Montana: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $4,764 a year less than a sole proprietorship in Montana. All figures are 2026 tax and fees.

$4,764 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Montana, at these numbers. That includes the state's pass-through entity tax election.

Montana, 2026: $100,000 profit, single filer

Structure

Yearly cost

vs yours

To set up

Sole proprietorship yours

$26,255

Itemized: $26,255

Self-employment taxirs.gov, 2026 rates	$14,130
Federal income taxirs.gov, 2026 rates	$8,235
State income taxrevenue.mt.gov, checked Oct 23, 2026	$3,890
Yearly cost	$26,255

Single-member LLC

$26,255

+$0

$35

Itemized: $26,255

Self-employment taxirs.gov, 2026 rates	$14,130
Federal income taxirs.gov, 2026 rates	$8,235
State income taxrevenue.mt.gov, checked Oct 23, 2026	$3,890
Yearly cost	$26,255

LLC taxed as an S corp lowest

$21,491

−$4,764

$35

Itemized: $21,491

Payroll tax on your salaryirs.gov, 2026 rates	$6,674
Payroll service and tax return (estimate)	$1,800
Montana pass-through entity tax, paid by the company (elected)news.bloombergtax.com, checked Oct 23, 2026	$3,084
Federal income taxirs.gov, 2026 rates	$9,034
State income tax, after the PTET creditrevenue.mt.gov, checked Oct 23, 2026	$899
Yearly cost	$21,491

S corporation

$21,491

−$4,764

$35

Itemized: $21,491

Payroll tax on your salaryirs.gov, 2026 rates	$6,674
Payroll service and tax return (estimate)	$1,800
Montana pass-through entity tax, paid by the company (elected)news.bloombergtax.com, checked Oct 23, 2026	$3,084
Federal income taxirs.gov, 2026 rates	$9,034
State income tax, after the PTET creditrevenue.mt.gov, checked Oct 23, 2026	$899
Yearly cost	$21,491

C corporation

$30,955

+$4,700

$35

Itemized: $30,955

Payroll tax on your salaryirs.gov, 2026 rates	$6,674
Payroll service and tax return (estimate)	$2,000
State corporate income taxrevenue.mt.gov, checked Oct 23, 2026	$3,671
Federal corporate income tax (21%)irs.gov, 2026 rates	$10,650
Federal income taxirs.gov, 2026 rates	$4,797
State income taxrevenue.mt.gov, checked Oct 23, 2026	$3,163
Yearly cost	$30,955

What these figures count

State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
The 20% qualified business income deduction with its income limits and the professional-service rule.
Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Montana

Electing S corp tax treatment for an LLC starts to pay in Montana at about $50,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

An S corp in Montana can elect to pay the state's income tax itself, a pass-through entity tax of 5.65%, and the owner gets a credit for it. The company deducts it on the federal return, so it is not held to the SALT cap. The calculator uses it when it lowers the totalnews.bloombergtax.com.

Profit	Sole prop	LLC	LLC as S corp	C corp
$30,000	$5,735	$5,735	$7,229	$7,723
$50,000	$11,159	$11,159	$11,019	$13,641
$75,000	$18,072	$18,072	$14,523	$21,091
$100,000	$26,255	$26,255	$21,491	$30,955
$150,000	$44,122	$44,122	$36,506	$52,427
$200,000	$62,571	$62,571	$52,262	$73,027
$300,000	$106,841	$106,841	$86,111	$115,531

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Montana

	LLC	Corporation
Filing to form	$35Articles of Organization	$35Articles of Incorporation (Profit Corporation)	sosmt.gov
Yearly report	Annual Report, no fee	Annual Report, no fee	sosmt.gov
Report due	April 15	April 15

Montana taxes personal income in 2 brackets, from 4.7% to 5.65% (2026, single filer). revenue.mt.gov
C corporations pay 6.75% of net income, with a minimum of $50. revenue.mt.gov
Montana follows the federal S corp election.
New employers pay state unemployment tax of 1.1% on the first $47,300 of each employee's wages. That applies to an owner's salary from an S or C corp. uid.dli.mt.gov
Standard annual report fee is $20 ($35 after April 15). The Secretary of State waived the on-time fee for 2024, 2025 and 2026 and has announced a waiver for 2027, so the on-time cost in those years is $0.
Same annual report fee and waiver as LLCs: $20 standard, $35 after April 15, on-time fee waived 2024 through 2027.

Not in the calculator: No local income taxes. Some resort towns (for example Whitefish, Big Sky, West Yellowstone) levy local resort sales taxes, and cities may require local business licenses.

Switching calculators for Montana

By profession in Montana

Questions

Is an S corp worth it in Montana?

On these figures, from about $50,000 of profit. At $100,000 an LLC taxed as an S corp costs $21,491 a year against $26,255 for a plain LLC, $4,764 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Montana?

The state charges Annual Report, no fee. Forming one costs $35.

Does Montana recognise the S corp election?

Yes. The federal election carries over with no separate state form. Montana follows the federal S election; S corps file Form PTE. An optional pass-through entity tax election is available on Form PTE (not modelled).

What income tax does Montana charge?

Montana taxes personal income in 2 brackets, from 4.7% to 5.65% (2026, single filer). C corporations pay 6.75% of net income, with a minimum of $50.

How this page models Montana (3)

revenue.mt.gov and uid.dli.mt.gov pages were read directly through a US connection and rules.mt.gov through a browser, so these figures now rest on the official pages; only sosmt.gov still refuses readers, and its fees are confirmed from ARM 44.5.114 on rules.mt.gov.
New employers' UI rate is set by industry; the rate for professional services (NAICS 54) is used.
The page shows the on-time annual report cost as $0 for 2026 and 2027 because the Secretary of State has waived the on-time fee for those years, and gives the standard $20 fee ($35 after April 15, set by ARM 44.5.114) in the notes.

Sources checked 2026-10-23. Each figure links to the state or IRS page it comes from.

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