How to Get a Business License in Montana (2026)
Montana does not issue a general statewide business license. Instead you register the business entity with the Montana Secretary of State, register an assumed business name for $20 if you trade under a name other than your own, and then obtain only the industry-specific state licenses and city or county licenses that apply to your activity.
Quick Answer
- General state license
- None - Montana issues no blanket business license
- Assumed business name
- $20, renewed every 5 years (Secretary of State)
- Entity registration
- Montana Secretary of State, filed online at biz.sosmt.gov
- Annual report
- Required for registered entities; filed with the Secretary of State
- Sales tax permit
- Not applicable - Montana has no general state sales tax
- Local licensing
- Many Montana cities and counties require their own license
- EIN
- $0 - free from the IRS
Montana Has No General Business License
The single most useful fact about licensing in Montana is a negative one: there is no statewide license that every business must hold. The Montana Secretary of State's guidance is explicit that registering with the state is only one step, and that depending on business type and location you may also need state or local licenses. A sole proprietor operating under their own legal name and in an unregulated field may not need any state registration at all.
That does not mean Montana is licence-free. It means the obligation is distributed. Three separate layers can apply: entity registration with the Secretary of State, occupational or industry licensing from the relevant state board or department, and a municipal or county license where you physically operate. Work through them in that order.
Step 1: Register the Business Entity
If you form an LLC or corporation, registration with the Montana Secretary of State is what brings the entity into existence. Filings are made through the online business services portal at biz.sosmt.gov. The governing law for LLCs is Title 35, Chapter 8 of the Montana Code Annotated. See how to form an LLC in Montana for the filing sequence and Montana Articles of Organization for the document itself.
A sole proprietorship is different. Montana requires no entity filing for a sole proprietor who operates under their own legal name. The moment you use a different trade name, an assumed business name registration becomes necessary. Registering an assumed business name costs $20 and must be renewed every five years.
Every registered entity also has ongoing obligations - see the Montana annual report - and must continuously maintain a Montana registered agent.
Step 2: Identify Industry and Occupational Licenses
Montana licenses activities, not businesses in general. The licensing authority depends on what you do rather than what entity type you chose.
| Activity | Typical Montana authority |
|---|---|
| Contracting, trades, health professions, cosmetology | Department of Labor and Industry professional licensing boards |
| Food service, lodging, retail food | Department of Public Health and Human Services, with county sanitarians |
| Alcoholic beverages, tobacco, cannabis | Department of Revenue |
| Outfitting and guiding | Board of Outfitters / Department of Fish, Wildlife and Parks |
| Insurance and securities | Office of the Commissioner of Securities and Insurance |
Fees and renewal cycles are set by each board and vary widely, so confirm the current amount with the licensing authority rather than relying on a third-party figure. The federal SBA licensing overview is a useful checklist for federally regulated activities such as firearms, aviation, broadcasting, and alcohol at the federal level.
Step 3: City and County Licenses
Local government is where most Montana businesses actually encounter a license. Many Montana cities and counties require a local business or occupation license, and the Secretary of State directs businesses to check with city or county offices for those requirements. Municipal rules also drive zoning approval, sign permits, and home-occupation permits.
Call the city clerk in the municipality where you operate before you sign a lease. Two questions settle most of it: does this city require a general business license, and is my intended use allowed in this zone? A home-based business should ask specifically about home-occupation rules, which often restrict signage, employee count, and customer visits.
Step 4: Montana Tax Registration
Montana has no general statewide sales tax, so there is no sales tax permit for most retailers - a genuine simplification compared with neighbouring states. Certain resort communities levy local resort taxes, and specific goods such as lodging, rental vehicles, and marijuana carry their own state taxes administered by the Department of Revenue.
If you have employees, you register for withholding and unemployment insurance. If your business is a corporation, or an LLC that elected corporate treatment, corporate income tax applies. A default LLC is a pass-through, so members report income on their Montana individual returns - see Montana LLC tax filing and the Montana S-corp election.
A federal EIN is free from the IRS and is required for any business with employees or more than one member.
What Montana Licensing Actually Costs
Because there is no umbrella license, there is no single price. The costs that are set at the state level and verifiable are the ones tied to Secretary of State filings, of which the assumed business name registration at $20 with a five-year renewal is the one nearly every trade-name business pays. Entity formation and annual report fees are published on the Secretary of State's fee schedule; confirm the current amounts there before budgeting.
