Montana is a low-cost state to form an LLC, with no sales tax and a light annual report fee. This guide walks you through what it costs on each PowerLaunch plan, what Montana asks of you every year, and when a different state fits your business better.
Who Montana suits
Montana works well if you want a simple holding structure, you are not planning to raise venture capital, and you do not need the extra name recognition that Delaware carries with US investors. It also suits founders who sell physical or digital goods and want to avoid a state sales tax layer, since Montana does not charge one. If you plan to open a US bank account, invoice US clients, or run an online store, Montana gives you a working LLC without a heavy compliance load.
Montana is less of a fit if you are pitching to US venture capital firms that expect a Delaware C-Corp, or if you want the deepest bench of registered agent and banking familiarity, which still tends to sit with Wyoming and Delaware.
What it costs in year one
Montana's LLC filing fee is $35. Corporation filing is also $35. Add this to whichever PowerLaunch plan you choose.
| Plan | Plan price | Montana filing fee | Year one total |
|---|---|---|---|
| Launch | $295 | $35 | $330 |
| Run | $1,995 | $35 | $2,030 |
| Scale | $2,995/yr or $329/mo | $35 | $3,030/yr |
Expedited EIN is a $295 add-on on Launch and Run, and comes included on Scale. Expect Montana processing to take about one week, which is quick compared with most states outside Wyoming, Kentucky, and Colorado.
What it costs every year after
Montana requires a yearly filing, commonly called an annual report, and the state cost for this is $20. That replaces the one-time formation fee in later years.
| Plan | Plan renewal | Montana annual report | Year two and beyond |
|---|---|---|---|
| Launch | $295 | $20 | $315/yr |
| Run | $1,995 | $20 | $2,015/yr |
| Scale | $2,995/yr or $329/mo | $20 | $3,015/yr |
Check Montana's Secretary of State site for the exact due date each year, since filing windows can shift and a missed date can lead to late fees or administrative dissolution.
Registered agent requirement
Montana requires every LLC and corporation to keep a registered agent with a physical address inside the state. This agent receives legal and state mail on your behalf. All PowerLaunch plans, starting with Launch, include a registered agent and a virtual mailing and business address, so this requirement is covered from day one and renews automatically with your plan.
Annual report, in plain terms
The annual report is a short filing that confirms your company details are current, such as your registered agent and business address. It is separate from your federal tax filings. On the Run and Scale plans, PowerLaunch files this for you as part of the plan. On Launch, you handle the filing yourself, though the state's own portal makes this a fairly quick process. Either way, mark the deadline, since a missed annual report can put your LLC into bad standing with the state.
State income tax, in general terms
Montana taxes income the way most US states do, based on income connected to business activity inside the state. If you are a non-US founder running a single-member LLC with no US-based operations, no US employees, and no physical presence in Montana beyond your registered agent, your state income tax exposure is typically low, but this depends on your specific facts. Rules on what counts as Montana-source income can shift, so check Montana's Department of Revenue site or talk to a tax professional before you assume no state tax applies to your situation.
Separately, a foreign-owned single-member LLC has a federal filing duty regardless of which state it is formed in. You will need to file Form 5472 along with a pro forma 1120 by 15 April each year. Under the current 2026 interim FinCEN rule, US-formed companies are exempt from BOI reporting, but this is worth checking again closer to your filing date in case the rule changes.
When Wyoming or Delaware fits better
Montana is a solid general-purpose choice, but two other states cover specific situations better.
| Situation | Better fit |
|---|---|
| Raising venture capital or issuing preferred stock | Delaware, C-Corp |
| Maximum privacy and lowest ongoing state cost | Wyoming |
| Simple LLC, no sales tax, low filing fee | Montana |
| Investors expect a specific corporate law history | Delaware |
Wyoming and Delaware also sit on PowerLaunch's fastest formation track, at one to three business days, the same speed as Montana. If your plans include institutional investors, start the conversation with Delaware in mind rather than switching states later, since converting an entity from one state to another adds cost and paperwork you can avoid by choosing correctly up front.
Step by step through PowerLaunch
- Pick your plan, Launch, Run, or Scale, at checkout and select Montana as your formation state.
- Submit your company name, owner details, and business address preference through the signup flow.
- PowerLaunch files your Montana LLC or corporation and appoints your registered agent.
- PowerLaunch applies for your EIN. Expect two to four weeks without expedited processing, or a matter of days if you add the expedited EIN option.
- Once your EIN is issued, PowerLaunch introduces you to Mercury, Wise Business, or Relay for a business bank account. Final approval is the bank's decision, not PowerLaunch's.
- On Run and Scale, your annual report, IRS filings, and bookkeeping are handled as part of the plan. On Launch, you manage these yourself, with the AI assistant in MyCG.AI available to help.
If PowerLaunch makes a formation error, it is corrected at no cost to you, and that portion of the fee is refunded. State filing fees are never refundable, since they go directly to Montana.
What to do next
If Montana fits your plans, start at powerlaunch.solutions/signup and choose the plan that matches how much ongoing support you want. If you are still deciding between Montana,
