Montana's healthcare compliance framework provides significant operational flexibility compared to restrictive jurisdictions. Montana repealed its Corporate Practice of Medicine doctrine in 1995, meaning you can structure your practice with more flexibility than colleagues in restrictive states like California or New York. However, healthcare professionals managing multiple entities face relentless compliance tracking across formation filings, annual reports, registered agent maintenance, and professional licensing coordination. Missing Montana's April 15 annual report deadline triggers immediate administrative dissolution—no grace period, no warning—while ownership restrictions under Montana Code Annotated § 35-4-301 require that professional entity shareholders be individuals licensed to render the same specific professional services, preventing physicians from co-owning with dentists, nurses, pharmacists, or other differently-licensed professionals.
Montana recognizes three distinct professional entity types for healthcare organizations. Professional Corporations (PCs) under MCA Title 35, Chapter 4 provide traditional corporate structures limited to single-profession ownership. Professional Limited Liability Companies (PLLCs) governed by MCA Title 35, Chapter 8, Part 13 offer liability protection with pass-through taxation benefits. Limited Liability Partnerships (LLPs) under MCA Title 35, Chapter 10, Part 7 allow existing partnerships to register for limited liability status. Professional Associations (PAs) are not recognized as a distinct legal entity type under Montana statutory law, requiring healthcare professionals to select from these three available options.
Professional Corporations (PCs)
Professional Corporations provide Montana healthcare organizations with traditional corporate governance structures while meeting profession-specific requirements. According to MCA § 35-4-205, PCs may be organized to render professional services and services ancillary to professional services within a single profession.
Professional corporation names must include "Professional Corporation" or "P.C." according to MCA § 35-4-206. Names must also conform to the rules of the licensing authority having jurisdiction over the particular professional service. Under MCA § 35-4-301, shareholders must be individuals licensed or otherwise legally authorized to render the same specific professional services as the professional corporation.
Professional Limited Liability Companies (PLLCs)
PLLCs combine liability protection with flexible management structures and pass-through taxation benefits. MCA § 35-8-1301 authorizes PLLCs to be organized for rendering professional services within a single profession.
PLLC names must include "professional limited liability company," "professional l.l.c.," "p.l.l.c.," or "pllc" according to MCA § 35-8-1302. Like professional corporations, MCA § 35-8-1304 restricts membership to natural persons authorized by law to render the professional service.
Limited Liability Partnerships (LLPs)
LLPs provide an alternative structure for existing partnerships seeking limited liability protection. To form an LLP, a partnership must register as one with the Montana Secretary of State, as established by MCA § 35-10-701. LLP names must contain "limited liability partnership," "l.l.p.," "llp," "p.l.l.p.," or "pllp" under MCA § 35-10-703.
Montana Does Not Enforce a Corporate Practice of Medicine Doctrine
Montana does not enforce a Corporate Practice of Medicine doctrine. The state explicitly repealed its CPOM statute through Senate Bill 134, Section 20, Chapter 378, Laws of 1995, eliminating MCA 50-1-201 without enacting replacement prohibitions. Review of Montana Board of Medical Examiners disciplinary records found zero enforcement actions involving corporate employment arrangements during 2020-2026.
This creates significant operational flexibility for Montana healthcare organizations. Physicians may be employed by hospitals and healthcare entities, and healthcare organizations may adopt corporate structures. Montana does not enforce a Corporate Practice of Medicine doctrine, as the statute was explicitly repealed in 1995 through Senate Bill 134, eliminating the prior restrictions that exist in more restrictive jurisdictions.
Montana healthcare professional entities use standard business formation documents without separate professional entity forms. The Montana Secretary of State processes all formation filings directly, and while names must conform to rules promulgated by the licensing authority, no separate licensing board approval or pre-approval is required before or after filing with the Secretary of State.
You can file formation documents directly with the Montana Secretary of State Business Services office. Entity formation authority rests exclusively with the Secretary of State, while licensing boards regulate individual practitioners rather than business entities. No separate approval from or notification to the Montana Board of Medical Examiners is required for entity formation.
