How to Start a Business in Montana
Montana is home to over 130,000 small businesses, which make up 99.3% of all employers in the state.
In This Article
The Complete Guide
How to Start a Business in Montana — 12 Steps
This is a full walkthrough: entity selection, state registration, federal tax IDs, licenses, banking, insurance, and ongoing compliance. Every step includes the official Montana links, fees, and timelines.
Cost depends on your structure. A sole proprietorship may cost nothing to start. An LLC costs $35 to file online. A corporation costs $35. Step 3 walks through every option.
Montana: Key Business Facts
Updated: Feb 2026- LLC Filing Fee (Online)
- $35
- Sole Proprietorship / DBA
- $20
- Corporation Filing
- $35
- Processing Time
- 3-5 business days
- Expedited Option
- $20 / 24 hours or $100 / 1 hour
- State Income Tax
- 1% to 6.75% (graduated)
- Sales Tax Rate
- 0% (no state sales tax)
- Gross Receipts Tax
- No
- Franchise / Annual Tax
- None
- Filed With
- Montana Secretary of State
- State Business License
- Not required (check local)
- Last Verified
- February 24, 2026
Local licenses: Montana does not require a general state business license. Most cities and counties require local business licenses or permits, with fees typically ranging from $20 to $200 depending on the municipality.
What It Takes to Start a Business in Montana
Forming a business in Montana requires choosing a structure, registering with the Montana Secretary of State, and obtaining any industry-specific licenses. The entire process can be completed in under a week if you file online.
Montana is one of only five states with no state sales tax, which simplifies compliance for retail and e-commerce businesses. The state also has no franchise tax, keeping your ongoing costs among the lowest in the country.
Validate Your Business Idea in Montana
Research whether your business idea has demand in Montana's economy before investing time and money. The state's strongest industries include:
- Agriculture and ranching
- Tourism and outdoor recreation
- Healthcare and medical services
The Montana Small Business Development Center (SBDC) offers free one-on-one consulting and market research tools to help you validate your concept. Schedule a session with a local advisor to review your target market and competitive landscape.
Pro Tip
Write a Business Plan
Draft a business plan that covers your revenue model, startup costs, target customers, and first-year financial projections. Banks and SBA lenders require a written plan before approving any financing.
Use our business plan guide for a step-by-step template. Even if you are self-funding, a plan forces you to identify risks and set measurable goals.
Pro Tip
Choose Your Business Structure in Montana
Most founders in Montana choose an LLC because it combines personal liability protection with pass-through taxation. Filing an LLC costs $35 at the Montana Secretary of State.
The four main structures are Sole Proprietorship, LLC, S-Corp, and C-Corp. Each has different tax treatment, liability exposure, and paperwork requirements. See the full comparison below, or read our Montana LLC formation guide for a detailed walkthrough.
Pro Tip
Business Structure Comparison — Montana
Full comparison guide| Structure | Montana Filing Cost | Personal Liability | How You're Taxed | Best For |
|---|---|---|---|---|
| Sole Proprietorship | $20 (DBA) | ❌ None | Personal income tax. No separate return. | Freelancers, consultants, side hustles testing an idea with no employees. |
| LLC Most Common | $35 online | ✅ Personal assets protected | Pass-through by default. Elect S-Corp when profitable. | Most small businesses. Best balance of liability protection, flexibility, and tax options. |
| S-Corporation | ~$35 + IRS election | ✅ Personal assets protected | Pass-through. Owners pay themselves a salary — can reduce self-employment tax. | Profitable businesses (typically $50K+ net) where payroll tax savings justify the complexity. |
| C-Corporation | $35 | ✅ Personal assets protected | Corporate tax rate (21% federal). Double taxation on dividends. | Startups planning to raise VC funding, issue stock options, or eventually go public. |
| General Partnership | Free / No State Filing | ❌ None — all partners personally liable | Pass-through. Each partner reports share on personal return. | Two or more owners who trust each other and don't need liability protection. |
Which should you choose? Most first-time founders in Montana pick an LLC — it protects your personal assets without the complexity of a corporation. If you're not sure, consult a CPA or business attorney before filing. Read the full Montana LLC guide →
Choose and Register Your Business Name in Montana
Your business name must be distinguishable from every other entity registered in Montana. Search the Montana business name database to confirm availability before filing.
LLCs must include "Limited Liability Company," "LLC," or "L.L.C." in the official name. You can reserve a name for 120 days by filing a Name Reservation for $10 with the Secretary of State.
Pro Tip
Check Montana Business Name Availability
Search the official Montana Secretary of State database before you file.
Register Your Business with the Montana Secretary of State
File your Articles of Organization (LLC) or Articles of Incorporation (corporation) with the Montana Secretary of State online for $35. Standard processing takes 3 to 5 business days, or you can pay $20 for 24-hour expedited processing.
