Updated: Nov 17
Any business that operates outside of Montana can benefit from starting a Montana LLC. The reason Montana is a no sales tax state is because it is a pro business state, in which it’s easier to launch a business than in most other states.
Key Montana LLC Advantages:
Quick turnaround time
Tax-free purchasing of moveable property
Allows you to easily manage movable property
Create a corporate structure by combining LLCs from different states
No vehicle inspections involved
Keep your existing driver’s license
Avoid paying personal property tax
You won’t need a lawyer
Protect your assets and limit your liability
How Much Money You Can Save
Savings will vary based on your sales tax when you purchase boats, vehicles or aircrafts. If your business depends on making many of these purchases, your savings will thousands of dollars.
History of Montana Tax Laws
Montana was admitted to the union in 1889 to become the 41st state. The state revised its original Constitution in 1972, which included a statewide reappraisal system, that gave the state oversight over property taxes.
The history of state sales taxes across the United States traces back to the Great Depression era. Many states in the south, mid-west and west adopted sales taxes during the 1930s, with several holdouts through the 1960s. Meanwhile, Montana has never implemented a state sales tax, along with Alaska, Delaware, Oregon and New Hampshire. The Washington Post wrote an opinion piece in 2014 that Montana has the fairest tax system in America.
How a No Sales Tax State Benefits an Exotic Car Buyer
Not only will you avoid paying thousands of extra dollars on sales tax, you can save money on vehicle registration in Montana. In California, for example, it may cost over $100,000 to register an exotic car worth over $1 million, but in Montana registration for that same vehicle only costs a few hundred dollars. Montana also has the lowest rate in America for license plates.
Ideal Montana LLC Businesses
Several industries can cut costs by setting up an LLC in Montana, especially if you run a rodeo, RV park, racetrack or do car shows, trade shows and anything involving luxury vehicles. It’s also ideal if you showcase technology such as green energy, which will allow you to save money on a Tesla Model S, X or Roadster.
Healthcare organizations and law firms who want to expand services to multiple states will save an enormous amount setting up an LLC in Montana. Think about how much less paperwork and red tape will be involved.