The registered agent requirement under MCA § 35-7-105 mandates that all Montana business entities appoint a registered agent with a physical Montana street address. The agent's duties include forwarding legal process and maintaining current contact information according to MCA § 35-7-114.
Montana imposes strict annual compliance deadlines with immediate consequences for non-compliance. Montana imposes uniform annual compliance requirements on healthcare professional entities identical to general business entities, with no healthcare-specific filing obligations beyond standard Secretary of State and tax requirements.
Annual Report Requirements
All Montana entities must file annual reports by April 15 annually according to the Montana Secretary of State filing deadlines calendar. Montana Secretary of State Christi Jacobsen waived the annual report fee for filings submitted between January 1 and April 15, 2026, making the fee $0.00 during this period. The standard fee of $20.00 applies to reports filed before April 15 in non-waiver years, while reports filed after April 15 incur a $35.00 fee. Failure to file by April 15 results in administrative dissolution.
Failure to file by April 15 results in administrative dissolution, not a late fee but immediate loss of legal standing. Reinstatement requires $30.00 for professional corporations or $35.00 for professional LLCs, plus $35.00 per year of delinquent annual reports. You have five years from dissolution to complete reinstatement. Foreign entities cannot reinstate and must completely requalify according to Montana Secretary of State reinstatement instructions.
Corporate Income Tax Obligations
Montana does not impose a separate franchise tax or privilege tax. Professional corporations organized as C-corporations face corporate income tax obligations that PLLCs (pass-through entities) do not. According to Montana Form CIT Instructions 2024, the standard corporate income tax rate is 6.75% of Montana net income with a minimum tax of $50 per corporation.
Estimated tax payments are required quarterly if the corporation's estimated tax liability exceeds $5,000, with payments due April 15, June 15, September 15, and December 15 for calendar year filers (Montana Form CIT Instructions 2024).
Late filing penalties start at $50 minimum or 5% per month (maximum 25%). Late payment penalties range from 0.5% per month (maximum 12%) for regular tax to 1.5% per month (maximum 15%) for estimated taxes. Interest rates for 2025 are 11% annually for corporate income tax and 8% annually for pass-through entities according to Montana Revenue penalty and interest guidelines.
Recent Legislative Changes
Montana enacted significant legislation between 2023-2026 affecting healthcare professional entities. House Bill 152 (2023) established uniform licensing application procedures across all professional licenses, effective October 1, 2023. The legislation created provisional licenses and military spouse temporary licenses while revising licensure by endorsement for out-of-state healthcare professionals.
House Bill 303 (2025) provides protections for medical practitioners, healthcare institutions, and payers based on conscience objections to certain healthcare services. You must develop policies accommodating employee conscience objections while maintaining service obligations.
Montana's Emergency Care Provider licensing authority transferred from the Board of Medical Examiners to the Department of Labor EMS Program effective January 1, 2026, according to DPHHS EMS Advisory Committee documentation. Healthcare entities employing EMTs, paramedics, and AEMTs must update credentialing processes by this date.
Montana Board of Medical Examiners Requirements
Montana requires zero CME hours for physician license renewal. According to the Montana Board of Medical Examiners FAQ, Montana explicitly has no CME requirements for license acquisition or renewal.
Physician licenses renew biennially (every two years) through Montana's online eBiz portal, governed by Administrative Rules of Montana 24.156.615. Montana has no Continuing Medical Education (CME) requirements for license renewal. Maintaining active licensure requires compliance with all Board statutes and administrative rules under Montana Administrative Rules Chapter 24.156, including notification of changes in license status or disciplinary actions in other jurisdictions, good standing without unprofessional conduct violations as specified in ARM 24.156.405, and license verification including National Practitioner Data Bank reports.
Multi-Profession Entity Prohibition
Montana law prohibits multi-discipline co-ownership of healthcare professional entities through strict statutory restrictions. MCA § 35-4-301 requires professional corporation shareholders to be "individuals who are licensed or otherwise legally authorized to render the same specific professional services as the professional corporation." This statutory language creates an absolute bar against multi-discipline ownership: physicians cannot own shares in dental professional corporations, dentists cannot own shares in medical professional corporations, and any combination of different healthcare professional license types is prohibited.
