If you’re planning to start a business in Montana, one of the first things you’ll need to understand is licensing and business license cost. Unlike many states, Montana does not issue a single, statewide business license. Instead, business license requirements and costs depend on your business type, where you operate, and whether your industry is regulated.
To stay compliant, you may need licenses at the city or county level, and in some cases, at the state or federal level as well. Professionals such as doctors, lawyers, dentists, and cosmetologists must obtain licenses from the appropriate Montana state boards, which oversee licensing and compliance for regulated occupations.
Montana also stands out because it does not impose a statewide sales tax, meaning most businesses do not need a seller’s permit. However, certain cities and resort areas do charge local sales taxes on specific goods and services, such as lodging, rental equipment, guided tours, and recreational activities. If your business operates in or sells to customers in those areas, local registration and tax collection may still be required.
With all of that in mind, let’s break down the most common question business owners ask. How much does a business license cost in Montana?
Do you need a business license in Montana?
Businesses operating in Montana must get a business license from the county and the city where the business is located and where the business operates. Certain businesses and professionals must also get a license from the state.
How much does a business license cost in Montana?
There is no state-wide, general Montana business license; however, there are state license requirements for an extensive list of professionals. The application fees can range from $25 to $125, and renewal fees (for a year in some cases and two years in others) can range from $25 to up to $600. These fees may change at any time.
Since the cost of a business license is set by the local government, the range is low for small towns, such as $15 per year for residents of the town of Superior, $75 per year for a home-based or general business in the town of Stevensville, and more (many hundreds of dollars) depending on the number of employees and business type in the larger city of Missoula.
Types of business licenses in Montana and their cost
To figure out your total business license fees (also called the business tax), first determine if you need a state license by checking the list, and then contact the city and county officials where the business will operate.
Take a look at this Billings, Montana, license fee/business tax schedule (subject to change at any time) as an example of fees you might encounter for a mid-sized city in Montana. If you are a professional subject to state license fees, add those fees to this cost for your business.
For example, if you are a nurse providing elder care as your business in Billings, you would pay the $100 exam application fee and the $100 professional license fee renewal (every two years) to the state and the $55 annual basic fee to the city of Billings, MT, if your revenues are less than $100,000 annually.
Example of the Fee Schedule from Billings, Montana Municipal Government
| Gross Revenue | $0 to $100,000 | Over $100,000 to $2,000,000 | Over $2,000,000 to $3,000,000 | Over $3,000,000 |
| Basic Fee | $55 | $90 | $140 | $215 |
| Home Business | $20 | $20 | $20 | $20 |
| 5+ full-time employees | $6 | $6 | $6 | $6 |
| Health Inspection | $50 | $50 | $50 | $50 |
| Liquor License | $200 | $200 | $200 | $200 |
Here are some other examples of professional license fees (subject to change) for professions regulated by the Montana Department of Labor & Industry (DLI) and the state government licensing boards.
| Profession | Board | Application Fee | Renewal Fee |
| Registered Nurse | Montana Board of Nursing | $100 | $100 – 2 yrs. |
| Contractor | DLI | $70 | $70 annual |
| Home Inspector | DLI | $80 | $80 annual |
| Dental Hygienist | Montana Board of Dentistry | $140 | $140 annual |
| Dentist | Montana Board of Dentistry | $300 | $300 annual |
| Psychologist | Montana Board of Psychologists | $600 | $600 annual |
| Behavioral Analyst | Montana Board of Psychologists | $600 | $600 annual |
| Assistant B.A. | Montana Board of Psychologists | $200 | $200 annual |
| Acupuncturist | MT Board of Alt. Health Care | $100 | $100 annual |
| Naturopath | MT Board of Alt. Health Care | $240 | $240 annual |
Because Montana has many individual licensing boards, each sets its own fee schedule. The table above is only a sample. Always check the specific board’s official website or rules schedule for the current fees. Regulatory rules or board decisions may change fees over time.
Some boards have two-year renewal cycles instead of annual. Some professions have additional fees (e.g., for prescription-drug registry, late renewal penalties, inactive status conversion) beyond the base renewal fee.
For example, physicians must pay the Montana Prescription Drug Registry fee ($30/year) if prescribing controlled substances.
The importance of renewing your business license in Montana
Professional licenses issued by the state may require an annual or a two-year renewal. It is vital for your professional license to be in good standing. If you are required to be a licensed professional, you must pay your professional license fees on time and renew your license as required; otherwise, you may be cited for operating without a professional license, be subject to censure and fines, and even create malpractice liability issues.
Your business needs to have the proper and valid licenses as well. All city licenses require an annual renewal. For example, an acupuncturist who has a practice in one city and a satellite office in another city would have to pay the license fees for both of those cities to operate legally.
Conclusion
Starting a business in Montana can feel complicated at first, especially when licensing requirements vary by city, county, and profession. Taking the time to understand which licenses you need and how much they cost will help you avoid delays, penalties, and compliance issues down the road.
If you need guidance, the Montana Small Business Development Center (SBDC) is an excellent resource. They offer free, confidential one-on-one counseling to help you navigate licensing, registration, and other startup requirements. The SBDC also publishes a comprehensive Business Start-Up Guide that includes a step-by-step checklist to keep you on track.
When you’re ready to make it official, understanding how to start an LLC in Montana can make the process much smoother. Tailor Brands can help you form your LLC quickly and easily, so you can focus on building your business instead of dealing with paperwork.
FAQ
Yes, most cities that have a license requirement extend this requirement to home-based businesses, including businesses that sell online.
Determine if you need a professional license from the state by checking the Montana License Look-Up list. Then check with the city and county officials where your business will operate.
For some businesses, you can apply online, pay the fee, and print the license immediately. Others may take up to a month, such as those that require a health inspection.
Yes, a business license and, for some categories, a professional license, are required for an LLC to operate in the state of Montana.
No, an LLC is a type of company registration, and it may need a business license to operate.
Your business may be forced to close, and you may have to pay penalties if you operate illegally without the proper licensing.
Yes, you may need a license from any cities and counties where you sell to their residents.