How to Get a Montana LLC Almost Free
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Free formation services file your Montana LLC at no charge — you cover only the state fee. The vehicle-titling loophole is now a felony elsewhere.
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Montana Secretary of State Business Filing Portal is the official online portal for filing your LLC. Free formation services file the same paperwork on your behalf at no charge — you pay only the $35 state fee. The annual report is $0 for 2026-2027 (waived by HB 337, 2025 session)[1], due April 15, with a $35 late fee after that.
Below: the real $35 breakdown, free filing services, the cheapest DIY path, and Montana's tax climate.
- What a Montana LLC actually costs
- What "free" means for a Montana LLC
- Free Montana LLC filing services
- How to form a Montana LLC for the lowest cost
- Montana operating agreement (recommended, not required)
- Hidden fees most guides miss
- Montana LLC formation timeline
- Special programs worth knowing
- Common Montana LLC mistakes
- Frequently asked questions
What a Montana LLC Actually Costs
A Montana LLC costs $35 to file Articles of Organization. The annual report is $0 in 2026-2027 (HB 337 waiver; $20 thereafter), due April 15 each year.[2] Montana has no general sales tax. State income tax is a 4.7%/5.65% two-tier rate (effective Jan 1, 2026).[3]
| Cost | Amount | When Due |
|---|---|---|
| Articles of Organization | $35 | Once, at formation |
| Annual Report | $0 (waived 2026-27, HB 337) | April 15, every year |
| Late annual report | $35 late fee + dissolution risk | If past due |
| State income tax (owner's return) | 4.7% / 5.65% two-tier (eff. Jan 1, 2026)[4] | Annually |
| Sales tax | None | — |
No, but Montana has the cheapest LLC fees in the country. The state charges $35 to file plus $0 a year — the annual report fee was waived for 2026-2027 by HB 337. Total cost: $35 once, then $0/year through 2027 (assumed $20 thereafter unless renewed).
What "Free" Means for a Montana LLC
"Free" can mean different things in Montana formations.
- Free filing service
A provider waives their service fee — but you still owe Montana's $35 filing fee. - Free EIN
The IRS issues EINs at no charge. - Free registered agent (year one)
Some providers waive the first-year RA fee. - Free operating agreement template
Free templates exist online. - Truly free formation
Doesn't exist. Montana charges $35 to file plus $0 annual report fee in 2026-2027 (HB 337 waiver), then $20/year thereafter.
Montana's LLC formation fee is among the country's cheapest. Combined with no general state sales tax and a moderate 4.7%/5.65% two-tier income tax (eff. Jan. 1, 2026), Montana is genuinely attractive — especially for retail or locally operated businesses that benefit from no statewide sales tax.
Free Montana LLC Filing Services
Several services file your Montana LLC paperwork at $0 — you pay only the $35 state fee.
Start Your LLC for $0 - Just Pay State Fees
- Get step-by-step guidance to form your LLC
- Check business name availability
- LLC formation processing within 14 business days
- Business coaching program (tax, compliance, marketing)
- Invoicing and bookkeeping (30-day trial)
Form Your LLC - $0 + State Filing Fees
- 100% Accurate Filing Guarantee
- File your Articles of Organization
- Check your business name
- Digital welcome packet
- Initial phone consultations on business insurance and taxes
Start Your Business - $0 + State Filing Fees
- Covers all your required filings with the state, 100% accuracy guaranteed.
- 1 year of Worry-Free Compliance (renews at $199/year)
- Standard filing speed
- Other services are available with additional costs
How to Form a Montana LLC for the Lowest Cost
The cheapest legal way to form a Montana LLC is to file directly with the Secretary of State.
- File Articles of Organization online via SOS
The fastest path is the state's Business Services portal.![Screenshot of Montana Secretary of State Business & UCC Services]( "Screenshot of Montana Secretary of State Business & UCC Services")
Screenshot of Montana Secretary of State Business & UCC Services Cost: $35.
- Be your own registered agent
An individual Montana resident or a qualifying business entity can serve as your registered agent at a Montana street address (PO boxes don't qualify). - Get a free EIN from the IRS
Apply directly with the IRS. - Draft your own operating agreement
Montana doesn't legally require an OA under MCA § 35-8. But strongly recommended. - File the Annual Report by April 15
$0 due in 2026-2027 (HB 337 waiver); $35 late fee applies after April 15.
Montana Operating Agreement: Recommended, Not Required
Montana doesn't legally require an LLC operating agreement under MCA § 35-8. But a written OA is strongly recommended.
What it should cover
- Member ownership percentages
- Profit/loss allocation
- Manager-managed vs. member-managed structure
- Voting rights
- Dissolution procedures
Montana LLC costs founders overlook: vehicle-titling risks, annual reports, local registrations
Three Montana LLC costs catch new owners by surprise.
