Requirements to form an LLC in Montana

Creating a Montana LLC involves a series of legal steps outlined in the Montana Limited Liability Company Act. Skip any of these requirements, and you risk rejected filings, compromised liability protection, and ongoing compliance problems that can lead to administrative dissolution.

These requirements cut across naming requirements, registered agent requirements, Articles of Organization filing, operating agreement considerations, and ongoing compliance obligations like annual reports. Montana's recent fee reduction from $70 to $35 and online-only filing system provide cost savings and streamlined processing, but the state maintains strict enforcement of formation and compliance requirements.

1. Name requirements

Your LLC name must end with "Limited Liability Company," "LLC," "L.L.C.," "Limited Company," "LC," or "L.C." Montana won't process your Articles of Organization without this suffix.

Next comes uniqueness. Your name must be distinguishable from every other business already registered in Montana. Check the Montana Secretary of State's Business Search Database before filing, or you'll waste $35 on a rejected application.

Some names are off-limits regardless of uniqueness:

• Words suggesting government connections are banned outright (like "State," "Federal," "Treasury")
• Terms like "bank," "trust," "insurance," or professional titles require approval from relevant licensing boards
• Obscene or misleading terms get automatic rejection
• Professional titles like "attorney" or "physician" need special authorization

Need time to get your paperwork together? Reserve your chosen name for 120 days by paying $10 through the online system. This step is optional, but it protects your preferred name while you handle formation details or secure funding.

2. Registered agent requirements

Montana requires every LLC to continuously maintain a registered agent within the state borders. This person or company must have a physical Montana street address to receive legal documents, tax notices, and official mail. P.O. boxes are prohibited under state law.

You have two choices:

• Any Montana resident who is at least 18 and willing to be present at their address during business hours can serve. 
• Hire a professional service that's authorized to operate in Montana. These commercial agents keep your personal address private, guarantee daytime availability, and often include document scanning and compliance reminders.

Either way, your registered agent must provide written consent to serve. Montana requires immediate notification of any changes to prevent service of process problems that could result in loss of good standing and administrative dissolution.

Professional registered agent services typically cost $100-$150 annually and provide privacy protection, guaranteed availability, and systematic document handling that prevents missed legal notices.

3. Articles of Organization requirements

Montana requires online-only filing for all LLC formations—no paper submissions are accepted. The Secretary of State's system processes most filings immediately upon submission.

Articles of Organization need these essential elements:

• Your LLC's legal name that follows Montana naming rules
• Street address for your principal business location
• Registered agent's name and Montana street address
• Management structure designation (member-managed or manager-managed)
• Names and mailing addresses of organizers, members, or managers
• Brief purpose statement ("any lawful purpose" works for most businesses)

The filing fee is $35, payable by credit card during online submission. Expedited processing options include $20 for 24-hour processing or $100 for one-hour processing when immediate approval is needed.

Most standard filings receive immediate approval, making Montana one of the fastest states for LLC formation processing.

4. Operating Agreement requirements

Montana doesn't require an Operating Agreement, but smart business owners never skip it. This internal document establishes clear rules for your company and shows banks, investors, and courts that you're running a legitimate business structure separate from personal affairs.

The agreement defines ownership percentages, decision-making authority, and profit distribution among members. Since you don't file it with the Secretary of State, you maintain complete privacy while retaining flexibility to change terms as your business evolves.

A solid Montana Operating Agreement typically covers:

• Member names and ownership percentages
• Capital contributions and additional funding procedures
• Voting rights and management structure (member-managed vs. manager-managed)
• Procedures for admitting new members or transferring interests
• Allocation of profits, losses, and distributions
• Meeting requirements and record-keeping expectations
• Dispute-resolution methods and buyout provisions
• Events that trigger dissolution and the winding-up process

For single-member LLCs, an Operating Agreement demonstrates business separation from personal affairs, strengthening liability protection. Multi-member LLCs especially benefit from written agreements preventing costly disputes over ownership, management decisions, and financial distributions.

5. Initial and ongoing compliance requirements

Getting your Articles of Organization approved is just the start. Once Montana stamps your paperwork, several federal and state requirements kick in, each with different deadlines and consequences.

You'll need an Employer Identification Number from the IRS right away to open a bank account and maintain liability protection. Check with the Montana Department of Commerce for industry-specific licensing requirements.

Montana requires annual reports filed between January 1 and April 15 each year. The state waived the $20 fee for 2025, but normally costs $20 annually. Missing the deadline triggers a $15 late fee, and failure to file by December 1 results in administrative dissolution.

Additionally, your registered agent information must stay current. If your agent quits or moves, you have a small window to update the Secretary of State or risk loss of good standing and dissolution.

Consequences of non-compliance

Skip one filing deadline or let your registered agent information expire, and Montana quickly escalates consequences. This includes:

• Loss of good standing status for missed annual reports
• Administrative dissolution after extended non-compliance
• Elimination of the ability to sue or defend in Montana courts
• Contract enforceability problems affecting business operations
• Financing complications and banking relationship issues
• $35 reinstatement fee plus all missed annual reports and accumulated penalties

Ensure Montana LLC compliance with Discern

Discern automates Montana formation requirements, provides professional registered agent services, and tracks annual report deadlines automatically.

Ready to streamline your Montana compliance alongside your other state obligations? Book a demo of Discern today.