Every Montana LLC and corporation must designate a registered agent with a physical Montana address. See our Montana registered agent guide for affordable options.
After approval, you will receive a Certificate of Organization confirming your business is officially formed.
Pro Tip
Important
File Online with Montana Secretary of State
Official Montana business registration portal. Standard processing: 3-5 business days.
Get Your Federal EIN from the IRS
Apply for a free Employer Identification Number (EIN) directly on the IRS website. The online application takes about 10 minutes and you will receive your EIN immediately.
You need an EIN to open a business bank account, hire employees, and file federal taxes. Even single-member LLCs should get an EIN rather than using a personal Social Security number.
Pro Tip
Get Your Montana Business Licenses and Permits
Requirements vary by industry and location, but most Montana businesses need some combination of the following:
- Local Business License — Montana has no general state business license, but most cities and counties require one (fees range from $20 to $200)
- Professional License — required for contractors, healthcare providers, real estate agents, and other regulated professions through the Montana Department of Labor and Industry licensing boards
- Employer Registration — required before hiring; register with the Montana Department of Labor and Industry for unemployment insurance
- Health and Safety Permits — required for food service, childcare, and hospitality businesses through your local county health department
Pro Tip
Open a Montana Business Bank Account
Bring your EIN confirmation letter, Articles of Organization, government-issued ID, and your LLC operating agreement to open a dedicated business checking account. Separating personal and business finances is essential for maintaining your LLC's liability protection.
Compare options in our best business bank accounts guide. Many online banks offer fee-free business checking with no minimum balance requirements.
Pro Tip
Set Up Accounting and Understand Montana Taxes
Montana has a graduated state income tax ranging from 1% to 6.75%, which applies to business income passed through from LLCs, S-Corps, and sole proprietorships. Register with the Montana Department of Revenue to set up your tax accounts.
Montana has no state sales tax, which eliminates one of the biggest compliance headaches for retail and e-commerce businesses. You will still need to make quarterly estimated federal tax payments to the IRS if you expect to owe more than $1,000.
Track income and expenses from day one using accounting software. See our best accounting software comparison to find the right fit.
Pro Tip
Get Business Insurance in Montana
Montana requires workers' compensation insurance for all businesses with employees, with very few exceptions. General liability insurance is strongly recommended for every business type, even if you work solo.
Compare coverage options through our business insurance guide. Most Montana small businesses can get a general liability policy for $300 to $1,000 per year depending on industry risk.
Important
Build Your Online Presence
Claim your free Google Business Profile as your first step to appearing in local search results. This is especially important in Montana, where tourism drives significant business for restaurants, outfitters, and service providers.
Build a simple website using one of the platforms in our best website builders guide. A one-page site with your services, location, and contact info is enough to start.
Pro Tip
Stay Compliant After Forming Your Montana Business
After forming, keep your Montana business in good standing by meeting these ongoing requirements:
- Annual Report — due by April 15 each year, with a filing fee of $20 at the Montana Secretary of State. Late filings incur a $35 penalty.
- State Tax Filings — file your Montana income tax return annually with the Department of Revenue
- Registered Agent — maintain a registered agent with a physical Montana address at all times
- Business Licenses — renew any local city or county licenses annually as required
Missing the annual report deadline results in late fees and potential administrative dissolution. Track all deadlines with StartupOwl's compliance calendar.
Pro Tip
Important
Montana Business Background & Context
State-specific data to help you plan — taxes, economy, funding, and what to expect after you form.
Frequently Asked Questions
What to Do Next
Once you've registered your Montana business, take these steps to set up for success.
Form Your Montana LLC
File your Articles of Organization for just $35 with our step-by-step Montana LLC guide.
Start Your LLC →
Get a Montana Registered Agent
Compare affordable registered agent services that meet Montana's physical address requirement.
Compare Agents →
Open a Business Bank Account
Find the best free and low-fee business checking accounts for your Montana business.
Compare Accounts →
Visit the Montana SBDC
Get free one-on-one consulting, market research, and SBA loan help from a local advisor.
Find an Advisor →
Write Your Business Plan
Use our free template to build a business plan that is ready for banks and SBA lenders.
Get the Template →
Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Requirements change — always verify current fees and requirements directly with Montana Secretary of State and the IRS before filing.
Ready to Form?
Get your Montana business registered with ZenBusiness — choose your structure, file the paperwork, and stay compliant from day one.
About the Author
Director of Entrepreneurial Strategy
Jennifer is a former founder who built and sold a boutique B2B logistics company in her thirties. She understands the emotional and strategic toll of building a business from the ground up without a massive safety net. She is deeply connected to the Atlanta startup ecosystem and is passionate about equitable funding.
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