How to Form an LLC in Montana (2026)
Reviewed by DocDraft Legal Team · Montana · Last updated 2026-08-06
A limited liability company (LLC) is a business structure that legally separates the company from the people who own it, so the owners are generally not personally responsible for the company's debts. Forming one in Montana means filing a formation document with a state agency and paying its fee to bring the company into legal existence. In Montana you create an LLC by filing the Articles of Organization with the Secretary of State and paying a $35 filing fee, one of the lowest formation fees in the country. Two features make Montana easier to run than most states. First, Montana charges no franchise tax and no annual minimum tax on LLCs, so there is no recurring state tax simply for existing. Second, the only ongoing state filing is an annual report to the Secretary of State, and Montana charges no fee to file it on time. Montana LLCs are governed by the Montana Limited Liability Company Act in Title 35, Chapter 8 of the Montana Code Annotated. This guide explains what an LLC is, the exact Montana steps and fees, and the deadlines that keep the company in good standing.
Find out where you stand in Montana
Where are you in forming your LLC?
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How do you form an LLC in Montana?
File the Articles of Organization with the Montana Secretary of State and pay the $35 filing fee. You must name a registered agent with a Montana address who can accept legal documents for the company. Once the Secretary of State accepts the filing, the LLC legally exists and you then file an annual report each year.
How much does it cost to form an LLC in Montana?
The Articles of Organization filing fee is $35, paid once to the Montana Secretary of State. Montana charges no franchise tax and no annual minimum tax on LLCs. Reserving a business name before you file is an optional $10. The yearly annual report has no filing fee when submitted on time.
Does a Montana LLC have to pay a franchise tax?
No. Montana does not impose a franchise tax or an annual minimum tax on limited liability companies. Unlike states that charge a flat yearly tax regardless of income, Montana requires only the annual report to keep the company active. Income from the LLC still passes through to the owners for regular state and federal income tax.
Does Montana require newspaper publication to form an LLC?
No. Montana does not require an LLC to publish notice of its formation in a newspaper. The Articles of Organization filing with the Secretary of State completes formation, with no separate publication step. This differs from New York, Arizona, and Nebraska, where publication is a condition of forming or operating an LLC.
Montana LLC formation at a glance
You form a Montana LLC by filing the Articles of Organization with the Secretary of State for a $35 filing fee, one of the lowest formation fees in the United States. What sets Montana apart is the low ongoing cost. Montana charges no franchise tax and no annual minimum tax on LLCs, so the company owes no recurring state tax simply for existing. The only ongoing state requirement is an annual report filed with the Secretary of State, and Montana charges no fee to file it on time. Every LLC must name and continuously maintain a registered agent with a Montana address to receive lawsuits and official state mail. Montana does not require newspaper publication of formation. If you want to hold a name before filing, Montana lets you reserve one for $10. The governing statute is the Montana Limited Liability Company Act, Title 35, Chapter 8 of the Montana Code Annotated.
Forming a two-owner Montana LLC, step by step
Suppose two friends in Bozeman want to open a small outfitting business as an LLC. First they search the Montana Secretary of State's business search to confirm their name is available and includes a designator such as LLC, and they can reserve the name for $10 while they prepare paperwork. Next they appoint a registered agent: one owner lives in Montana and agrees to serve, using a Montana street address, not a P.O. box, where legal papers can be delivered during business hours. They then file the Articles of Organization with the Secretary of State and pay the $35 filing fee. The LLC legally exists once the Secretary of State accepts it. Because they have two members, they also write an operating agreement setting each owner's percentage and how profits split, even though Montana does not require them to file it. They apply to the IRS for a free EIN so the partnership can file taxes and open a bank account. Finally they calendar the annual report, which they must file with the Secretary of State each year to keep the company in good standing. Montana charges no franchise tax and no annual minimum tax, so once the LLC is formed the recurring obligation is the annual report deadline, not a yearly state tax bill.
