Montana Business License in 2026: Contractor Licences, Assumed Names and City Licences in Billings and Missoula

Montana keeps state-level red tape light. There is no general state business licence, no general sales tax and no seller's permit for most shops. That does not mean nothing applies. Cities such as Billings and Missoula license businesses locally, construction firms now need a state contractor licence, and the state licenses food, alcohol, the trades and the professions. This guide sets out each layer with the 2026 rules and fees, checked in October 2026, including the change that turned contractor registration into a licence on January 1, 2026.

Quick answer

Montana has no general state business license and no sales tax. Most licensing is local: Billings licenses anyone doing business in the city, and Missoula licenses businesses grossing more than $6,000 there. Construction firms with employees need a state contractor licence for $70 every two years, and trading under a brand means registering an assumed business name for $20.

• Contractor registration became a licence on January 1, 2026, under HB 239

• Sole contractors without workers' comp need an ICEC: $125 for two years

• LLC: $35 to form; annual report due April 15

• State licences for food, tobacco and beer and wine run through the DOR's eStop

Does Montana have a state business license?

No. Montana does not require every business to hold a state licence. The Department of Commerce's start-up guidance is direct about it: local governments handle most business licensing, while the state provides professional licences. It sends new owners to the Secretary of State to register an entity, to the Department of Revenue for state business licences, and to their city or county for local requirements.

In practice a new business in Montana deals with a few offices. The Secretary of State registers LLCs, corporations and assumed business names. The Department of Labor & Industry (DLI) licenses construction contractors and, through its Business and Occupational Licensing Bureau, the trades and professions, from plumbers and electricians to cosmetologists, real estate agents and accountants. The Department of Revenue (DOR) runs licences for alcohol through its Alcoholic Beverage Control Division and cannabis through its Cannabis Control Division, and coordinates a set of other state licences through eStop. Cities and counties issue local business licences, building permits and zoning approvals.

Because there is no sales tax, there is also no general seller's permit. A retail shop in Bozeman or an online seller in Helena often has no state licence at all, only an entity filing and whatever their city requires.

State licences through eStop, alcohol and the professions

The DOR's eStop Business Licenses Program lets you apply for and renew registrations and licences from seven partner agencies in one place. According to the Department of Commerce, it covers retail food establishments, nursery retail sales, landscape services, sod farmers, underground storage tanks, commercial weighing and measuring devices, tobacco and vapor product sales, and off-premises beer and wine sales. If your business sells groceries, plants, cigarettes or packaged beer, eStop is likely where your state licensing starts.

Liquor, beer and wine licences for bars, restaurants, breweries and distilleries are handled by the DOR's Alcoholic Beverage Control Division, and the number of full liquor licences is limited, so check availability in your town early. Cannabis businesses are licensed by the Cannabis Control Division. Restaurants and other food businesses also need to pass an inspection by the county health department or sanitarian before they open.

The professions and trades are licensed by DLI's boards. Electricians, plumbers, architects, engineers, cosmetologists, barbers, massage therapists, real estate licensees and accountants all hold individual licences, and some, such as electrical contractors, also need a business-level licence. Check the DLI licensing portal for your occupation before you advertise.

Where Montana licences come from

Step 1

Secretary of State: entity and assumed name

Step 2

DOR eStop: food, tobacco, beer and wine

Step 3

DLI: contractors, trades, professions

Step 4

City: local business licence

Billings, Missoula and most cities

Contractors: the new contractor licence

Montana's biggest recent change affects construction. Under HB 239, passed in 2025, the state's contractor registration programme became a construction contractor licence administered by DLI from January 1, 2026. DLI says existing registrations converted to licences automatically on that date, keeping the same expiry date, and that the cost to apply or renew did not change. The switch brings contractors under the standard rules for licensed professions, which gives DLI clearer powers against unlicensed and fraudulent operators and gives contractors formal hearing and appeal rights in complaints.

