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

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.

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.

One of the primary costs associated with an LLC in Montana is the initial filing fee. When forming an LLC, aspiring business owners are required to file Articles of Organization with the Montana Secretary of State’s office. This filing fee can range from an average of $70 to $110. While not exorbitant, this fee is an essential investment to formalize and register your business entity.

Maintaining compliance with state regulations and requirements is another crucial aspect of LLC ownership that incurs costs. In Montana, LLCs are required to file an Annual Report with the Secretary of State’s office, which ensures that the business remains in active status. This is an opportunity to update relevant company information, such as registered agent details and other necessary information. The fee for filing an Annual Report in Montana is $20, a relatively affordable cost considering the importance of this compliance obligation.

Additionally, LLC owners must appoint and maintain a registered agent in Montana. A registered agent is an individual or entity responsible for receiving legal documents on behalf of the LLC, such as tax notices or lawsuits. Engaging the services of a professional registered agent provider can cost anywhere between $100 to $300 annually. Considering the benefit of having a registered agent who ensures important documents are promptly received, this cost can be seen as a vital investment for LLCs in Montana.

Tax obligations can be another significant financial consideration when maintaining an LLC. While LLCs are classified as pass-through entities and don’t pay federal income taxes at the entity level, Montana requires LLCs to pay a state-level tax called the annual filing fee of $20. Additionally, members of the LLC might also be subject to federal self-employment taxes and state income taxes, depending on their personal tax situations. It is crucial for business owners to consult with qualified tax professionals to fully understand their tax liabilities and obligations to avoid any surprises when tax season arrives.

Furthermore, depending on the nature of the LLC’s business, additional costs might arise. For instance, businesses involved in regulated industries or those that operate in multiple states may be required to obtain business licenses, permits, or certifications. These requirements vary widely, with costs ranging from modest to substantial depending on the industry and existing governmental regulations. It’s essential that LLC owners research and fully comprehend these industry-specific expenses when assessing the total cost of maintaining the business.

Starting an LLC in Montana provides numerous benefits for business owners but comes with its financial liabilities. Understanding the costs associated with maintaining an LLC is essential to mitigate any potential financial pitfalls. From initial filing fees to ongoing compliance requirements and tax obligations, LLC owners must be financially prepared to meet these commitments consistently. With careful planning, budgeting, and consultation with experts, Montana LLC owners can navigate the financial landscape of maintaining their business successfully.

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.


About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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