How is a Montana LLC taxed?

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 20, 2026 · Last updated Aug 20, 2026

By default a single-member Montana LLC is disregarded and reports on Schedule C, while a multi-member LLC files Form 1065 as a partnership. Profit passes through to owners who pay Montana individual income tax. LLCs may elect S-corp status.

Quick facts

Federal default: Single-member = disregarded (Schedule C); multi-member = partnership (Form 1065)
Montana income tax: Owners pay Montana individual income tax on pass-through profit
Pass-through return: Montana Form PTE for partnerships and S-corporations
Sales tax: Montana has no general statewide sales tax
S-corp option: LLCs may elect S-corp status (Form 2553); file federal Form 1120-S and Montana Form PTE
Agency: Montana Department of Revenue

The same question in every other state

This requirement is set at state level, so the answer changes when you cross a state line. Below is how 26 other states answer the same question, each linked to the page that cites the agency it came from. The full breakdown is on How to Form an LLC.

State	Answer
California	By federal default, a single-member LLC is a disregarded entity and a multi-member LLC is a partnership, so profits pass through to the members' returns. California adds an $800 annual tax on every LLC plus an income-based LLC fee, and the LLC files Form 568 with the Franchise Tax Board.
Colorado	By default the IRS does not tax the LLC itself. A single-member LLC is a disregarded entity and a multi-member LLC is a partnership, so profits pass through to the members, who report them on their own returns.
Georgia	By default a Georgia LLC is a pass-through entity: the IRS treats a single-member LLC as a disregarded entity and a multi-member LLC as a partnership, and Georgia follows that classification. Profits are taxed on the owners' Georgia individual returns at the flat 4.99% state income tax rate rather than at the entity level, unless the LLC elects to be taxed as a corporation.
Hawaii	By default the IRS treats a single-member LLC as a disregarded entity and a multi-member LLC as a partnership. That income passes through to the owners and is subject to Hawaii income tax, and the business's gross income is also subject to the General Excise Tax.
Idaho	By default the IRS treats a single-member LLC as a disregarded entity and a multi-member LLC as a partnership, with income passing through to the owners. Idaho then taxes that income under its state income tax; there is no separate LLC franchise tax.
Illinois	By federal default, a single-member Illinois LLC is a disregarded entity taxed on the owner's Form 1040, and a multi-member LLC is a partnership filing Form 1065. At the state level, an LLC taxed as a partnership pays the 1.5% Illinois personal property replacement tax on its net income and files Form IL-1065, while the members pay Illinois individual income tax at 4.95% on their shares.
Kansas	A Kansas LLC is taxed according to its IRS classification. A single-member LLC is a disregarded entity reported on the owner's return; a multi-member LLC defaults to partnership treatment and files Form 1065.
Louisiana	By default, a Louisiana LLC is taxed by its federal classification. A single-member LLC is a disregarded entity reported on the owner's Schedule C, and a multi-member LLC is a partnership that files Form 1065.
Maryland	By default a Maryland LLC is a pass-through entity: a single-member LLC is a disregarded entity and a multi-member LLC is a partnership, so profits are reported on the members' Maryland returns at the state's 2% to 5.75% rates plus county income tax. The LLC can instead elect S-corporation or C-corporation treatment with the IRS.
Massachusetts	By default the IRS and Massachusetts treat a single-member LLC as a disregarded entity and a multi-member LLC as a partnership, so profits pass through to the members and are taxed at the 5.0% Massachusetts personal income rate. An LLC can instead elect to be taxed as an S corporation or C corporation and pay the corporate excise.
Minnesota	By default the IRS treats a single-member Minnesota LLC as a disregarded entity (reported on the owner's Schedule C) and a multi-member LLC as a partnership (Form 1065 federally, Form M3 for Minnesota). Profits pass through to the owners and are taxed on their Minnesota individual returns at 5.35% to 9.85%.
Mississippi	By default it is a pass-through: a single-member LLC is disregarded and a multi-member LLC files a partnership return. Members pay Mississippi income tax on their share unless the LLC elects corporate or S-corp status.
Missouri	By default the IRS treats a single-member LLC as a disregarded entity and a multi-member LLC as a partnership, so profits pass through to the members and are taxed on their Missouri individual income tax returns (Form MO-1040). Missouri follows the federal classification under RSMo 347.187.
Nebraska	By default the IRS does not tax the LLC itself. A single-member LLC is a disregarded entity and a multi-member LLC is a partnership, so profits pass through to the members, who report them on their own returns.
New Jersey	By federal default, a single-member LLC is a disregarded entity and a multi-member LLC is a partnership, so profits pass through to the members' returns. New Jersey follows that classification for its Gross Income Tax.
New Mexico	By federal default a single-member LLC is a disregarded entity and a multi-member LLC is a partnership, so profit passes through to the owners. New Mexico taxes that income on the owners' New Mexico personal income tax return (PIT-1).
New York	By default, income passes through to members, who report it on their New York returns; the LLC itself files an informational partnership return if it has more than one member. Most LLCs also owe the IT-204-LL filing fee, and New York City may impose the Unincorporated Business Tax on some businesses.
North Carolina	By default the IRS treats a single-member North Carolina LLC as a disregarded entity (reported on Schedule C of the owner's Form 1040) and a multi-member LLC as a partnership (Form 1065 with K-1s). Profit passes through to the owners and is taxed on their North Carolina Form D-400 at the flat 3.99% individual rate for 2026.
Ohio	By default, a single-member Ohio LLC is a disregarded entity and a multi-member LLC is a partnership for federal and Ohio tax. The LLC itself pays no income tax; profit passes through to the members, who report it on their personal Ohio IT 1040 returns.
Pennsylvania	By default a Pennsylvania LLC is a pass-through entity. A single-member LLC is a disregarded entity and a multi-member LLC is taxed as a partnership, so profits flow to the members, who report their share on their Pennsylvania return and pay the flat 3.07% personal income tax.
South Carolina	By default it is a pass-through. A single-member LLC is disregarded and its income is reported on the owner's SC1040; a multi-member LLC files the SC1065 partnership return and passes income to the members, who report it on their own returns.
Vermont	By default it is a pass-through. The IRS disregards a single-member LLC, so the owner reports the business on Schedule C and pays self-employment tax.
Virginia	By default the IRS treats a single-member LLC as a disregarded entity (income on the owner's Schedule C) and a multi-member LLC as a partnership (Form 1065). Virginia has no separate LLC entity tax; income passes through to the members, who pay Virginia individual income tax at rates up to 5.75%.
Washington	By default the IRS taxes a single-member Washington LLC as a disregarded entity (reported on Schedule C) and a multi-member LLC as a partnership (Form 1065). Washington itself has no personal or corporate income tax, so the main state tax is the business and occupation (B&O) tax on gross receipts, reported to the Department of Revenue, plus retail sales tax where it applies.
West Virginia	By default the IRS treats a single-member LLC as a disregarded entity and a multi-member LLC as a partnership, with income passing through to the owners and taxed under West Virginia's personal income tax administered by the Tax Division.
Wisconsin	By default a Wisconsin LLC is a pass-through entity. A single-member LLC is disregarded and its income is reported on the owner's return, while a multi-member LLC files Form 3, the Wisconsin Partnership Return, and passes income through to the members.

Full context for Montana

This page answers one question. The complete Montana guide -- covering the surrounding requirements, the forms, the agency, and what happens if you get it wrong -- is at Montana LLC Tax Filing Requirements (2026).

Sources

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws and fees change; verify current requirements with the relevant government agency before acting.