How Much Does an LLC Cost in Montana? (2024 Filing Fees)

Starting an LLC in Montana is an exciting venture, and here’s the scoop: filing your Articles of Organization costs just $35. Plus, you’ll need to budget for an annual report fee of only $20 to keep your business in good standing each year.

But there’s more to the financial picture.

This guide will walk you through all the key expenses in starting and maintaining your LLC in Montana, so you’ll be well-prepared.

Let’s dive in!

How Much Does an LLC Cost in Montana?

Starting an LLC in Montana involves several costs. Here’s a breakdown of the key expenses you will encounter:

• Articles of Organization: $35
  This is the main filing fee for creating your LLC with the Montana Secretary of State.
• Registered Agent Fees: $100 – $300
  You can be your registered agent or hire a service. Prices vary based on the service you choose.
• Name Reservation Fee: $10
  This is the cost if you want to reserve your LLC name before filing.
• DBA (Doing Business As) Fee: $10
  If you plan to operate under a different name, you must file for a DBA.
• Business Licenses: Varies
  Licensing costs can vary greatly depending on your locality and type of business. Check local requirements.
• Annual Report Fee: $20
  You must file an annual report to keep your LLC in good standing each year.
• Montana Certificate of Existence: $10
  This is the cost if you need a certificate to prove your LLC is compliant.
• Taxes: Varies
  Montana does not have a franchise tax, but depending on your business activities, your LLC may still owe state or local taxes.

LLC Costs in Montana (Formation Fees)

Here’s a breakdown of the main requirements and their associated fees for forming an LLC in Montana:

Montana LLC Requirements	Cost
LLC Business Name Search	$0
Articles of Organization	$35
Operating Agreement (optional)	$0 (with Northwest)
EIN Number	$0 (free from IRS)
Annual Report	$20/annually
LLC Name Reservation Fee (optional)	$10
Certificate of Existence (optional)	$10
Foreign LLC Registration (optional)	$70
Fictitious Name (DBA) (optional)	$10
Taxes	Varies by business type
State Business License Fees	Varies
Registered Agent Services (optional)	$0-$125 (Northwest)
LLC Formation Services (optional)	$39
Total LLC Costs in Montana	$55 – $319

Total LLC costs in Montana range from $55 to $319. If you do everything yourself and skip the optional extras, you might only spend around $55. However, if you decide to pay for additional services and requirements, your costs could go up to between $200 and $319.

The first mandatory expense is the $35 fee for filing the Articles of Organization, which is essential for officially establishing your LLC. You will also need to budget for an annual report fee of $20 due each year.

Now, let’s discuss the optional costs.

Additionally, conducting an LLC business name search is free, and obtaining an Employer Identification Number (EIN) is free from the IRS. An Operating Agreement is recommended but can be obtained at no cost using services like Northwest.

Reserve your LLC name, which typically costs $10. You may also want a Certificate of Existence, which costs $10. Registering a foreign LLC in Montana incurs a fee of $70. Operating under a different name (DBA) costs $10.

Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300.

Remember that taxes and state business license fees vary based on business activities.

Montana LLC Business Name Search Cost ($0)

When starting an LLC in Montana, checking the availability of your business name is a key step. The good news is that this service is free. You can search for existing business names without any charge.

You can search the Montana Secretary of State’s website for the name search. This site lets you determine if the name you want has already been taken. Choosing a unique name is important to avoid any legal issues later.

By doing this search, you ensure that your LLC name meets the state’s requirements. Choosing the right name is vital for branding and can help your business stand out.

After confirming your name is available, you can file your Articles of Organization for your LLC. Remember, selecting a great name can help your business’s online visibility. So take your time and choose wisely!

Montana Articles of Organization ($35)

You must file the Articles of Organization to form an LLC in Montana. This document officially creates your LLC. The filing fee is $35, a reduction from the previous fee of $70. This change took effect in 2022.

Filing the Articles of Organization is a straightforward process. You complete the form and submit it to the Montana Secretary of State. Once your application is accepted, your LLC becomes a legal entity.

The typical Montana LLC processing time is 5-6 business days. If you want your LLC approved faster, Montana offers two expedited LLC options that can shorten the duration to as little as an hour.

It’s important to note that there are usually no ongoing fees to maintain your LLC after the initial filing, unlike some states that charge annual fees. The $35 is a one-time cost for the formation.

LLC Operating Agreement Cost in Montana ($0 with Northwest)

Creating an operating agreement for your LLC in Montana is a smart move. This document outlines how your business will operate. It covers important aspects like management structure, decision-making processes, and responsibilities of members.

While Montana does not require an operating agreement, having one helps avoid member misunderstandings. You can draft one yourself or use services that offer templates.

With Northwest Registered Agent, you can benefit from their $0 operating agreement cost. This is a great option if you’re looking to save money while ensuring your LLC is well-structured.

A free service like this can help you properly set up your LLC without extra costs. It’s a good way to ensure that your business has the right rules in place.

Montana Registered Agent Fee ($0-$300/year)

In Montana, you have options for your registered agent that can affect your costs. If you decide to act as your registered agent, there is no fee. You just need to provide your name and address.

