Forming an LLC in Montana is a straightforward, fully online process, but it’s important to understand why people choose Montana, how the state’s rules actually work, and what ongoing obligations come with maintaining an LLC. This guide walks through how to create a Montana LLC from start to finish, using official state and federal resources throughout.
Why Create an LLC in Montana?
Many business owners consider Montana because it offers a combination of tax simplicity, asset protection, and administrative efficiency.
Pass-through taxation
By default, Montana LLCs are treated as pass-through entities for tax purposes, meaning profits and losses pass directly to the owners’ personal tax returns rather than being taxed at the entity level.
This aligns with IRS guidance on LLC tax classification and is one of the most common reasons entrepreneurs choose the LLC structure.
No statewide sales tax
Montana is one of the few states without a general statewide sales tax, as confirmed by the Montana Department of Revenue.
This feature is often attractive for certain businesses and asset-holding LLCs, although it does not eliminate income tax obligations or tax responsibilities in other states.
Limited liability protection
An LLC separates the business from its owners, helping protect personal assets from most business debts and liabilities. Montana follows standard LLC liability protections described in formation guides from resources such as LLC University and Nolo.
Step-by-Step: How to Form a Montana LLC
1. Decide If a Montana LLC Is Right for You
Before filing, evaluate whether Montana is the appropriate state for your situation.
If your business primarily operates in another state, you may still be required to register as a foreign LLC and pay taxes there. Many states broadly define “doing business” to include having employees, owning property, or conducting ongoing commercial activity.
Resources like Northwest Registered Agent’s Montana foreign LLC guidance explain how these rules work in practice.
Some owners form Montana LLCs solely to hold assets, such as vehicles or equipment, rather than to operate a local business. Because of these complexities, authoritative formation guides recommend consulting a tax professional before forming an out-of-state LLC, especially for non-residents or foreign owners.
2. Choose a Name for Your Montana LLC
Montana regulates business names through the Montana Secretary of State. Your LLC name must:
- Include an approved designator such as “Limited Liability Company,” “LLC,” or “L.L.C.”
- Be distinguishable from other businesses already registered with the state
You can check name availability using the Secretary of State’s online business search tool.
3. Create an Account With the Montana Secretary of State
Montana uses a fully online system for business filings. To get started, create an account through the Montana Secretary of State’s Business & UCC Services portal.
After creating a profile, you can access formation forms, manage filings, and submit annual reports through the same dashboard. The Secretary of State’s Business Help Center provides guidance if you need assistance.
4. Appoint a Montana Registered Agent
Every Montana LLC must maintain a registered agent with a physical street address in the state. P.O. boxes are not allowed. The registered agent must be available during normal business hours to receive official correspondence. A member with a Montana address can serve, or you can hire a commercial registered agent service, as outlined by Northwest Registered Agent.
5. File the Montana Articles of Organization
The Articles of Organization are the official formation document. File them electronically through the Montana Secretary of State’s Forms & Online Filing system.
Typical information includes:
- LLC name
- Business purpose
- Principal office address
- Registered agent name and physical address
- Management structure
- Organizer information and electronic signature
Verify the current filing fee directly on the Secretary of State’s website.
6. Draft an LLC Operating Agreement
Montana does not require filing an operating agreement, but guides from LLC University and Commenda emphasize its importance.
It outlines ownership percentages, capital contributions, profit/loss allocations, voting rights, and management authority. Multi-member LLCs especially benefit from a written agreement to prevent disputes.
7. Obtain an EIN (Employer Identification Number)
Most LLCs need an EIN from the IRS for tax reporting, banking, or if foreign-owned. Apply online or via Form SS-4 at no cost.
Understanding Montana LLC Taxes
Default LLC Tax Treatment
By default, single-member LLCs are taxed as disregarded entities, and multi-member LLCs as partnerships. Montana generally follows this federal classification. Multi-member LLCs file partnership returns and issue Schedule K-1s, as explained by LLC University.
Montana Income and Corporate Taxes
Montana imposes individual income tax on residents and non-residents earning Montana-source income.
Electing corporate tax at the federal level subjects the LLC to Montana’s corporate tax, per Nolo’s Montana LLC tax guidance.
No Statewide Sales Tax
Montana does not have a general statewide sales tax (Montana Department of Revenue). Other tax obligations may still apply.
Special Considerations for Non-Residents and Foreign Owners
Non-Resident U.S. Owners
Non-residents can own Montana LLCs but must evaluate registration requirements in other states. Wise’s Montana foreign LLC guide explains when foreign registration is needed.
Foreign (Non-U.S.) Owners
Foreign single-member LLCs must file IRS Form 5472 annually with a pro forma Form 1120, even with no income. An EIN is also required.
Ongoing Compliance for Montana LLCs
Filing the Montana Annual Report
File online by April 15 each year through the same portal. Late submissions incur higher fees, and missing deadlines can lead to administrative dissolution.
Maintaining Good Standing
LLCs must remain current on tax filings with the Montana Department of Revenue and the IRS to retain good standing.
How Dirt Legal Can Simplify Montana LLC Formation and Vehicle Registration
Forming a Montana LLC—especially for vehicles, RVs, or other titled assets—can be confusing, but Dirt Legal streamlines the process.
We guide everyday drivers through Montana LLC formation and handle vehicle registration, digitally and efficiently, so you don’t have to navigate multiple agencies alone.
When you work with Dirt Legal:
- Montana plates ship in as little as 1 day
- Titles typically arrive in about 2 weeks
- Temporary tags are issued the same day
Dirt Legal ensures vehicles are properly registered and road-ready, offering a smooth, hassle-free experience whether you’re registering a car, truck, RV, motorcycle, or specialty vehicle through a Montana LLC.
Explore Dirt Legal services to see how easy Montana LLC formation and registration can be.
