Montana has a reputation for being an easy place to start a business, in part because it has no general statewide sales tax. You still need to cover the basic steps.
1. Pick a structure and register
Sole proprietorships can operate under the owner’s name. LLCs, corporations and most partnerships register with the Montana Secretary of State through its online business services. Assumed business names (DBAs) are registered there too.
2. Get tax IDs
- A federal Employer Identification Number (EIN) from the IRS, which is free.
- Registration with the Montana Department of Revenue for any applicable state taxes, such as withholding if you have employees.
- If you hire, unemployment insurance registration with the Department of Labor & Industry and workers’ compensation coverage.
3. Licenses and local rules
Some trades and professions need state licenses through the Department of Labor & Industry. Cities and counties may require business licenses or zoning approval. Resort-tax communities collect their own local tax on certain sales.
4. Free help
The Montana Small Business Development Center network and SCORE offer free advising across the state.
For more background, see our explainers on Montana’s business tax incentives and Big Sky’s Cold Smoke workforce housing project. Find more stories in our Business section.
Sources
- Montana Secretary of State, Business Services: https://sosmt.gov/business/
- Montana Department of Revenue: https://mtrevenue.gov/
- Montana SBDC: https://sbdc.mt.gov/
- IRS EIN: https://www.irs.gov/ein