Taxation in Montana
Updated on Friday 27th January 2023
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Montana can be a great place for doing business for those investors looking to make profits in this part of America. Having a correct idea about the tax regime before entering the market might be necessary for any kind of entrepreneur, in order to proceed with the legal requirements. With the help of our company formation agents in USA you can start a business in USA, including Montana, and you can solicit assistance at the time of business formation and for tax matters.
What is the sales tax rate in Montana?
One should know that Montana is among the American states in which there is no sales tax imposed. However, it is good to know that some municipalities in Montana can have resort taxes which are normally going to the city’s infrastructure. The “bed tax” of 4% is imposed on overnight lodging in Montana as part of the promotion strategies in this state.
Is there a privilege tax in Montana?
No, there is no privilege tax in Montana and no franchise tax, and foreign investors can benefit from such advantages when deciding for doing business in this American state.
What is the corporate income tax rate in Montana?
The flat rate for the corporate income tax imposed for businesses in Montana is 6.75%. Limited liability companies in Montana are seen as pass-through entities for which there is no corporate tax imposed, but only the personal income tax as seen in the table below:
|Taxable Income||Tax Rate|
|From 0$ to $2,800||1%|
|Between $2,801 and 5,000||2%|
|Between $5,001 and $7,600||3%|
|Between $7,601 and $10,300||4%|
|Between $10,301 ad $13,300||5%|
|Between $13,301 and $17,100||6%|
|More than $17,000||6.9%|
We invite you to talk to our team of specialists in company formation in USA and ask questions about the taxes for each business structure in Montana or in any other state. Also, you are invited to read the general guide to company incorporation in Montana and find out information about how you can start a business in this state.
If you have decided on opening a company in Delaware, one of our local specialists can offer support in this endeavor. With an extensive experience in this area, our representatives can manage the documents, mentioning that you will only need USD 1 as minimum share capital. Plus, there is no requirement referring to resident directors or shareholders, which makes the incorporation much faster. Contact us if you want more details on the formation process of such a company.
The capital gains tax rate in Montana
The capital gains are taxed in Montana at a rate of 4.9%. However, the state offers the possibility of compensating the costs with the help of a capital gain tax credit which is subject to a 2% rate of all net capital gains registered on the income tax return in Montana.
We kindly invite you to contact our team of company incorporation agents in Montana and ask for assistance and information for business registration in this state.