Montana LLC vs Delaware LLC (2026)
Compare Montana LLC vs Delaware LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: August 13, 2026
Verdict: Montana wins for most businesses
For most Montana-based businesses, forming locally in Montana is the smarter choice. You avoid paying fees in two states and managing compliance in both. Delaware only makes sense if your business genuinely operates there or your investors require a Delaware entity, and even then the total costs deserve a hard look.
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| Factor | Montana | Delaware |
|---|---|---|
| Filing Fee | $35 | $110 |
| Processing Time | Not published by the state | Not published by the state |
| Annual Report Fee | $0 | None ($400/yr entity tax instead) |
| Annual Report Due | April 15 | None required |
| State Income Tax | Yes | Yes |
| Anonymous LLC | No | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $70 + registered agent ~$150/yr |
Full fee breakdown for either state: Montana LLC cost and Delaware LLC cost.
Business Climate: Montana vs Delaware
| Factor | Montana | Delaware |
|---|---|---|
| 5-year business survival rate | 53% (#16 of 51) | 48.1% (#37 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +13.4% YoY (#40 of 51 by volume) | +2.5% YoY (#33 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Montana vs Delaware
Montana
Delaware
Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where a state requires publication, and any one-time registration charge a state requires before the LLC may trade. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Montana's annual report is free when filed by April 15 and $35 after, a waiver the Secretary of State applies at its discretion. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Montana charges $35 to form an LLC, while Delaware charges $110. Montana is $75 cheaper upfront. The cost that usually gets overlooked: if you form in Delaware but operate in Montana, you must also register as a foreign LLC in Montana (a $70 filing) and maintain a registered agent in Delaware (typically around $150 per year). That puts the realistic first-year cost of the Delaware route at roughly $330, versus $35 for simply forming in Montana. Speed isn't a basis for choosing between them: neither Montana nor Delaware publishes a standard processing time, so any figure comparing the two is guesswork.
Taxes: Montana vs Delaware
Both Montana and Delaware levy a personal income tax on pass-through business income, and your LLC's profits will be taxed where you live and operate. Forming in Delaware doesn't change what a Montana-based owner pays. Montana levies a two-bracket individual income tax; per HB 337 (2025) the top rate drops from 5.9% to 5.65% effective January 1, 2026, with the 4.7% lower rate applying up to $47,500 single/$95,000 joint (Montana Department of Revenue). No franchise or privilege tax on LLCs; the Secretary of State currently waives the annual report fee for reports filed by April 15 ($35 if filed late). Delaware LLCs owe a flat $400 annual LLC tax (no report required).
Privacy & Asset Protection
Delaware allows anonymous LLC formation. Member and manager names don't appear on routine public filings. Delaware's Certificate of Formation requires no member or manager names, and LLCs file no annual report, so ownership never appears on a public filing. Montana doesn't offer that same privacy. MCA 35-8-208 requires the LLC's annual report to state the names and business mailing addresses of the managers (if manager-managed) or of the members (if member-managed), and these reports are public. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal. One important caveat: if you register your Delaware LLC as a foreign LLC in Montana, that Montana registration is itself a public record, which can undercut much of the privacy benefit for a business that operates in Montana.
Annual Maintenance Costs
Montana LLCs file a free annual report (due April 15), and Delaware LLCs file no annual report at all. If you form in Delaware while operating in Montana, you maintain filings in both states, Delaware asks for no report, but Montana still wants its equivalent for your foreign registration, and pay a Delaware registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the Delaware route to roughly $550 a year, versus about $0 to keep a domestic Montana LLC in good standing. The taxes inside those totals: No franchise or privilege tax on LLCs; the Secretary of State currently waives the annual report fee for reports filed by April 15 ($35 if filed late). Delaware LLCs owe a flat $400 annual LLC tax (no report required).
When Delaware Actually Makes Sense
Forming in Delaware makes sense in a few specific situations: you need anonymous ownership. Montana puts owner or manager information on public filings and Delaware doesn't (usually via a holding company, since operating in Montana still requires a public foreign registration there), you're raising venture capital or institutional investment. Many investors specifically prefer or require Delaware entities, your business genuinely operates in Delaware, with a real office, employees, or property there, or you're relocating to Delaware in the near future. For a typical small business based in Montana, none of these usually apply. Registering a Delaware LLC to do business back home means $70 in Montana foreign-registration fees, on top of Delaware's $110 formation fee, while Montana's own annual report stays free to file and is due April 15. When in doubt, form where you actually do business.
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