LLC Cost in Montana – How Much to Pay for an LLC


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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.

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.

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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.

StatesFiling FeeAnnual/Biennial FeeSales Tax
Montana$70$10None
North Dakota$155$505.0%
South Dakota$155$504.5%
WyomingSeek Regional Assistance Seek Regional Assistance None
Idaho$100None6%

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

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.

Whether you’re considering starting a Montana LLC or you’re already in the business, it’s important to understand how much it costs to maintain an LLC. Not only are there recurring fees to pay, but there are also one-time fees and taxes that you will have to pay. The cost of maintaining an LLC varies widely depending on the type of business you’re forming. Generally, it costs less to maintain an LLC in Montana than it does in other states. Whether you’re looking to start a new business or you already have an existing one, you’ll want to make sure you have the right licenses to operate your business in Montana.

Montana does not have a statewide general business license, which means that you’ll need to obtain licenses from both state and local governments to operate your business. Some cities and towns do not require licenses to operate a business, but most businesses will need to acquire one. You’ll also need to register with the Montana Department of Revenue to pay taxes. The amount of taxes you have to pay will vary depending on the type of business you have. Typically, you’ll have to pay federal taxes, state taxes, payroll taxes, and sales taxes.

Montana requires that all LLCs have a registered agent. This person is the person who receives legal documents, tax forms, and other government correspondence on behalf of the business. The agent can be an individual, a business, or a member of the business. Depending on the service you use, you may have to pay a yearly fee for your registered agent. The fees can range from around $50 to $300 a year.

To maintain your Montana LLC, you’ll need to file an annual report with the Montana Secretary of State. This report contains information about your business, including the name and address of your LLC’s members. You’ll also need to pay a $15 late fee if you don’t file your annual report on time. You’ll also have to pay the state 1% to 6.9% tax on your LLC’s gross income. The state will also assess penalties if you fail to pay your taxes on time.

If you’re planning on opening a business bank account, you’ll need to acquire a Certificate of Good Standing. This document shows that your business has met the requirements of the state’s laws. This document is usually obtained through a service, but you can also apply for it yourself. If you don’t have access to a computer, you can order it by phone or mail. You’ll need to provide the name of your LLC and your registered agent’s name and address.

An Assumed Business Name (ABN) is a trade name that you can use if you don’t want to have an official business name. An Assumed Business Name can help your business present a new face to customers. However, you’ll need to renew the name after 10 years. You can order the Assumed Business Name Certificate online.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

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.

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