Is it cheaper to form an LLC in Massachusetts or Montana?

Montana is cheaper at formation ($35) than Massachusetts ($500). Ongoing costs are also different: $100 vs $600 per year. Total over three years: $335 vs $2,300.

Can I form an LLC in Massachusetts if I live in Montana?

Yes, but your Montana business will almost certainly need to register as a foreign LLC in Montana too, which means paying Montana's foreign registration fee and any ongoing Montana obligations on top of the Massachusetts ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

How long does it take to form an LLC in Massachusetts vs Montana?

Massachusetts online: 2 business days; Montana online: 5 business days. Massachusetts offers paid expedite from $20. Montana offers paid expedite from $20.

Which state has lower taxes for an LLC, Massachusetts or Montana?

Massachusetts: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Montana: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.

Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Massachusetts and Montana both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Massachusetts or Montana to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Massachusetts vs Montana LLC comparison

Massachusetts charges $500 to form an LLC; Montana charges $35. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Montana runs about $1,965 less in total state fees than Massachusetts. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

On speed, Massachusetts typically clears standard online filings faster than Montana. Both states offer expedited tiers at an additional cost for filers on tight timelines.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee

Massachusetts $500

Montana $35

Montana saves $465

Year 1 total estimate

Massachusetts $1,100

Montana $135

Montana saves $965

Ongoing per year

Massachusetts $600

Montana $100

Montana saves $500

3-year total

Massachusetts $2,300

Montana $335

Montana saves $1,965

Key differences at a glance

Montana costs $465 less to form ($35 vs $500).
Montana is $500 per year cheaper to maintain ($100 vs $600).

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

What each state offers that the other does not

Only Montana

No state sales tax

Both states

Online filing
Paid expedited tier
No entity-level franchise or LLC tax
No publication requirement
Operating agreement not statutorily required

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

Massachusetts Montana

Year 1

$1,100

$135

Year 2

$1,700

$235

Year 3

$2,300

$335

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario	Year 1	Each year after	3-year total
You live in Massachusetts, business operates there No foreign LLC registration needed. You pay Massachusetts fees only.	$1,100	$600	$2,300
You live in Montana, business operates there No foreign LLC registration needed. You pay Montana fees only.	$135	$100	$335
Non-resident forming in Massachusetts with operations elsewhere You pay Massachusetts's fees plus a typical home-state foreign LLC registration of about $200 per year.	$1,300	$800	$2,900
Non-resident forming in Montana with operations elsewhere You pay Montana's fees plus a typical home-state foreign LLC registration of about $200 per year.	$335	$300	$935

Massachusetts vs Montana: full comparison

Dimension	Massachusetts	Montana
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	2 business days	5 business days
Expedited option Paid fast-track filing	$20	$20
Annual report Required in addition to tax	Required, $500	Required, $0
State-imposed annual tax Franchise, privilege, or LLC tax minimum	None	None
State income tax On pass-through LLC income at member level	Yes	Yes
Publication requirement Newspaper publication after formation	No	No
Operating agreement Required by state statute	Recommended, not required	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$500	$70
State sales tax General statewide rate	6.3%	None

Taxes in Massachusetts and Montana

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

Massachusetts tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 8.0%.

Montana tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 6.8%.

Ongoing compliance

The recurring filings each state requires after formation.

Massachusetts

Annual report $500, due on your anniversary month. Registered agent required in Massachusetts.

Montana

Annual report $0, due 04/15 each year. Registered agent required in Montana.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

Massachusetts

Check business-name availability on the Massachusetts entity search.
Appoint a registered agent with a physical Massachusetts street address.
File Certificate of Organization (Form 156C §12) for $500.
Wait for approval. Online typically 2 business days. Paid expedite from $20.
Adopt an operating agreement (recommended, not required by Massachusetts statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $500 when it comes due.

Montana

Check business-name availability on the Montana entity search.
Appoint a registered agent with a physical Montana street address.
File Articles of Organization for Domestic Limited Liability Company for $35.
Wait for approval. Online typically 5 business days. Paid expedite from $20.
Adopt an operating agreement (recommended, not required by Montana statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $0 when it comes due.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both Massachusetts and Montana (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Massachusetts or Montana does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

Secretary of the Commonwealth of Massachusetts, Corporations Division

Website: www.sec.state.ma.us/divisions/corporations/corporations.htm
Phone: (617) 727-9640
Email: corpinfo@sec.state.ma.us
Mail: Secretary of the Commonwealth, Corporations Division, One Ashburton Place, Room 1717, Boston, MA 02108
Office: McCormack Building, One Ashburton Place, 17th Floor, Boston, MA 02108
Hours: 8:45 AM to 5:00 PM Eastern, Monday to Friday

