How to File LLC Taxes in Montana (2026)
A single-member Montana LLC reports its income on the owner's Form 2. A multi-member LLC files Form PTE with the Montana Department of Revenue instead. An LLC that elects S-corp status also files Form PTE, and a C-corp election means Form CIT.
Each of those state filings pairs with a federal return based on the same classification: Schedule C, Form 1065, Form 1120-S or Form 1120.
Quick Summary
- File with both the IRS and the Montana Department of Revenue. Confirm your LLC's tax classification before your first return is due.
- Check the current income tax rate on the DOR site before you file. Rates and brackets can change between tax years.
- Get a CPA's read before electing S-corp status or the pass-through entity tax. Either move changes your deadline and how the LLC is taxed.
Montana LLC Tax Summary
The table below shows the federal and Montana state form each LLC type files, who it's filed with, and the deadline and rate that apply.
| LLC Type | Federal Form | State Form | Filed With | Filing Deadline & Tax Rate |
|---|---|---|---|---|
| Single-member LLC | Schedule C (Form 1040) | Form 2 | Montana Department of Revenue | April 15 deadline, 4.7% to 5.65% rate |
| Multi-member LLC | Form 1065 | Form PTE | Montana Department of Revenue | March 15 deadline, pass-through rate (or 5.9% PTET, optional) |
| S-Corp election | Form 1120-S | Form PTE | Montana Department of Revenue | March 15 deadline, 5.9% PTET (optional) |
| C-Corp election | Form 1120 | Form CIT | Montana Department of Revenue | May 15 deadline, 6.75% flat rate |
How Montana LLCs Are Taxed
Montana taxes LLCs as pass-through entities by default. Profits flow to the owners' personal returns instead of the business itself. A single-member LLC is a disregarded entity. A multi-member LLC is taxed as a partnership unless it elects otherwise.
See how LLC taxes work at the federal level first. An LLC can also elect S-corp or C-corp treatment, and Montana follows that federal election on its own return. If you haven't formed your LLC yet, see how to start an LLC in Montana.
Montana State Taxes by LLC Type
Which form an LLC files with the Montana Department of Revenue depends on how it's taxed. The sections below cover the state form, rate and due date for each one. Keep your registered agent service in Montana address current, since the DOR mails notices there.
1. Single-Member LLC (Form 2)
A single-member Montana LLC is a disregarded entity. Its owner reports the LLC's income on Form 2, the state's individual return.
The owner pays Montana's individual tax rate on that income, due April 15 for calendar-year filers, with an extension available to October 15.
2. Multi-Member LLC (Form PTE)
A Montana LLC with more than one owner is taxed as a partnership by default. The LLC then files its own Form PTE return.
The LLC issues each owner a Schedule K-1 showing their share of the income, and owners report that on their own Form 2.
The Form PTE return is due March 15 for calendar-year filers. Form PTE replaced the older Form PR-1 starting with tax year 2019.
3. S-Corp Election (Form PTE)
An LLC that elects S-corp status with the IRS keeps its pass-through treatment in Montana. It files the same Form PTE a partnership uses.
The filing deadline is March 15 for calendar-year filers, or the 15th day of the third month after a fiscal year ends, the same schedule a partnership return follows.
4. C-Corp Election (Form CIT)
An LLC that elects C-corp status is taxed as its own entity in Montana. It files Form CIT, the state's corporate return.
The tax rate is 6.75% of net income, or 7% for corporations filing under the water's-edge election, with a $50 minimum even in a loss year [1].
The return is due May 15 for calendar-year filers. Filers get an automatic six-month extension to file, but not to pay.
5. Montana Income Tax Rate for Tax Year 2026
Pass-through income and individual wages share the same Montana rate. That's 4.7% up to $47,500 for single filers, or $95,000 for joint filers, and 5.65% above those thresholds for tax year 2026 [2]. Long-term capital gains are taxed separately at 3.0% and 4.1%.
Federal Taxes Montana LLC Owners Pay
Profit an owner takes from a Montana LLC carries the usual federal self-employment tax. That's 15.3% for Social Security and Medicare combined, on top of regular income tax [3].
Owners who expect to owe $1,000 or more split the bill into four IRS payments instead of one. Those are due April 15, June 15, September 15 and January 15 [4].
Other Montana Taxes That May Apply
Beyond income tax, a Montana LLC may owe employer taxes. It never owes a general state sales tax. The sections below cover what applies and where to register.
1. Employer Taxes
An LLC with employees registers for unemployment insurance with the Montana Department of Labor and Industry. The 2026 taxable wage base is $47,300 per employee.
Rates run from 0.00% to 6.12% under Rate Schedule 1, based on the employer's experience [5]. The average rate across all employers is 0.95%.
2. Sales and Use Tax
Montana doesn't have a general sales tax. An LLC selling goods or services in the state doesn't register to collect one [6].
3. Industry and Local Taxes
An LLC that rents out lodging for stays under 30 days owes a combined 8% lodging facility tax. That splits evenly into a 4% use tax and a 4% sales tax [7]. Other industry taxes may apply depending on what the LLC sells.
What Is Deductible for a Montana LLC
State-specific tax credits are available to Montana LLC owners, separate from federal deductions. Owners who qualify claim these on their personal Montana return.
The Montana adoption credit is worth $5,000 per eligible child. Foster-care adoptions qualify for $7,500 instead, claimed the year the adoption becomes final.
Montana Pass-Through Entity Tax (PTET) Election
Partnerships and S-corp LLCs can elect to pay Montana tax at the entity level. That keeps the full liability off the owners' personal returns. The election can also help owners who itemize work around the federal cap on state and local tax deductions.
The Montana pass-through entity tax runs 5.9% of each affected owner's Montana-source income. It's elected annually on Form PTE.
Once made, the choice can't be undone, and it can't be entered on a return filed after the extended due date, even with the return's automatic six-month filing extension.
Estimated PTET payments follow four due dates: April 15, June 15, September 15 and December 15 for calendar-year filers. A CPA can walk through how the election changes what owners report on their own returns.
FAQs
Does a Montana LLC Have to File a Tax Return?
Yes, a Montana LLC has to file a tax return every year it's active. The specific form depends on how the LLC is taxed, from Form 2 for a single owner to Form PTE or Form CIT for elections.
Does Montana Charge a State Income Tax on LLC Profits?
Yes, Montana charges state income tax on LLC profits that pass through to the owners, using the same graduated rate as other individual income.
References:
- https://revenue.mt.gov/files/Forms/Montana-Form-CIT-Instructions/2025_Montana_Form_CIT_Instructions.pdf
- https://revenue.mt.gov/news/recent-news/HB-337
- https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
- https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes
- https://uid.dli.mt.gov/_docs/contributions-bureau/Rate-Explanation.pdf
- https://revenue.mt.gov/taxes/general-sales-tax
- https://revenue.mt.gov/taxes/miscellaneous/lodging-facility
