filing.

Montana Business Resources

Business Center

Check out our business center for regular updates, vetted reviews, free downloadables, and video guides that aim to help you start and grow your business. 

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Local Resources

Have a look at Montana’s local business resources:

• Montana Secretary of State Business Services
• Montana Small Business Resources
• Montana LLC Statutes

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