Avoid surprises, stay compliant, and keep your tags active—here’s what you need to know before your LLC renewal deadline hits.
What Is an Asset-Holding Montana LLC—and Why Should You Care?
If you’ve got a high-end RV, exotic car, supercar, off-road toy, or custom rig registered in Montana through an LLC, you already know the magic of skipping sales tax and dodging DMV drama in your home state.
But here’s the catch: owning a Montana LLC isn’t a “set it and forget it” deal. Like your oil changes and tire rotations, it needs annual maintenance—or things can go sideways, fast.
Whether you used Dirt Legal or another service to set it up, here are four critical things to know about renewing your asset-holding Montana LLC so you don’t get hit with fees, lose your registration, or—worst case—have your entire setup challenged by your home state.
Let’s break it down.
1. Your Montana LLC Must Be Renewed Every Year
When it comes to keeping your Montana asset‑holding LLC active and compliant, the single most important job each year is filing your Annual Report with the Montana Secretary of State. This is what keeps your LLC in “good standing” so it can continue to own and register your car, RV, or other toys.
Here’s what matters most:
- Due date
- The Annual Report is due every year by April 15 for existing Montana LLCs.
- If you miss the deadline, the state will mark your LLC as delinquent and can later move to administratively dissolve it if you still do not file.
- Filing fee and late fee
- The standard online Annual Report fee for a domestic Montana LLC is relatively low (commonly around $20).
- Filing after the deadline adds a statutory late fee (often about $15), and waiting too long can lead to extra costs for reinstatement.
- What the Annual Report actually does
- Confirms or updates your LLC’s:
- Registered agent and Montana registered office
- Principal or mailing address
- Managers or members on record
- Keeping this current is important not just for compliance, but so service of process and official mail get to you or your service provider correctly.
- Confirms or updates your LLC’s:
- What happens if you blow it off
- If you ignore the Annual Report long enough, your LLC can be administratively dissolved, which effectively kills the entity that owns your vehicle or other asset.
- Once dissolved, you generally must either:
- Pay additional fees and file to reinstate the LLC, or
- Form a brand‑new LLC and retitle your vehicles into the new entity, triggering fresh title/registration fees and a lot of paperwork.
- Where Dirt Legal fits into this
- Companies like Dirt Legal focus on turnkey Montana vehicle LLC setups and renewals, especially for out‑of‑state owners who never set foot in Montana.
- Their packages commonly include:
- Acting as your Montana registered agent (so you meet the in‑state address requirement).
- Tracking your Annual Report due date and sending reminders.
- Filing the Annual Report for you each year so your LLC stays in good standing without you logging into the state system.
- Because they also handle your Montana vehicle registration renewals, keeping the LLC compliant is built into the process; if the LLC ever went inactive, it could block your ability to renew plates or process title work in the LLC’s name.
2. Vehicle Registration Is Separate—and Your LLC Must Be Active to Renew
Here’s a big one that trips up a lot of people: renewing your Montana vehicle registration and renewing your LLC are two completely different things.
Even if your tags are current, you cannot renew your Montana registration if your LLC is inactive.
Here’s how it breaks down:
- LLC Renewal = Annual Report with Montana Secretary of State
- Vehicle Registration Renewal = Through the Montana Motor Vehicle Division (MVD)
So, even if your Lambo or Prevost is garage-queen status and hasn’t moved in months, you’ll hit a brick wall at the DMV if your LLC isn’t in good standing.
Registration Options:
- Standard Registrations: Renew every 12 months
- Permanent Registration: Available for motorcycles and light vehicles over 11 years old. That’s a one-time fee, but heads up—you still need to file your LLC Annual Report each year.
Ways to Renew Vehicle Registration:
- Online via the Montana MVD portal
- By mail with the local county treasurer listed on your plate
- Through a third-party service like Dirt Legal, which can handle everything from Annual Report filing to plate renewal and mail forwarding
The bottom line: Your vehicle tags are only valid if the LLC behind them is, too.
3. Know the Real Costs and Deadlines (So You Don’t Get Blindsided)
So how much does it really cost to keep your Montana LLC and tags current?
