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.

Setting up and maintaining an LLC in Montana is relatively straightforward, but there are a couple of things you’ll need to consider. One of the most important is your time, as it can take a few weeks to complete the necessary paperwork. Alternatively, you can pay $20 to expedite the process, reducing the turnaround time to around 24 hours or an hour. However, this option is not free, and it may come with hidden fees.

When forming an LLC in Montana, you should also consider registering a domain name for your business. This is an essential part of modern business, as customers are increasingly savvy when it comes to researching potential businesses. In addition to obtaining a business name, you should also register a registered agent in the state, which is a person or company that serves as your main point of contact with the state. An ideal company to use is ZenBusiness, which offers registered agent services for one year free. You will only have to pay state fees for the rest.

After registering a business name in Montana, you’ll need to check the availability of the name you want to use. The Montana Secretary of State’s website provides information on whether your chosen name is available for business. You can then either purchase a name or fill out an online name reservation form. The process is easy, but the paperwork involved can be a hassle. However, it’s worth it in the long run.

Starting a business in Montana has many advantages. One of these is the favorable business environment. Creating an LLC gives you protection from personal liability. As an owner, you’ll no longer be personally liable for losses, debts, or lawsuits. You won’t have to worry about your personal assets being seized or sold. The business itself will remain protected by your personal assets. In addition to this, it also protects your personal assets.

Once you have chosen your name and formed your LLC, you’ll need to choose a registered agent. While you can legally serve as the registered agent, you’re probably better off hiring a registered agent service that can take care of these duties for you. The third step is to prepare and file your Articles of Organization. The filing fee is $70, and it’s a necessary step in the process.

A registered agent is someone who receives legal documents on behalf of the LLC. This person can be a member or a third-party. Whether you choose to have your registered agent in Montana, they should be over 18 years old and have a physical address in the state. The cost for hiring a registered agent in Montana depends on the service you’re looking for, but you’ll likely be spending less than $50 a year.

Filing the Articles of Organization is an important step in creating a Montana LLC. The state maintains a database of registered business names, and the Secretary of State’s office can check your business name against theirs by sending you the Reservation of Business Name form. You can pay the filing fee via credit or debit card. In the end, you’ll receive your Certificate of Filing in Montana.

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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