How to form an LLC in Montana

Montana offers exceptional value for LLC formation with a $35 filing fee, streamlined online processing, and zero statewide sales tax. Built on the Montana Limited Liability Company Act (Title 35, Chapter 8, MCA), the state provides one of the most affordable, friction-free jurisdictions in America.

The Secretary of State's digital portal handles everything online, making formation a matter of clicks rather than paperwork. This simplicity extends beyond startup costs; you can operate without collecting state sales tax, though nexus rules in other states still apply.

Montana LLC formation requirements

Montana's business-friendly approach eliminates typical red tape while maintaining essential protections. The statutory framework sets precise requirements with predictable processing times and costs.

Requirement Details Deadline / Timeline
Name compliance Choose a distinguishable name ending with "LLC," "L.L.C.," "Limited Liability Company," "Limited Company," "LC," or "L.C." An optional reservation for 120 days costs $10. Reserve before filing if not ready to submit Articles.
Registered agent List a Montana resident or authorized business with a physical street address, available during business hours. Written consent required. Appoint in Articles and maintain continuously for good standing.
Articles of Organization File online with LLC name, principal address, registered agent, and organizer signature. Submit at formation; approval typically 5-6 business days.
Operating Agreement Not filed with the state but strongly recommended for ownership, governance, and distributions. Banks often require it. Draft immediately after state approval to protect the liability shield.

The filing process offers flexible timing options to accommodate different business needs and deadlines.

Filing Method Fee Processing Time
Online Articles of Organization $35 Typically 5-6 business days
24-hour expedite +$20 1 business day
1-hour expedite +$100 1 hour

Everything happens online through Montana's portal. Pay the $35 fee, select expedited options if needed, and download approved Articles to begin operations.

Step-by-step LLC formation process

The formation process consists of five manageable steps that leverage Montana's streamlined system for efficient business registration.

Step 1: Choose and reserve your LLC name

Montana requires names to be "distinguishable" from existing entities and include proper designators.

  • Search availability through the Secretary of State's business search
  • Include "LLC," "L.L.C.," "Limited Liability Company," "Limited Company," "LC," or "L.C." in your name
  • Reserve names for 120 days at $10—among the lowest costs nationwide
  • Avoid restricted words like "bank," "insurance," or "attorney" without proper licenses
  • Run USPTO searches to prevent trademark conflicts before committing

Step 2: Appoint a registered agent

Montana requires a registered agent with a physical Montana street address available during business hours.

  • Choose any adult Montana resident (including yourself if you live in-state)
  • Select a commercial registered agent service already listed with the Secretary of State
  • Obtain written consent even if acting as your agent
  • Maintain continuous compliance to avoid legal risks and operational complications
  • Consider commercial services for multi-entity management and privacy protection

Step 3: File Articles of Organization

Complete the formation through Montana's online portal for $35, entering all required information accurately. 

The filing requires your LLC name, principal address, and registered agent details, along with your chosen management structure, either member-managed or manager-managed. Include the organizer's signature and contact information, selecting "manager-managed" for institutional investor preferences.

Montana offers expedited options, including 24-hour processing for an additional $20 or one-hour processing for $100. Double-check all details before paying, since Montana doesn't refund filing mistakes. Standard processing typically takes 5-6 business days, making it one of the faster jurisdictions for LLC formation.

Step 4: Create an Operating Agreement

Montana doesn't require filing an Operating Agreement, but smart owners draft comprehensive documents before the Articles of Organization are approved.

  • Detail ownership percentages and capital contribution requirements
  • Establish management authority versus matters requiring member consent
  • Include distribution waterfalls and preferred return provisions
  • Add transfer restrictions with ROFR/ROFO and tag-along/drag-along rights
  • Cover indemnification and expense advancement for managers
  • Strengthen the liability shield and prevent governance disputes
  • Ensure Section 704(b) capital account compliance for tax purposes

Step 5: Obtain required licenses and permits

Montana eliminates general business licensing requirements while maintaining industry-specific compliance needs. Apply for your free EIN directly from the IRS online portal, which banks require alongside your Articles and Operating Agreement for account opening. 

Check city and county ordinances for local business licenses, as municipalities may impose their requirements despite the state's business-friendly approach. Verify whether your industry requires state-level professional credentials, particularly for regulated sectors like healthcare, finance, or legal services. 

Register for sales tax in states where you have nexus, remembering that Montana's sales tax advantage doesn't excuse obligations elsewhere.

Montana LLC ongoing compliance requirements

Maintaining good standing requires simple but critical annual obligations to preserve your liability protection.

  • Annual report: File online by April 15 with $20 fee, updating principal office, registered agent, and management information
  • BOI reports: As of March 2025, U.S. domestic LLCs (including Montana LLCs) are EXEMPT from Beneficial Ownership Information reporting requirements. Only foreign entities registered to do business in the U.S. must file BOI reports.
  • Registered agent maintenance: Maintain a compliant agent with a physical Montana address and business hour availability
  • Tax obligations: Choose federal tax status and comply with multi-state sales tax requirements where you have nexus

FAQs about LLC formation in Montana

How long does LLC formation take in Montana?

Online filings process within five to six business days, with expedited options available for faster processing.

What are Montana's main advantages for LLC formation?

The $35 filing fee, no statewide sales tax, and fully online processing with affordable expedited options.

Do I need to file BOI reports for my Montana LLC?

No. As of March 2025, U.S. domestic LLCs are exempt from BOI reporting requirements. Only foreign entities registered to do business in the U.S. must file these reports.

Streamline your Montana LLC formation with Discern

Discern automates your entire Montana LLC filing workflow, filing Articles, securing Montana-based registered agents, and tracking deadlines automatically.

Real-time status updates show filing progress, while post-formation compliance runs on autopilot. Ready to complete Montana formations in minutes with every deadline managed automatically? Book a demo today.

Graphic image of Montana state silhouette in grey on a dark teal background with white text that says 'How to Form an LLC in Montana' positioned on the left side
Author
The Discern Team
Published Date
August 15, 2025
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