How to Open a Business in Montana: A Step-by-Step Guide

Launching a business in Montana involves legal, financial, and operational steps. This guide weaves together core requirements—entity formation, certificates, tax registrations, and essential insurance—so you cover every compliance angle from day one.

1. Develop Your Business Idea & Plan

Every successful Montana venture starts with a clear idea and a solid roadmap.

1. Identify a market need, passion project, or in-demand skill.

2. Research competitors, target customers, and pricing models.

3. Draft a concise business plan that includes:

4. Executive summary

5. Product/service offering

6. Market analysis

7. Operations and management

8. Financial projections

2. Choose Your Business Structure

Pick the entity that matches your liability tolerance, tax goals, and growth plans.

Structure	Liability	Taxation	Setup Complexity
Sole Proprietorship	Owner personally liable	Pass-through on Schedule C (Form 1040)	Easiest
LLC	Liability limited to assets	Pass-through or C-corp rates	Moderate
Corporation (C or S)	Shareholders protected	Corporate rates or S-corp pass-through	Most complex

Solo operator doing 1099 work? Use your SSN and file Schedule C. An EIN is optional but keeps your SSN off paperwork and preps you for growth.

2.1 Operating as a Sole Proprietor with No Employees

Fewer registration hurdles—but don’t skip essentials:

• Use your SSN on tax returns; skip an EIN unless you need a separate business ID. You can purchase assets through the business name once you have an EIN.

• Report income and expenses on Schedule C and pay self-employment tax via Schedule SE.

• If you offer only non-taxable services, you can skip the Montana Gen-Reg certificate.

• Sell taxable services (e.g., lodging, campground fees) then register with DOR, get the Gen-Reg certificate, and collect excise taxes. Many vendors hide these costs in their pricing.

• Check your city or county for any Business Privilege License or zoning permit fees.

3. Register Your Business Name & Certificates

Montana doesn’t issue a single “general business license.” Your authority to operate comes from:

1. SOS Formation Certificate

   
   

   When you file Articles of Organization (LLC) or Articles of Incorporation (corporation), the Secretary of State issues this via the Montana Secretary of State.

2. DOR Business Registration Certificate (Gen-Reg)

   
   

   File the GEN REG form through Montana’s eStop portal if you sell taxable goods/services or withhold payroll tax. DOR emails your certificate—print it, and you’re officially compliant.

Search the SOS database to confirm name availability, then file online or by mail and pay the fees.

4. File Organizational Documents

Formalize your entity with the Secretary of State:

1. Prepare Articles of Organization (LLC) or Articles of Incorporation (corporation).

2. Submit via the Montana SOS portal or by mail.

3. Include filing fees (currently $35 for an LLC; $70 for most corporations).

4. Expect processing in 3–5 business days for online filings.

5. Obtain Federal & State Tax IDs

Even sole proprietors may want an EIN; other entities need it.

• Apply for an EIN online using the IRS’s SS-4 questionnaire.

• Register for a Montana Business Tax Account via Taxpayer Access Point to handle sales tax, withholding, and other obligations.

• No employees + non-taxable services = you can skip Gen-Reg. Keep detailed profit records and estimated tax payments on Schedule C.

6. Determine Licensing & Permits

Cover industry-specific and local requirements:

• Use Montana’s eStop portal for a customized list of state licenses and permits.

• Occupational licenses (contractors, cosmetologists, etc.) through the Department of Labor & Industry.

• Independent Contractor Exemption Certification (ICEC) waives workers’ comp—but assess the risk before you forfeit coverage.

• To separate personal/business finances and qualify for owners’ workers’ comp, elect S-Corp status by filing IRS Form 2553. Pay yourself a reasonable W-2 wage, keep accounts distinct, and report distributions per IRS rules.

• Check your city or county clerk for any Business Privilege License or zoning permit requirements.

7. Understand Employment Rules

When you hire staff or contractors, comply with:

• Unemployment insurance registration with Montana DLI

• Workers’ compensation coverage

• New-hire reporting to the state system

• Proper payroll withholding and workplace posting requirements

8. Set Up Financial Systems & Records

Solid recordkeeping prevents headaches and audits:

• Open a dedicated business bank account

• Implement accounting software for invoicing, payroll, and expense tracking

• Follow IRS Publication 583 for recordkeeping best practices

• Schedule quarterly estimated tax payments using IRS Publication 505

9. Protect Intellectual Property

Safeguard your brand assets:

• Trademark your business name or logo through the U.S. Patent and Trademark Office

• File copyrights for original creative works

• Consult the Montana Technology Innovation Partnership for state-level patent guidance

10. Explore Funding & Support

Tap into Montana’s entrepreneurial ecosystem:

• Free counseling and training via Small Business Development Centers (SBDC)

• Grants and incentives from the Montana Department of Commerce

• Networking through local chambers of commerce and economic development corporations

11. Launch & Maintain Compliance

Finalize setup, open doors, and stay current:

1. Secure your location or virtual presence

2. Order signage, marketing collateral, and business cards

3. Host a soft launch for trusted partners

4. File your first annual report via the SOS portal on your registration anniversary

5. Renew licenses, permits, and insurance before expiration

Key First Steps

For those who read it all, here are the two most vital actions to kick off your Montana business:

1. Register your domestic LLC with the Montana Secretary of State for $35.

2. Get an EIN at EFTPS.gov (click “Enroll” → complete the SS-4 questionnaire).

3. Secure general liability insurance through a Farmers® broker—find your local agent at https://agents.farmers.com.

Congratulations—you’ve built a compliant, scalable foundation. Now execute, delight customers, and create your legacy.