How do I register a DBA in Montana?

File an Assumed Business Name online at biz.sosmt.gov for $20. Valid for 5 years, renewable for $20. No county-level DBA filing is required in Montana.

Starting a Business in Montana: Licenses & Permits (2026)

Last updated: February 26, 2026

Starting a business in Montana means registering with the Secretary of State, understanding your state tax obligations, and securing any industry-specific licenses before you open. Montana is one of only five states with no general sales tax – a significant advantage for many business types. LLC formation costs just $35 online and, in 2026, Secretary of State Christi Jacobsen has waived the annual report fee for the third consecutive year, making it free to keep your LLC in good standing. Montana does require workers’ compensation for any business with even one employee, so insurance planning matters from day one. This guide covers every step using official Montana state sources so you know exactly what you need, what it costs, and where to apply.

How to Start a Business in Montana (Step by Step)

Step 1: Choose Your Business Structure

Most Montana small business owners choose between a sole proprietorship, a Limited Liability Company (LLC), or a corporation. An LLC is the most popular choice because it limits personal liability and is treated as a pass-through entity for federal and state income tax purposes by default.

Sole Proprietorship: No state registration required if you operate under your own legal name. Simple and low-cost, but offers no personal liability protection. If you use a business name other than your own, file an Assumed Business Name (DBA) with the Secretary of State for $20.
LLC: Formed through the Montana Secretary of State. Provides liability protection and operational flexibility. Online filing fee: $35. Paper/mail filing fee: $70. Annual report: free in 2026 (normally $20/year), due April 15.
Corporation: More complex governance requirements. Montana corporations are subject to a 6.75% corporate income tax. Recommended for businesses planning to raise outside investment or issue stock.

The Montana Secretary of State e-filing portal is your starting point: biz.sosmt.gov.

Step 2: Register Your Business

If you form an LLC or corporation, file with the Montana Secretary of State (SOS). Most registrations can be completed online in minutes.

Articles of Organization (LLC): File online at biz.sosmt.gov. Fee: $35 (online) or $70 (mail). Standard processing is typically 3-5 business days. Expedited options: 24-hour processing (+$20) or 1-hour processing (+$100).
Annual Report: Montana LLCs must file an annual report by April 15 each year. The standard fee is $20, but in 2026 the fee is waived to $0 if filed on time. Late filing (after April 15) incurs a $15 late fee ($35 total). File through the SOS portal: biz.sosmt.gov.
Registered Agent: Every Montana LLC must maintain a registered agent with a physical Montana street address (P.O. boxes are not permitted). The agent must be at least 18 years old. An LLC member/owner may serve as registered agent if they have a Montana physical address. Professional registered agent services typically cost $49-$150/year.
Assumed Business Name (DBA): If you operate under any name other than your LLC’s legal name, file an Assumed Business Name with the Montana Secretary of State online. Fee: $20. Valid for 5 years; renewable for $20. File at: biz.sosmt.gov.
EIN (Federal): Apply for a free Employer Identification Number from the IRS at irs.gov. Required for multi-member LLCs, any entity with employees, and strongly recommended for any LLC opening a business bank account.

Step 3: Get Required Licenses & Permits

Montana does not have a general statewide business license requirement. Licensing is handled at two levels: state-level occupational/industry licenses for regulated professions, and local business licenses required by most Montana cities and counties.

Local business license: Most Montana cities (Billings, Missoula, Great Falls, Bozeman, Butte, Helena) require a local business license. Contact your city or county clerk’s office for the application and current fee schedule.
Food service / food trucks: Montana Department of Public Health and Human Services (DPHHS) Retail Food Establishment license required. Mobile food vendors are regulated as Retail Food Establishments under state law.
HVAC contractors: Montana requires Construction Contractor Registration (CCR) or an Independent Contractor Exemption Certificate (ICEC) through the Department of Labor & Industry. No state HVAC-specific license exam exists.
Cosmetology / hair salons: The Montana Board of Barbers and Cosmetologists licenses individual cosmetologists and salon establishments. Both a personal cosmetology license and a Salon/Shop establishment license are required.
Childcare / daycare: The Montana DPHHS Child Care Licensing (CCL) program regulates all childcare facilities. License type depends on the number of children served and the setting.
Landscaping (pesticide application): The Montana Department of Agriculture (MDA) requires a Pesticide Applicator License for any commercial applicator using herbicides, pesticides, or fungicides on ornamental plants or turf.
Private investigators: The Montana Board of Private Security (under DLI) licenses all private investigators. A state PI license is required to operate in Montana.

See the industry-specific guides below for complete licensing details for each business type.

Step 4: Register for State Taxes

Montana’s tax structure is unique: it is one of only five U.S. states with no general sales tax. However, Montana businesses are subject to state income tax, and employers must register for unemployment insurance. Tax registration is handled through the Montana Department of Revenue (DOR) and the Montana Department of Labor & Industry.