Relevant Laws
Montana Limited Liability Company Act (Title 35, Chapter 8, MCA)
The Montana Limited Liability Company Act governs the formation, management, and dissolution of every Montana LLC. It sets who may form an LLC, the required contents of the Articles of Organization, the registered agent requirement, and the default rules for member-managed and manager-managed companies. It is found in Title 35, Chapter 8 of the Montana Code Annotated.
Articles of Organization (filed with the Secretary of State)
A Montana LLC is formed by delivering Articles of Organization to the Montana Secretary of State for filing. The Articles state the LLC's name, its registered agent and Montana registered office, its principal address, and whether the company is member-managed or manager-managed. The filing fee is $35, and filings are submitted through the Secretary of State's business services portal.
Registered agent requirement
Montana requires every LLC to designate and continuously maintain a registered agent with a physical Montana street address, not a P.O. box. The agent, an individual residing in Montana or a business authorized to act as an agent in the state, receives lawsuits and official notices for the company. The agent's Montana address is listed on the Articles of Organization.
Annual report to the Secretary of State
Montana requires each LLC to file an annual report with the Secretary of State to confirm the company's current address, management, and registered agent. The report keeps the LLC in good standing and active. Montana charges no fee to file the annual report on time. Missing the deadline can lead the Secretary of State to place the company out of good standing.
IRS federal tax classification (default pass-through)
The IRS does not tax the LLC as a separate category. By default a single-member Montana LLC is disregarded and taxed like a sole proprietorship, and a multi-member LLC is taxed as a partnership, with income passing through to the owners. An LLC may instead elect S corporation or C corporation treatment. This federal classification is separate from Montana state income tax on the pass-through income.
Regional Variances
How forming an LLC in Montana differs from other states
A low $35 filing fee
Montana's $35 Articles of Organization fee is among the lowest in the country. Many states charge $100 or more to form an LLC, and some charge several hundred dollars. The low entry cost makes Montana one of the cheaper states to bring an LLC into existence, though where you actually do business usually decides where you should register.
No franchise tax or annual minimum tax
Montana imposes no franchise tax and no flat annual tax on LLCs. States like California charge a minimum annual tax regardless of income, and Delaware charges a flat annual LLC tax. In Montana the company owes no recurring state tax simply for existing, only regular income tax on the profits that pass through to the owners.
Annual report with no filing fee
Montana's only ongoing state filing is an annual report to the Secretary of State, and it carries no fee when filed on time. Many states charge an annual or biennial report fee. In Montana the recurring obligation is the deadline itself, not the cost, so the main risk is forgetting to file.
No newspaper publication requirement
Montana does not require you to publish notice of formation in a newspaper. New York, Arizona, and Nebraska do, which adds cost and a deadline. A Montana LLC is complete once the Secretary of State accepts the Articles of Organization, with no publication step.
Formation document and filing office
Montana uses the Articles of Organization, filed with the Montana Secretary of State through its online business services portal. Some states call the document a Certificate of Formation or Certificate of Organization, and some route filings through a Division of Corporations rather than the Secretary of State.
Suggested Compliance Checklist
Confirm your LLC name is available and compliant
Before filing days after startingSearch the Montana Secretary of State's business search to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with the Secretary of State for $10 while you prepare your Articles of Organization.
Appoint a registered agent
Before filing days after startingMontana requires a registered agent with a physical Montana street address who is available during business hours to accept legal documents. Decide whether you, a co-owner who lives in Montana, or a commercial registered agent service will serve. You will name the agent on the Articles of Organization, so settle this first.
File the Articles of Organization with the Secretary of State
To create the LLC days after startingFile the Articles of Organization with the Montana Secretary of State through its online business services portal and pay the $35 filing fee. The LLC legally exists only once the Secretary of State accepts it. Keep the filed confirmation as proof of formation.
Adopt an operating agreement
At or soon after formation days after startingPut the ownership percentages, profit split, management structure, and exit rules in writing. Montana does not require you to file an operating agreement with the state, but it governs how the LLC runs and overrides the statute's default rules. Attorney review of the agreement is available as an option through DocDraft.
Get a federal EIN from the IRS
Before opening a bank account or hiring days after startingApply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate.
