How to Start a C-Corp in Montana: A Step-by-Step Guide (2026)

How to Start a C-Corp in Montana (Quick Answer)

To start a C-corp in Montana, file Articles of Incorporation through the Montana Secretary of State's online portal, name a registered agent, and pay the $35 filing fee. Montana is online-only for business filings, so there is no paper form. Once the state accepts it, your corporation legally exists.

After that, you adopt bylaws, appoint directors and officers, issue stock, and get an EIN from the IRS. Montana has no sales tax and no franchise tax, and the main things to watch are the annual report and the 6.75% corporate income tax.

First-year cost: $35 to file, plus a registered-agent service if you use one, commonly $50 to $150 a year. Your first annual report is not due until April 15 of the following year.

Montana is one of only five states with no sales tax and levies no franchise tax at the entity level. Everything is filed online.

The one thing to watch is the annual report, due April 15 every year. The fee is waived for on-time filers through 2027; file late and it costs $35, and if the report stays unfiled the state can move to administratively dissolve the corporation.

TL;DR

• No sales tax and no franchise tax, but watch the annual report: it is due April 15 every year, the fee is waived for on-time filers through 2027, and leaving it unfiled risks dissolution.
• Step 1, name: pick a unique name with a corporate designator (Inc., Incorporated, Corporation, or Corp.) and check it with the Secretary of State.
• Step 2, registered agent: name one with a physical Montana street address.
• Step 3, Articles of Incorporation: file online with the Secretary of State for $35.
• Step 4, bylaws: adopt internal bylaws and keep them with your records.
• Step 5, directors and officers: appoint the board and officers and hold an organizational meeting.
• Step 6, issue stock: authorize and issue shares, keep a stock ledger, and file the 83(b) election within 30 days if your shares vest.
• Step 7, EIN: get a free EIN from the IRS, by Form SS-4 if you have no SSN or ITIN.
• Foreign owner (25% or more): file Form 5472 with Form 1120 every year, or risk a $25,000 penalty.
• Ongoing: an annual report by April 15, plus the flat 6.75% corporate income tax with a $50 minimum.

Why Form a C-Corp in Montana?

Montana pairs cheap, online filings with a tax setup that few states match.

• A low $35 filing fee, and an annual report fee waived for on-time filers through 2027.
• No state sales tax, one of only five states with none, and no franchise tax at the entity level.
• A fully online filing system, with paid expedite options if you need approval faster.

If you plan to raise venture capital, investors will most likely want a Delaware C-corp. If you will run the business in Montana and not raise venture money, forming in Montana avoids registering and paying in two states.

Step 1: Choose and Reserve Your Corporate Name

• Include a corporate designator such as "Inc.", "Incorporated", "Corporation", or "Corp."
• Search the Secretary of State's business database to confirm the name is available and distinguishable from existing entities.
• Montana lets you reserve a name for 120 days for $10 if you are not ready to file, and the reservation is not renewable.

Step 2: Appoint a Montana Registered Agent

Every Montana corporation must name a registered agent with a physical Montana street address, available during business hours to receive legal and state documents.

• The agent can be a person or a company, but needs a real Montana address, not a PO box.
• The address is public record, so many owners use a commercial service.
• A commercial agent commonly costs $50 to $150 a year.

Step 3: File Your Articles of Incorporation

The Articles of Incorporation is the filing that legally creates your corporation. In Montana you file it online through the Secretary of State's portal; there is no paper option.

• It lists the corporate name, registered agent, principal office, and the number of shares the corporation is authorized to issue.
• The fee is $35, with an optional 24-hour expedite for $20 more or a 1-hour expedite for $100 more.
• Once the state accepts it, your corporation exists and its compliance calendar begins.

Step 4: Adopt Corporate Bylaws

Bylaws are the internal rulebook for how the corporation is run. They are not filed with the state, but a corporation is expected to have them, and banks and investors often ask to see them.

• They set out how directors and officers are elected, how meetings and votes work, and how shares are handled.
• They stay with your records, not with the Secretary of State.
• Skipping them weakens the separation between you and the corporation that liability protection depends on.

Step 5: Appoint Directors and Hold the Organizational Meeting

A corporation is run by a board of directors, who appoint the officers that handle day-to-day work. Right after formation, the incorporator or initial directors hold an organizational meeting, or sign a written consent in place of one.

• Appoint the initial board and elect officers (usually at least a president, secretary, and treasurer; one person can hold several roles).
• Adopt the bylaws and authorize the issuance of stock.
• Keep signed minutes or the written consent with your records.

Step 6: Authorize and Issue Stock

Issuing stock is how founders get their ownership, and it is easy to rush. The board authorizes shares, then the corporation issues them to the founders and any early shareholders.

• Issue shares to each founder and record what they paid (cash, property, or services).
• Keep a stock ledger, a running record of who owns how many shares.
• Deliver stock certificates or record the issuance electronically, per your bylaws.

The 83(b) election, and its 30-day deadline: if your founder shares vest over time, you generally have 30 days from the grant date to file an 83(b) election with the IRS.

It lets you be taxed on the small value at grant instead of the higher value as the stock vests. The 30-day window cannot be extended.

Step 7: Get an EIN, Even Without an SSN

An EIN is your corporation's federal tax ID, needed to file taxes, run payroll, and open a bank account. It is free from the IRS.