Montana law permits co-ownership when all shareholders hold the same professional license type, with no percentage limitations among properly licensed co-owners. According to Montana Code Annotated § 35-4-301, only individuals "licensed or otherwise legally authorized to render the same specific professional services" may be shareholders—establishing an absolute categorical prohibition against multi-discipline co-ownership. Healthcare professionals from different disciplines cannot directly co-own the same professional entity under Montana law. However, Montana law permits indirect collaboration through Management Services Organizations (MSOs). Healthcare professionals from different disciplines can form separate professional corporations (each owned exclusively by same-licensed professionals), create a jointly-owned MSO, and contract between professional corporations and the MSO for shared administrative services while maintaining independent clinical decision-making within each entity to ensure compliance with healthcare practice standards.
Can non-physicians own or employ physicians in Montana?
Yes. Montana repealed its Corporate Practice of Medicine statute in 1995 and does not enforce CPOM restrictions. Montana law explicitly recognizes diverse business structures for medical practices under MCA 37-2-401, including professional corporations, professional limited liability companies, and partnerships. Hospitals, healthcare entities, and corporate organizations may employ physicians without violating state law.
What happens if a physician's license lapses while they own a healthcare professional corporation?
Montana law requires professional corporation shareholders to be "licensed or otherwise legally authorized to render the same specific professional services" according to MCA § 35-4-301. License lapse or suspension could trigger ownership restructuring requirements, though Montana statutes do not provide explicit procedures for this circumstance. Healthcare professionals should consult legal counsel immediately upon license status changes to determine compliance obligations and maintain good standing with both the Montana Secretary of State and the Montana Board of Medical Examiners.
Does Montana require separate annual reports for professional entities beyond standard business filings?
No. Montana imposes identical annual compliance requirements on healthcare professional entities as general business entities. All entities must file annual reports by April 15 with the Montana Secretary of State. The 2026 fee is waived for filings submitted between January 1 and April 15, 2026, according to the Montana Secretary of State announcement. After April 15, a $35 filing fee applies. No healthcare-specific annual filings are required beyond this standard obligation.
What are the key differences between forming a PC versus a PLLC in Montana?
Montana offers both Professional Corporations (PCs) and Professional Limited Liability Companies (PLLCs) for healthcare practices. The key differences: PCs must include "Professional Corporation" or "P.C." in their name and may face corporate income tax at 6.75% if structured as C-corporations according to Montana Form CIT Instructions. PLLCs use "professional limited liability company" or variations per MCA § 35-8-1302 and offer pass-through taxation, avoiding entity-level tax. Formation costs $35 for PCs, while PLLCs have a documented fee discrepancy ($35 or $70)—call (406) 444-3665 to verify current rates. Both require shareholders/members to hold the same professional license type under MCA § 35-4-301. Choose PLLCs for tax efficiency and operational flexibility, or PCs for traditional corporate structure. Both require annual reports by April 15 with identical compliance obligations.
Can physicians and dentists co-own a single healthcare professional entity in Montana?
No. Montana law prohibits multi-discipline co-ownership through MCA § 35-4-301, which restricts shareholders to individuals licensed to render "the same specific professional services." Physicians and dentists must form separate professional corporations. However, alternative structures using Management Services Organizations permit collaboration: separate professional corporations for each discipline can jointly own an MSO providing administrative services, billing, facilities management, and human resources support while maintaining clinical independence and independent medical decision-making within each professional corporation.
Healthcare entities managing multiple Montana corporations and LLCs face continuous compliance tracking: April 15 annual report deadlines, registered agent coordination, good standing verification, and professional license monitoring across every provider and entity. For practices managing 5, 10, or 50+ entities, manual compliance becomes overwhelming.
Discern automates Montana entity compliance management with certificate generation in 3 minutes, automated payment processing across multiple entities, and real-time tracking of annual report deadlines and registered agent status. Book a demo with Discern today and see how we eliminate administrative burden while ensuring your Montana entities maintain continuous good standing.
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