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.

LLC Service

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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

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.

If you’re thinking about forming an LLC, you might be wondering how much it costs to set it up. In Montana, there are a few costs associated with the formation process. The first, and most important, is the Certificate of Formation, which will set you back $300 plus a 2.7% convenience fee. Once you’ve formed your business, you must maintain it as an LLC. The next two costs are less important but may be necessary.

In addition to forming an LLC, the state requires that you submit an annual report on your business. This report must be filed each year and will cost you $20. You can submit your annual report online at the Montana Secretary of State’s website. You must file it by the deadline of April 15th every year. Once you have submitted your annual report, the state will process your filing instantly. If you do not file it on time, you will have to pay a late fee of $15.

Every LLC must appoint a registered agent in the state. This person will receive important legal documents on your business’s behalf. It may be a person or a business entity – as long as they are 18 and have a Montana physical address. Many people find it helpful to hire a registered agent. The cost is usually between $50 and $300 a year. This is the most common cost for registering an LLC in Montana.

An LLC is a US business entity that protects the personal assets of the owner. In addition to being relatively simple to form, an LLC also allows you to avoid double taxation. An LLC must have a unique name that helps customers recognize the business. It is illegal to use the same name as an existing company. The secretary of state’s database of business names is available for free. When deciding on a name for your new LLC, remember that it must contain the words “Limited Liability Company” or an abbreviation of these words.

Annual reports are another cost to maintain an LLC in Montana. Each LLC must file an annual report with the Secretary of State every year. This annual report is due on April 15 and is accompanied by a $20 filing fee. An annual report that is missing by December will be involuntarily dissolved. Missing these filings could result in the LLC losing its right to operate in the state and needing to re-file its Certificate of Authority. In Montana, foreign LLCs must also file a Certificate of Authority.

Depending on your industry and scale, the state you form your LLC in can influence the costs of your business. If your business has employees, you’ll need to pay an unemployment insurance tax. The state of Montana does not charge a state sales tax, which means that your business will only pay local business taxes. However, if you have a website, you can opt to file your annual reports 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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