Montana is well known for its mountains and wide-open spaces, but its business environment deserves attention too. The state’s low fees, digital-first filing system, and lack of sales tax all contribute to an easier incorporation process that can benefit businesses. Below, we’ll explain how to incorporate in Montana and why the state might be the right choice for your business.

What’s in this article?

• How do you incorporate a business in Montana?
  
• What are the benefits of incorporating in Montana?
  
• What are the legal requirements to incorporate in Montana?
  
• How much does it cost to incorporate in Montana?
  
• What are the steps to register an LLC or corporation in Montana?
  
• How Stripe Atlas can help
  

How do you incorporate a business in Montana?

In Montana, incorporating means formally registering a business entity with the secretary of state. While “incorporate” technically refers to forming a corporation, many people use it loosely to include limited liability companies (LLCs). Both create a separate legal identity for your business and protect your personal assets from business debts. Montana makes it easier to file either.

You can incorporate your business online through Montana’s digital filing portal. You’ll create an account, complete the state’s form (articles of incorporation for corporations or articles of organization for LLCs), and pay a filing fee. Once you’re approved, the secretary of state’s office will notify you via email with instructions to access the approved documents from the portal. To stay compliant, you’ll also need to file a short report every year.

What are the benefits of incorporating in Montana?

Montana is one of the most business-friendly states in the country. These are the reasons why many entrepreneurs choose to incorporate here.

No sales tax

Montana is one of the few states without a statewide sales tax. That means businesses don’t have to add extra charges to customer invoices, which keeps accounting simple for local businesses. Customers save money at checkout, especially if they’re making big-ticket purchases.

Competitive tax climate

Montana’s corporate income tax rate is a flat 6.75%. LLCs and S corporations (S corps) skip that tax and pass income directly to owners, who pay at individual rates (ranging from 4.7%–5.9%). And there’s no franchise tax. All of this creates an advantageous tax climate for businesses.

Low costs and light compliance

Starting a company in Montana costs just $35, which is one of the lowest formation fees nationwide. The only annual requirement is a short report and the fee is waived if you file before April 15.

Incentives and support

Montana offers targeted incentives for job creation, energy conservation, and research and development. The job growth incentive tax credit, for example, gives eligible businesses a tax credit equal to 50% of employer-paid Federal Insurance Contribution Act (FICA) taxes for new employees. Local Small Business Development Centers also provide free or low-cost mentorship and training.

Lifestyle and market advantages

Costs are lower in Montana than in coastal hubs so your budget can stretch further. Communities are generally close-knit, which can strengthen local customer relationships. And while the state’s population is small, digital infrastructure lets Montana companies sell to customers anywhere. The high quality of life Montana offers—the outdoors, open space, and community—can be a recruitment asset.

What are the legal requirements to incorporate in Montana?

Incorporating in Montana requires a compliant name, an in-state agent, a state filing, and the proper internal governance documents. Montana doesn’t have a statewide required business license or residency requirements for business owners, but there are local and industry rules for licensing and permits that you’ll need to follow.

Here’s what you’ll need to operate in Montana.

Compliant business name

Your business name must be unique in the secretary of state’s records. Run a search in the state database before you file to confirm availability. Terms such as “Bank,” “University,” and anything that implies licensed activity might require extra approvals.

The name also needs to indicate the business structure. Corporation names must include the word “Corporation,” “Incorporated,” “Company,” or “Limited,” or an abbreviation of one of these words (such as “Inc.” or “Co.”). LLC names must include the words “Limited Liability Company” or “LLC.”

Registered agent

You must have a registered agent with a physical street address in Montana, not a PO Box. The agent must be available during business hours to receive legal documents and other notices. You can act as your own agent if you live in Montana and don’t mind having your address publicly listed, or you can use a professional service if you operate from another location or want to maintain your privacy.

State filing

All companies must file through the secretary of state’s digital portal. Corporations file articles of incorporation, and LLCs file articles of organization.

Expect to provide your:

• Business name

• Principal office address

• Registered agent information

• Business purpose (a specific description or the catchall “any lawful business”)

• Duration (usually perpetual, unless you want an end date or event)

• Organizer or incorporator information

LLCs will also need to state whether they’re member managed or manager managed and list the names and addresses of members or managers. Corporations will need to state the number of shares they’re authorized to issue and the par value of those shares.

Once they’re approved, your filed articles become the company’s legal charter. At least one organizer (for an LLC) or incorporator (for a corporation) must sign.

Internal governance

Corporations will need to appoint at least one director and adopt bylaws at their initial board meetings. Then, they have to appoint officers (one person can hold multiple roles).

While it’s not required, it’s best practice for LLCs to form an internal operating agreement that governs management, ownership, and economics.

Licenses, permits, and state registrations

There’s no statewide general business license, but many cities and counties do require a local license. Check the rules for where you operate. Industry rules still apply: food service, contractors, healthcare, and other regulated fields need their usual permits or professional licenses.

