How to Get Business Licenses in Montana | A Comprehensive Guide

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Montana Business License

Starting a new business is an exciting venture, but it’s essential to understand the various licenses required to operate legally within Montana. Forming an LLC in Montana requires licenses, as different industries and locations have specific regulations. This article will provide a comprehensive guide to Montana Business Licenses, helping you navigate the process and ensure your new venture complies with all necessary requirements. By understanding the permitting landscape in Montana, you can ensure that your business is fully prepared to succeed while avoiding potential legal pitfalls.

Webinarcare Editorial Team will help you easily obtain a business license in Montana. You must be guided by all the factors gathered in this article.

How to Get a Business License in Montana

What is a Business License in Montana?

A business license is a legal authorization, permit, or document that allows a business to operate within a specific jurisdiction, such as a city, county, or state. Montana business licenses are issued by Montana Secretary of State and ensure businesses comply with applicable laws, regulations, and standards in their respective industries.

A business license protects public health, safety, and welfare by ensuring businesses operate responsibly and lawfully. Acquiring a business license often involves registering the business, paying applicable fees, and meeting specific requirements or qualifications for the type of business.

Business licenses can vary greatly depending on the location and nature of the business. Some common types of business licenses include:

1. General Business License: This is a basic license required for most businesses to operate within a specific jurisdiction, such as a city or county.

2. Professional and Occupational Licenses: These licenses are specific to certain industries or professions, such as healthcare, construction, real estate, or cosmetology, and are typically issued by state licensing boards or agencies.

You must have a professional and occupational license to form Montana General Partnership and offer your service. 

Here are some examples of Professional and Occupational Licenses:

  • Medical License: Physicians, surgeons, and other healthcare professionals must obtain a medical license to practice medicine in a specific state. The Montana medical board issues this license after verifying the applicant’s education, training, and examination results.
  • Realtor License: To become a realtor in Montana, you must obtain a real estate license to buy, sell, or lease properties on behalf of clients. Montana has its own real estate commission or board responsible for issuing licenses and regulating the industry.
  • Contractor License: General contractors, electricians, plumbers, and other construction professionals must often have a contractor license to work in Montana. 
  • Cosmetology License: Professionals in the beauty industry, such as hairstylists, estheticians, and nail technicians, must obtain a cosmetology license to provide services. Montana Boards of Cosmetology oversee licensing and regulations for this industry.
  • Certified Public Accountant (CPA) License: Accountants who wish to become a CPA in Montana must designate and provide specific services, such as auditing financial statements and obtaining a CPA license from Montana’s Board of Accountancy.
  • Architect License: Architects must obtain a license to practice architecture in Montana. This typically involves meeting education and experience requirements and passing the Architect Registration Examination (ARE).
  • Attorney License: Montana Business Attorneys must obtain a license to practice law in a particular jurisdiction, typically by passing the state’s bar examination and meeting other requirements set by the Montana bar association.

3. Health and Safety Permits: Montana businesses involved in food service, hospitality, or other industries directly impacting public health and safety may require specific permits from local health departments or regulatory agencies.

4. Environmental Permits: Montana businesses that involve activities that may impact the environment, such as waste disposal, air or water emissions, or hazardous materials handling, may require permits from local, state, or federal environmental agencies.

5. Sales Tax License: Montana businesses that sell goods or services may be required to collect sales tax from customers and remit it to the appropriate tax authority. A sales tax license is typically required to collect and remit sales tax legally.

Montana business owners must research the specific licensing requirements for their business in their jurisdiction and obtain all necessary licenses and permits to operate legally and avoid potential fines, penalties, or legal troubles.

Requirements For Getting Business Licenses in Montana

If you start an LLC or any other type of business, you must wait until your Montana business registration is complete. Once you have completed the necessary steps to register your business in Montana, you must be prepared with the required documents to apply for business licenses.

