How to Start a Cleaning Service in Montana (2026)

Last updated: February 26, 2026

Starting a cleaning service in Montana is one of the most accessible business paths in the state. There is no state-level janitorial or cleaning contractor license, no state sales tax to collect, and LLC formation costs just $35 online. The primary legal requirements are forming your business entity, obtaining a local business license from your city or county, and securing workers’ compensation insurance the moment you hire any employee. Montana’s workers’ comp mandate kicks in at just one employee – including part-time workers – so plan for insurance costs from day one if you intend to hire.

Cleaning Service Requirements in Montana at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation (Articles of Organization)	Montana Secretary of State	$35 (online) / $70 (mail)	3-5 business days standard; 24-hr (+$20)
Employer Identification Number (EIN)	IRS (Federal)	Free	Instant (online)
Local Business License	City/County Clerk	Varies by city ($25-$100 typical)	1-2 weeks
Workers’ Compensation Insurance	Private insurer or Montana State Fund	Varies by payroll (premium-based)	Before first employee’s first day
Unemployment Insurance Registration	MT DLI – UI Division	Free to register	Within 30 days of first employee hire
Assumed Business Name (DBA)	Montana Secretary of State	$20 (if operating under a trade name)	3-5 business days

How to Start a Cleaning Service in Montana (Step by Step)

Step 1: Choose a Business Structure and Name

Most Montana cleaning businesses operate as an LLC. The LLC structure separates your personal assets from business liabilities – critical when employees are working in clients’ homes or commercial properties. Search for available business names through the Montana Secretary of State portal at biz.sosmt.gov.

If you plan to operate under a trade name (e.g., “Big Sky Clean Co.” rather than your legal name or LLC name), file an Assumed Business Name (DBA) for $20 through the same SOS portal.

Step 2: Form Your LLC with the Montana Secretary of State

File Articles of Organization online at biz.sosmt.gov for $35. You will need to designate a registered agent – a person or business with a physical Montana street address available during business hours to accept legal documents. You may serve as your own agent, or hire a commercial registered agent service ($49-$150/year). Processing takes 3-5 business days for standard online filing.

In 2026, the annual report fee is waived to $0 if filed by April 15 (Secretary of State’s third consecutive fee waiver). Normal annual report fee is $20.

Step 3: Obtain an EIN from the IRS

Apply online at irs.gov – it’s free and instant. You need an EIN to open a business bank account, hire employees, and file federal and Montana state tax returns.

Step 4: Get a Local Business License

Montana does not have a statewide general business license. However, most cities and counties require their own local business license. Contact the city or county where you will primarily operate:

Billings: City of Billings Finance Department – business license required
Missoula: City of Missoula City Clerk’s Office – business license required
Great Falls: City of Great Falls City Clerk – business license required
Bozeman: City of Bozeman Finance Department – business license required
Helena: City of Helena Finance Department – business license required

Fees typically range from $25-$100 for initial licensing. If you clean in multiple jurisdictions, you may need a license from each city where you regularly perform work.

Step 5: Secure Workers’ Compensation Insurance

This is the most important compliance step for a cleaning business planning to hire. Montana requires workers’ compensation for any employer with one or more employees, including part-time workers. There is no minimum headcount. The day you hire your first employee, you must have coverage in place.

Your options:

Private insurance carrier: Get quotes from licensed Montana insurers. The cleaning industry carries moderate workers’ comp rates given the physical nature of the work.
Montana State Fund: The state-run insurer of last resort available to all Montana businesses. Start a quote at montanastatefund.com.

Non-compliance penalty: a fine of double the premium that would have been owed, minimum $200, plus repayment to the Uninsured Employer’s Fund. Workers’ comp regulations: erd.dli.mt.gov/work-comp-regulations.

Step 6: Register for Employer Taxes

Once you have employees, register with two agencies:

Montana Department of Revenue: Register for income tax withholding using the DOR Business Registration Form (GenReg) or through the TAP portal: dorpowerappsportal.powerappsportals.us.
Montana UI Division: Register as an employer with the Unemployment Insurance Division through UI eServices at uieservices.mt.gov. Phone: (406) 444-3834.
New Hire Reporting: Report each new hire online at mt-newhire.com within 20 days of their start date.

Step 7: Get General Liability Insurance

While not state-mandated, general liability insurance is essential for cleaning businesses. A $1M per occurrence / $2M aggregate policy protects you against property damage claims (a broken item, a flooded bathroom), bodily injury claims (a client slips on a wet floor you mopped), and completed operations claims. Most residential and commercial clients will require proof of liability insurance before allowing your crew into their space.

A solo cleaner with no employees can typically get a basic $1M GL policy for $400-$800/year. Premiums increase with revenue and number of employees.

Cost to Start a Cleaning Service in Montana

Item	Cost	Notes
LLC Formation (Articles of Organization)	$35	Online at biz.sosmt.gov; $70 by mail
Registered Agent (first year)	$0-$150	Free if self-appointed; $49-$150 for commercial service
Annual Report (2026)	$0	Fee waived in 2026 if filed by April 15; normally $20
Assumed Business Name (DBA)	$20	Only if operating under a trade name
Local Business License	$25-$100	Varies by city/county
General Liability Insurance	$400-$800/year	$1M occurrence; required by most clients
Workers’ Compensation (first employee)	$800-$2,000/year	Based on payroll; required with 1+ employee
Cleaning Supplies & Equipment	$200-$1,500	Startup equipment, mops, vacuums, chemicals

Estimated total startup cost: $700-$4,600 (solo operator without employees: $700-$1,500; with employees: $2,000-$4,600)

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Frequently Asked Questions

Do I need a state license to start a cleaning business in Montana?

No. Montana does not have a state-level license for janitorial or cleaning services. You need a local business license from your city or county (contact the city clerk), and workers’ compensation insurance if you hire any employees. There is no state examination, certification, or registration specific to cleaning businesses.

Does Montana collect sales tax on cleaning services?

No. Montana has no general state or local sales tax, so you do not need to collect or remit sales tax on cleaning services. This applies to both residential and commercial cleaning. Montana is one of only five states nationwide with no sales tax.

When do I need workers’ comp insurance for my cleaning crew?

The moment you hire your first employee – including part-time and seasonal cleaners. Montana’s workers’ comp threshold is one employee, which is lower than most states. Sole proprietors with no employees are exempt. Get coverage through a private insurer or the Montana State Fund (montanastatefund.com) before your employee’s first day of work.

Can I run a cleaning business as a sole proprietor in Montana?

Yes. Sole proprietors do not need to register with the Secretary of State unless using a trade name (in which case file an Assumed Business Name for $20). However, an LLC ($35) is recommended because it separates your personal assets from liability claims arising from employee accidents or client property damage. As a sole proprietor you are personally liable for all business debts and lawsuits.

Do I need to register for Montana income tax?

Yes, if you have employees. Register to withhold Montana state income tax through the Montana Department of Revenue’s TAP portal. As an LLC owner, you will also file Montana individual income tax on your share of business income. Montana’s top individual income tax rate is 6.75%. There is no sales tax registration required since Montana has no sales tax.

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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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