EIN, State Tax ID, and Business Licenses in Montana
New owners often get confused about which IDs they need. Here's the plain-English list for Montana.
Federal EIN
Required for any business with employees, any partnership, any corporation, or any LLC that elects to be taxed as a corporation.
Recommended even for solo LLCs and sole props — it lets you avoid using SSN on 1099s and W-9s.
Free at irs.gov/ein.
Montana Department of Revenue accounts
Withholding tax account: required if you have Montana employees. Register through TransAction Portal (TAP).
Corporate income tax account: required for C-corps.
No general sales tax in Montana, so no sales tax permit.
Specific taxes: lodging facility use tax (hotels), rental vehicle tax, tobacco/alcohol licenses, resort tax in certain communities.
Montana Department of Labor & Industry
Unemployment Insurance account: required if you have employees. Register via UI eServices.
Independent Contractor Exemption Certificate (ICEC): for workers you want to classify as contractors.
Workers' compensation coverage
Required for essentially every employer. Get coverage from Montana State Fund or a private carrier before hiring.
Not an account per se — it's an insurance policy.
Business licenses
Montana does not have a general statewide business license.
Many cities require a local business license. Billings requires one — apply at ci.billings.mt.us.
Specific industries need state licensure: contractors (Contractor Registration through DOLI), childcare, food service, professional services (CPAs, attorneys, etc.).
The order to do everything
1. Form the entity (LLC/corp) with MT SOS.
2. Get EIN.
3. Register MT DOR accounts if applicable.
4. Register MT DOLI UI if hiring.
5. Get workers' comp before first hire.
6. Local business license and industry licenses as applicable.
7. Open bank account, set up payroll, set up accounting software.
A quick disclaimer
This article is general information for Montana small business owners, not tax, legal, or accounting advice for your specific situation. Rules change, and how they apply depends on facts we don't know about you. Before acting on anything you read here, talk to a qualified professional. If you're a Montana business owner and want a real conversation about your books, payroll, or tax, that's what Marlow Accounting is here for — call 406-290-1214 or schedule a discovery call.