Overall, Montana is a good state for an LLC due to favorable tax laws, a business-friendly environment, and a strong economy. To form an LLC in Montana, file Articles of Organization with the Secretary of State for a $70 fee. You can apply online. As an LLC, you are protected from personal liability for business debts and actions.
LLCs must file annual reports and pay fees to maintain active status, which range from $20-$50 per year depending on the state. In Montana, LLCs pay the $20 minimum. While Montana has no state income tax, LLCs pay the Montana Corporate License Tax based on taxable capital.
Consider registering a web domain and launching a website when starting your Montana LLC, as an online presence is practically a necessity for modern businesses. Use the Secretary of State website to perform name searches before filing to ensure your desired business name will be available.
When deciding where to form your LLC, the best option is usually your home state where you live and operate the business. You typically pay state taxes wherever you earn income, not just where the LLC was formed.
Montana has some of the lowest filing fees in the country for LLCs. The filing fee is only $70. Business owners do not have to pay any additional taxes to start an LLC.
Unlike most other states, Montana does not have a general sales tax. That implies your LLC will not be required to get a Montana Sales Tax License and file a sales tax return with the Department of Revenue.
Montana offers a straightforward and streamlined process for LLC formation.
Tax Advantages: Montana boasts no sales tax, a feature that can significantly benefit businesses engaged in retail or e-commerce activities.
Asset Protection: Montana’s LLC laws provide strong asset protection for business owners.
Each year, about 9,000 new LLCs are formed in Montana. Montana is ranked second in terms of export intensity growth by the U.S. Chamber of Commerce.
The IRS treats LLCs as “pass-through” entities. This means that an LLC passes its profits and losses down to individual LLC members, who report them on their personal returns.
If you want to skip the hassle of starting a Montana LLC yourself, consider using professional help for the best price in the market.
First off, you’ll be happy to know that Montana is one of the best states to start an LLC. The sales tax rate is 0%, while the individual income tax rate is between 1% and 6.9% depending on your income.
In summary, if you live in and conduct business in Montana, then yes, Montana is a good state to start a business. If you don’t live in and do business in Montana, then no, Montana isn’t a good state to start a business.