How to Form an LLC in Montana: Steps, Agent, and Filings

To form an LLC in Montana, you file Articles of Organization with the Secretary of State and pay the filing fee, after choosing a compliant business name and appointing a registered agent. The whole thing can be done online in one sitting at biz.sosmt.gov, though a few decisions are worth thinking through before you start. Montana has no general sales tax, which is part of why many small businesses set up here.1Montana Department of Revenue. Sales Tax Guidance for Montana Business and Residents

Pick a Name That Meets Montana’s Rules

Your LLC’s name has to include “Limited Liability Company,” “Limited Company,” or an abbreviation like “LLC” or “LC.” Montana also accepts “Ltd.” for “Limited” and “Co.” for “Company.” The name must be distinguishable from every other business entity, limited partnership, trademark, and trade name already on file with the Secretary of State.2Montana State Legislature. Montana Code 35-8-103 – Name Check availability through the Secretary of State’s business portal at biz.sosmt.gov before you get attached to anything.

Appoint a Registered Agent

Every Montana LLC needs a registered agent — a person or company designated to accept legal papers and official government notices for the business. The Articles of Organization require either the name of a commercial registered agent or the name and address of a noncommercial registered agent.3Montana State Legislature. Montana Code 35-7-105 – Appointment of Registered Agent

You can serve as your own agent if you have a Montana street address and are reliably available during business hours. Many owners hire a commercial service instead, which typically runs $35 to $350 per year depending on the provider. The main reason to pay for one is privacy, since the agent’s address appears on public filings in place of your home address.

File Your Articles of Organization

The Articles of Organization is the document that officially creates your LLC. Montana’s form asks for:

You can file online, by mail, or in person. Online through the ePass portal at biz.sosmt.gov is the fastest. The current filing fee is on the Secretary of State’s published fee schedule.6Montana Secretary of State. Business Services Filing Fees Mail submissions go to the Secretary of State’s office in Helena and take longer to process.

Decide Member-Managed or Manager-Managed

Montana gives you two options for running the business, and the choice goes into your Articles of Organization. It controls who can sign contracts, hire people, and otherwise bind the company.

In a member-managed LLC, every owner has authority to act as an agent of the company. This is the default under Montana law. If your Articles don’t specify manager-management, all members share control.7Montana State Legislature. Montana Code 35-8-301 – Agency Power of Members and Managers For a single-owner LLC, this distinction barely matters.

In a manager-managed LLC, the Articles vest management authority in one or more designated managers. A member who is not a manager cannot act as an agent of the company in that capacity.7Montana State Legislature. Montana Code 35-8-301 – Agency Power of Members and Managers That structure fits when you have passive investors who own a stake but shouldn’t be signing leases. Managers can be members, outside hires, or both.

Write an Operating Agreement

An operating agreement is an internal contract among the owners covering how the business runs: ownership percentages, how profits and losses get split, what happens when a member wants out, and how major decisions get made. Montana law permits an operating agreement but doesn’t require one, and for most purposes it doesn’t even have to be in writing.8Montana State Legislature. Montana Code 35-8-109 – Effect of Operating Agreement – Nonwaivable Provisions

Put it in writing anyway. A handshake works until it doesn’t, and if a dispute lands in court, the written agreement is what the judge reads. Single-member LLCs benefit from one too, because it reinforces that the LLC is a separate entity from its owner. That matters if a creditor ever argues the business is just a personal alter ego. The operating agreement is not filed with the state; keep it with your business records.

Get an EIN and Open a Business Bank Account

An Employer Identification Number is a federal tax ID from the IRS. You need one to open a business bank account, file taxes, and hire employees.9Internal Revenue Service. Employer Identification Number The application is free, and if you apply online during business hours, you’ll get your EIN immediately.10Internal Revenue Service. Get an Employer Identification Number

Once the EIN is in hand, open a dedicated business bank account. Keeping business and personal money completely separate is one of the best things you can do to protect the liability shield that forming an LLC gave you. When courts decide whether to hold owners personally responsible for company debts, they look for commingling — paying personal bills from business funds, or vice versa. A separate account makes that easy to defend against. Banks typically ask for the EIN, a copy of your Articles of Organization, and sometimes the operating agreement.

Know Your Tax Situation

By default, the IRS treats a single-member LLC as a “disregarded entity,” meaning you report business income on your personal return using Schedule C. A multi-member LLC is treated as a partnership by default, filing Form 1065 and issuing each member a Schedule K-1.

You can elect to be taxed as a C-corporation by filing Form 8832 with the IRS.11Internal Revenue Service. About Form 8832, Entity Classification Election You can also elect S-corporation treatment with Form 2553, which must be filed no later than two months and 15 days after the start of the tax year you want it to apply to.12Internal Revenue Service. Instructions for Form 2553 The S-corp route can trim self-employment taxes once profits exceed a reasonable owner salary, but it adds payroll and filing work. For most new LLCs, the default classification is the right call until the numbers justify switching.

Montana has no general sales tax, so there’s no sales tax permit to apply for.1Montana Department of Revenue. Sales Tax Guidance for Montana Business and Residents You’ll still owe Montana income tax on business profits, and if you hire employees you’ll need to register with the Montana Department of Revenue for withholding.

File the Annual Report Every Year

Every Montana LLC has to file an annual report with the Secretary of State between January 1 and April 15 each year. The first one is due in that window the year after formation. An LLC organized in 2026 files its first annual report between January 1 and April 15, 2027.13Montana State Legislature. Montana Code 35-8-208 – Annual Report for Secretary of State

The report confirms or updates the LLC’s name, registered agent, principal office address, and the names and addresses of your managers or members.13Montana State Legislature. Montana Code 35-8-208 – Annual Report for Secretary of State File it online at biz.sosmt.gov. If you file by April 15, there’s no fee. After April 15, a $35 late fee applies.6Montana Secretary of State. Business Services Filing Fees

Missing annual reports is a real problem, not just a paperwork lapse. The Secretary of State can administratively dissolve an LLC that falls behind, stripping it of its authority to do business, exposing members to personal liability for obligations the business takes on after dissolution, and freeing up the company name for someone else to grab. Put a reminder on the calendar for January.