Who needs it. A business in the construction industry that has employees must hold the licence. So must a corporation or a manager-managed LLC, even if its only workers are its officers or managers. The fee is $70, non-refundable, and the licence lasts two years. You must show a valid Montana workers' compensation policy for your employees, and LLCs and corporations must already be registered with the Secretary of State. Out-of-state businesses that only bid on Montana jobs can hold "Bid Only" status, but must upgrade, with proof of Montana workers' compensation, as soon as they win work and start on site.

Who is exempt. The exemptions sit in MCA 39-9-211. The main one is for independent contractors who have no employees.

The independent contractor exemption certificate (ICEC)

That exemption has a catch. A sole proprietor, a partner, or a member of an LLC who works on Montana job sites and is not personally covered by a Montana workers' compensation policy must hold an independent contractor exemption certificate (ICEC). It costs $125, lasts two years, and lists the occupations you are approved for. To qualify, you submit a waiver of workers' compensation benefits and business documents worth at least 15 points for each occupation, such as a business licence, a business bank account, advertising, invoices and contracts. DLI can revoke the ICEC if your working relationship looks like employment. Working without either coverage or an ICEC can cost up to $5,000 per violation, and a business that hires someone as a contractor who should be an employee faces the same penalty.

Which Montana contractor credential do you need?

Your situation	Credential	Cost
Construction business with employees	Construction contractor licence + workers' comp policy	$70 for 2 years
Corporation or manager-managed LLC	Construction contractor licence	$70 for 2 years
Sole owner, no employees, not covered by workers' comp	ICEC	$125 for 2 years
Sole owner, no employees, covered by a Montana policy	No licence required (optional)	None
Out-of-state firm bidding only	Bid Only status	$70

Construction business with employees

Credential

Construction contractor licence + workers' comp policy

Cost

$70 for 2 years

Corporation or manager-managed LLC

Credential

Construction contractor licence

Cost

$70 for 2 years

Sole owner, no employees, not covered by workers' comp

Credential

ICEC

Cost

$125 for 2 years

Sole owner, no employees, covered by a Montana policy

Credential

No licence required (optional)

Cost

None

Out-of-state firm bidding only

Credential

Bid Only status

Cost

$70

Local rules sit on top of the state licence. Some cities, such as Missoula, license contractors themselves, and every city with a building department requires permits. Expect to give your state licence or ICEC number when you apply.

Assumed business names and your legal structure

Montana requires anyone who transacts business under an assumed name to register it with the Secretary of State (MCA 30-13-203). A sole proprietor trading as "Big Sky Saddlery" rather than under their own name needs one, and so does an LLC that trades under something other than its legal name. Registration costs $20 through the Secretary of State's online business portal and lasts 5 years.

Renewal is where people slip. The Secretary of State sends a reminder at least 90 days before expiry, but under MCA 30-13-206 you must file the renewal within that 90-day window, or the registration is cancelled. Billings' own guidance makes the same point from the other side: if your business name is anything other than your surname, you must register it with the state, and using someone else's name can expose you to legal action.

Forming an LLC costs $35. The annual report is due by April 15, and the Secretary of State has waived the on-time filing fee, so it costs $0 (waived) if you file before the deadline and $35 after it. Our Montana LLC guide covers formation in detail, and our DBA guide compares assumed name rules across states.

Montana renewal dates to diarise

April 15

LLC annual report due (window opens January 1)

February 28

Missoula contractor licences expire

May 31

Missoula general business licences expire

Every 2 years

State contractor licence or ICEC renewal

90 days before expiry

Assumed business name renewal window opens (5 years term)

Billings: a licence for everyone doing business in the city

Billings, Montana's largest city, takes the broadest approach. Anyone who conducts business in the city or is based there must get a business licence on or before the day they start. The rule reaches further than many owners expect: it applies to home-based businesses, to companies located outside city limits that work inside them, and to businesses already licensed by another city. If you run more than one type of business, or more than one location, you need a separate licence for each.

The city describes the licence as proof that you have paid its annual tax for doing business in Billings, and notes that most Montana cities have a business licence tax ordinance with their own rates and rules. You apply online through the city's CityView portal, by mail or at the Finance Department at 316 North 26th Street. Once the application is complete and paid, the city issues a receipt that works as a temporary licence, and the permanent licence arrives by mail in two to four weeks.

