$35 to form your Montana LLC

Montana LLC Cost: $35 Filing, No Annual Fee (2026)

Forming an LLC in Montana costs $35 to file Articles of Organization with the Montana Secretary of State, the lowest filing fee in the United States (tied with Kentucky’s $40, and below every other state). Annual report fee is $0. No franchise tax. No state sales tax. Year-one cost (DIY): $35. Five-year cost: $35. The trade-off, Montana’s annual report is technically required to be filed by April 15 each year, but the fee is $0, missing it triggers administrative dissolution after 60 days, not a financial penalty.

Reviewed by LLC Formation Cost Editorial Team, fact-checked against primary government sources • Last updated 2026-05-16 • 4 primary government sources cited

TL;DR

Montana LLCs file Articles of Organization online with the Montana Secretary of State for $35, the lowest LLC filing fee anywhere in the United States. There is an annual report requirement, due April 15 each year, but the fee is $0 (no money changes hands, only the filing itself is mandatory). Montana has no state sales tax (one of five US states), no franchise tax on LLCs taxed as pass-throughs, and no general business privilege tax. Montana is genuinely cheap for forming an LLC, but it has a less-known feature non-residents value: Montana laws keep LLC member and manager information confidential under MCA § 35-8-201. The organizer and registered agent appear on public filings, but member names are not publicly searchable in the Montana SOS business database. This is what drives the well-known “Montana LLC vehicle registration” trend, non-residents form Montana LLCs to title luxury vehicles, RVs, and aircraft, capturing Montana’s no-sales-tax advantage on the acquisition. The trade-off is home-state use-tax risk: most states (California, Massachusetts, Colorado, Washington, Utah) actively audit residents using Montana LLCs to dodge home-state sales tax, and home-state use tax is generally due regardless of titling jurisdiction. For pure LLC formation purposes (operating a real business), Montana is an excellent low-cost choice. For tax-arbitrage vehicle titling, verify with a tax attorney before relying on the structure.

Montana LLC cost breakdown (2026)

Line item	Cost	Source
Articles of Organization	$35	sosmt.gov
Annual Report	$0 (filing required, fee waived)	sosmt.gov
Late annual report (after April 15)	$15 penalty	sosmt.gov
Franchise Tax (pass-through LLCs)	$0	mtrevenue.gov
Corporate License Tax (LLCs electing C-corp)	$50 minimum	mtrevenue.gov
Registered Agent service	$50-$200/yr	sosmt.gov
Expedite filing (24-hour)	$20	sosmt.gov
Expedite filing (1-hour)	$100	sosmt.gov
Year 1 total (DIY, no add-ons)	$35
Year 1 with commercial RA service	$85-$235
Year 2+ ongoing (DIY)	$0
5-year total (DIY)	$35

All figures verified 2026-05-16 from the Montana Secretary of State.

Why Montana stands out: $35 + no sales tax

Montana’s two structural advantages combine in a way few other states match:

• $35 filing fee is the lowest in the United States. The next-cheapest tier is Kentucky ($40), Arkansas ($45), and a cluster at $50 (Arizona, Iowa, Mississippi, Missouri, New Mexico).
• No state sales tax. Montana is one of five US states with no statewide general sales tax (the others: Alaska, Delaware, New Hampshire, Oregon). For LLCs that hold tangible property purchased in Montana, this means $0 sales tax on the acquisition.
• No franchise tax. Pass-through LLCs owe nothing at the entity level. The state’s corporate license tax ($50 minimum) applies only to LLCs that affirmatively elect C-corp tax treatment, which most do not.
• Member confidentiality. Montana’s filing system does not require member or manager names on the public Articles of Organization (MCA § 35-8-201). The organizer and registered agent appear; members do not.

The combination of $0 sales tax, no franchise tax, and member confidentiality is what powers the “Montana LLC vehicle registration” market, non-residents purchase exotic cars, RVs, and aircraft through a Montana LLC to avoid sales tax in their home state. This is legally gray. Most states (California, Massachusetts, Colorado) have aggressive tax-authority pursuit of residents using Montana LLCs to dodge home-state use tax, and home-state use tax is generally due regardless of titling jurisdiction. Verify with a tax attorney before using Montana for vehicle titling.