If you hire a professional Montana registered agent service, costs typically range from $100 to $300 per year. These services can help you keep your personal information private and avoid missing important legal documents.

For instance, LegalZoom charges around $249 annually, and ZenBusiness offers services for about $199 annually. Northwest Registered Agent offers free service for the first year if you use it to form your LLC. After that, their fee is competitive, at $125 annually.

EIN Cost in Montana ($0 from the IRS website)

You may need an Employer Identification Number (EIN) to operate your LLC in Montana. The good news is that obtaining an EIN is free through the IRS.

Remember, you won’t have to pay any fee when applying for your EIN. It’s necessary for many businesses, especially if you plan to hire employees or open a business bank account.

Montana Annual Report ($20)

In Montana, filing an annual report for your LLC is a requirement. You must pay a fee of $20 each year, and the report is due by April 15.

You should file this report online through the Montana Secretary of State’s website. Paper submissions are no longer accepted, so filing electronically is important. The online process is straightforward and quick.

When you submit your annual report, you will confirm key information about your business. This includes details like your LLC’s address and registered agent. This information helps maintain your business’s good standing with the state.

If you miss the April deadline, the fee increases to $35. Set up reminders to complete your filing on time to avoid this higher cost.

LLC Name Reservation Fee in Montana ($10)

In Montana, reserving your LLC name is an important step. You can secure your chosen name for $10. This reservation holds the name for up to 120 days before you formally set up your LLC.

To reserve your name, submit a Reservation of Name form to the Montana Secretary of State. Check the name availability through the Montana business search tool to make sure your desired name is available.

The name reservation is smart if you are not ready to file your LLC paperwork immediately. It prevents others from using the same name while you prepare your documents.

If you decide to change your mind or not form an LLC, you won’t incur any additional charges after you reserve your name. Just keep in mind that the reservation lasts only for 120 days.

Fictitious Name/DBA Cost in Montana ($10)

When you want to operate your business under a name different from your legal LLC, you may need a DBA or “Doing Business As” name. In Montana, the cost to register a fictitious name is $20.

This cost covers processing your DBA application at the Montana Secretary of State’s office. You can file this application online, making the process straightforward and convenient.

You should keep your DBA name current and aligned with your business activities. A registered DBA allows you to market your business more effectively and reach customers with various products or services.

Montana Certificate of Existence ($5)

A Certificate of Existence in Montana shows that your LLC is legally registered. This document, also known as a Certificate of Good Standing, confirms that your business has met all the legal requirements to operate in the state.

To obtain a Certificate of Existence, you must pay a fee of $5. You can request this certificate online, by mail, or in person. The online application is the fastest option since it is processed immediately.

If you apply by mail or in person, normal processing can take up to five days. This time frame may be longer if you factor in mailing. For quicker service, you can opt for expedited processing for an additional $20.

Montana Foreign LLC Registration Fee ($70)

To register a foreign LLC in Montana, you need to pay a registration fee of $70. This fee is mandatory when you submit your application to the Montana Secretary of State.

When forming a foreign LLC, you’ll establish a business created in another state but plans to operate in Montana. The fee covers the processing of your registration documents.

In addition to the registration fee, there may be other costs. For example, you will need a registered agent to handle legal documents on behalf of your LLC. This fee can vary depending on the service you choose.

Be sure to keep up with any ongoing requirements. Montana requires foreign LLCs to file annual reports, which may cost around $20.

Montana State Business License Fee (varies)

In Montana, your LLC does not need a state-issued business license, making it easier to start there.

However, you should be aware that some professions require specific licenses. For example, if you work in healthcare, like dentistry, you must obtain a license from the Montana Department of Labor and Industry Boards.

Additionally, depending on your location, local governments may require you to have a local business license. Each city or county can set its rules and fees for these licenses.

Montana LLC Taxes (varies)

When you form an LLC in Montana, you’ll encounter various taxes that can affect your overall costs. By default, LLCs are considered pass-through entities. This means the profits are taxed at the personal level.

Here are some taxes you may be responsible for:

• Federal Taxes: You will pay federal taxes based on your income.
• State Income Tax: Montana has state income taxes that depend on your earnings. Rates range from 1% to 6.75%.
• Local Income Tax: Depending on your location, local taxes may apply.
• Self-Employment Tax: As an LLC owner, you may need to pay a federal self-employment tax of 15.3%, which includes Social Security and Medicare rates.
• Sales and Use Tax: If you sell goods or services, you may be liable for sales tax.
• Payroll Tax: If you hire employees, payroll taxes will apply.
• Property Tax: Property taxes are due if your LLC owns the property.

The total tax burden can vary significantly. Your specific industry and business activities will determine what taxes you owe and how much they will be. Since no two businesses are the same, assessing your situation carefully is crucial.

Montana LLC Reinstatement Fee ($35)

If your Montana LLC has been dissolved, you can reinstate it by paying a fee of $35. This fee is required to process your reinstatement application with the Secretary of State.

