Understanding LLC Costs in Montana: A Complete Breakdown

Starting an LLC comes with more than just an idea and paperwork. It also includes a variety of expenses that every business owner should understand from the start. Whether you’re launching a small side hustle or a full-scale enterprise, knowing the full LLC cost in Montana is key to budgeting effectively. 

This guide talks about how much does an LLC cost in Montana, breaking down every mandatory and optional cost associated with forming and maintaining your LLC.

Total Cost to Start an LLC in Montana

Starting an LLC in Montana is relatively affordable compared to many other states. While some costs are mandatory, others depend on your business needs and preferences. Here’s a high-level summary of the cost to start an LLC in Montana:

  • Articles of Organization Filing Fee: $35.00 plus $50.00 for each series member named in the series LLC
  • Name Reservation: $10
  • Annual Report: $0 (prior to April 15th); $30 (after April 15th)
  • Registered Agent Fee: $0 if you appoint yourself; $50–$150/year if hiring a professional service
  • Employer Identification Number (EIN): Free from the IRS
  • Business Licenses or Permits: $0–$500+ depending on industry and locality
  • Operating Agreement (optional but recommended): $0 if self-drafted; $50–$200 if prepared by a service

Thinking of registering elsewhere too? Learn about LLC company registration in the USA and compare your options.

LLC Filing Fee: Certificate of Formation in Montana

To officially create your Montana LLC, you must file Articles of Organization with the Montana Secretary of State. Here are the details you need to budget accurately:

  • Filing Fee: $35 (flat fee), whether you submit online or by mail
  • Series LLC Add-On: For each additional series within a Series LLC, there’s an extra $50 per series.

This is the cost to file LLC in Montana, which forms the legal basis of your company.

Cost of LLC Name Registration in Montana

Reserving an LLC name in Montana is completely optional. Most founders skip this step and go straight to filing the Articles of Organization. However, if you’d like to secure your name ahead of time, Montana allows you to reserve a name for up to 120 days.

  • Reservation Fee: $10/year (filed through the Montana Secretary of State online portal)
  • Reservation Period: 120 days, non-renewable
  • Renewal of Name: $10/year

Registered Agent Fee in Montana

Every Montana LLC must designate a registered agent, a person or business entity responsible for receiving legal and state documents on behalf of the LLC. This agent must have a physical address in Montana and be available during regular business hours.

  • DIY Registered Agent: You or a business partner can serve as your own registered agent at no cost. This is common for local owners who are available during business hours and comfortable handling legal mail.
  • Professional Registered Agent Service: Many entrepreneurs choose to hire a registered agent for privacy, convenience, and compliance tracking, which can cost anywhere between $50 to $125/year.

Operating Agreement Cost

An Operating Agreement outlines the ownership structure, management roles, voting rights, and financial responsibilities of LLC members. While Montana does not legally require LLCs to adopt an operating agreement, it’s highly recommended for both single-member and multi-member LLCs.

  • DIY Operating Agreement: $0 (free templates are widely available online)
  • Attorney-Drafted Agreement: $200–$1,000+, depending on complexity and legal provider

EIN Cost for LLC in Montana

An Employer Identification Number (EIN) is a federal tax ID issued by the IRS. It’s essential for your Montana LLC if you plan to:

  • Open a business bank account
  • Hire employees
  • File federal taxes
  • Apply for licenses or permits

You can obtain an EIN directly from the IRS at no cost via their online application portal.

Local and State Business Licenses in Montana

Montana does not have a statewide general business license requirement, making it one of the more straightforward states for LLC compliance. However, local licenses and permits may still be required based on your business type and location.

  • City Business License: Required in cities like Billings, Missoula, Bozeman, and Great Falls. Costs typically range from $50 to $500 annually.
  • Zoning and Home Occupation Permits: If operating from home or in a commercial space, zoning approval may be needed.
  • Health Department Permits: For food service, health care, childcare, and similar industries.
  • Contractors & Construction: Must register with the Montana Department of Labor & Industry.
  • Retailers: May need a seller’s permit if selling taxable goods or services.
  • Professional Services: May require licenses from specific state boards.

