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Perhaps you are hoping to form a Montana LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Montana.
On this page, you’ll learn about the following:
Montana LLC Cost of Filing
Here are the costs involved in forming an LLC in Montana.
Cost of Filing Formation Certificates
The Montana Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Montana Secretary of State.
Montana Domestic LLC
- Online Filing costs $70.
- Annual Report filing costs $20
- Name Reservation fee costs $10
- By Mail: Fill out the application form, and send it to LINDA McCULLOCH, Secretary of State, P.O. Box 202801, Helena, MT 59620-2801. Costs $70.
Montana Foreign LLC
- Online Filing costs $70.
- Annual Report filing costs $20
- Name Reservation fee costs $10
- By Mail: Fill out the application form, and send it to LINDA McCULLOCH, Secretary of State, P.O. Box 202801, Helena, MT 59620-2801. Costs $70.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Montana LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Montana, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Montana Department of Revenue for regulatory boards or agencies requiring licensing.
Montana Business Taxes To Be Paid by LLCs
Forming an LLC (Limited Liability Company) is definitely a better option for reducing the costs spent via taxes. However, there will be certain taxes and other costs to be paid by the LLCs in Montana. You will be paying taxes to the federal government as well as Montana Government for your LLC.
State Taxes
While representing your LLC in Montana, pay yourself. These earnings are reflected in your personal Tax return & can be calculated at the time of paying the Income Tax.
The Standard Montana State Tax rate ranging from 1% to 6.9 % applies to your earnings. You can claim all the standard allowances & deductions upon filing the tax return.
The state of Montana is among those five states, which do not charge Sales & Use Tax on Goods & Services. This means lesser costs on your goods & services sold in the State of Montana.
Federal Taxes
In addition to the State taxes paid by your LLC, you also have to pay two kinds of Federal Taxes. Those taxes are :
Federal Self-Employment Tax
Every member of the LLC, such as a member or manager of the Montana LLC, who earns profit out of the LLC is liable to pay the Federal Self-Employment Tax. This Tax is also called the Social Security or Medicare Tax.
The Federal Self- Employment Tax is applicable to all the earnings of an LLC member or manager. The Federal Self-Employment Tax rate in Montana is 15.3%
In order to deduct your LLC’s business expenses from the income earned, you have to calculate how much Self-Employment Tax you owe.
Federal Income Tax
One more type of Federal Tax that needs to be paid by an LLC in Montana is the federal Income tax. This tax is also applicable to all the earnings you make out of your LLC.
The Federal Income Tax Rate depends upon your earnings, the Industry you are dealing with, your LLC tax bracket, deductions, etc.
Employee & Employer Taxes
If you have employees on the payroll, then there are different kinds of taxes applicable for each employee. These tax implications are different than all the other types mentioned above. For Example, All employees of an LLC have to collect and withhold the Payroll tax at the time of receiving the salary.
Irrespective of whether you withhold the Federal Tax or not, each employee has you file an individual Tax return.
Cost Comparison Between States
Montana is surrounded by many states, namely Canada, North Dakota, South Dakota, Wyoming, Idaho, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.
| States | Filing Fee | Annual/Biennial Fee | Sales Tax |
| Montana | $70 | $10 | None |
| North Dakota | $155 | $50 | 5.0% |
| South Dakota | $155 | $50 | 4.5% |
| Wyoming | Seek Regional Assistance | Seek Regional Assistance | None |
| Idaho | $100 | None | 6% |
You should consult with an accounting professional to know more about all the other taxes or duties levied on the LLCs in The State of Montana.
Other Costs
- Montana Name Reservation: $10 for filing online or by mail
- Doing Business As (DBA): $20 for online filing
- Certified Document Copies: $10
- Certified of Good Standing: $15
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Montana LLC: $15
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in Montana
To maintain an LLC in Montana you will need to pay an annual fee of $20 along with Montana State tax at 1% to 6.9% and federal taxes.
In the beautiful state of Montana, business owners may find themselves wondering, “How much does it cost to maintain an LLC?” It’s important to note that running an LLC comes with its own set of costs and responsibilities, and knowing these ahead of time can help business owners stay on top of their financial obligations.
One of the expenses that business owners need to consider when maintaining an LLC in Montana is the annual report fee. This fee is required by the state and must be paid every year to keep the LLC in good standing. Failure to pay the annual report fee can result in penalties and potential suspension of the LLC. Business owners should make sure to mark their calendars and budget for this expense each year to avoid any surprises.
Another cost to consider when maintaining an LLC in Montana is the registered agent fee. A registered agent is someone designated to receive important legal documents on behalf of the LLC, and having one is a requirement in Montana. Business owners can choose to act as their own registered agent or hire a professional service to handle this responsibility. Either way, there will be a fee attached to this service that business owners need to budget for.
In addition to these ongoing costs, business owners should also be aware of any additional fees that may come up throughout the year. For example, if any changes need to be made to the LLC’s Articles of Organization or if the business decides to dissolve, there may be additional filing fees involved. Being prepared for these unexpected expenses can help business owners avoid any financial strains down the road.
Beyond the financial costs, maintaining an LLC in Montana also requires a certain level of time and effort on the part of the business owner. From keeping track of important deadlines to ensuring that all necessary paperwork is filed correctly and on time, running an LLC comes with a certain level of administrative responsibility. Business owners should be prepared to dedicate the necessary time and energy to maintain their LLC properly.
In conclusion, understanding the costs involved in maintaining an LLC in Montana is essential for business owners looking to keep their ventures running smoothly. By budgeting for annual fees, being aware of additional expenses, and staying on top of administrative tasks, business owners can ensure that their LLC remains in good standing and compliant with state regulations. Being proactive and prepared is key to successfully maintaining an LLC in Montana and beyond.
In Conclusion
The cost of Montana is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.