File the annual report with the Secretary of State each year
Each year, on Montana's annual report schedule days after startingFile the annual report with the Montana Secretary of State each year to confirm the LLC's address, management, and registered agent and keep the company in good standing. Filing on time carries no fee. Missing the deadline can trigger a penalty and loss of good standing, so calendar it when you form.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm your LLC name is available and compliant | Search the Montana Secretary of State's business search to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with the Secretary of State for $10 while you prepare your Articles of Organization. | - | Before filing |
| Appoint a registered agent | Montana requires a registered agent with a physical Montana street address who is available during business hours to accept legal documents. Decide whether you, a co-owner who lives in Montana, or a commercial registered agent service will serve. You will name the agent on the Articles of Organization, so settle this first. | - | Before filing |
| File the Articles of Organization with the Secretary of State | File the Articles of Organization with the Montana Secretary of State through its online business services portal and pay the $35 filing fee. The LLC legally exists only once the Secretary of State accepts it. Keep the filed confirmation as proof of formation. | - | To create the LLC |
| Adopt an operating agreement | Put the ownership percentages, profit split, management structure, and exit rules in writing. Montana does not require you to file an operating agreement with the state, but it governs how the LLC runs and overrides the statute's default rules. Attorney review of the agreement is available as an option through DocDraft. | llc-operating-agreement | At or soon after formation |
| Get a federal EIN from the IRS | Apply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate. | - | Before opening a bank account or hiring |
| File the annual report with the Secretary of State each year | File the annual report with the Montana Secretary of State each year to confirm the LLC's address, management, and registered agent and keep the company in good standing. Filing on time carries no fee. Missing the deadline can trigger a penalty and loss of good standing, so calendar it when you form. | - | Each year, on Montana's annual report schedule |
Frequently Asked Questions
An LLC, or limited liability company, is a business structure that separates the company from its owners as a matter of law. The owners, called members, are generally not personally liable for the company's debts or lawsuits, so a creditor usually cannot reach a member's home or personal savings for a business obligation. In Montana, LLCs are created under the Montana Limited Liability Company Act in Title 35, Chapter 8 of the Montana Code Annotated, and they combine that liability protection with pass-through taxation and lighter paperwork than a corporation.
You file the Articles of Organization with the Montana Secretary of State through its online business services portal. The filing fee is $35, one of the lowest formation fees in the country, paid once. The Articles list the LLC's name, its registered agent and Montana registered office, the principal address, and whether the company is member-managed or manager-managed. The LLC legally exists only once the Secretary of State accepts the filing.
Montana requires each LLC to file an annual report with the Secretary of State once a year to confirm the company's current address, management, and registered agent. Filing on time carries no fee, so the recurring obligation in Montana is the deadline itself, not a cost. A late filing can trigger a penalty and, if ignored, loss of good standing. Confirm the current annual report window on the Secretary of State's business services pages, since dates can change.
Yes. If you want to hold a name while you prepare your paperwork, Montana lets you reserve an available name with the Secretary of State for $10. First search the Secretary of State's business search to confirm the name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Reservation is optional, and many filers skip it and file the Articles of Organization directly.
Yes. Montana requires every LLC to name and continuously maintain a registered agent with a physical Montana street address, not a P.O. box, but you can serve in that role yourself if you live in Montana. You can also name a co-owner who lives in the state or hire a commercial registered agent service. The agent accepts lawsuits and official state mail, and you list the agent on the Articles of Organization, so decide before you file.
The difference is a federal default the IRS applies, not a Montana filing. A single-member Montana LLC is disregarded by default and taxed like a sole proprietorship, while a multi-member LLC is taxed as a partnership, with income passing through to the owners either way. Both can instead elect S corporation or C corporation treatment. Montana charges no franchise or annual minimum tax on the LLC, so profits are taxed only as they pass through to the owners' returns.
Montana's published processing time for business filings is about 10 working days, and expedited processing may be available for an added fee. Online filings are generally handled faster than mailed ones. Your LLC legally exists once the Secretary of State accepts the Articles of Organization, not when you submit them, so keep the filed confirmation as proof of formation and check the Secretary of State's site for current timelines.
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