- Vehicle titling through a Montana LLC can create legal exposure
Montana charges no sales tax on vehicle purchases. Some non-residents form a Montana LLC to title luxury cars, RVs, and other vehicles. While the arrangement may comply with Montana law, owners can still owe taxes, registration fees, penalties, or face fraud allegations in their home state if the vehicle is primarily based there. California, Tennessee, and other states have challenged such arrangements. - April 15 annual report deadline
Montana LLCs must file an annual report each year by April 15. Missing the deadline can cause the company to become delinquent and eventually face administrative dissolution if the filing remains outstanding. - Local business registrations may still apply
Montana does not require a general statewide business license, but cities may impose their own licensing, registration, or permitting requirements. Businesses operating in multiple municipalities may need to comply with each jurisdiction's rules.
Montana is one of just five U.S. states without a general state sales tax (Alaska, Delaware, New Hampshire, and Oregon are the others). Montana LLCs selling to in-state customers don't manage state sales tax collection — it saves administrative complexity. BUT: under South Dakota v. Wayfair (2018), states can require out-of-state sellers to collect their sales tax once sales exceed an economic-nexus threshold (commonly $100K in annual revenue or 200 transactions per state). Retail and e-commerce LLCs shipping into other states should track per-state thresholds. Note: Some Montana resort areas also have local resort taxes.
Montana charges no sales tax and no personal property tax on vehicles, so non-residents form Montana LLCs to title luxury cars and RVs and skip 6-10% sales tax in their home state. California's AG charged 14 people in 2024 with $1.8M in tax-evasion counts, and other states have followed. Legal in Montana, but criminal at home if the vehicle actually lives there.
Montana LLC Formation Timeline
A Montana LLC takes 1–3 business days to form online via SOS.
| Step | Standard Timing |
|---|---|
| Articles of Organization filing | 1–3 business days online |
| Get EIN from IRS | Instant online |
| Annual Report | April 15, every year |
Montana-Specific Programs Worth Knowing
- Big Sky Economic Development Trust Fund — Job-creation grants and planning funds delivered via local certified regional development corporations. Up to $7,500 per qualifying job created. Most useful for LLCs hiring W-2 staff.
- Indian Equity Fund Small Business Grant — Up to $14K for businesses owned by enrolled members of Montana's eight federally recognized tribes. Requires dollar-for-dollar match. Most recent cycle funded 26 Native-owned businesses with $320K.
- Montana SBIR/STTR Matching Funds — Up to $30K per phase to companies awarded federal SBIR/STTR contracts. Rolling applications, no deadline. Bridges federal awards into actual product development.
- MicroBusiness Finance Program — Loans up to $100K via certified Microbusiness Development Corporations. For firms with under 10 FTEs and under $1M revenue. Comes with technical assistance and underwriting support.
Common Mistakes That Cost Montana Founders Money
- Using a Montana LLC to title a vehicle that lives elsewhere
Legal in Montana, but criminal at home. Several states now prosecute this scheme as tax evasion. - Missing the April 15 annual report
Same date as your federal tax return — easy to miss in tax season chaos. Late filing risks admin dissolution. - Forgetting city registration
Helena, Billings, and Bozeman run their own systems. Operating without one risks a back tax assessment. - Naming a registered agent at an old address
Montana mails April 15 reminders to the agent on file. Move without updating, and you can miss the cycle.
Frequently Asked Questions
How long does it take to form an LLC in Montana?
Online: 1-3 business days. Paper: 4-6 weeks.
Is the Montana LLC vehicle-titling scheme legal?
Forming an LLC is legal in Montana. But titling a vehicle that primarily operates in another state can constitute tax evasion in that other state. Several have prosecuted it as a felony.
Can I form a Montana LLC if I don't live there?
Yes, you need a Montana-based registered agent with a physical street address. Most non-resident founders use a registered agent service.
Does Montana require an LLC operating agreement?
No, Montana law does not require LLCs to adopt an operating agreement under Mont. Code § 35-8-109 doesn't require one. But many banks and lenders will ask for one
Can I be my own registered agent?
Yes — if you have a Montana street address and can receive legal documents during business hours.
What happens if I miss the April 15 deadline?
Montana charges a late fee and administratively dissolves the LLC after extended delinquency. Reinstating requires filing missed reports plus a fee.
Are there state taxes on LLC income in Montana?
Yes, Montana has a two-tier income tax: 4.7% on lower brackets and 5.65% on the top tier (effective Jan 1, 2026; scheduled to drop further to 5.4% in 2027). LLC income flows through to owners' personal returns. No state sales tax.
Bottom Line
A truly free Montana LLC doesn't exist. But Montana's $35 filing fee is among the lowest in the country, and no state sales tax makes it especially attractive for retail/e-commerce LLCs.
If you're eager to get your Montana LLC started, our top recommended LLC formation service is Tailor Brands:
- Chase Business Complete Banking®:
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$1,200 Bonus
References
- ^ Montana Department of Revenue. HB 337: Annual Report Fee Waiver, Retrieved 05/13/2026
- ^ Montana Secretary of State. Business Services Division, Retrieved 04/29/2026
- ^ Montana Department of Revenue. Individual Income Tax, Retrieved 05/14/2026
- ^ Tax Foundation. State Individual Income Tax Rates and Brackets, 2026, Retrieved 05/13/2026
Charles Tran is the founder of CreditDonkey, a business formation services comparison and reviews website. Write to Charles Tran at charles@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
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