Sales Tax: Montana has no state or local general sales tax on retail goods. This is a significant advantage for retail and service businesses. Note: Some resort communities levy a local resort tax (up to 3%) on certain transactions, and Montana imposes a lodging/accommodations tax separate from general retail. More info: revenue.mt.gov.
State Income Tax: Montana has a flat corporate income tax rate of 6.75% with a $50 minimum. LLCs are pass-through entities by default – members report business income on their individual Montana income tax returns. Montana individual income tax uses graduated rates up to 6.75% (the top bracket as of 2024). Register through the DOR TransAction Portal (TAP): dorpowerappsportal.powerappsportals.us or submit the paper Business Registration Form (GenReg) to the DOR.
Unemployment Insurance (UI): Register with the Montana Department of Labor & Industry, Unemployment Insurance Division as soon as you hire your first employee. Register online through UI eServices at uieservices.mt.gov. Phone: (406) 444-3834. File quarterly UI tax reports through the same portal.
New Hire Reporting: Montana employers must report all new hires to the Montana New Hire Reporting Program. Report online at: mt-newhire.com. Deadline: within 20 days of the hire date.
Employer Withholding: If you have Montana employees, register to withhold Montana income tax from employee wages. Register through the DOR TAP portal. File Form MW-1 (withholding return) quarterly.

Step 5: Get Business Insurance

Montana requires workers’ compensation coverage for any employer with one or more employees – including part-time and seasonal workers. There is no minimum headcount threshold; if you hire anyone, you need coverage. This is one of the broadest workers’ comp requirements in the country. Sole proprietors with no employees are exempt but may voluntarily opt in.

Coverage options: purchase from any authorized private insurance carrier, use the Montana State Fund (insurer of last resort): montanastatefund.com, or apply for self-insurance status through the Employment Standards Division. Non-compliance penalties: a fine of double the premium owed (minimum $200) plus repayment to the Uninsured Employer’s Fund. Workers’ comp regulations: erd.dli.mt.gov/work-comp-regulations.

Beyond workers’ comp, general liability insurance ($1M occurrence is standard) is strongly recommended. Industry-specific requirements apply: cosmetology establishments must pass an inspection before opening; pesticide applicators need minimum $30,000 liability coverage; private investigators need $500,000 GL insurance.

Montana Business Guides by Industry

Choose your industry for a detailed breakdown of every license, permit, and requirement:

Montana Business Resources & Official Links

Frequently Asked Questions

How much does it cost to form an LLC in Montana?

The online filing fee for a Montana LLC (Articles of Organization) is $35 through the Secretary of State’s e-filing portal at biz.sosmt.gov. Mail filings cost $70. In 2026, the annual report fee has been waived to $0 if filed by April 15. Normally the annual report is $20/year. Add registered agent costs of $49-$150/year if using a commercial service, or appoint yourself as agent (free). Total first-year cost is typically $85-$200 depending on registered agent choice.

Does Montana have a state sales tax?

No. Montana is one of only five U.S. states with no general state or local sales tax on retail goods and services. This is a substantial advantage for Montana businesses – you do not need to collect, remit, or file sales tax returns for general business sales. Some narrow exceptions apply: resort communities may impose a local resort tax (up to 3%) on certain transactions, and a separate accommodations tax applies to lodging. But for most small businesses, there is no sales tax obligation at all.

Does Montana require workers’ compensation insurance?

Yes, for any employer with one or more employees, including part-time and seasonal workers. Montana’s workers’ comp threshold is among the broadest in the country – there is no minimum headcount. Sole proprietors with no employees are exempt but may opt in voluntarily. Coverage can be purchased from any licensed private insurer or through the Montana State Fund at montanastatefund.com. Failure to carry required coverage results in fines equal to double the premium owed, minimum $200.

What is the Montana state income tax rate for businesses in 2026?

Montana corporations pay a flat 6.75% corporate income tax with a $50 minimum. LLCs are pass-through entities by default: members pay Montana individual income tax on their share of business income. Montana’s individual income tax is graduated, with the top rate also at 6.75% (on income above $20,500 for single filers). Montana switched to single-factor (receipts-only) apportionment for multi-state businesses beginning after December 31, 2024.

Does Montana require a general state business license?

No. Montana does not require a general statewide business license. Licensing requirements fall into two categories: local business licenses (required by most Montana cities and counties – contact your city or county clerk) and state-level occupational licenses for regulated industries such as cosmetology, childcare, food service, contracting, and private investigation. Many businesses need both a local license and a state industry-specific license.

How do I register a DBA (fictitious/assumed business name) in Montana?

File an Assumed Business Name registration online through the Montana Secretary of State’s e-filing portal at biz.sosmt.gov. The filing fee is $20 and the registration is valid for 5 years, renewable for another $20. Unlike some states, Montana processes assumed business name filings at the state level only – no county-level DBA filing is required.

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About the Author

Robert Smith has run a licensed private investigation firm for 8 years from the Florida-Georgia state line - where he learned firsthand how wildly business licensing rules differ between states just miles apart. He personally researched requirements across all 50 states and D.C., reviewing hundreds of government sources over hundreds of hours to build guides he wished existed when he started. Not a lawyer or accountant - just a business owner who has done the research so you don't have to.

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