Thu 31 Mar 2016 | By:

Everything You Need to Know about Montana Business Taxes

Small Business Taxes

Business tax obligations are a part of a business owner’s responsibility when incorporating a new business in Montana. Thus, it is crucial that all Montana business tax requirements be noted down, completed, and filed with the state.

There are a number of requirements for Montana business taxes, from the federal down to the local level, all of which you must comply with. Know that tax requirements are not a one-time thing as well.

Some business taxes are to be filed periodically as long as your business is in operations; so make sure to have a working knowledge of these taxes, as well as maintaining good standing with the IRS and the state government.

When you fail to deliver these tax obligations, you can easily be penalized and fined, and even be subject to disciplinary action as deemed necessary by the corresponding government agency. To help avoid all these and to help deliver your tax obligations, this guide presents the common business taxes that apply for Montana businesses.


Montana Business Income Tax

Like the majority of the states in the country, a Montana Business Income Tax is implemented. But unlike other states that impose franchise tax or privilege tax in addition to the corporate income tax, there is none in Montana.

However, income from the business that passes through the owner personally is taxed on the personal state tax return. The business income tax is specifically identified as the Corporation License Tax, and in Montana, a fixed rate of 6.75% or a minimum of $50 is imposed.

This tax deliverable is due on the fifth month of the 15th day of the end of the business’ calendar year.

Montana Federal Tax Forms and Publications

For the official Montana Federal Tax Forms and Publications, your only source of all these should be the Montana Department of Revenue.

Although there are other sources and information portals that provide downloadable tax forms and updates on various publications, getting all the information you need to complete tax obligations through the official channel is still the most viable option to choose.

Unemployment Insurance Tax

As part of state tax requirements, a Montana Unemployment Insurance Tax should be paid by the business owner. All businesses who have employees, providing that the criteria set forth by the state of Montana are met should pay this insurance tax.

This subsidy is intended for currently unemployed workers through no fault of their own, providing them an allowance while they are still in the process of finding another employer.

Montana Sales and Use Tax

Montana is one of the very few states that does not impose a Montana Sales and Use Tax. There are no sales, gross receipts, use tax, or even consumption tax in the state.

However, the state imposes taxes on vehicle rentals and resort and lodging facility sales and use tax. This means that there is 0% sales tax in the state.


Powerful Tools that Make Montana Business Tax Life Easier

Startup Tools and ResourcesJust as there are resources that can be used to help complete Montana tax obligations, there are also tools available that help comply with business tax obligations both short and long term.

These tools can help in the various tasks involved in completing requirements, automating those that can be automated, generating required tax reports, and more.

The tools below are examples of powerful applications to help manage your Montana business taxes and its corresponding requirements. Use these tools to your best advantage.

Small Business Accounting Software

QuickBooksFreshBooks, and Xero are all small business accounting applications that help simplify and fast track the task of completing accounting and bookkeeping tasks, processing employees’ payroll, generating various reports, monitoring finances, taxes, and expenses and more.

Each of these tools has its strong points so again, pick the tool you think best fits the business you are operating. From there, maximize the features effectively to complete your tax obligations.

Note that this article is just an informational guide, and not in any way represents a legal document or legal notice. For specific questions on the legalities involved in Montana business taxes or starting a new business in general, seek the expert opinion of a business lawyer.

About Ryan James

Half hardworking hermit, half avid adventurer, Ryan founded Startup Savant to simplify entrepreneurship and pay it forward by donating a portion of all revenue to support children's education via