Montana LLC: The Lowest Filing Fee in America
Montana offers the lowest LLC filing fee in the United States at just $35. Combined with no annual report fee (currently) and no state sales tax, Montana is an increasingly popular choice for budget-conscious LLC owners.
The Big Sky State has been gaining attention in the LLC formation world for two reasons: rock-bottom costs and no sales tax. Montana is one of only five US states with no sales tax at all (the others are Alaska, Delaware, New Hampshire, and Oregon). This makes it particularly attractive for businesses selling physical products and — controversially — for vehicle registration.
The key uncertainty with Montana is stability. The state currently has no annual report fee for LLCs, but this is not guaranteed to continue. The Montana legislature has discussed introducing annual fees, and the policy landscape could change. Wyoming's $60/year, while more expensive than Montana's current $0, is predictable and has been stable for decades.
Montana is a solid choice if you want the absolute lowest formation cost today and are comfortable with potential future fee changes. For long-term predictability, Wyoming is safer. For zero annual costs with a longer track record, New Mexico is the better bet.
Montana LLC Costs and Fees
All fees below are sourced from the Montana Secretary of State website.
| Fee | Amount | When Due |
|---|---|---|
| Articles of Organization | $35 | One-time (at formation) |
| Annual report | $0 (through 2027) | No annual report currently required |
| Registered agent | $100-150/year (third party) | Ongoing |
| State income tax | 6.75% | On Montana-sourced income only |
| Sales tax | 0% | Montana has no sales tax |
| Franchise tax | $0 | No franchise tax |
| Expedited processing | $20 | Optional (1 business day) |
| Amendment | $15 | When needed |
| Certificate of Good Standing | $10 | When needed |
The cheapest LLC in America
At $35 to form and $0/year to maintain (currently), Montana is the cheapest state for LLC formation in the US. Over five years: $35 total in state fees. Wyoming: $400. Delaware: $1,590. The savings are substantial, but come with the uncertainty of potential future fee changes.
Step-by-Step: How to Form a Montana LLC
Step 1: Choose your LLC name
Search for available names on the Montana Business Entity Search. Your name must include "Limited Liability Company," "LLC," or "L.L.C." Name reservation costs $10 for 120 days.
Step 2: Appoint a registered agent
Every Montana LLC must have a registered agent with a physical street address in Montana. The agent can be a Montana resident or a business entity authorized to do business in Montana.
Step 3: File Articles of Organization
File online through the Montana Secretary of State or by mail. The filing requires:
- LLC name with designator
- Duration (perpetual or specific date)
- Registered agent name and Montana address
- Principal office address
- Organizer name and address
- Member-managed or manager-managed designation
- $35 filing fee
Step 4: Create an Operating Agreement
Montana does not require an Operating Agreement to be filed, but it is essential for banking and legal protection.
Step 5: Obtain an EIN
Apply for an EIN from the IRS. Standard process for all states.
Step 6: Open a bank account
Montana LLCs are accepted by US neobanks and traditional banks. The formation state does not typically affect bank account approval.
Annual Compliance Requirements
Montana currently has the lightest compliance requirements alongside New Mexico:
- Annual report: Not currently required. Montana may introduce this in the future.
- Federal tax filing: Form 5472 with pro forma 1120 for foreign-owned LLCs. Due April 15.
- Montana income tax: If you have Montana-sourced income, file a Montana income tax return (6.75%).
- Registered agent: Maintain a registered agent with a physical Montana address.
- FinCEN BOI Report: Required under the Corporate Transparency Act.
Montana Taxes for LLCs
| Tax Type | Rate | Notes |
|---|---|---|
| Personal income tax | 6.75% | Flat rate; only on MT-sourced income |
| Corporate income tax | 6.75% | Only on MT-sourced corporate income |
| Sales tax | 0% | Montana has no sales tax |
| Franchise tax | $0 | No franchise tax |
| Annual LLC fee | $0 (through 2027) | May change in future |
The Vehicle Registration Angle
Montana is widely known for vehicle registration without sales tax. Some people form Montana LLCs to register expensive vehicles (luxury cars, RVs, boats) and avoid paying sales tax in their home state. Here is what you need to know:
- It is legal to register a vehicle in Montana through an LLC — Montana has no sales tax on any purchase, including vehicles
- Your home state may still require use tax if the vehicle is primarily kept and used there
- Several states have cracked down on this practice, particularly for residents who register out-of-state to avoid their state's sales tax
- The savings can be significant: On a $100,000 vehicle in a state with 8% sales tax, you save $8,000 by registering in Montana
- Consult a tax professional: We do not provide tax advice, and the legality depends on your specific circumstances and home state laws
Vehicle registration disclaimer
USLLCGlobal does not provide tax advice regarding vehicle registration strategies. While forming a Montana LLC is legal, using it to avoid your home state's sales or use tax may violate your state's tax laws. Consult a qualified tax professional before using a Montana LLC for vehicle registration purposes.
Processing Times
| Processing Option | Time | Additional Fee |
|---|---|---|
| Standard processing | 3-5 business days | $0 |
| Expedited processing | 1 business day | $20 |
Pros and Cons of a Montana LLC
Advantages
- Lowest filing fee in the US ($35)
- $0 annual report (through at least 2027)
- No state sales tax
- No franchise tax
- Cheap expedited processing ($20)
- Low amendment fee ($15)
- Useful for vehicle registration (no sales tax)
- Simple compliance requirements
Disadvantages
- Annual fee stability uncertain (may change after 2027)
- 6.75% state income tax on MT-sourced income
- Less name recognition than Wyoming or Delaware
- Slower standard processing (3-5 days vs 1-3 for Wyoming)
- Vehicle registration angle may violate home state tax laws
- No charging order protection for single-member LLCs
- Smaller body of LLC case law than Delaware or Wyoming
Our Pricing: Montana LLC Formation
Domestic Filers (US Residents)
$249 service fee + $35 state filing fee
International Filers (Non-US Residents)
$349 service fee + $35 state filing fee
Every formation package includes:
- Articles of Organization filing with Montana Secretary of State
- One year of registered agent service in Montana
- Custom Operating Agreement
- EIN application
- Banking introduction letter
- Digital document delivery within 24 hours of state approval
- Compliance calendar with all filing deadlines
- Dedicated support via email and WhatsApp
Form your Montana LLC today
$284 all-in for US residents. $384 for international. The lowest formation cost in the US.
Start My Montana LLC →Comparing states? Our state comparison guide covers Montana alongside Wyoming, Delaware, and New Mexico.