Montana taxes personal income (Two brackets: 4.7% and 5.65% (top rate)), and imposes no separate entity-level income tax on LLCs. A Wyoming holding company does not erase Montana's own entity-level obligations on a Montana subsidiary, but it can still add liability separation and keep the parent's ownership off Montana's public LLC filings.
Montana has no franchise tax and no minimum LLC fee. A standard pass-through Montana LLC owes no entity-level state tax at all. Montana recognizes the federal S-Corp election automatically — the state S-Corp return (Form CLT-4S) follows the federal election with no separate state-level approval required, and no additional forced tax beyond that. A Pass-Through Entity election is also available as a SALT-cap workaround for owners who itemize federally.
The general federal tax treatment of holding companies (consolidated filings, dividends-received deductions, and the like) is set at the federal level and does not change state to state — what changes is the entity-level tax Montana itself charges an LLC or corporation formed or registered there.
Montana levies no franchise tax and no sales tax, so a multi-entity structure carries none of the per-entity capital or net-worth charges that inflate holding costs in states like Delaware or Texas. Income earned by operating subsidiaries passes up through the holding company and is taxed a single time on each member's Montana return, under graduated personal income rates of 4.7% and 5.65%. There is no Montana entity-level income tax on a pass-through holding company. The only recurring Secretary of State obligation per entity is the April 15 Annual Report, and its $20 fee has been waived for on-time filers in recent years — verify the current figure before you file.
A Montana C-Corporation pays the state's flat 6.75% corporate income tax on net income apportioned to Montana, with a $50 minimum tax that applies even in a loss year, reported on Form CIT and due the 15th day of the fifth month after the close of the tax year (May 15 for calendar-year filers). Montana levies no franchise tax, no privilege tax tied to capital or shares, and no general sales tax. The only recurring Secretary of State charge is the $20 Annual Report.
Montana LLCs must file Annual Report with Montana Secretary of State, due April 15 each year, with a fee of $0 for on-time filings through April 15, 2027 (normally $20; $35 total with the $15 late fee if filed late).
If the Annual Report remains unpaid, the Secretary of State issues a dissolution notice around September 1, with a final cutoff around December 1 for domestic LLCs (November 1 for foreign LLCs) before administrative dissolution takes effect.
A common structure pairs a Wyoming LLC as the parent with a Montana entity handling operations, holding property, or running a Montana-facing business.
The Montana entity still owes whatever Montana itself charges — no separate entity-level tax if it stays taxed as a pass-through LLC — regardless of where its parent is formed; pairing it with a Wyoming LLC does not change the Montana subsidiary's own filing or tax obligations. What the Wyoming parent adds is liability separation, and the Wyoming company's own ownership stays out of Montana's public LLC filings.
For more on the general structure, see the Wyoming holding company guide and how to set one up.
Tax agency reference: Montana Department of Revenue (mtrevenue.gov).
Note: Tax rates, fees, and thresholds shown here reflect state tax research last verified July 2026; reconfirm current figures directly at mtrevenue.gov before relying on them for a specific filing.
Montana's tax treatment of a holding structure comes down to its personal income tax (Two brackets: 4.7% and 5.65% (top rate)) and the absence of a separate entity-level LLC tax. If you have questions about structuring a Wyoming-Montana holding arrangement, reach out through our contact form.
If you have questions about structuring a Wyoming-Montana holding arrangement, reach out through our contact form or call +1 (307) 683-0983 to speak with one of our experienced Business Success Advisors. Visit our homepage and blog for more.