• With an SSN or ITIN, apply online and get the EIN in minutes.
• Without an SSN or ITIN, apply on Form SS-4 by phone, fax, or mail.
• The EIN is always free; you never pay the IRS for one.

Open a US Business Bank Account

Once you have the EIN, open a dedicated business bank account before money moves through the corporation.

• Keeping corporate and personal funds separate protects the liability shield; mixing them is a common reason courts pierce it.
• Banks usually ask for the filed Articles of Incorporation, the EIN letter, and often the bylaws or a board resolution.
• A separate account also makes bookkeeping and the corporate tax return simpler.

If Your Montana C-Corp Is Foreign-Owned

A Montana C-corp that is 25% or more owned by a non-US person has an extra federal filing that many international founders miss.

• The corporation files Form 5472 with its annual Form 1120 to report transactions with the foreign owner, such as money put in or paid out for services.
• It is required every year there are reportable transactions, even with little or no profit.
• The penalty is steep: a missed or late Form 5472 starts at $25,000 per form, per year.

Handle Montana's Ongoing Compliance

Montana keeps the yearly load light. Two things matter: the annual report and the corporate income tax.

The Annual Report (Fee Waived Through 2027)

• Every Montana corporation files an annual report with the Secretary of State by April 15 each year.
• The filing fee is waived for on-time filers through 2027; file after April 15 and it costs $35, and the report itself stays mandatory even while the fee is waived.
• Leave it unfiled and the state can move to administratively dissolve the corporation, so file on time every year.

Montana Corporate Income Tax (6.75%)

• Montana charges a flat 6.75% corporate income tax on Montana net income, with a minimum tax of $50 even in a loss year.
• It is filed on Form CIT with the Montana Department of Revenue, due May 15 for calendar-year filers.
• Federally, the corporation files Form 1120 and pays 21% corporate tax, due the 15th day of the 4th month after year-end.

How Much Does It Cost to Start a C-Corp in Montana?

How Long Does It Take to Start a C-Corp in Montana?

• Standard online filings usually take about 5 to 6 business days, with a 24-hour expedite for $20 more or a 1-hour expedite for $100 more.
• The EIN follows: minutes online with an SSN or ITIN, or same day to several weeks by Form SS-4 without one.
• Bylaws, the organizational meeting, and issuing stock happen right after the state approves the filing.

Common Mistakes to Avoid

• Assuming the annual report is free forever, or skipping it because the fee is waived; it is still due April 15 every year, and leaving it unfiled risks dissolution.
• Forgetting the $50 minimum corporate tax, which Montana charges even in a loss year.
• Missing the 30-day 83(b) deadline on vesting founder stock.
• Overlooking Form 5472 if the corporation is 25% or more foreign-owned.
• Using a PO box for the registered agent, which Montana does not accept.

How FinStackk Helps

FinStackk is an accounting and tax compliance platform for U.S. businesses, taking you from incorporation through ongoing accounting, tax, and compliance in one place.

We handle Montana C-corp formation, from the Articles of Incorporation through the EIN, through Fin-Start, including the Montana registered agent.

Once the corporation exists, Fin-Tax keeps the federal Form 1120 deadline and the Montana 6.75% corporate income tax on a proactive calendar. Complyy tracks the April 15 annual report and your registered-agent renewal. Book a free demo to see them in action.

FAQ

How much does it cost to start a C-corp in Montana?

It costs $35 to file the Articles of Incorporation online with the Secretary of State. Add a registered-agent service (about $50 to $150 a year) if you use one. The main recurring items are the annual report, whose fee is waived for on-time filers through 2027, and the flat 6.75% corporate income tax with a $50 minimum.

When is the Montana annual report due?

The annual report is due April 15 every year. The filing fee is waived for on-time filers through 2027, so an on-time report currently costs nothing, but the report itself is still mandatory. File after April 15 and it costs $35, and leaving it unfiled can lead the state to administratively dissolve the corporation, so confirm the current fee and file on time.

Does a Montana C-corp pay state income tax?

Yes. Montana charges a flat 6.75% corporate income tax on Montana net income, with a $50 minimum even in a loss year, filed on Form CIT with the Montana Department of Revenue. That is in addition to the 21% federal corporate tax on Form 1120. Montana has no sales tax and no franchise tax at the entity level.

Is it better to form a C-corp or an LLC in Montana?

An LLC is simpler and taxed once, which suits many small businesses, and Montana's filing fees are low for both. A C-corp makes sense if you plan to raise venture capital, keep earnings in the business, or want multiple classes of stock. A C-corp is taxed twice, once at the corporate level and again on dividends.

Should I form my C-corp in Montana or Delaware?

If you plan to raise venture capital, Delaware is what investors expect. If you will operate in Montana and not raise venture money, forming in Montana is cheaper and avoids registering and paying in two states, since a Delaware corporation doing business in Montana still has to register and pay here.

Can a non-US resident start a Montana C-corp?

Yes. Montana sets no citizenship or residency requirement to own a corporation. You will need a Montana registered agent and an EIN, which you apply for on Form SS-4 by phone, fax, or mail without an SSN. If a non-US person owns 25% or more, the corporation also files Form 5472 with its Form 1120 every year, with a $25,000 penalty for missing it.