  • Name of your company
  • Phone number and company address
  • Employee Identification Number (EIN)
  • Your company’s legal structure (Corporation, Partnership, or LLC)
  • Your business strategy, which includes revenues and costs

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How to Get a Business License in Montana

To get a business license, you must follow the guidelines below, including determining if your Montana business requires a license or permit, identifying the appropriate licensing agencies, researching license and permit requirements, completing and submitting license applications, and maintaining license and permit requirements.

Step 1: Determine The Required License or Permit

The first step in obtaining a business license is determining if your business needs one. Some businesses may not require a license or permit, while others may need multiple licenses depending on their industry and location. Some businesses typically require some form of licensing or permit:

  • Professional services, such as medical, legal, and accounting
  • Food establishments, including restaurants, bars, and catering businesses
  • Retail businesses, including stores, shops, and online retailers
  • Construction and contracting companies
  • Manufacturing and industrial businesses

State Licenses

The licenses that you must get first are the licenses within the state. Montana state licenses require individuals or businesses to engage in certain activities or professions legally. The state government issues these licenses and serves as proof that the license holder has met certain qualifications and standards set by the state. The types of licenses vary depending on the profession or activity, including but not limited to healthcare professionals, contractors, real estate agents, and drivers.

State licenses assure the public that the license holder has undergone the necessary training and education to perform their duties safely and competently.

Federal Licenses

Federal licenses in Montana are granted by federal agencies and are required for certain activities and industries that fall under federal jurisdiction. These licenses ensure compliance with federal laws and regulations and are necessary for individuals or businesses engaged in the following services.

  • Agriculture: License issued by The U.S. Department of Agriculture
  • Aviation: License issued by The Federal Aviation Administration
  • Alcohol & Tobacco: License issued by The Alcohol and Tobacco Tax and Trade Bureau
  • Ammunition, Explosive, & Firearms: License issued by The Bureau of Alcohol, Tobacco, Firearms, and Explosives.
  • Commercial Fisheries: License issued by The National Oceanic and Atmospheric Administration Fisheries Service
  • Mining & Drilling: License issued by The Bureau of Safety and Environmental Enforcement
  • Nuclear Energy: License issued by The U.S. Nuclear Regulatory Commission
  • Radio & Television (Broadcast): License issued by The Federal Communications Commission
  • Transportation by Sea: License issued by The Federal Maritime Commission
  • Wildlife & Fisheries: License issued by The U.S. Fish and Wildlife Service

Obtaining a federal license in Montana involves meeting specific criteria and adhering to federal laws and regulations, which can vary depending on the activity or industry.

City-Based License

City-based licenses in Montana are granted by local municipalities and are required for certain activities or businesses operating within the city limits. These licenses ensure businesses comply with local regulations and ordinances and typically cover business operations, health and safety, zoning, and permits.

City-based licenses vary depending on the location and the nature of the business, but examples may include restaurant licenses, liquor licenses, taxi licenses, and street vendor licenses. Obtaining a city-based license in Montana involves submitting an application, paying the necessary fees, and meeting specific requirements set by the local government.

Home-Based License

Home-based licenses in Montana are required for individuals or businesses that operate from their residential property. These licenses regulate and permit activities conducted within a residential setting, such as home-based businesses or rental properties. Home-based licenses ensure these activities comply with local regulations, building codes, zoning requirements, and health and safety standards.

The specific requirements for obtaining a home-based license in Montana can vary depending on the type of activity and the local municipality but typically involve submitting an application, paying any necessary fees, and meeting specific criteria set by the local government.

Professional License

Professional licenses in Montana are mandatory for individuals pursuing specific careers or professions that require specialized knowledge, skills, and expertise. The state government grants these licenses and serves to regulate and ensure the competency and ethical practice of professionals in fields such as law, medicine, engineering, teaching, and accounting.

To obtain a professional license in Montana, individuals must meet education, experience, and examination requirements specific to their profession. These licenses assure the public that they receive services from qualified professionals and protect consumers from potential harm or malpractice.