Professional Licensing Fees

If your Montana LLC operates in a regulated profession, you’ll need to obtain a license from the relevant state licensing board. These licenses are separate from general business permits and come with additional fees and renewal requirements.

  • Nursing: Application fee $100; plus $25 for a temporary permit
  • Professional Engineer: Application fee $75
  • Architect: Application fee: $80.00; reapplication of an terminated Montana license $180.00; licensure by credentialing $180.00

DBA (Doing Business As) Cost in Montana

A Doing Business As (DBA), also known in Montana as an Assumed Business Name, is required if your LLC operates under a name different from its legal registered name. This is common for businesses that want to use a more marketable or brand-friendly name.

  • Filing Fee: $20 (one-time)
  • Renewal: No renewal required; the name is valid as long as it’s actively in use and your LLC is in good standing.

Annual Report or Compliance Filing Fees

Montana requires every LLC, domestic or foreign, to file an Annual Report to maintain active status. This plays a pivotal role in your annual cost of LLC in Montana.

  • Filing Frequency: Annually
  • Deadline: By April 15 each year
  • First Filing: Due the year after LLC formation
  • On-time Filing (by April 15): Waived
  • Late Filing (after April 15): $35 

State Franchise Taxes and Business Taxes

Montana does not impose a franchise tax on LLCs. This can significantly reduce your overall LLC cost in Montana.

  • Franchise Tax: Not applicable
  • Business Income Tax (If Taxed as a Corporation): Corporate Income Tax 6.75% of  net income; minimum tax $50

Pass-Through Entities: Member Taxes

For LLCs not taxed as corporations:

  • Members report business income on their personal Montana state income tax returns
  • Personal Income Tax Rate: 5.9% 
  • Self-Employment Tax: Also applies for active members, as per federal tax rules

Business Insurance Costs for LLCs in Montana

While Montana doesn’t mandate every LLC to carry insurance, certain policies are highly recommended or even legally required depending on your business activities. Factoring insurance into your LLC cost in Montana is crucial for long-term protection and risk mitigation.

General Liability Insurance

This is the most common policy, covering third-party bodily injuries, property damage, and legal fees.

  • Who Needs It: Most businesses, especially those with physical premises or customer interaction
  • Estimated Cost: $57/month

Workers’ Compensation Insurance

If your Montana LLC has one or more employees, state law requires workers’ comp coverage. It pays for medical expenses and lost wages for job-related injuries.

  • Required By Law? Yes, for employers
  • Rate Range: $1.48 per $100 of covered wages 

Commercial Auto Insurance

If your LLC owns or uses vehicles for business (deliveries, service calls, etc.), Montana requires commercial auto insurance.

  • Required? Yes, if vehicles are registered under the business
  • Estimated Cost: $135 per month
  • Coverage: Liability, collision, uninsured motorist, and medical payments

Foreign LLC Registration in Montana

If your business is already formed in another state but plans to operate in Montana, whether by opening a location, hiring employees, or conducting regular business, you’ll need to register as a foreign LLC. This process comes with specific legal steps and additional costs that add to your overall LLC cost in Montana.

You’ll need to submit:

  • Certificate of Authority Application
  • A Certificate of Good Standing (or Certificate of Existence) from your home state issued within the last 6 months
  • A Montana Registered Agent (required for all LLCs)

Registering your LLC from abroad? Here’s how to register a company in the USA from the UAE.

Optional LLC Costs and Services

While forming an LLC in Montana can be relatively affordable, optional services and upgrades may add to your overall LLC cost in Montana. These are not mandatory but can enhance your business’s professionalism, compliance, and efficiency.

  • Expedited Filing Fees: Processed in 24 hours $20; processed in 1 hour $100
  • Certified Copies: $10–$20 per document
  • Certificate of Existence (Good Standing): $5 (digital copy)
  • Cancellation Of Registration: No fee

Need to relocate your LLC? Read this guide on how to move your LLC or corporation to another state.