Montana Secretary of State - Business Services Division

Website: sosmt.gov
Phone: (406) 444-3665
Email: sosbusiness@mt.gov
Mail: Business Services, Montana Secretary of State, P.O. Box 202801, Helena, MT 59620-2801
Office: State Capitol, Room 260, 1301 6th Avenue, Helena, MT 59620
Hours: 8:00 AM to 5:00 PM Mountain, Monday to Friday

Massachusetts Department of Revenue

Website: www.mass.gov/orgs/massachusetts-department-of-revenue
Phone: (617) 887-6367
Mail: Massachusetts Department of Revenue, P.O. Box 7010, Boston, MA 02204
Office: 100 Cambridge Street, Boston, MA 02114
Hours: 9:00 AM to 4:00 PM Eastern, Monday to Friday

Montana Department of Revenue

Website: mtrevenue.gov
Phone: (406) 444-6900
Mail: Montana Department of Revenue, P.O. Box 8021, Helena, MT 59604-8021
Office: 125 N Roberts Street, Helena, MT 59601
Hours: 8:00 AM to 5:00 PM Mountain, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in Massachusetts or Montana?

Montana is cheaper at formation ($35) than Massachusetts ($500). Ongoing costs are also different: $100 vs $600 per year. Total over three years: $335 vs $2,300.
Can I form an LLC in Massachusetts if I live in Montana?

Yes, but your Montana business will almost certainly need to register as a foreign LLC in Montana too, which means paying Montana's foreign registration fee and any ongoing Montana obligations on top of the Massachusetts ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
How long does it take to form an LLC in Massachusetts vs Montana?

Massachusetts online: 2 business days; Montana online: 5 business days. Massachusetts offers paid expedite from $20. Montana offers paid expedite from $20.
Which state has lower taxes for an LLC, Massachusetts or Montana?

Massachusetts: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Montana: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Massachusetts and Montana both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Massachusetts or Montana to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

MassachusettsOpen Massachusetts LLC guide →
MontanaOpen Montana LLC guide →

More Massachusetts and Montana comparisons

More Massachusetts vs ...

More Montana vs ...

