Montana LLC vs Massachusetts LLC (2026)
Written for owners based in Montana.
Verdict: for most owners, form where the business is based
Massachusetts holds both national extremes that matter here, the highest formation fee and the highest annual report, at $520 each. Montana holds the other end at $35 to file. Massachusetts is also one of the few states that surcharges electronic filing rather than discounting it: $500 by mail, plus a mandatory $20 expedite fee online. Five years costs $3,120 against Montana's $35, and two consecutive missed reports let the Division dissolve the LLC, with every owed $500 report payable before reinstatement. Registering a Massachusetts LLC into Montana adds $70.
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Compare Montana LLC vs Massachusetts 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: September 23, 2026
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| Factor | Montana | Massachusetts |
|---|---|---|
| Filing Fee | $35 | $500 by mail, $520 online (mandatory $20 expedite fee) |
| Processing Time | Not published by the state | Not published by the state |
| Annual Report Fee | $0 (waived when filed by April 15; $35 after) | $500 by mail, $520 online |
| Annual Report Due | April 15 | Anniversary date |
| State Income Tax | Yes | Yes |
| Anonymous LLC | No | No |
| 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 Massachusetts LLC cost. Owner privacy options for either state: Montana anonymous LLC guide and Massachusetts anonymous LLC guide.
Business Climate: Montana vs Massachusetts
| Factor | Montana | Massachusetts |
|---|---|---|
| 5-year business survival rate | 53% (#16 of 51) | 52.7% (#18 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +13.4% YoY (#40 of 51 by volume) | +11.9% YoY (#21 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 Massachusetts
Montana
Massachusetts
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. 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 the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. 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. 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 Massachusetts charges $520. Montana is $485 cheaper upfront. The cost that usually gets overlooked: if you form in Massachusetts but operate in Montana, you must also register as a foreign LLC in Montana (a $70 filing) and maintain a registered agent in Massachusetts (typically around $150 per year). That puts the realistic first-year cost of the Massachusetts route at roughly $740, versus $35 for simply forming in Montana. Speed isn't a basis for choosing between them: neither Montana nor Massachusetts publishes a standard processing time, so any figure comparing the two is guesswork.
Taxes: Montana vs Massachusetts
Both Montana and Massachusetts 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 Massachusetts doesn't change what a Montana-based owner pays. Montana levies a two-bracket individual income tax; under a 2025 Montana law 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). Massachusetts taxes wage and pass-through income at 5.0%, plus a 4% surtax on taxable income above the inflation-adjusted threshold ($1,107,750 for tax year 2026). 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). No separate franchise or excise tax on LLCs taxed as partnerships/disregarded entities, but the mandatory $500 annual report fee is among the highest in the nation.
Privacy & Asset Protection
Neither Montana nor Massachusetts offers anonymous LLC formation: both states require owner or manager information on public filings. The certificate of organization and the annual report must both list the name and business address of each manager, if any, plus any person authorized to execute documents filed with the Corporations Division, so at least one manager or authorized person is always publicly disclosed. Business owners who prioritize privacy typically form a holding company in a state like Wyoming or New Mexico instead. 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.
Annual Maintenance Costs
Montana LLCs file a free annual report (due April 15), and Massachusetts LLCs file an annual report ($520, due in the anniversary month). If you form in Massachusetts while operating in Montana, you maintain filings in both states, Massachusetts's report plus Montana's equivalent for your foreign registration, and pay a Massachusetts registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the Massachusetts route to roughly $670 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). No separate franchise or excise tax on LLCs taxed as partnerships/disregarded entities, but the mandatory $500 annual report fee is among the highest in the nation.
When Massachusetts Actually Makes Sense
Forming in Massachusetts makes sense in a few specific situations: your business genuinely operates in Massachusetts, with a real office, employees, or property there, or you're relocating to Massachusetts in the near future. For a typical small business based in Montana, none of these usually apply. Registering a Massachusetts LLC to do business back home means $70 in Montana foreign-registration fees, on top of Massachusetts's $520 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.
Frequently Asked Questions
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Start your LLC with ZenBusiness →Affiliate link. We may earn a commission at no cost to you. MyStateLLC is not a law firm and does not provide legal advice.
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so. Where we hold the citation but no stable public link, the citation is printed on its own rather than pointed at a guessed address.
- Montana bill: HB 337 (2025) (income tax rate cut)
- sosmt.gov/business/Montana Secretary of State: business entity filings
- sosmt.gov/business/fees/Montana LLC filing fees
- sec.state.ma.us/divisions/corporations/filing-by-subject/limited-liability/corporations-limited-liability-company.htmMassachusetts Secretary of the Commonwealth, Corporations Division: business entity filings
- sec.state.ma.us/divisions/corporations/download/Fee_Schedule.pdfMassachusetts LLC filing fees
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.