Is it cheaper to form an LLC in Washington than Montana?

No. Washington costs more upfront ($200 vs $35), and if you operate in Montana you must also register there as a foreign LLC ($70) plus pay a Washington registered agent. Realistic first-year cost is roughly $420 versus $35 for forming locally.

Can I form my Montana business in Washington?

Yes. Any Montana business can form its LLC in Washington. But if the business operates in Montana, it must also register there as a foreign LLC ($70 filing fee) and maintain a registered agent in Washington, so you take on two states' fees and filings instead of one.

Does Washington have better asset protection than Montana?

Not meaningfully. Both states provide charging-order protection for LLC members, and neither offers a decisive asset-protection edge for a typical small business. Sound insurance and clean separation of business and personal finances matter more in practice.

State Comparison

Montana LLC vs Washington LLC (2026)

Written for owners based in Montana.

Verdict: for most owners, form where the business is based

Washington is one of only three states, with Massachusetts and Minnesota, where filing online costs more, $200 through the portal against $180 by mail, because a Washington rule adds a $20 online processing fee the annual report is exempt from. That report is $70 a year, five years for $550 against Montana's $35. The larger cost is the Business and Occupation tax, charged on gross receipts with no deduction for labor or materials and no minimum, so an unprofitable Washington LLC can still owe it. Washington levies no personal income tax through 2027, and from 2028 Washington taxes individuals at 9.90% on income above a $1,000,000 standard deduction. And $70 registers a Washington LLC as a foreign LLC in Montana.

Based in Washington? Read Washington LLC vs Montana LLC →

Compare Montana LLC vs Washington 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: October 5, 2026

If your business is based in Montana, a Montana LLC needs no foreign registration there; a Washington LLC run from Montana generally must also register in Montana as a foreign LLC (Montana's $70 filing fee). If your business is based in Washington, a Washington LLC needs no foreign registration there; a Montana LLC run from Washington generally must also register in Washington as a foreign LLC (a filing fee of at least $180). An LLC formed in one of these states and run from the other owes whatever filings, fees and taxes each state requires. A Montana LLC runs $35 in year one and $0/yr after; a Washington LLC runs $270 and $70/yr. See the full breakdown below.

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Factor	Montana	Washington
Filing Fee	$35	$180 by mail, $200 online ($20 online surcharge)
Processing Time	Not published by the state	Within 15 business days (paper)
Annual Report Fee	$0 (waived when filed by April 15; $35 after)	$70
Annual Report Due	April 15	Last day of anniversary month
State Income Tax	Yes	None through 2027; 9.90% above $1M from 2028
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 Washington LLC cost. Owner privacy options for either state: Montana anonymous LLC guide and Washington anonymous LLC guide.

Business Climate: Montana vs Washington

Factor	Montana	Washington
5-year business survival rate	53% (#16 of 51)	42.2% (#51 of 51)
Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months))	+13.4% YoY (#40 of 51 by volume)	-25.5% YoY (#15 of 51 by volume)

Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)

See the full 50-state survival ranking.

Compare LLC Costs: Montana vs Washington

State A

State B

Montana

✓ Cheaper Upfront✓ Cheaper Long-Term

Formation fee$35

Annual report fee$0

State entity taxNone

Report dueApril 15

Processing timeNot published by the state

Late penalty$35

Washington

Formation fee$200

Annual report fee$70

State entity taxNone

Report dueLast day of anniversary month

Processing timeWithin 15 business days (paper)

Late penalty$25

Total Cost

Montana

Washington

1 Year

$35

$270

3 Years

$35

$410

5 Years

$35

$550

Will you operate outside your home state?

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 Washington charges $200. Montana is $165 cheaper upfront. The cost that usually gets overlooked: if you form in Washington but operate in Montana, you must also register as a foreign LLC in Montana (a $70 filing) and maintain a registered agent in Washington (typically around $150 per year). That puts the realistic first-year cost of the Washington route at roughly $420, versus $35 for simply forming in Montana. Only one side of this comparison is knowable: Washington publishes a standard turnaround (within 15 business days, paper), while Montana publishes no standard processing time, so the two can't be ranked against each other on speed.