Sources

Filing fee: www.sec.state.ma.us/divisions/corporations/general-information/corpora… · verified April 21, 2026
Secretary of the Commonwealth Corporations Division filing fee schedule: domestic LLC Certificate of Organization = $500. Online and fax filings carry an automatic $20 expediting surcharge, yielding a $520 effective fee for electronic filings.
Expedited filing: www.sec.state.ma.us/divisions/corporations/general-information/corpora… · verified April 21, 2026
Massachusetts automatically adds a $20 expediting surcharge to electronic (online or fax) filings and processes them ahead of mail submissions. This is the cheapest expedited tier. Same-day service requires hand-delivery at the Boston office before the cutoff. Online filings typically clear in 1–2 business days.
Certificate of Formation form: www.sec.state.ma.us/divisions/corporations/filing-by-subject/limited-l… · verified April 21, 2026
Massachusetts publishes a fillable Certificate of Organization PDF (form reference 'Form 156C §12' a/k/a c156c512d) for paper filers, with a parallel online filing flow through the Corporations Division portal.
Online filing portal: corp.sec.state.ma.us/corpweb/loginsystem/externallogin.aspx · verified April 21, 2026
Massachusetts Corporations Division online filing portal (external login). Used for Certificate of Organization, annual report, and amendments.
Business name search: corp.sec.state.ma.us/corpweb/CorpSearch/CorpSearch.aspx · verified April 21, 2026
Massachusetts Corporations Division business entity search. Supports lookup by entity name, individual name, entity ID, or filing number.
Operating agreement requirement: malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter156C · verified April 21, 2026
Massachusetts General Laws Chapter 156C (Limited Liability Company Act). §2(9) defines operating agreement as 'any written or oral agreement of the members'; §9 requires LLCs to keep any written operating agreement at the principal office but does not require one to exist. Default Chapter 156C rules fill gaps.
Publication requirement: www.sec.state.ma.us/divisions/corporations/filing-by-subject/limited-l… · verified April 21, 2026
Massachusetts does not require newspaper publication for LLC formation. The Corporations Division LLC information page describes no such obligation, and M.G.L. c. 156C does not impose one.
Foreign LLC registration fee: www.sec.state.ma.us/divisions/corporations/general-information/corpora… · verified April 21, 2026
Corporations Division fee schedule: foreign LLC Application for Registration = $500 (plus $20 electronic filing surcharge if filed online/fax).
Annual report fee: www.sec.state.ma.us/divisions/corporations/general-information/corpora… · verified April 21, 2026
Corporations Division fee schedule: LLC annual report = $500 (paper), $520 online/fax including the $20 expediting surcharge. Due by the anniversary of the original Certificate of Organization under M.G.L. c. 156C §12.
Franchise tax: www.mass.gov/info-details/massachusetts-dor-corporate-excise-tax-guide… · verified April 21, 2026
Massachusetts has no franchise tax on LLCs treated as pass-through entities. The Corporate Excise applies only when an LLC elects C-corp treatment; it is an 8.00% income component plus $2.60 per $1,000 of tangible property or net worth, with a $456 minimum excise. Not a franchise tax in the traditional sense; applies = false for the pass-through default.
Corporate income tax rate: www.mass.gov/info-details/massachusetts-dor-corporate-excise-tax-guide… · verified April 21, 2026
Massachusetts Corporate Excise net income tax component = 8.00% under M.G.L. c. 63 §39. Reported as income-only to match Delaware's convention; the companion $2.60-per-$1,000 net-worth/property measure is documented in taxes.notes / franchiseTax.notes.
Sales tax rate: www.mass.gov/info-details/massachusetts-tax-rates · verified April 21, 2026
Massachusetts statewide sales and use tax rate is 6.25% under M.G.L. c. 64H §2. No local sales taxes are imposed; separate 6.25% use tax on out-of-state purchases and local-option meals (0.75%) and rooms (up to 6%) taxes apply to specific categories only.
Filing fee: sosmt.gov/business/fees/ · verified April 21, 2026
Montana SoS Business Services fee schedule: Articles of Organization filing fee = $35.00 (plus $50 per series member for a series LLC). All business filings are online-only through biz.sosmt.gov.
Expedited filing: sosmt.gov/business/fees/ · verified April 21, 2026
Expedited service: 24 hours = $20, 1 hour = $100. We record the cheapest tier (24-hour) as the default.
Foreign LLC registration fee: sosmt.gov/business/fees/ · verified April 21, 2026
Foreign LLC Certificate of Authority filing fee = $70.00 (plus $50 per series member for a series LLC).
Operating agreement requirement: archive.legmt.gov/bills/mca/title_0350/chapter_0080/part_0010/sections… · verified April 21, 2026
Montana Limited Liability Company Act, MCA Title 35, Chapter 8, does not require a written operating agreement. MCA 35-8-102 defines 'operating agreement' broadly; the statute lets the default provisions of Chapter 8 govern if no operating agreement exists.
Publication requirement: sosmt.gov/business/ · verified April 21, 2026
Montana statutes and SoS filing instructions contain no LLC publication requirement.
Annual report fee: sosmt.gov/secretary-christi-jacobsen-continues-montana-business-suppor… · verified April 21, 2026
Montana SoS announced that the annual report filing fee is waived for 2026 and 2027 for on-time filings (Jan 1 - Apr 15). Fourth consecutive year of waiver. Late filings after April 15 remain $35. Cross-referenced with the fee schedule at https://sosmt.gov/business/fees/.
Franchise tax: revenue.mt.gov/taxes/corporate-income-tax · verified April 21, 2026
Montana Department of Revenue: no franchise tax on LLCs. Only entities that elect C-corp status pay the corporate income tax, which is not a franchise tax. Pass-through LLCs owe no entity-level state tax.
Corporate income tax rate: revenue.mt.gov/taxes/corporate-income-tax · verified April 21, 2026
Montana corporate income tax: 6.75% standard rate; 7% for water's-edge election; $50 minimum tax. LLCs that default to pass-through do not owe this tax.
Sales tax rate: mtrevenue.gov/ · verified April 21, 2026
Montana has no general statewide sales tax (0%). Industry-specific taxes apply to lodging, rental cars, and a few other categories but not to general retail.
Business name search: biz.sosmt.gov/search/business · verified April 21, 2026
Montana SoS Online Business Services entity name search. Confirm name distinguishability before filing.
Online filing portal: biz.sosmt.gov/ · verified April 21, 2026
Montana SoS Online Business Services portal. Montana accepts LLC formation filings online only; mail filings are not accepted for Articles of Organization. Standard processing averages 3-6 business days; expedite tiers available.

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