Montana has the highest rate of small business employment in the United States, at 66.3%. Montana doesn’t have a single, statewide business licence. Instead, setting up a business may require permits from individual cities and counties, along with any applicable state-level occupational licences. The specific requirements depend on your industry and location, so the process may be very different for a contractor in Billings than for a freelance designer in Bozeman.

Below, we’ll discuss the specific licences and permits required for Montana businesses, step-by-step process for getting registered, and relevant renewal deadlines.

Key takeaways

• Montana has no statewide general business licence, so requirements typically involve state occupational licensing and city or county permits.

• Permitting requirements and processing times vary widely depending on your industry and location, and can range from a simple form to a licensing process that involves exams and background checks.

• Renewal deadlines differ by licence type; if you miss one, it can put your business’s active status at risk.

What is a business licence in Montana?

Instead of a single, statewide business licence, Montana has permits set by individual cities and counties, and occupational licences handled by the state.

What types of business licences and permits do you need in Montana?

Since Montana doesn’t have a blanket state business licence, the exact licences and permits you’ll require will depend on your industry and location. Many businesses only need one or two licences or permits.

Here are the different types of licences:

• Occupational licences: Montana’s Employment Standards Division issues occupational licences in regulated industries. Licensing requirements vary by profession. Cosmetologists and real estate agents must pass a licensing exam, while contractors must show proof of insurance or bonding.

• Local business permits: In Montana, individual cities and counties set their own local business permit requirements. Some require a general permit for any company operating within city limits. Others only require permits for certain types of companies, such as home-based businesses or businesses that sell alcohol.

• Sales tax registration: Montana is one of five US states with no state sales tax. If you’re selling only within Montana, you don’t need a seller’s permit (also called a sales tax permit). If you sell into other states, you might need to register for sales tax in those states.

• Federal licences: If you’re in a federally regulated field, such as firearms sales, alcohol production, transportation, or agriculture, you might need a federal licence.

How do you get a business licence in Montana?

Getting a business licence in Montana involves a few key steps, including:

1. Choose and register your business structure

If you form a limited liability company (LLC) or corporation, or use a business name different from your own name, you’ll file articles of organisation or articles of incorporation with the Montana Secretary of State’s office, along with an Assumed Business Name (ABN) registration if needed. Sole proprietors operating under their own legal name don’t need to register with the state.

2. Get a federal Employer Identification Number (EIN)

All businesses, even single-member LLCs, typically need an EIN to open a business bank account or hire employees. The Internal Revenue Service (IRS) issues them online within minutes, free of charge.

3. Apply for any occupational licence you need

Check the Montana Department of Labor and Industry licence lookup tool to confirm whether your occupation requires state-level licensure. If it does, you’ll need to submit application materials, which might include exam results, insurance certificates, or education records.

4. Register for a local business permit with your city or county

Local business permit requirements vary widely across Montana. Missoula, for instance, requires all home-based businesses to obtain a city business licence. Contact your city or county clerk’s office to learn what’s required in your location.

5. Register for state withholding and unemployment insurance if you’re hiring

You’ll do this through the Montana Department of Revenue and Department of Labor and Industry.

6. Set up your banking and payments

Open a dedicated business bank account to keep your business funds separate from your personal ones. Then choose a payment processor so you’re ready to accept customer payments.

How much does a business licence cost in Montana?

Montana licensing differs depending on a business’s location and type, so costs vary. Before you budget or make plans, confirm exact figures with your specific board or city because individual circumstances can change fee amounts. For example, Missoula’s business licence fee depends on the number of employees your business has, and some occupational licences renew every four years rather than every two.

Here are common Montana filing fees:

How do you renew your Montana business licence?

How you renew your Montana business licence depends on the licence. Occupational licences issued by the Department of Labor and Industry typically renew every two years, although some, such as certain agricultural or pesticide-related certifications, have longer renewal cycles. You can renew occupational licences online through the eBiz portal.

LLCs and corporations are required to file an annual report with the Montana Secretary of State by 15 April each year, and local permits usually renew annually on a date set by your city or county. Failing to renew on time can be expensive and comes with consequences. If your occupational licence is expired, you’re no longer legally cleared to keep working in that field, and a missed annual report can put your business’s active status with the state at risk. Set a calendar reminder for your licence renewal dates so that you never miss them.

What are some common mistakes and considerations related to Montana business licences?

Although Montana has some simple rules for running a business, such as no state sales tax, people still run into difficulties or make mistakes. Most of these have to do with location and timing.

Here are some Montana-specific considerations to keep in mind:

• Home-based businesses aren’t automatically exempt from permits: Several Montana cities, such as Missoula and Bozeman, require home-based business owners to secure a home occupation permit even if they’re not seeing customers on-site. Skipping this step is a common mistake.

• Out-of-state vehicle and LLC registration draws scrutiny: Because Montana has no state sales tax, people outside the state often register vehicles or form LLCs there specifically to avoid sales tax at home. This practice has drawn increased attention from other states’ tax authorities. Make sure you’re running a Montana-based business and not using Montana registration as a workaround.

• Occupational boards can require licensure before you start working: Fields such as cosmetology, contracting, and real estate require that you pass board requirements before you take your first client. If you start working before this, you might incur fines.

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FAQs about getting a business licence in Montana