How to Start a Business in Montana

Starting a business in Montana involves several key steps, including selecting a business structure, registering with the state, and obtaining necessary licenses and permits. Entrepreneurs should also consider market research and business planning to ensure a successful launch.

Montana Economy Trends

Small Business Statistics: Montana is home to approximately 137,000 small businesses, which employ about 65.9% of the state's workforce. Notable industries include agriculture, tourism, and energy. For more detailed statistics, visit the U.S. Small Business Administration.

New Business Application Statistics: In Montana, there were 23,464 new business applications. For more information, see the Census Bureau's visualization.

Exports and GDP: Montana's economy benefits from significant exports in agriculture and mining, contributing to a GDP of approximately $51 billion. For more data, refer to the U.S. Census Bureau.

Economic Highlights: Major employers in Montana include companies in the healthcare, education, and manufacturing sectors. The state offers a favorable tax climate for businesses, with key cities like Billings and Missoula serving as industry hubs.

• Step 1: Perform Market Research
• Step 2: Write a Business Plan
• Step 3: Get Licenses and Permits
• Step 4: Acquire Funding
• Step 5: Choose a Business Entity
• Step 6: Select a Business Location
• Step 7: Register the Company

Step 1: What Kind of Business Should I Start in Montana

Selecting a business type in Montana depends on factors such as personal interests, market demand, and regional economic strengths. Dominant industries in Montana include:

• Agriculture
• Tourism
• Energy

For more information, visit the Montana Department of Commerce.

How to Do Market Research in Montana: Market research involves gathering information to understand consumer needs and market conditions. Primary research methods include surveys and interviews, while secondary research involves analyzing existing data. Key areas to analyze include consumer demographics, buying behavior, and market gaps. Conducting a competitive analysis is also recommended to understand other businesses in the area. Research helps entrepreneurs make data-driven decisions when launching a new business in Montana.

Step 2: How to Write a Business Plan in Montana

A business plan helps entrepreneurs clarify goals, attract investors, secure funding, organize operations, and evaluate progress. It is valuable for both new and scaling businesses and can evolve over time.

Executive Summary: This section provides a snapshot of the business, including its mission statement and key objectives.

Company Description: Detail the business's purpose, target market, and competitive advantages.

Market Analysis: Analyze industry trends, target market demographics, and competitor strategies.

Organization and Management: Outline the business's organizational structure and management team.

Product/Service Line: Describe the products or services offered, including their benefits and lifecycle.

Marketing Plan: Explain the marketing and sales strategies to attract and retain customers.

Financial Plan: Include financial projections, funding requirements, and revenue models.

Appendix: Provide additional documents or data supporting the business plan.

Step 3: Do I Need a Business License in Montana?

Yes, in most cases, businesses in Montana need a license, but there is no universal state-level business license. Licensing depends on factors such as the type of business, its location, and whether it is regulated. Common licenses include sales and use tax permits, local city or county business licenses, and regulatory or professional licenses. Business owners can determine applicable licenses by using state government licensing search tools or portals, such as the Montana Department of Revenue.

How Much Does a Business License Cost in Montana?

Business license costs in Montana vary based on business type, jurisdiction, and the type of license required. Some licenses may be available at no cost, while others may range from $15 to $100 for a general business license. Certain groups, such as veterans or nonprofits, may qualify for exemptions or fee waivers. Business owners should check with the appropriate issuing agency for exact fee amounts and payment policies.

How to Register for a Seller’s Permit in Montana

In Montana, a seller’s permit is referred to as a sales tax license, authorizing the sale of taxable goods or services. The Montana Department of Revenue issues these permits. Applications can be submitted online or via paper form. Required information includes the business's EIN, start date, address, and ownership details. There is no cost for the permit, but annual renewals may be required. For further assistance, contact the Department of Revenue.

Step 4: How Much Does it Cost to Start a Business in Montana?

The cost of starting a business in Montana varies based on factors such as business type, industry, location, and scale of operation. The U.S. Small Business Administration estimates that startup costs can range from a few thousand dollars for home-based businesses to significantly more for larger operations. Common expenses include registration and incorporation fees, licensing and permits, equipment, insurance, and marketing. Filing fees for LLC formation or corporation registration typically range from $35 to $100.