Occupational board fees and municipal license fees are set independently and are not published in one place. Treat any single national figure quoted for "the Montana business license" as wrong, because no such license exists.
Sequence and Timeline
Order matters, because later steps depend on earlier ones.
- Choose the structure and check name availability in the Secretary of State's business search.
- File the formation document, or register an assumed business name if you are a sole proprietor using a trade name.
- Get the federal EIN from the IRS - immediate online.
- Register with the Department of Revenue for any tax accounts that apply, including employer withholding.
- Apply to the relevant occupational board, if your activity is licensed.
- Apply to the city or county for a local business license and zoning clearance.
Online entity filings are typically the fastest step; board and municipal approvals are the ones that add weeks, so start them early if your opening date is fixed.
Common Montana Licensing Mistakes
Buying a "Montana business license" from a third-party site is the first. No such document is issued by the state. The second is assuming that because Montana has no sales tax there is nothing to register for at the Department of Revenue - employer accounts and industry-specific taxes still apply. The third is skipping the local step: a valid state entity registration does not authorise you to operate in a city that requires its own license. The fourth is letting the assumed business name lapse; it must be renewed every five years, and an expired registration can free the name for someone else. Finally, remember that a licence is not a trademark - see trademark registration if you want rights in the name itself.
Frequently Asked Questions
Does Montana require a general business license?
No. Montana issues no general statewide business license. You register the entity with the Secretary of State if you form an LLC or corporation, then obtain only the industry-specific state licenses and the city or county licenses that apply to your particular activity and location.
How much is an assumed business name in Montana?
Registering an assumed business name with the Montana Secretary of State costs $20 and must be renewed every five years. A sole proprietor operating under their own legal name does not need one; the requirement is triggered by trading under a different name.
Do I need a Montana sales tax permit?
No. Montana has no general statewide sales tax, so there is no sales tax permit for ordinary retail sales. Specific taxes still apply to lodging, rental vehicles, marijuana, and some resort communities, all administered by the Montana Department of Revenue.
Do Montana cities require their own business licenses?
Many do. The Montana Secretary of State directs businesses to check with city and county offices, because local governments set their own business or occupation license requirements, fees, and zoning rules. Contact the city clerk where you operate before signing a lease.
Does a sole proprietor need to register in Montana?
Only if you use a trade name. A sole proprietor operating under their own legal name generally needs no state registration. If you use any other name, you must register an assumed business name with the Secretary of State for $20, renewable every five years.
Is a Montana business license the same as forming an LLC?
No. Forming an LLC creates the legal entity under Title 35, Chapter 8 of the Montana Code Annotated. A license is separate permission to conduct a regulated activity, issued by a state board or by a city or county. Many businesses need the entity filing and no state license at all.
Related
- Business licenses: the national guide (cluster hub)
- How to form an LLC in Montana
- Montana Articles of Organization
- Montana LLC annual report
- Montana registered agent requirements
- Montana DBA and assumed business name
- Montana LLC cost
- Montana LLC tax filing
- How to start a business in Montana
- How to dissolve an LLC in Montana
Sources
- Montana Secretary of State - Business Services (registration is one step; local and state licenses may also apply).
- Montana Secretary of State - Business Services Filing Fees (assumed business name $20).
- Montana Secretary of State - Business Structures (sole proprietor and assumed business name rules).
- Montana Secretary of State - Annual Reports.
- Montana Secretary of State - Online Business Services portal.
- Montana Department of Revenue - Business Taxes.
- Montana Department of Revenue - Taxes (no general state sales tax).
- Montana Legislature - MCA Title 35, Chapter 8, Limited Liability Companies.
- Montana Legislature - MCA § 30-16-201, Small Business Licensing Coordination Center.
- U.S. Small Business Administration - Apply for licenses and permits.
- IRS - Get an Employer Identification Number (free EIN).
- IRS - Limited Liability Company (LLC).
LegalGlass provides general information for educational purposes and is not legal advice, is not a law firm, and is not a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current amounts with the Montana Secretary of State and the Montana Department of Revenue before acting.