Texas LLC vs Montana LLC (2026)
Written for owners based in Texas.
Verdict: for most owners, form where the business is based
Montana forms for $35 against Texas's $300, and neither state carries a minimum recurring charge: Montana's Annual Report carries no filing fee, and neither does the Public Information Report Texas sends to the Comptroller, with franchise tax owed above the threshold. With the ongoing side level, the whole case rests on a $265 formation saving. The $750 to register a Montana LLC as a foreign entity in Texas wipes that out almost three times over.
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Compare Texas LLC vs Montana 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 | Texas | Montana |
|---|---|---|
| Filing Fee | $300 | $35 |
| Processing Time | Not published by the state | Not published by the state |
| Annual Report Fee | $0 | $0 (waived when filed by April 15; $35 after) |
| Annual Report Due | May 15 | April 15 |
| State Income Tax | No | 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 | $750 + registered agent ~$150/yr |
Full fee breakdown for either state: Texas LLC cost and Montana LLC cost. Owner privacy options for either state: Texas anonymous LLC guide and Montana anonymous LLC guide.
Business Climate: Texas vs Montana
| Factor | Texas | Montana |
|---|---|---|
| 5-year business survival rate | 52.5% (#20 of 51) | 53% (#16 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +13.7% YoY (#3 of 51 by volume) | +13.4% YoY (#40 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: Texas vs Montana
Texas
Montana
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
Texas charges $300 to form an LLC, while Montana charges $35. Montana is $265 cheaper upfront. The cost that usually gets overlooked: if you form in Montana but operate in Texas, you must also register as a foreign LLC in Texas (a $750 filing) and maintain a registered agent in Montana (typically around $150 per year). That puts the realistic first-year cost of the Montana route at roughly $935, versus $300 for simply forming in Texas. Speed isn't a basis for choosing between them: neither Texas nor Montana publishes a standard processing time, so any figure comparing the two is guesswork.
Taxes: Texas vs Montana
Texas has no personal income tax, while Montana taxes individual income. Since pass-through LLC profits are taxed where you live and operate, a Texas-based owner keeps Texas's no-income-tax benefit either way. Forming in Montana adds no tax advantage. 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). Texas imposes a franchise tax; LLCs under the no-tax-due threshold ($2,650,000 total revenue for 2026-27 reports) owe $0 but must still file an annual Public Information Report. 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).
Privacy & Asset Protection
Neither Texas nor Montana offers anonymous LLC formation: both states require owner or manager information on public filings. Montana law requires your 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. 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
Texas LLCs file a free annual report (due May 15), and Montana LLCs file a free annual report (due April 15). If you form in Montana while operating in Texas, you maintain filings in both states, Montana's report plus Texas's equivalent for your foreign registration, and pay a Montana registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the Montana route to roughly $150 a year, versus about $0 to keep a domestic Texas LLC in good standing. The taxes inside those totals: Texas imposes a franchise tax; LLCs under the no-tax-due threshold ($2,650,000 total revenue for 2026-27 reports) owe $0 but must still file an annual Public Information Report. 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).
When Montana Actually Makes Sense
Forming in Montana makes sense in a few specific situations: your business genuinely operates in Montana, with a real office, employees, or property there, or you're relocating to Montana in the near future and accept taking on Montana's personal income tax, which Texas doesn't levy. For a typical small business based in Texas, none of these usually apply. Registering a Montana LLC to do business back home means $750 in Texas foreign-registration fees, on top of Montana's $35 formation fee, while Texas's own annual report stays free to file and is due May 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 law: HB 337 (2025) (income tax rate cut)
- Montana statute: MCA 35-8-208 (annual report contents)
- sos.state.tx.us/corp/index.shtmlTexas Secretary of State: business entity filings
- direct.sos.state.tx.us/help/help-corp.asp?pg=feeTexas LLC filing fees
- sosmt.gov/business/Montana Secretary of State: business entity filings
- sosmt.gov/business/fees/Montana 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.