Taxes: Montana vs Washington

Washington has no personal income tax through 2027 while Montana does (from 2028 Washington taxes individuals at 9.90% on income above a $1,000,000 standard deduction), but forming your LLC in Washington won't change that. LLC profits pass through to you and are taxed where you live and operate (in Montana), not where the LLC is registered, so a Washington LLC offers no income-tax savings for a Montana-based business. 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). 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). Washington imposes the Business & Occupation (B&O) tax on gross receipts.

Privacy & Asset Protection

Neither Montana nor Washington offers anonymous LLC formation: both states require owner or manager information on public filings. Washington's report records the LLC's governors (members/managers) on the public record. 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 Washington LLCs file an annual report ($70, due in the anniversary month). If you form in Washington while operating in Montana, you maintain filings in both states, Washington's report plus Montana's equivalent for your foreign registration, and pay a Washington registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the Washington route to roughly $220 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). Washington imposes the Business & Occupation (B&O) tax on gross receipts.

When Washington Actually Makes Sense

Forming in Washington makes sense in a few specific situations: your business genuinely operates in Washington, with a real office, employees, or property there, or you're relocating to Washington in the near future, which would also move you out of Montana's personal income tax. For a typical small business based in Montana, none of these usually apply. Registering a Washington LLC to do business back home means $70 in Montana foreign-registration fees, on top of Washington's $200 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

: No. Washington costs more upfront ($200 vs $35), and if you operate in Montana you must also register there as a foreign LLC ($70) plus pay a Washington registered agent. Realistic first-year cost is roughly $420 versus $35 for forming locally.
: Yes. Any Montana business can form its LLC in Washington. But if the business operates in Montana, it must also register there as a foreign LLC ($70 filing fee) and maintain a registered agent in Washington, so you take on two states' fees and filings instead of one.
: Not meaningfully. Both states provide charging-order protection for LLC members, and neither offers a decisive asset-protection edge for a typical small business. Sound insurance and clean separation of business and personal finances matter more in practice.
: It depends on where the business is based. For a Montana-based business, Montana: forming where the business is based keeps costs and compliance simple, and Washington is worth considering only if you actually do business there. For a Washington-based business, the same reasoning points to Washington.
: Only one side of this comparison is knowable: Washington publishes a standard turnaround (within 15 business days, paper), while Montana publishes no standard processing time, so the two can't be ranked against each other on speed. Whichever you pick, remember that forming in Washington while operating in Montana means you're not fully set up until the Montana foreign registration is also processed, so the out-of-state route is rarely the faster path end to end. If your timing is genuinely fixed, buy the state's expedite tier rather than relying on a standard turnaround.

Comparison chart of forming an LLC in Montana versus Washington, contrasting filing fees, annual report cost and ongoing obligations across 8 factors. — Montana and Washington side by side on the factors that decide where to form. Source: MyStateLLC 50-state cost dataset, verified against each Secretary of State's published fee schedule, July 2026.

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More State Comparisons

Montana vs West Virginia →Montana vs Wisconsin →Montana vs Wyoming →Montana vs Delaware →Washington vs Delaware →

Montana LLC Guide →Washington LLC Guide →

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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)
Washington regulation: WAC 434-112-075 (online processing fee)
sosmt.gov/business/Montana Secretary of State: business entity filings
sosmt.gov/business/fees/Montana LLC filing fees
sos.wa.gov/corporations-charities/business-entities/limited-liability-company-llc-professional-llc-pllc-filing-resource-pageWashington Secretary of State: business entity filings
sos.wa.gov/corporations-charities/frequently-asked-questions-faqs/fee-scheduleexpedited-serviceWashington 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.