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 |
| |
 | $299 + State Fees |
|
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
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.
Limited Liability Companies (LLCs) provide a flexible way of structuring a business that limits the personal liability of its owners. This makes it a popular choice for small business owners in Montana. However, many entrepreneurs overlook the costs of maintaining an LLC, which can quickly add up and impact the profitability of their operation.
The cost of setting up an LLC in Montana can vary depending on your needs, but the filing fee is $70 which is one of the lowest in the country. However, starting an LLC is only the first step in the process. Business owners must also maintain their LLC annually by filing reports and paying fees.
One of the ongoing expenses associated with maintaining an LLC is the annual report fee. In Montana, this cost is $20, and it is paid every year by the anniversary date of the LLC’s formation. Failure to pay this fee on time can lead to penalties and fines, so it’s important to stay on top of these timelines.
Another cost associated with LLCs in Montana comes in the form of taxes. While Montana has no sales tax, it does have business equipment and personal property taxes, which vary based on the location of the business and the amount of property it owns. This amount fluctuates each year, so it is essential to budget accordingly.
An additional cost of maintaining an LLC comes in the form of legal and professional fees. LLC owners may, at some point, need to hire a lawyer or an accountant to handle various business matters. While this expense can be significant, it’s essential to find a quality professional to help navigate the relevant laws and regulations to ensure the company is compliant.
Maintaining an LLC requires additional time, resources, and effort from business owners, making it tempting to shed extra costs. However, skipping out on compliance, tax payments, or professional advice can create bigger problems in the long run. Consequently, as a business owner in Montana, it’s vital to know the process, meet the timelines set by the state regulations, and proactively make informed choices around financial management.
In conclusion, Montana offers a superbly affordable LLC option that entrepreneurial businesspeople won’t pass up. However, they need to consider other financial commitments in maintaining the LLC structure. The annual fee assessment and ongoing expenses should factor into any Montana resident hoping to build a success upstart under the widely used LLC business platform. Thus, with the right strategy towards effective, unique, and quality operations applying business fundamentals on sustaining an LLC through budgeting, compensation, tax, legal costs management is critical.
It is the efficient upkeep of an LLC that will pay off by reducing future fines and court sanctions. One will reap monetary savings, and peace of mind by adopting a well-devised framework to meet compliance guidance and doing things up to the state required LLC expectations. For smaller businesses in Montana the costs can be outweighed by the longer-term yields of cutting through the complicated and confusing financial steps to operate a profitable company structure.
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.
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.
