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Doing business in

Montana

Navigate Montana’s business landscape with ease—whether you’re incorporating, expanding, or managing tax compliance. Commenda helps you stay ahead with automated solutions for incorporation, compliance, and tax filings.
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montana

Business Overview

Montana’s economy balances natural resources, agriculture, tourism, and growing technology sectors. The state offers quality of life advantages, reasonable business costs, and an entrepreneurial environment. Its outdoor recreation industry creates unique business opportunities in equipment and services.

Key Facts & Figures

Category Details
Capital Helena
Major Cities Billings, Missoula, Great Falls, Bozeman, Butte
State Sales Tax Rate No state sales tax
Local Sales Tax Rate Resort areas may impose up to 3% tax
Corporate Income Tax 4% flat rate
Physical Nexus Threshold No sales tax nexus requirements (no general sales tax)
Economic Nexus Threshold No economic nexus laws (no general sales tax)

Did you know?

Montana has a growing technology sector, particularly in data centers and renewable energy research.

Setup & Compliance

Montana offers business-friendly formation processes with unique tax advantages.

Montana Business Setup Process:

  1. Choose Your Business Structure: Consider Montana’s tax advantages, including no sales tax.
  2. Register Your Business: File formation documents with the Montana Secretary of State.
  3. Obtain Required Licenses: Research and secure necessary state and local business licenses.
  4. Register for Tax Accounts: Register with the Department of Revenue for applicable taxes.
  5. Register as an Employer: Register with the Department of Labor & Industry if hiring employees.

Unique Montana Compliance Considerations:

  • Annual Reports: Montana entities must file annual reports with the Secretary of State.
  • No State Sales Tax: Montana is one of five states without a state sales tax.
  • Corporate Income Tax: C-corporations pay 6.75% corporate income tax.
  • Employment Taxes: Employers must register for unemployment insurance and workers’ compensation.
  • Professional Licensing: Various professions require specialized licenses through state boards.

Hiring & Payroll

Montana has unique employment laws including being the only state without at-will employment.

Montana Payroll Taxes:

  • Unemployment Insurance: Rates from 0.13% to 6.3% on first $38,100 of wages.
  • State Income Tax Withholding: Required with rates from 1% to 6.75%.
  • Workers’ Compensation: Required for all employers with limited exceptions.

Montana Employment Laws:

  • Minimum Wage: $9.95 per hour (adjusted annually for inflation).
  • Wrongful Discharge: After 6-month probationary period, employees can only be fired for good cause.
  • Meal Breaks: Required for employees working shifts of more than 6 hours.
  • Final Paychecks: Due immediately if fired or laid off; next payday or 15 days if resigned (whichever occurs first).
  • Montana is not a right-to-work state.

State Incentives

Montana provides targeted economic incentives to promote business growth and innovation.

Key Business Incentives:

  • Big Sky Economic Development Program: Grants and loans for business expansion.
  • Workforce Training Grant: Support for employee skill development.
  • New Jobs Tax Credit: Incentives for job creation.

Small Business & Startup Support:

  • Montana Small Business Development Center: Comprehensive business resources.
  • Rural Cooperative Development Grants.
  • Technology Transfer and Commercialization Program.

Regulatory Considerations

Montana maintains a regulatory framework that balances business needs with environmental protection.

Key Business Regulations:

  • Data Privacy: Laws protecting consumer and business information.
  • Environmental Compliance: Extensive regulations for natural resource industries.
  • Professional Licensing: Required for various service-based professions.

Additional Regulatory Areas:

  • Natural Resource and Agricultural Compliance.
  • Rural Business Development Regulations.

Explore Tax & Compliance Topics

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