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
- All Steps at a Glance
- Key Facts & Fees
- Before You Start
- 1. Validate Your Business Idea in Montana
- 2. Write a Business Plan
- 3. Choose Your Business Structure in Montana
- 4. Choose and Register Your Business Name in Montana
- 5. Register Your Business with the Montana Secretary of State
- 6. Get Your Federal EIN from the IRS
- 7. Get Your Montana Business Licenses and Permits
- 8. Open a Montana Business Bank Account
- 9. Set Up Accounting and Understand Montana Taxes
- 10. Get Business Insurance in Montana
- 11. Build Your Online Presence
- 12. Stay Compliant After Forming Your Montana Business
- State Background
- FAQ
- Next Steps
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 September 6, 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
- September 6, 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
Montana is home to over 130,000 small businesses, which make up 99.3% of all employers in the state. With no state sales tax, a $35 LLC filing fee, and a business-friendly regulatory climate, Montana gives new founders a low-cost path to getting started.
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.
Montana is one of only five states with no state sales tax, giving retailers and e-commerce businesses a significant compliance and cost advantage. The LLC filing fee is just $35, among the lowest in the nation.
The state's annual report costs only $20, and there is no franchise tax or gross receipts tax. Total first-year government costs for a Montana LLC can be under $60.
Montana ranks consistently as one of the top states for small business friendliness, with minimal bureaucracy and fast processing times. The state processed over 12,000 new business filings in 2023.
The cost of living outside major cities like Billings and Missoula remains well below the national average. Commercial real estate in smaller Montana communities is significantly cheaper than comparable space in neighboring states.
Montana's tourism industry attracts over 12 million visitors annually, creating year-round demand for hospitality, recreation, and service businesses. The state's growing tech sector, centered in Bozeman and Missoula, has attracted remote workers and startups looking for lower overhead.
Montana Business Climate
Montana imposes no state sales tax and no franchise tax, which keeps ongoing compliance simple and affordable. The state income tax uses a graduated scale from 1% to 6.75%.
The regulatory environment is light compared to western neighbors like California, Oregon, and Washington. Montana does not require a general state business license, leaving most permitting to the local level.
The state ranks in the top 20 nationally for ease of starting a business, according to multiple small business surveys. Property taxes average around 0.74% of assessed value, below the national average of 1.07%.
Montana's unemployment rate has consistently tracked below the national average, reflecting a tight labor market. Employers in competitive industries may need to offer above-market wages to attract talent, especially in Bozeman and Missoula.
Montana's economy is diverse for a state of its size. The strongest sectors for new businesses include:
- Agriculture and Ranching — Montana has over 27,000 farms and ranches, making agriculture the backbone of the rural economy
- Tourism and Outdoor Recreation — Glacier and Yellowstone National Parks anchor a tourism industry worth over $5 billion annually
- Healthcare — one of the fastest-growing sectors, driven by an aging population and rural healthcare demand
- Technology and Remote Work — Bozeman's tech corridor has earned the nickname "Silicon Prairie" with growing venture capital activity
- Construction and Skilled Trades — population growth in Gallatin and Flathead counties is driving sustained construction demand
- Craft Brewing and Distilling — Montana has more breweries per capita than almost any other state, with over 80 active craft breweries
Montana's individual income tax applies to LLC and S-Corp pass-through income on a graduated scale from 1% to 6.75%. The top rate kicks in at relatively modest income levels, so most profitable businesses will reach it quickly.
The state has no sales tax, which is a rare advantage. You will not need to collect, report, or remit sales tax on goods or services sold within Montana.
There is no franchise tax and no gross receipts tax in Montana. This keeps your ongoing state tax obligations limited to income tax and any applicable local taxes.
C-Corporations pay a corporate income tax rate of 6.75% on net income. This flat rate applies regardless of how much the corporation earns.
Property taxes in Montana average 0.74% of assessed value, below the national average. However, commercial property assessments can vary significantly by county.
Register all tax accounts through the Montana Department of Revenue. Quarterly estimated payments are due on the 15th of April, June, September, and January if you expect to owe more than $500 in state income tax.
Montana's overall cost of living index is approximately 95 to 100 (national average equals 100), though Bozeman and some resort communities like Whitefish and Big Sky run significantly higher. Median commercial rent in Billings and Great Falls remains well below western-state averages.
The state minimum wage is $10.30 per hour as of 2026, adjusted annually for inflation. Average wages across most industries track below the national median, which helps offset the tighter labor market.
Montana's lack of sales tax means retail businesses keep more margin on each sale. Combined with low filing fees ($35 for formation, $20 for annual reports), the total government cost burden for a Montana small business is among the lightest in the country.
The Montana Small Business Development Center (SBDC) offers free business consulting, financial planning assistance, and help with SBA loan applications. They have regional offices across the state.
The SBA Montana District Office in Helena connects founders with SBA-backed loans, including 7(a) loans up to $5 million and microloans up to $50,000.
The Montana Department of Commerce offers several grant and incentive programs for businesses in targeted industries, including the Big Sky Economic Development Trust Fund. Grants typically range from $5,000 to $50,000 and focus on job creation in rural areas.
Community Development Financial Institutions (CDFIs) like Montana Community Development Corporation provide microloans for startups that do not qualify for traditional bank financing. These loans are often available with lower credit score requirements and smaller minimum amounts.
In your first 30 days, open a business bank account, set up accounting software, and register with the Montana Department of Revenue for income tax. If you plan to hire employees, register for unemployment insurance with the Montana Department of Labor and Industry.
By day 60, secure any required local business licenses from your city or county, obtain general liability insurance, and finalize your operating agreement (for LLCs). Get your Google Business Profile live and your basic website published.
Before day 90, make your first quarterly estimated tax payment if applicable and confirm that your registered agent is in place. Mark April 15 on your calendar for your first annual report filing with the Secretary of State.
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 Northwest. $39 + state fee includes registered agent, business address, domain, and more.
About the Author
Business Formation Researcher
Eliot leads StartupOwl's state data research. He maintains the site's fifty state records of LLC filing fees, annual costs, processing times, and small business grant programs, checking each figure against the state office that publishes it and logging the date it was verified. Based in New Jersey, he has spent his working life in and around small businesses, and he writes for the founder who wants the real number rather than the advertised one. Every figure under his byline traces to a named source, and when a state proves a number wrong, the correction is published, not buried.
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