Here’s a breakdown of the typical recurring costs you should expect each year:
LLC Annual Report Fee
- Montana charges $20 for domestic LLCs
- File after April 15? That’s another $15 late fee
- File late enough and you risk dissolution
Registered Agent & Mail Forwarding
- Montana law requires every LLC to have a registered agent with a physical address in the state (no P.O. Boxes allowed)
- Many services charge $50 to $150 per year, depending on whether they include:
- Mail forwarding
- Automatic Annual Report filing
- Document scanning
- Vehicle registration reminders
Montana DMV Registration Fees
- Varies based on vehicle type and age
- Example:
- Newer light vehicles: $217 base fee
- Permanent registration (for older vehicles): one-time fee (can be $87.50–$250+)
- Plus county option taxes and MVD admin fees
- See the full fee schedule here
Service Provider Fees (If You Use One)
- Companies like Dirt Legal often offer all-in-one renewal packages
- These may include:
- LLC Annual Report filing
- Registered agent service
- Vehicle registration and plate shipping
- Optional compliance reminders
Tip:
If you’re busy or just want to “set it and forget it,” paying for a bundled service can save you from missing deadlines or scrambling to fix expensive mistakes.
4. Understand the Compliance Risks—Especially If You’re Out of State
You’ve heard the stories: someone buys a Ferrari, registers it through a Montana LLC, and thinks they’ve hacked the system. But then their home state comes knocking.
Don’t be that person.
Here’s what to know about tax compliance when renewing your Montana asset-holding LLC:
Montana Allows This Structure—But Other States Might Not
- Montana law permits LLCs and corporations to own property in the state without physical residency.
- See SOS guidance for out-of-state owners.
- But other states (like California, New York, Texas, etc.) may see this setup as tax evasion, especially if the vehicle is:
- Garaged in your home state
- Regularly driven there
- Insured with an out-of-state address
You Could Be Liable for:
- Back sales or use taxes
- Penalties and interest
- Invalid insurance claims (if your policy info doesn’t match where the car is used)
Federal Tax Classification
- If your LLC has one owner and no business activity, it’s typically a “disregarded entity” for federal taxes—meaning income and expenses flow through your personal tax return.
- But always check with a CPA, especially if:
- You added members
- You lease or rent the vehicle
- You’re using the LLC for anything beyond asset holding
Best Practices at Renewal Time:
- Update your mailing address and contact info with the SOS and MVD
- Review your operating agreement—make sure it reflects actual usage
- Confirm your insurance, title, and registration all list the LLC as owner
4 Important Things to Know About Renewing Your Asset Holding Montana LLC, Answered.
Do I have to renew my LLC every year after?
Yes. Like most businesses, an LLC must stay in good standing by completing annual state requirements. If you formed a Montana LLC, that typically means filing an annual report and keeping your registered agent active. Staying current ensures your LLC remains valid and your vehicle registration stays tied to an active entity.
What Is the Cost to Keep Your LLC Active?
The cost to keep your LLC active depends on state filing requirements and ongoing maintenance such as registered agent service. For a Montana LLC, the most common recurring costs include:
Annual state filing fee for the LLC annual report
Registered agent fee
Any optional bookkeeping or compliance support you choose to add
If you maintain the LLC properly, these costs are predictable and relatively low compared to the potential savings for high value vehicle purchases.
What is an asset holding LLC?
An asset holding LLC is a limited liability company created primarily to own assets rather than operate a traditional business. The asset can be a vehicle, RV, boat, trailer, or other high-value property. The LLC exists to hold and manage ownership cleanly and consistently, and in many cases can simplify registration, protect privacy, and help organize ownership for individuals or families with multiple vehicles.
Can I avoid taxes with a Montana LLC?
A Montana LLC can reduce or eliminate certain taxes depending on your home state, your vehicle type, and how the vehicle is purchased and registered. Montana does not charge a general sales tax, which is why many buyers choose to register qualifying vehicles there. However, tax outcomes vary by situation and state rules, and your home state may still enforce use tax or other compliance requirements. The best approach is to review your specific scenario so you understand what is legal, realistic, and worth it.
Stay Ahead of the Game (and Out of Trouble)
Renewing your asset-holding Montana LLC isn’t just about checking boxes—it’s about protecting your investment.
Whether you’re rolling in a G-Wagen, hauling a fifth-wheel, or collecting classics, the key to keeping your Montana setup compliant is timing and accuracy.
Act early, file on time, and keep your LLC and registration in sync. That way, you can enjoy the benefits—like skipping thousands in sales tax—without inviting risk.
Need help with renewals? Dirt Legal can handle your Annual Report, vehicle registration, mail forwarding, and compliance tracking, all in one go. One payment, no headaches, no late fees.
TL;DR – Montana LLC Renewal Checklist:
- File your Annual Report by April 15
- Keep your LLC in good standing to renew your tags
- Budget for SOS fees, DMV fees, and registered agent costs
- Understand the compliance risks in your home state
- Use a service like Dirt Legal to stay ahead of deadlines