Filing steps (DIY, no service)

1. Pick a name. Search availability at the Montana Business Entity Search. Names must include “Limited Liability Company,” “Limited Company,” “LLC,” “LC,” “L.L.C.,” or “L.C.” under MCA § 35-8-103.
2. Designate a registered agent. Required by MCA § 35-8-105. Must have a Montana street address.
3. File Articles of Organization. $35 online via the Montana SOS ePass portal. Paper filings are no longer accepted as of 2021, online only.
4. Get a federal EIN. Free at irs.gov.
5. Draft an operating agreement. Not required to be filed with Montana, but MCA § 35-8-109 explicitly recognizes them as binding. Strongly recommended for multi-member LLCs.
6. Register for state taxes. Montana has no sales tax, so no sales tax permit. Employer registration with the Montana Department of Labor and Industry if hiring.
7. Open a business bank account. Montana banks (First Interstate, Stockman Bank, Glacier Bank) accept Articles + EIN + operating agreement.
8. File FinCEN BOI report. Required under the Corporate Transparency Act within 30 days of formation. Free at fincen.gov/boi.
9. File the annual report. Due April 15 every year, beginning the year after formation. Fee is $0 if filed on time, $15 late penalty after April 15.
10. Maintain registered agent service. Renew annually if using a commercial agent.

Standard online filings are processed within 5 business days. Montana offers two expedite tiers: $20 for 24-hour turnaround, $100 for 1-hour turnaround.

Page-unique facts

• Montana has the lowest LLC filing fee in the US at $35. Kentucky ($40), Arkansas ($45), and the $50 cluster (AZ, IA, MO, NM, MS) are next.
• Annual report fee is $0 but the filing is mandatory. Montana requires the annual report to be filed by April 15 each year. The fee is waived, but failing to file triggers administrative dissolution after 60 days.
• No state sales tax. Montana is one of five US states (AK, DE, MT, NH, OR) with no statewide sales tax. This is what makes Montana attractive for non-resident vehicle and RV LLCs.
• Member confidentiality by statute. MCA § 35-8-201 does not require member or manager names on the public Articles of Organization. Only the organizer and registered agent appear publicly.
• Online filing is mandatory. Montana stopped accepting paper LLC filings in 2021. All formations and annual reports must go through the ePass portal.
• No state-level operating agreement requirement. MCA § 35-8-109 recognizes operating agreements (oral or written) as binding but does not require filing with the state.
• Two-bracket personal income tax (2024). Montana simplified its personal income tax to two brackets (4.7% and 5.9%) under HB 222 (2023 session), effective tax year 2024. Pass-through LLC profits flow to Montana-resident members at these rates.

Montana 5-year cost projection

Montana’s structural cheapness compounds over multi-year ownership:

• Year 1 (DIY): $35 (Articles of Organization). If you serve as your own RA at a Montana address, total cost is $35.
• Years 2-5: $0 in mandatory state filings. The annual report is required by April 15 each year, but the fee is $0.
• 5-year DIY total: $35.
• 5-year total with commercial RA service ($120/yr market rate): $35 + ($120 × 5) = $635.
• Comparable cheap states: Kentucky $40 filing + $15 × 5 = $115 over 5 years. Arkansas $45 + $150 × 5 = $795. New Mexico $50 + $0 = $50. Missouri $50 + $0 = $50.

Montana edges out every state in pure filing-fee terms. Over 5 years, Montana ($35) is the cheapest if you self-RA, tied with Kentucky ($115) and beaten only by New Mexico and Missouri ($50) when factoring in the absence of any annual obligation.

FAQ

Is Montana really $35 to form an LLC?

Yes. The Montana SOS charges $35 for Articles of Organization, the lowest filing fee in the country. There is no annual report fee, no franchise tax for pass-through LLCs, and no state sales tax. Five-year DIY total: $35 flat. The only mandatory recurring item is the annual report filing (April 15 each year), which has a $0 fee. Source: biz.sosmt.gov, verified 2026-05-16.

Why do non-residents form Montana LLCs for vehicles?

Because Montana has no state sales tax. Non-residents buy luxury cars, RVs, and aircraft, title them under a Montana LLC, and avoid the 4-10% sales tax their home state would charge on direct titling. This is legally gray. Most states (California, Massachusetts, Colorado, Utah) actively audit residents using Montana LLCs to dodge home-state use tax, which is generally due regardless of where the vehicle is titled. The Montana vehicle-LLC market is real but the home-state risk is real too. Verify with a tax attorney before relying on this strategy. Source: Montana Department of Revenue.

Does Montana have a franchise tax?

Not for pass-through LLCs. Montana’s corporate license tax (a franchise-style tax) applies only to corporations and LLCs that affirmatively elect C-corp tax treatment. The minimum corporate license tax is $50. Default-classified LLCs (pass-through partnerships or single-member disregarded entities) owe nothing at the entity level. Source: mtrevenue.gov.

Does Montana require an annual report?

Yes, but the fee is $0. Every Montana LLC must file an annual report by April 15 each year, beginning the year after formation. The filing is free, but missing the deadline triggers a $15 late penalty, and 60 days after the deadline the LLC is administratively dissolved. Source: biz.sosmt.gov annual report page.