If you’re hiring in Montana, you’ll need to register for withholding tax with the Department of Revenue and unemployment insurance with the Department of Labor & Industry.

Residency

There’s no residency requirement to file in Montana. Owners can live anywhere in the US or abroad. Doing business in another state will likely require a foreign qualification, which usually entails a separate filing and fee.

How much does it cost to incorporate in Montana?

Montana stands out for how little it costs to start and maintain a business there, compared to most states. Formation filing costs $35 for both LLCs and corporations, and annual report costs are waived if the report is filed by April 15. If it’s filed late, the cost is $35.

Beyond that, here are some extras you might need to budget for:

• It costs $10 to reserve a business name before you file.

• It costs $20 to set up an assumed business name if you’ll operate under a different trade name from your legal entity.

• It costs $5 to get a certificate of existence, which is sometimes required for banking or foreign registrations.

• It generally costs between $100 and $300 per year to use a registered agent service. If you act as your own agent, you can avoid this cost.

What are the steps to register an LLC or corporation in Montana?

Each step in the incorporation process sets you up for compliance and long-term stability. Here are the steps to launch your business legally.

Decide on your structure

LLCs come with flexible management, fewer formalities, and pass-through taxation (profits are taxed once on owners’ returns). They’re a common choice for small to midsize businesses.

Corporations are structured with shareholders, directors, and officers. They’re subject to corporate income tax (6.75% in Montana), but they make it easier to raise capital and issue stock. Investors often favor them.

You can convert from one structure to another if your needs change in the future, but choosing the right starting point saves time and money.

Choose a name

Your business name must be unique in the state database and follow all legal requirements. It’s a good idea to check trademark databases and domain availability, too, before you file.

Appoint a registered agent

You must have a registered agent with a Montana street address; they will receive your legal documents. Agent information goes on the public record and must be updated promptly if it changes. This rule ensures you never miss lawsuits, tax notices, or other official mail.

File online with the secretary of state

Log into the state’s digital portal. LLCs file articles of organization, and corporations file articles of incorporation. Once your filing is approved, the state will notify you via email.

Create internal governance documents

An LLC should draft an operating agreement that outlines ownership, contributions, management structure, and exit terms. This isn’t filed with the state, but it’s important for liability protection and clarity.

A corporation needs to draft bylaws, hold an initial board meeting, appoint officers, and issue stock to shareholders. Keep a stock ledger and meeting minutes.

Register for state taxes and accounts

If you have employees, you’ll need to register for withholding tax and unemployment insurance. If you’re selling into other states, set your business up to collect sales tax there.

Check local licenses and permits

There’s no statewide general license, but many Montana cities and counties require one. Secure any industry-specific permits your business will need (e.g., restaurant health permits, contractor licensing, professional credentials).

File your annual report

Your annual report is due April 15 every year. You can file online. Just confirm or update your information and submit. If you fail to file, the state can dissolve your company.

How Stripe Atlas can help

Stripe Atlas sets up your company’s legal foundations so you can fundraise, open a bank account, and accept payments within two business days from anywhere in the world.

Join 75K+ companies incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z, and General Catalyst.

Applying to Atlas

Applying to form a company with Atlas takes less than 10 minutes. You’ll choose your company structure, instantly confirm whether your company name is available, and add up to four cofounders. You’ll also decide how to split equity, reserve a pool of equity for future investors and employees, appoint officers, and then e-sign all your documents. Any cofounders will receive emails inviting them to e-sign their documents, too.

Accepting payments and banking before your EIN arrives

After forming your company, Atlas files for your Employer Identification Number (EIN). Founders with a US Social Security number, address, and cell phone number are eligible for IRS expedited processing, while others will receive standard processing, which can take a little longer. Additionally, Atlas enables pre-EIN payments and banking, so you can start accepting payments and making transactions before your EIN arrives.

Cashless founder stock purchase

Founders can purchase initial shares using their intellectual property (e.g., copyrights or patents) instead of cash, with proof of purchase stored in your Atlas Dashboard. Your IP must be valued at $100 or less to use this feature; if you own IP above that value, consult a lawyer before proceeding.

Automatic 83(b) tax election filing

Founders can file an 83(b) tax election to reduce personal income taxes. Atlas will file it for you—whether you are a US or non-US founder—with USPS Certified Mail and tracking. You’ll receive a signed 83(b) election and proof of filing directly in your Stripe Dashboard.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company. Atlas C corp documents are built in collaboration with Cooley, one of the world’s leading venture capital law firms. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.

A free year of Stripe Payments, plus $50K in partner credits and discounts

Atlas collaborates with top-tier partners to give founders exclusive discounts and credits. These include discounts on essential tools for engineering, tax, finance, compliance, and operations from industry leaders like AWS, Carta, and Perplexity. We also provide you with your required Delaware registered agent for free in your first year. Plus, as an Atlas user, you’ll access additional Stripe benefits, including up to a year of free payment processing for up to $100K in payment volume.

Learn more about how Atlas can help you set up your new business quickly and easily, and get started today.