Where is Montana? In the northwest of the United States, on the Canadian border, Montana covers 380,000 km², making it the fourth-largest state in the country. Crossed by the Rocky Mountains, it is one of the Mountain States. Despite its size, fewer than one million people live here, which makes Montana the third most sparsely populated state in the USA. Its nickname, the Treasure State, comes from its wealth of natural resources.
More business owners than ever are choosing to build their companies in Montana. In the Treasure State they find exceptional talent, affordable living costs and one of the best business climates in the nation. There is a reason the New York Times wrote, in essence, that Silicon Valley may get the glory, but the real hotbed of American entrepreneurship is Montana. Montanans are known as innovators and have the highest rate of business start-ups in the country.
Plenty of success stories
Michael Fitzgerald, founder of Submittable, values Montana above all for the low costs his company faces, which mean higher profit margins. Looking back at the early days, he says that six months of costs and ramp-up time in Missoula matched the cost of a single month in New York.
Spencer Williams, founder of West Paw Designs, finds the work ethic in Montana exceptionally strong. In his view, Montanans love contributing to a team, and he sees his own team as the most committed and hardest-working he knows.
It is not only American entrepreneurs who succeed in Montana. More than 250 international companies have expanded into the Treasure State, employing a good 9,100 American workers. Over 20 percent of the jobs created are in manufacturing. The UK, Canada and France take the top three spots by number of companies established. From 2013 to 2018, new jobs in Montana created through FDI grew by more than 21 percent, while the private sector as a whole grew by just over seven percent in the same period.
Looking for a location for your business? Find out here whether Texas could be a good fit for you. Here are the 10 most popular US states for foreign direct investment.
Tourism as a key industry
Montana's tourism industry is booming. No wonder, with natural wonders like Glacier National Park, Flathead Lake, Yellowstone National Park, Bozeman, Whitefish and many more. So it is no surprise that outdoor recreation has a big impact on the state: it supports more than 70,000 jobs, and its workers contribute $286 million to state and local tax revenue. In 2017 the Montana Office of Outdoor Recreation was set up to make sure the industry can grow and thrive. In 2018, 12.5 million out-of-state visitors spent an estimated $3.7 billion in Montana's Main Street shops, restaurants and hotels, making tourism one of the state's largest sectors.
The state grows world-class wheat and barley, used by the growing craft beer industry in Montana and across the country. Montana Craft Malt is building the state's very first malt house to supply craft brewers with Montana-made malt. The Treasure State's agriculture is also known for lentils and canola.
Montana leads the nation in manufacturing growth. Since 2010, manufacturing employment in Montana has risen by 21 percent, far outpacing the national increase of eight percent. Alongside refineries, metal fabricators and food processors, advanced manufacturing has taken root in aerospace, photonics and industrial equipment.
Income tax in Montana
The state of Montana levies income tax at 4.7% or 5.9% (two brackets, as of tax year 2025). Federal income tax is due on top.
Corporate tax in Montana
Montana levies corporate tax at 6.75%. Federal corporate tax is due on top.
Sales tax in Montana
The USA has no VAT on the European model. Instead, states, counties and municipalities levy a local sales tax on the sale of goods (but not services).
Sales tax rate in Montana
Montana has no sales tax.
You will find every profile in the overview of US states, and the place to start in our guide to forming a company in the USA. And because Montana, with no sales tax, is a popular choice for US LLCs: whether a US LLC without a US permanent establishment stays tax-free for you is explained by our sister site www.zerotax.llc.
How we help with Montana:
From choosing the right entity to getting your EIN: everything a US company formation involves is under US Company Formation. We map out your path to Montana together in a consultation.