To reinstate your LLC, you need to submit a few documents. Start with the Montana Reinstatement form. You must also include any late annual reports and their associated fees. If necessary, include a Title 15 Tax Certificate, unless you are a single-member LLC.

You must note that you can only reinstate your LLC within five years of its dissolution date. After this period, your LLC cannot be restored.

In addition to the reinstatement fee, there is an extra $35 charge for each year your business was inactive. This can add up if your LLC has been dissolved for several years.

Gather all required documents and fees before submitting your application. Once the Secretary of State’s office reviews and approves your reinstatement, your business will return to good standing.

Montana LLC dissolution fee ($0)

Dissolving your LLC in Montana is straightforward and comes at no cost. You will need to file an Article of Dissolution. This form tells the state that you want to close your business officially.

The filing process is simple. There is no fee for this service. You can complete it online through the Montana Secretary of State’s website or by mailing in the form.

If you need to expedite the process, you do have options. The fee for a one-day expedited filing is $20. If you want even faster service, a one-hour filing costs $100.

Ensuring all business matters are settled before dissolving your LLC is important. This includes paying off debts and closing business accounts.

After you file the Article of Dissolution, your LLC will no longer exist as a legal entity. Be sure to keep a copy of the dissolution form for your records. This is crucial for your future business dealings and personal records.

Dissolving your LLC correctly protects you from ongoing fees and liabilities. So, when you’re ready to close your business, know that it won’t cost you anything in Montana.

Montana LLC Change of Registered Agent Fee ($20)

Changing your registered agent in Montana can be a straightforward process. If you need to update this information, the good news is that the fee is only $0.

You can submit your request through the Montana Secretary of State’s office. This process is done online or by mail. Provide all the necessary details to ensure a smooth transition.

You might incur additional fees if you miss the deadline for updating your information. Always pay close attention to the timelines set by the state.

Keeping your registered agent information updated is essential. Your registered agent acts as a point of contact for legal documents, so it’s important that they are easily reachable.

What is the Cheapest Way to Start a Montana LLC?

Starting an LLC in Montana can be straightforward, but costs can vary. The main expense is the filing fee for the Articles of Organization, which is currently $35. This is the document you need to create your LLC.

You can file the Articles of Organization yourself, which saves you money. Online services or legal professionals typically charge more. If you choose to use a service, they may charge extra fees that can add up quickly.

To keep costs low, handle tasks like choosing a name for your LLC and getting an Employer Identification Number (EIN) on your own. These actions usually don’t require additional costs, especially if you do them online.

While the $35 filing fee is the cheapest option, other expenses should be considered. For example, depending on your industry, you might need to pay for business licenses or permits. These can vary widely based on your business type and location.

It’s also wise to note the downside of filing yourself. Without legal assistance, you might overlook some important details. This could lead to mistakes, causing delays or unexpected costs later.

Should You Use an LLC Formation Service in Montana?

Using an LLC formation service in Montana can be a smart choice for many. These services help you navigate the complex requirements of starting your business. They handle paperwork, which can save you time and reduce stress.

• Compliance: Services update you on changing LLC rules, ensuring you meet all legal requirements and do not miss any important details.
• Privacy: Services like Northwest Registered Agent discount offer privacy benefits by acting as your registered agent, keeping your personal information off public records, and adding an extra layer of protection.
• Peace of mind: With experts handling the paperwork, you can focus on running your business. Access to LLC formation experts and attorneys means you can get answers to any questions and avoid being bogged down by administrative tasks.

Ultimately, it’s about finding the right balance between managing your time and costs. An LLC formation service can provide valuable help, making your business start smoother.

Frequently Asked Questions

How do I start an LLC in Montana?

To start an LLC in Montana, you need to file the Articles of Organization with the Secretary of State. You’ll also want to choose a unique name for your LLC and obtain any necessary permits or licenses.

Do I need a business license for an LLC in Montana?

Yes, depending on your business type and location, you may need a business license in Montana. Check with local authorities to ensure compliance with regulations.

What are the benefits of an LLC in Montana?

An LLC provides personal asset protection, flexibility in management, and simplified tax treatment. These benefits help protect your finances from business liabilities.

How much does it cost to reinstate an LLC in Montana?

If your LLC was administratively dissolved, reinstating it typically costs $35. You must also pay any past-due fees and file the required paperwork with the state.

How much does it cost to dissolve an LLC in Montana?

Dissolving an LLC in Montana doesn’t have a fee. However, you should ensure all taxes are paid and all necessary paperwork is completed before formally dissolving.

Do I need to hire an attorney to form an LLC in Montana?

You are not required to hire an attorney to form an LLC in Montana. Many individuals successfully do it themselves using available online resources and forms.

Should I hire an LLC formation service in Montana?

Hiring a formation service can simplify the process, especially if you are unfamiliar with the requirements. They handle paperwork and can ensure everything is filed correctly.

Are there penalties for paying my fees late in Montana?

Yes, late fee payments can result in penalties. These may include additional fees and could affect your LLC’s standing with the state.

What happens if I do not file my Montana LLC annual report?

If you fail to file your annual report, your LLC may be administratively dissolved. This can result in a loss of legal protections and the ability to conduct business.