Starting a service business in Montana comes down to four things: picking a structure, registering with the state, getting licensed for your trade, and setting up a way to bill customers. Filing an LLC in MT costs $70, ongoing reporting is $20/yr, sales tax is No sales tax, and personal income tax runs 6.75% flat. Below is the full sequence, the fees you should budget for, the licenses most trades need, and the deadlines that catch new Montana owners off guard.
Most new registrations come out of Billings, Missoula — local business licenses are issued at the city or county level, so check yours after the state filing clears.
| Item | MT cost |
|---|---|
| LLC / entity filing (one-time) | $70 |
| Annual / periodic report | $20/yr |
| Federal EIN (IRS) | Free |
| Sales tax registration | Usually n/a |
| Trade / professional license | Varies by trade |
| Local business license | Set by city / county |
Fees change — confirm current amounts with the MT Secretary of State and the Montana Department of Revenue.
Choose your structure and file with the MT Secretary of State ($70). Get your free EIN from the IRS the same day.
Open a business bank account and confirm which local taxes apply where you work.
Apply for your trade license and local business license. This is usually the longest step: No sales tax permit needed; Professional license.
Get general liability insurance (and workers' comp before your first hire), then set up estimates and invoicing so you can bill the day you're cleared to work.
LLC Filing Fee
$70
Annual Report
$20/yr
Sales Tax
No sales tax
Income Tax
6.75% flat
Choose business structure
File with MT Secretary of State
Get EIN
Register for state taxes
Get local permits
Open business bank account
Montana has no sales tax — great for product-based businesses
Annual report is only $20
No — Montana is one of five states with no sales tax.
Online LLC filings with the MT Secretary of State are typically processed in a few business days, and an EIN from the IRS is issued immediately online. Trade licensing and local permits usually take longest — plan on two to six weeks before you're fully cleared to work, depending on your trade.
No — you can operate as a sole proprietor in Montana and still invoice customers legally. An LLC ($70 to file, $20/yr) separates your personal assets from business liability, which matters most once you're on customer property, hiring help, or signing contracts.
Montana's sales tax situation is: No sales tax. Even so, some local jurisdictions levy their own tax, and other taxes may apply to your gross receipts — confirm your obligations with the Montana Department of Revenue before your first invoice.
Open a business bank account under the registered name, then invoice from a tool that applies MT tax per line item and accepts cards. Glo Invoice sends invoices by text with a one-tap pay link, and Tap to Pay lets you charge on site before you leave the job.