How to Get Business Funding in Montana

Startups in Montana have access to multiple funding options. Business owners should estimate their capital needs and choose suitable funding options based on their goals and eligibility. Common funding sources include:

• Self-funding (bootstrapping)
• Loans
• Grants
• Investors
• Crowdfunding

How to Self-Fund a Business in Montana

Self-funding, or bootstrapping, involves using personal financial resources to start or run a business. Common methods include using savings, selling assets, earning supplemental income, pre-ordering, or borrowing from friends or family. Advantages include full ownership and control, while risks involve limited capital and personal financial exposure. Entrepreneurs should budget carefully and optimize resources. For assistance, consult the Montana Chamber of Commerce.

How to Find Investors in Montana

An investor provides capital and may offer mentorship, networking, or strategic guidance. Compensation may involve equity or dividends. Business owners in Montana can connect with investors by attending events, using local investment networks, contacting state organizations, and preparing a compelling pitch. Types of investors include angel investors, venture capitalists, and local private investors.

How to Get a Loan to Start a Business in Montana

Business loans are a common funding method for new businesses in Montana. Options include traditional bank loans, SBA-backed loans, and non-traditional options like peer-to-peer lending and microloans. Steps to obtain a loan include choosing the right loan type, meeting eligibility criteria, providing collateral, and preparing documentation such as financial statements and business plans. Required documents usually include:

• Financial statements
• Business plan
• Proof of income
• Tax returns

Consult financial professionals and compare loan offers to find the best terms.

How to Find Montana Business Grants

Business grants are funding sources that do not require repayment. Each grant program has different eligibility requirements and application processes. In Montana, business owners can find grants through the Montana Department of Commerce, local economic development offices, and state agency websites. Use grant search tools and consult local business support centers for assistance.

Can I Start a Business with No Money in Montana?

Starting a business with no money in Montana is not possible, as some capital is required for essentials like registration fees, licenses, equipment, and marketing. However, it is possible to launch a low-cost business by starting from home, choosing a service-based model, using free resources, applying for grants, and networking. For free or low-cost tools, visit the Montana Secretary of State.

Step 5: Choosing a Business Structure in Montana

Choosing a business structure in Montana is important for taxation, liability, management, and registration requirements. Available structures include:

• Sole Proprietorship
• Partnership
• Corporation
• Limited Liability Company (LLC)

Each structure has implications for taxation, liability, operations, and ownership. Consult a tax accountant or attorney for guidance. For more information, visit the SBA.

How to Start a Sole Proprietorship in Montana

A sole proprietorship is a business owned and controlled by one person, with personal liability for debts and taxes. Key characteristics include:

• Full control and ownership
• Personal liability
• Simplified tax reporting

Starting a Sole Proprietorship in Montana:

Step 1: Choose a business name. You can use your legal name or a trade name.

Step 2: File a DBA (“Doing Business As”) with the local county clerk if using a trade name.

Step 3: Obtain necessary licenses and permits. Requirements vary by business type and location. An EIN is required if hiring employees.

Sole proprietorships do not need to be formally registered with the Secretary of State in Montana.

How to Start a Corporation in Montana

A corporation is a legal entity separate from its owners, providing limited liability protection. Different types include C-Corp and S-Corp, with varying tax treatments. Core features include:

• Legal separation of owners and business
• Limited liability for shareholders
• Centralized management
• Transferable ownership through stock
• Taxation of profits

Step 1: Choose a Corporation Name. Ensure it meets naming requirements and is unique.

Step 2: Appoint a Registered Agent and Registered Office. This can be an individual or company with a physical address in Montana.

Step 3: File the Articles of Incorporation with the Montana Secretary of State. Include the corporation's name, shares, incorporators, address, and agent. Filing fees apply.

Step 4 (Optional): Foreign Corporations must file a Certificate of Good Standing and a Statement of Foreign Corporation.

Step 5 (Optional): File IRS Form 2553 for S-Corp election if applicable.

How to Start an LLC in Montana

An LLC (Limited Liability Company) combines elements of corporations and partnerships, offering limited liability and pass-through taxation. Members own the LLC.

Step 1: Name Search/Selection. Use the Montana Secretary of State's portal to search for or reserve a business name. Fees may apply.

Step 2: File Articles of Organization with the Secretary of State. Include the LLC's name, address, and member details. Filing fees apply.

Further steps may include obtaining an EIN and appointing a registered agent.

How to Start a Business Partnership in Montana

A business partnership is owned by two or more individuals. Types include general partnership, limited partnership, and limited liability partnership. Each type has different liability and control arrangements.

How to Start a Limited Partnership in Montana

A Limited Partnership (LP) includes at least one general partner with full liability and management control, and one or more limited partners with limited liability. Other types include:

• Limited Liability Partnership (LLP) — all partners have limited liability.
• Limited Liability Limited Partnership (LLLP) — general and limited partners are shielded from debts.