LLC Cost Comparison: Montana vs Other States

Wondering how the LLC cost in Montana stacks up against other popular business-friendly states? Here’s a quick snapshot of its comparison:

  • Montana: Filing fee $35; annual fee $20
  • Delaware: Filing fee $90; annual fee $300
  • Wyoming: Filing fee $100; annual fee $60
  • Florida: Filing fee $125; annual fee $138.75

Still unsure which state is right for you? See this guide on the best state to start an LLC. Considering Nevada? Don’t miss the 2025 Nevada LLC tax & legal guide.

Common Budgeting Mistakes When Starting an LLC

Many business owners misjudge the true cost to form LLC in Montana by forgetting items like insurance or city business licenses.

  • Overlooking Business Insurance: While Montana doesn’t mandate general liability insurance, it’s crucial for protection against lawsuits or property damage. Many LLCs skip this step to save money but end up exposed to major risks.
  • Ignoring Workers’ Compensation Rules: If you hire even one employee, you’re legally required to carry workers’ compensation insurance in Montana. Failing to budget for this can lead to penalties.
  • Skipping Local Business License Costs: Many cities like Billings, Missoula, and Bozeman require a local business license, even if the state doesn’t.
  • Neglecting a Registered Agent Budget: Using a professional registered agent offers privacy and compliance support but costs extra.

Form Your Montana LLC with Commenda

Starting your LLC in Montana doesn’t have to be confusing or time-consuming. With Commenda, you get one-click LLC formation backed by expert support and built-in compliance tools so you can focus on building your business, not navigating red tape.

  • Fast & Accurate Filings: We handle your Articles of Organization, EIN, and operating agreement with 100% filing accuracy.
  • Privacy & Compliance: Enjoy registered agent services, annual report reminders, and mail forwarding all in one dashboard.
  • Ongoing Support: From tax registration to expansion in other states, our experts are here whenever you need them.

Whether you’re local to Montana or registering from another state or country, Commenda makes LLC formation simple. Book a demo today to get started!

FAQs: LLC Costs in Montana

1. What is the cheapest way to start an LLC in Montana?

The most cost-effective method is filing the Articles of Organization yourself through the Montana Secretary of State’s website and serving as your own registered agent. This limits your cost to the $35 state filing fee.

2. Can I form an LLC in Montana without using a lawyer or service?

Yes. You can file the formation paperwork on your own without legal or professional help. However, using a service like Commenda ensures accuracy, saves time, and helps avoid costly mistakes.

3. What happens if I don’t pay my LLC’s annual fees or taxes in Montana?

Failure to file your Annual Report ($20 due by April 15) results in a late fee and eventual administrative dissolution of your LLC. You’ll lose legal standing and protections.

4. Can I write off LLC formation and maintenance costs on my taxes in Montana?

Yes. Costs like filing fees, registered agent services, and legal consultations are typically deductible as business startup or operating expenses. Consult a tax professional for full eligibility.

5. How long does it take to form an LLC in Montana, and does faster processing cost more?

Montana offers immediate processing for online filings. There’s no additional cost for expedited service. Filing by mail may take longer and isn’t recommended.

6. Is there a cost difference between a single-member and a multi-member LLC in Montana?

No. The state charges the same filing and annual report fees regardless of the number of members. However, tax reporting requirements may differ.

7. Do I need to renew my LLC every year in Montana, and how much does it cost?

Yes. Montana requires an Annual Report to be filed each year by April 15. The filing fee is $20 if submitted on time.

8. What are the penalties for filing LLC paperwork late in Montana?

Missing the annual report deadline incurs a $15 late fee. If not filed by December 1, the state may dissolve your LLC administratively.

9. How can Commenda help reduce the overall cost and risk of starting an LLC in Montana?

Commenda offers:

  • Transparent flat-rate pricing for LLC formation
  • Registered agent service to ensure legal compliance
  • Deadline tracking for annual reports
  • Free guides and calculators to avoid hidden fees