Operating a business in Montana requires a solid understanding of the state's tax framework. Montana is one of the few US states with no general sales tax, attracting businesses seeking lower compliance costs. LLC formation costs $70 in 2026.
Tax Environment in Montana
Since Montana does not impose a general sales tax, there are no economic nexus thresholds for sales tax collection. However, businesses should be aware of other tax obligations such as gross receipts taxes, business income taxes, or industry-specific levies. The Montana Department of Revenue provides guidance at https://mtrevenue.gov.
LLC Formation in Montana (2026)
Forming an LLC in Montana costs $70 for the initial filing. An annual franchise tax of $20 is required to maintain good standing. The annual report fee is $20. Montana imposes a state income tax, which affects pass-through LLC taxation.
The process involves filing Articles of Organization with the Secretary of State, obtaining a federal EIN, and registering for applicable state tax accounts.
Key Tax Rules
• Montana has NO general sales tax.
• Some resort communities may impose a local Resort Tax up to 3%.
• No sales tax makes Montana popular for vehicle and RV purchases.
• LLC formation is inexpensive with a $70 filing fee and $20 annual report.