Starting a partnership in Montana requires filing documents with the Montana Secretary of State. Required forms include the Certificate of Limited Partnership. Filing methods include online, mail, or in-person.

How to Start a General Partnership in Montana

A general partnership (GP) is a business jointly owned and managed by two or more individuals who share profits, losses, and liability. Partners can contribute different resources. Registration is optional, but a Statement of Partnership Authority or trade name registration may be filed with the county recorder’s office.

How to Start a Nonprofit in Montana

A nonprofit is a corporation formed for purposes other than profit, such as charity or education. Nonprofits must comply with state-specific incorporation procedures. File with the Montana Secretary of State and obtain tax-exempt status from the IRS using Form 1023 or 1023-EZ. Filing fees and processing options are available.

Step 6: Choosing a Business Location in Montana

Choosing a business location is critical for customer-facing businesses. Location impacts success, visibility, operations, and compliance. Common setups in Montana include brick-and-mortar, online, home-based, and mobile. Consider factors like proximity to the target market, accessibility, local competition, and zoning laws. Consult local zoning boards or safety inspection offices for regulations.

What Kind of Business Can I Run From Home in Montana?

Running a home-based business in Montana is influenced by local regulations such as zoning ordinances and homeowner association rules. Some businesses are typically allowed if they do not affect the neighborhood’s character, while others may be prohibited due to noise or safety concerns. Always check with local zoning or planning departments and review HOA rules.

How Do I Start a Small Business From Home in Montana

Home-based businesses in Montana must comply with legal requirements, including business formation, registration, licensing, and zoning compliance. Local governments enforce zoning laws. A Home Occupation Permit may be required to assess business suitability in a residential setting. Contact local governing agencies for compliance.

Starting a Business Online in Montana

An online business is conducted over the internet, with the same legal requirements as other businesses in Montana. Steps include choosing a business name, selecting a legal structure, filing formation documents, obtaining an EIN, and acquiring licenses. Additional regulations may apply, such as consumer protection laws.

Step 7: Legal Requirements for Starting a Business in Montana

Montana does not limit who can start a business, but all new businesses must follow state laws and local ordinances. Legal requirements depend on business structure, industry, location, and products or services offered. Businesses must file formation documents, obtain licenses, comply with tax obligations, and designate a registered agent. For more information, visit the Montana Secretary of State.

How to Get an EIN Number in Montana

An EIN (Employer Identification Number) is a unique nine-digit number issued by the IRS for tax identification. It is required for hiring employees, opening business bank accounts, and filing taxes. Apply for an EIN through the IRS online, by mail using Form SS-4, or by phone for international applicants. U.S. entities can mail applications to:

Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

How to Get a Montana Registered Agent

A registered agent is designated to receive legal documents on behalf of a business. In Montana, LLCs, corporations, and limited partnerships must appoint a registered agent. The agent can be an individual over 18 with a physical address in Montana or a business entity authorized to operate in the state. Appoint the agent in the formation paperwork. Fees may apply for using a registered agent service.

Patents, Trademarks, and Copyrights in Montana

Patents, trademarks, and copyrights are forms of intellectual property protection.

Patents: Provide exclusive rights to prevent others from using, making, selling, or importing an invention. Governed by the U.S. Patent and Trademark Office under Title 35 of the U.S. Code, patents last 20 years from the filing date.

Trademarks: Distinguish the source of goods or services. Federal trademarks are handled by the USPTO, while state trademarks are managed by the Montana Secretary of State. Trademarks last 10 years and are renewable.

Copyrights: Protect original creative works, giving exclusive rights to reproduce and distribute. Governed by the U.S. Copyright Office under Title 17 of the U.S. Code, copyrights last the life of the author plus 70 years.

Montana Business Tax

The Montana Department of Revenue oversees business taxation. Tax obligations vary by business structure, industry, and activity. Common taxes include:

• Income or Corporate/Franchise Tax: Levied on business profits.
• Sales and Use Tax: Applied to sales of goods and services.
• Employment or Payroll Taxes: Withheld from employee wages.
• Property Tax: Based on the value of business property.
• Specialty/Excise Taxes: Industry-specific taxes, such as liquor tax.

Are Business Records Public in Montana?

Yes, business records maintained by state or local government agencies in Montana are generally public and can be inspected or copied by request, unless exempted by law. Agencies such as the Secretary of State and Department of Revenue maintain these records. Some information, like Social Security Numbers and trade secrets, is exempt from public access. For more information, visit the Montana Secretary of State's Entity Search.