Step 2: Identify the Montana Licensing Agencies

Once you’ve determined that your business requires a license or permit, you must identify the appropriate Montana agencies responsible for issuing these documents. In Montana, numerous agencies oversee licensing and permitting, including:

  • Montana Secretary of State: This office is responsible for issuing licenses for many professional services, including legal, medical, and accounting.
  • Montana Department of Health: Food establishments, healthcare providers, and other businesses related to health and safety may require licenses from this department.
  • Montana Department of Revenue: If your business sells goods, you may need a sales tax license or permit from this department.
  • Montana Department of Labor: Businesses that involve construction or contracting may need licenses from this department.
  • Local City or County Governments: Depending on your business’s location, you may also need to obtain licenses or permits from your local government.

Step 3: Research License and Permit Requirements

After identifying the appropriate agencies, research the specific requirements for each license or permit your business needs. This may involve reviewing the Montana agency’s website, contacting their office directly, or consulting a legal or business professional. Some common requirements for obtaining a business license or permit include:

  • Completing an application form
  • Providing proof of insurance or bonding
  • Passing background checks or inspections
  • Paying application fees

Some licenses or permits may have ongoing requirements, such as annual renewals, inspections, or reporting.

Step 4: Complete and Submit License Applications

Once you’ve gathered all the necessary information and documents, complete the application forms for each required license or permit. Be sure to carefully follow the instructions provided by each Montana agency, as incomplete or incorrect applications can lead to delays or denials.

In addition to the application forms, you may also need to submit supporting documentation, such as:

Proof of Business Registration

You can find it on the Montana Secretary of State’s website. There should be a search feature specifically for businesses. This will often be labeled “Montana Secretary of State Business Search“. In the search feature, enter the name of the business you are looking for, and once it appears, you will now have proof of your business registration.

Employer Identification Number (EIN)

Aside from opening a bank account, you must have an Employer Identification Number in Montana to file and submit for a business license. An EIN, also known as a Federal Tax Identification Number, is used by the Internal Revenue Service (IRS) to identify your business for tax purposes. You’ll need an EIN to open a business bank account, file taxes, and hire employees. 

The application of an EIN in Montana can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

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Proof of Insurance, Bonding, or Worker’s Compensation Coverage

To have a business license, you need proof of insurance, bonding, or worker’s compensation. You need to obtain a certificate or policy document as additional documents for your proof of insurance. Also, there is a database of businesses with worker’s compensation coverage or require businesses to register their insurance or bonding information. Visit your Montana Department of Labor, Department of Insurance, or another relevant agency website for information about the business’s coverage.

Professional Certifications or Licenses

As I have mentioned, if you will form a general partnership and offer your service, you must have professional certifications or licenses. 

Submit your completed applications and the Montana business license fee, which ranges from $50 – $300. The processing times for license and permit applications can vary, so plan accordingly and allow ample time for approval.

Step 5: Maintain License and Permit Compliance

Once you’ve obtained the necessary licenses and permits for your Montana business, it’s essential to maintain compliance with all requirements. This may include:

  • Keep your Montana licenses and permits current by renewing them on time, typically annually.
  • Reporting any changes to your business, such as a changing Montana LLC address. You may amend your Montana Articles of Organization if you change anything in your Montana business.
  • Maintaining proper insurance, bonding, or worker’s compensation coverage.
  • Complying with any inspection, reporting, or record-keeping requirements.

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Additional Considerations

In addition to the steps outlined above, there are a few additional considerations to keep in mind when navigating the Montana business licensing process:

  • Licenses and permits are often industry-specific, so research your business type’s requirements.
  • Some businesses may need licenses or permits from multiple agencies at the state and local levels. Be sure to research and comply with all necessary requirements to avoid complications.
  • If your business operates in multiple locations or across state lines, you may need to obtain licenses or permits for each jurisdiction in which you operate. You can form Montana Foreign LLC. 
  • Stay informed about licensing and permitting requirements changes, as regulations can change over time.

