LLC Annual Report and Tax Filing Requirements in Montana

If you choose to form a limited liability company (LLC), you'll need to keep up with the related state filing and tax requirements. You'll need to submit an annual certificate and fee and pay the appropriate business taxes for your Montana LLC.

Below are the most important ongoing reporting and state tax filing requirements for Montana LLCs. (If you'd like information about other states' LLC requirements, you can review our article on LLC tax and filing requirements.)

Montana LLC Annual Report

The State of Montana requires you to file an annual report for your LLC. The annual report is due by April 15 every year. As of 2023, the filing fee for the annual report is $20.

You can file the report online through the Montana Secretary of State (SOS) website. You can access the online form using either your business name or your LLC's state-issued filing number.

State Business Taxes in Montana

Most LLCs are considered "pass-through tax entities," meaning the business income passes through to the business owners who then pay taxes on their share of the business's income. So, by default, the LLC itself doesn't pay income tax. But as an LLC owner, you report your share of the LLC's income on your personal tax return and you pay taxes on that income.

No franchise tax. Some states have a separate franchise tax or fee on LLCs for the privilege of doing business in the state. However, Montana is not one of those states and no franchise tax is due for LLCs in Montana.

Electing corporate tax status. Typically, LLCs are taxed as partnerships by default. However, you can choose to have your LLC taxed as a corporation for federal tax purposes by filing IRS Form 2553 with the IRS. If you elect federal corporate tax status, Montana will also recognize your LLC as a corporation for state tax purposes. Montana, like almost every other state, has a corporate income tax that any business classified as a corporation for tax purposes must pay. As of 2023, the Montana corporate income tax is a flat 6.75% of net income earned in Montana (there are also other ways of calculating the tax).

The Montana Department of Revenue (DOR) collects and handles income taxes for businesses and individuals. You can report and pay your taxes online using the Montana TransAction Portal (TAP).

Montana Employer Taxes

If your LLC does or will have employees, you'll need to register for and pay employer taxes to the federal and state governments. As an employer, you'll need to get a federal employer identification number (EIN) from the IRS to report and pay these taxes.

Withholding employee wages. Most Montana employers will need to withhold and pay employee income taxes to the DOR. You'll need to first register your business with the DOR either online through TAP or by mailing in Form GenReg to the DOR. Once you've registered, you'll need to file withholding taxes periodically. You'll also need to use Form MW-3 each year to reconcile your LLC's tax withholding.

Unemployment insurance (UI) tax. You'll also probably need to register to pay state UI taxes to the Montana Department of Labor & Industry (DLI). You can register online using UI eServices or on paper using Form UI-1. Then you'll need to file quarterly reports using Form UI-5.

No Sales and Use Tax in Montana

Montana currently is one of just five states that does not charge sales tax. Consequently, unlike LLCs that sell goods in most other states, if your LLC sells goods or services in Montana you don't need to worry about paying sales tax to the state.

LLC Registration in Other States

Oftentimes, business owners will organize their LLCs in one state and do business in other states. If you plan to do business outside of Montana, then you might need to register your LLC in the other states where you do business. For example, if you do business in Washington but you organized your LLC in Montana, then you might need to qualify as a foreign business in Washington.

Each state has foreign qualification standards and requirements for when a company must register as an out-of-state business. But, in general, you'll likely need to register as an out-of-state LLC if you have a physical presence in a state, hire employees in the state, or advertise directly to residents of the state.

To review individual state requirements, check out our state guide to qualifying to do business outside your state.

More Information About Montana LLCs

If you'd like help with your business, visit the SOS's Business Help Center. The Help Center offers guidance, support, and resources to small businesses. You can find information and help about registering your LLC and filing annual reports.

If you want to read more about the different ways to manage and run your LLC, see the LLC section of our website. If you have specific legal questions or you're unsure about your filing and tax obligations, you should consult with a Montana business lawyer. They can guide you through registering your business, filing your annual report, and reporting your business and employer taxes.