How long does Montana LLC formation take?

Standard online filings are processed within 5 business days. Expedite options: $20 for 24-hour turnaround, $100 for 1-hour turnaround. Montana is online-only as of 2021, paper filings are not accepted. Source: Montana SOS Business Services.

Can I form an anonymous LLC in Montana?

Largely yes. MCA § 35-8-201 does not require member or manager names on the public Articles of Organization. Only the organizer (which can be a registered-agent service) and the registered agent are public. Members are not searchable in the Montana business database. FinCEN BOI reporting (federal, non-public) still applies. Source: Montana SOS Business Filings.

Does Montana have a state personal income tax?

Yes, ranging from 4.7% to 5.9% across two brackets effective tax year 2024 (Montana simplified to a two-bracket system in 2024). Pass-through LLC profits flow to Montana-resident members’ returns at these rates. Non-resident LLC members report Montana-source income only on Form 2, with the rate applying only to Montana-sourced earnings. Source: Montana Department of Revenue.

Is the Montana LLC vehicle registration strategy legal?

The Montana LLC formation itself is fully legal. Using a Montana LLC to title vehicles is also legal in Montana. The legal risk sits at the home-state level: if a California, Massachusetts, or other resident uses a Montana LLC to avoid home-state sales/use tax, the home state’s revenue authority can assess use tax plus interest plus penalties, on the theory that the vehicle is “used” in the home state regardless of title. Several states have run aggressive audits on Montana-titled vehicles registered to in-state addresses. The strategy works cleanly only for genuinely Montana-based vehicles (RVs that travel widely, second homes in Montana) or for residents of no-sales-tax states (Alaska, Delaware, Montana, New Hampshire, Oregon) who have no home-state use tax to dodge. Verify with a tax attorney licensed in your state of residence before relying on this approach.

State quirk: the $35 fee that never moves

Montana’s $35 filing fee has not changed since the Montana Limited Liability Company Act was passed in 1993 (MCA Title 35, Chapter 8). Every other state has raised its LLC filing fee at least once since 2000, often multiple times, Massachusetts went from $500 to $520 to $500 again, California adjusted Statement of Information cycles, New York added the publication requirement effective 1994. Montana has held $35 for over 30 years. The reason is structural: the Montana SOS funds itself through filing volume and the no-sales-tax constitutional limit on Montana’s general fund means raising business fees politically risky. The $35 fee plus $0 annual report makes Montana the cheapest US state for LLC ongoing maintenance, $0/yr in years 2+. The catch, you still need a Montana registered agent, which is the only recurring cost for non-residents.

Common mistake in Montana

The most common Montana LLC mistake is forgetting the annual report because the fee is $0. Founders see “no fee” and assume there is no filing. The filing is mandatory by April 15, missing it triggers a $15 late penalty and, 60 days later, administrative dissolution. Once dissolved, the LLC name is released and a competitor can register it; reinstatement requires paying back fees and filing a reinstatement form ($35 + back-year penalties). The fix: calendar the April 15 annual report, even though it costs nothing to file. Set the reminder for April 1 to give 2 weeks of margin. The second common Montana mistake: using a Montana LLC for vehicle titling without understanding home-state use tax exposure. The Montana formation is legal; the home-state tax avoidance often is not. California’s Franchise Tax Board and Colorado’s Department of Revenue have both run targeted audits of Montana-titled vehicles registered to in-state addresses, and the typical result is back use tax plus interest plus a 25% civil penalty. The third common mistake: failing to update the registered agent’s address after the agent moves. Montana requires continuous registered-agent service at a valid Montana street address (MCA § 35-8-105). If the agent moves and the SOS cannot deliver service of process, the LLC enters administrative noncompliance. Founders using a personal Montana address as their own RA should re-verify annually that the address remains current.

Sources

1. Montana Secretary of State Business Services, last verified 2026-05-16
2. Montana Department of Revenue Business Tax, last verified 2026-05-16
3. Montana Code Annotated Title 35 Chapter 8 (Limited Liability Company Act), last verified 2026-05-16
4. IRS Montana Small Business and Self-Employed Resources, last verified 2026-05-16
5. IRS Publication 3402, Taxation of Limited Liability Companies, last verified 2026-05-16

About the author

Aissam Baidi is the founder and researcher behind llcformationcost.com. He verifies Montana LLC fees directly from sosmt.gov on a quarterly cycle. Connect on LinkedIn.

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Not legal advice. Estimates based on publicly available data from each state’s Secretary of State office. Consult a licensed attorney in your jurisdiction.