FAQs

What is required to obtain a business license in Montana?
Montana requires business owners to register and obtain a license at both the state and local levels.
Who do I contact to obtain a business license in Montana?
You should contact the Montana Department of Commerce’s Business Assistance Program for assistance in obtaining a business license.
Is there a fee for obtaining a business license in Montana?
Yes, there is a fee to obtain a business license in Montana.
What is the fee to obtain a business license in Montana?
The fee to obtain a business license in Montana varies depending on the location and type of business.
How long does it take to obtain a business license in Montana?
The time it takes to obtain a business license in Montana varies depending on the location and type of business.
How long is a business license valid in Montana?
A business license in Montana is typically valid for one year.
How do I renew my business license in Montana?
You can renew your business license in Montana by submitting a renewal application and paying the renewal fee.
How do I obtain a sales tax license in Montana?
To obtain a sales tax license in Montana, you must apply with the Montana Department of Revenue.
Does my Montana business need insurance?
It is not required by Montana law to have business insurance, but it is recommended.
What types of insurance are available for Montana businesses?
Montana businesses have the option to obtain a wide variety of insurance types, including general liability insurance, professional liability insurance, and property insurance.
How do I register my Montana business with the state?
To register your Montana business with the state, you can visit the Montana Secretary of State’s website and file the necessary paperwork.
What types of businesses need to be licensed in Montana?
Most businesses operating in Montana are required to obtain a license, with exceptions for certain professions such as attorneys and doctors.
How can I check if my Montana business needs a license?
You can visit the Montana Department of Labor and Industry’s website to determine whether your particular business requires a license.
How do I update my Montana business license information?
You can update your Montana business license information by filing an amendment with the Montana Secretary of State’s office.
How do I cancel my Montana business license?
To cancel your Montana business license, you can file a termination form with the Montana Secretary of State’s office.
Can I apply for a Montana business license online?
Yes, you can apply for a Montana business license online at the Montana Business Gateway website.
Can I apply for a Montana sales tax license online?
Yes, you can apply for a Montana sales tax license online at the Montana Department of Revenue’s website.
How do I apply for a Montana professional license?
To apply for a Montana professional license, you must contact the relevant licensing board for your profession.
Do I need to register my small business in Montana?
Yes, most small businesses operating in Montana are required to register and obtain a license.
How do I obtain a professional license in Montana?
To obtain a professional license in Montana, you must meet the requirements of the relevant licensing board for your profession.
How often do I need to renew my business license in Montana?
A Montana business license typically needs to be renewed annually.
Does my Montana business need to file annual reports?
Yes, most Montana businesses are required to file annual reports with the Montana Secretary of State’s office.
What information should I include in my Montana business plan?
A Montana business plan should include your company’s objectives, target market, and financial projections.
How do I obtain a Montana registered agent?
Montana requires all businesses to have a registered agent, who can be an individual or a registered agent service.
Does my Montana nonprofit need to file for tax exemption?
Yes, Montana nonprofits are required to file for tax exemption with the Montana Department of Revenue.
Can I obtain guidance and advice on starting a business in Montana?
Yes, the Montana Department of Revenue’s Business Assistance Program provides guidance and advice to business owners in Montana.
How do I obtain a Montana employer identification number (EIN)?
To obtain a Montana EIN, you can apply online at the IRS website.
Can I operate a business as a sole proprietor in Montana?
Yes, Montana allows business owners to operate as a sole proprietorship.
What are the benefits of incorporating my business in Montana?
Incorporating a business in Montana can provide personal asset protection and potential tax benefits.
What types of corporations can I form in Montana?
Montana business owners can form C corporations, S corporations, and limited liability companies (LLCs).

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Conclusion

Obtaining the necessary licenses and permits is crucial in starting a new business in Montana. Following the steps outlined in this guide and consulting with the appropriate agencies or professionals, you can ensure that your business complies with all state and local requirements. This will protect your business from legal issues and help establish your reputation as a responsible and trustworthy business operator.

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