The licence lasts one year from the month you get it. Billings sends a renewal reminder, but penalties apply to late accounts whether or not the notice arrives, so if you have not heard from the city three weeks before expiry, call. Licences do not transfer: a new owner of an existing business applies in their own name, and you must tell the city when you move, sell or close. Home businesses must also comply with the zoning code, which limits the kinds of home occupation allowed and how they operate.

Missoula: licences above $6,000

Missoula licenses any person or business that conducts business or offers goods or services within city limits and grosses more than $6,000 a year. If you gross less, you file an exemption affidavit with the city instead of buying a licence, and the city must approve it. Some nonprofits, certain state-licensed professions and temporary church or civic fundraisers are exempt.

The fee depends on the type of business rather than a flat amount. General business licences expire on May 31 each year. Contractor licences run on a different cycle and expire on February 28, with the city adding late penalties in steps through the spring. Contractors must also file a certificate of at least $300,000 in general liability insurance when the licence is issued. If that insurance lapses, the licence locks and you cannot pull permits, schedule inspections or renew until an updated certificate reaches the city, and the city will not chase your insurer for it. Missoula also requires both a state and a city licence for any business that sells or serves alcohol.

Taxes that still apply without a sales tax

Montana has no general sales tax, so most retailers never register for one. A few industries still collect state taxes. Hotels, motels, campgrounds and short-term rentals collect 8% in lodging facility sales and use taxes, and register with the DOR before their first guest. Resort communities, such as Big Sky, West Yellowstone and Whitefish, can levy a resort tax of up to 3% on lodging, restaurants, bars and luxury goods, plus up to 1% more for infrastructure where voters approve it. Businesses with employees register with the DOR for income tax withholding.

Montana at a glance (2026)

0%

General sales tax

8%

Lodging facility taxes

$70

Contractor licence

two years

$20

Assumed business name

5 years

If you hire employees

Hiring brings registrations with DLI as well as the DOR. Montana requires most employers to carry workers' compensation insurance, through a private insurer, Montana State Fund or self-insurance, and to register for unemployment insurance. The state minimum wage is $10.85 an hour, and Montana does not allow a tip credit, so tipped workers also get $10.85 (no tip credit). Get a free EIN before your first payroll.

Worked examples: first-year costs

A furniture maker near Missoula, working alone. Ben trades as "Bitterroot Joinery". He registers the assumed name for $20, applies for an ICEC for $125 because he installs built-in cabinets on clients' sites and has no workers' comp policy, and checks Missoula's licence rules. His shop sits outside city limits, but he will need a city licence if he grosses more than $6,000 from work inside them.

A roofing company in Billings with four employees. The owners form an LLC for $35, buy a workers' compensation policy, and get the state contractor licence for $70. They apply for a Billings business licence, confirm any city contractor requirements with the building division, and pull a permit for each job. Every two years they renew the state licence, and every year the city licence.

A coffee kiosk in Bozeman. The owner registers an LLC, gets a food licence and inspection through the county health department, and checks the city's licensing and zoning rules for the kiosk site. There is no sales tax to collect, so a $5 latte costs $5. If the kiosk later moves to Big Sky, it would collect the local resort tax on prepared food and drink.

Getting legally set up in Montana

1. 1

   Choose your structure and name

   Form an LLC for $35, or register an assumed business name for $20 if you trade under a brand.

   Montana LLC guide
2. 2

   Get an EIN

   Free from the IRS; needed for employees, LLCs with more than one member and most bank accounts.

   EIN guide
3. 3

   Check state licences

   Use eStop for food, tobacco and beer and wine; DLI for contractors, trades and professions; ABC for liquor.

4. 4

   Sort contractor credentials

   Construction firms with employees need the $70 contractor licence; sole contractors without coverage need an ICEC.

5. 5

   Get your city licence

   Apply in Billings, Missoula or your city before you open, and confirm zoning for the premises or home business.

