LLCs have become one of Montana's most often used corporate structures because of their independence and minimized taxes and expenses.
However, it's good to familiarize yourself with the costs of forming an LLC in this state before you begin operating your firm.
We teamed up with our LLC experts and business advisors and explored the Montana Secretary of State's website to provide you with the latest costs of running a Montana LLC.
Quick Summary
- The state of Montana charges $35 for the online filing of the Articles of Organization.
- The Montana Secretary of State can process your paperwork within an hour for $170.
- Before forming your Montana LLC, reserve your name for $10 and hold it for 120 days.
How Much Does an LLC Cost in Montana?
An LLC in Montana costs $35, and $50 for each LLC if you're founding a series LLC. After paying this Montana LLC cost, you'll additionally have to spend $20 annually to file your yearly report.
While these are the initial fees to form an LLC in Montana, reserving your LLC name, appointing a registered agent, and business licenses are other costs you may incur.
Montana LLC Filing Fee
There is a $35 filing fee if you submit your Montana Articles of Organization online to the Secretary of State [1].
After receiving your formation paperwork, the state typically processes it in five days; however, for an extra cost, expedited processing is also available.
Expedited processing for 24hrs costs $90, while if you want to expedite the LLC processing time in Montana even more and get your approval within an hour, it will cost you $170.
You can submit your Articles of Organization yourself or use an LLC formation service. If you hire an LLC formation service, you must pay the $35 state charge and their service fee.
Moreover, Montana permits the creation of Series LLCs, which comprise a "parent" LLC and several "child" LLCs. You must pay $50 for each "child" LLC within your series and submit your articles of organization online to create a Montana Series LLC.
If certain business information changes, you must pay the Montana SOS a $10 filing fee and submit the Articles of Amendment.
Montana Registered Agent Fee
In Montana, a registered agent can be a registered agent service, member of the LLC, business attorney, or yourself. To fulfill your obligations as a registered agent, you must be accessible at your LLC's principal address during regular business hours.
Although you can serve as your own registered agent, doing so puts additional responsibility on you to stay on top of paperwork and potential legal issues. That's why delegating the duty to a registered agent service is preferable.
You can expect to pay between $40 - $200 annually if you hire a professional registered service in Montana.
Montana LLC Taxes
Other than hiring a registered agent service, filing LLC taxes in Montana is a possible additional yearly expense for your LLC.
As "pass-through" businesses, LLCs usually are not required to file separate corporate tax returns; instead, the members of an LLC report their income and losses on their own personal tax returns [2].
Also, unlike several jurisdictions, Montana does not charge franchise or privilege taxes to its LLCs. All the same, these are some situations where Montana businesses will have to pay taxes:
- LLCs that have workers are required to pay unemployment insurance tax.
- A Corporate Income Tax Return must be filed, and the 6.75% corporate income tax must be paid by LLCs that have chosen to be taxed as corporations.
- Your local town, county, or city may have its business tax requirements.
Other LLC Fees in Montana
Although we've already discussed the basic fees for creating a Montana LLC, here are some other supplemental expenses you might incur:
1. Montana LLC Name Reservation Fee
If you aren't quite ready to launch your business, reserve your company name to prevent someone else from using it.
You can purchase exclusive name use for 120 days at $10, which can be extended for 120 days at a $10 renewal fee.
Before making a name reservation, make sure your chosen business name is available. You can check our article on how to look up an LLC in Montana.
2. Montana LLC Operating Agreement
An operating agreement is a legal document that enables you to organize your limited liability company in the most advantageous method for your company.
Although an operating agreement is not required in Montana when you form an LLC, it is in your best interest to submit one, even if you are the only owner of the business.
You can purchase an operating agreement template from a Montana registered agent for as low as $10.
3. Assumed Business Name
An "Assumed Business Name" (or ABN) is a business name you're legally permitted to use in Montana and differs from your LLC's legal name.
In Montana, your LLC is permitted to use several assumed business names. ABNs are excellent options for updating the look of your business or giving your clients a new face.
Each ABN you desire requires a separate Registration of Assumed Business Name. A $20 Montana LLC cost must be paid for each ABN form to the Montana Secretary of State.
4. Montana Annual Report Fee
You must file Montana LLC annual reports after establishing an LLC in Montana.
To continue functioning, your Montana LLC must maintain good standing and comply with all applicable laws. All you need to do is verify the data on the Annual Report, submit it to Montana SoS, and make the Annual Report fee.
The fee for the Montana LLC Annual Report is $20, sent annually for as long as your LLC exists.
5. Document Copies with Certification
The Montana LLC's Articles of Organization cost $10 to have certified copies made. The state should complete your order within five days of receiving it if you select regular processing. Moreover, Montana charges $20 for expedited service.
Your certified Montana business copies can be kept on file internally so that you can give copies to relevant parties.
6. Montana Certificate of Existence
You must pay $10 for standard processing or $20 for expedited processing to obtain a Montana Certificate of Existence for your LLC as proof of its legal standing.
Besides that, the Montana Department of Revenue offers a Certificate of Good Standing as a free service to prove that your taxes are compliant.
7. Montana Local Business License Fees
There are various licensing procedures and fees for your LLC in each of the local jurisdictions in Montana.
For instance, Bozeman mandates that LLCs obtain a $50 general business license.
8. Professional Licensing Fees
The cost of your Montana professional license varies depending on your field and the body that oversees it.
For instance, the Montana Department of Labor and Industry Boards require Montana business licenses from professionals like dentists, sports trainers, and pharmacists, which costs $335.
9. Employer Identification Number
This number is required to help your LLC pay taxes, open a business bank account and recruit staff.
Obtaining an EIN for your LLC can be done for free, even though many LLC formation services charge a fee.
10. Business Insurance
The number of employees, location, risk factor, and more determines your Montana LLC's workers' compensation insurance premium. It costs approximately $2 for every $100 paid to employees.
Most LLCs gain by purchasing insurance, such as property, liability, and home-based business insurance.
Foreign LLC Registration in Montana
Limited liability companies classified as foreign entities were established in another state. These organizations must submit a Certificate of Authorization for a Foreign LLC to the Montana Secretary of State.
A certificate of good standing from the domestic state of formation must be submitted with the registration.
You can register your out-of-state foreign corporation by submitting your Certificate of Authority to the Secretary of State. A Montana Foreign LLC must pay a filing fee of $70.
FAQs
Who Gets The Filing Fees for My Montana LLC Registration?
The Secretary of State of Montana gets the filing fees for your Montana LLC.
What Forms of Payment Are Accepted By The Montana Government for LLC Filing Fees?
A credit card, debit card, or check are the only forms of payment accepted by the Montana government for LLC filing fees. Cash and cryptocurrencies are not accepted as forms of payment.
Do You Need Professional Help With Your Montana LLC?
Establishing an LLC can be challenging since it requires filing a ton of paperwork.
If you don’t feel confident enough to handle the paperwork yourself, hiring one of these best LLC services in Montana can simplify and ease the procedure.
Our experts comprehensively reviewed each service and supplied all the essential details. These services guarantee prompt compliance document submission so that you won't incur penalties for late filing.
References:
- https://biz.sosmt.gov/forms/business
- https://mtrevenue.gov/taxes/pass-through-entities/