Common mistakes and how to fix them

The first mistake is assuming no sales tax means no licences. City licences in Billings, Missoula and other cities apply even to businesses with no state licence, and Billings counts businesses based outside the city that work inside it.

The second is relying on an old contractor registration guide. Since January 1, 2026 it is a licence, with DLI's full disciplinary process behind it. Your existing number converted, but check your expiry date and renew through the new Citizen Portal.

The third is working as a sole contractor with neither workers' comp nor an ICEC. The penalty can reach up to $5,000 per violation, and the general contractor who hires you can be fined too. Apply for the ICEC before you start.

The fourth is letting an assumed business name lapse. The renewal only works inside the 90-day window before expiry, and a cancelled name can be registered by someone else.

The fifth is opening a second Billings location on the first licence. Billings requires a licence for each location and each type of business.

Official Montana links

• Department of Commerce — Licensing for start-ups
• DLI — HB 239 contractor licence notice
• DLI — ICEC application
• MCA 30-13-206 — Assumed business name term and renewal
• City of Billings — Business license information
• City of Missoula — Business licensing

What to do next

Pick your structure with our Montana LLC guide and check the name with the LLC name checker. If you build or install anything, sort out the contractor licence or ICEC before your first job, and use the hourly rate calculator to price in insurance. Then contact your city about its business licence and zoning, and budget the year with the startup cost calculator. For neighbouring states, see our Idaho, North Dakota and South Dakota guides, or the business licenses overview.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

Does Montana require a general business license?

No. Montana has no general state business licence and no general sales tax. The Department of Commerce explains that local governments handle most business licensing while the state licenses professions and regulated activities. Expect a city licence in places like Billings and Missoula, plus state licences for contracting, food, alcohol, the trades and the professions where they apply.

How much does a Montana contractor license cost?

The construction contractor licence costs $70 and lasts two years. It replaced contractor registration on January 1, 2026 under HB 239, and existing registrations converted automatically with the same expiry date and the same cost. Sole contractors without employees who are not covered by workers' compensation need an independent contractor exemption certificate instead, which costs $125 for two years.

Do I need a business license in Billings?

Yes. Billings requires a business licence from anyone who conducts business in the city or is based there, including home-based businesses and companies located outside the city that work inside it. You need a separate licence for each type of business and each location. The licence lasts one year from the month you get it, and the city charges penalties on late renewals.

Do I need a business license in Missoula?

You do if you do business within Missoula city limits and gross more than $6,000 a year. Smaller businesses file an exemption affidavit instead. The fee depends on your type of business. General business licences expire on May 31 each year, and contractor licences expire on February 28 and need a certificate of at least $300,000 of general liability insurance.

Do I need to register a DBA in Montana?

Yes, if you trade under a name other than your own. Montana law requires anyone doing business under an assumed business name to register it with the Secretary of State. It costs $20 and lasts 5 years. You must renew in the 90 days before it expires or the Secretary of State cancels it, and LLCs need one too if they trade under another name.

Does Montana have sales tax?

No. Montana is one of the few states with no general sales tax, so most shops need no seller's permit. Some taxes still apply to specific businesses: lodging facilities collect 8% in state lodging taxes, and resort communities such as Big Sky and Whitefish can levy a resort tax of up to 3% on certain goods and services.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 13 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Licensing — Small Business Development Center start-up guide — Montana Department of Commerce · accessed 13 October 2026
2. 2.HB 239 notice to construction contractors — Montana Department of Labor & Industry · accessed 13 October 2026
3. 3.Application for Construction Contractor Registration — Montana Department of Labor & Industry · accessed 13 October 2026
4. 4.Application for Independent Contractor Exemption Certificate (rev. 02/07/2026) — Montana Department of Labor & Industry · accessed 13 October 2026
5. 5.MCA 30-13-203 and 30-13-206 — Assumed business names — Montana Legislature · accessed 13 October 2026
6. 6.Business fees — Montana Secretary of State · accessed 13 October 2026
7. 7.Business License Information — City of Billings · accessed 13 October 2026
8. 8.Business License FAQs and Business Licensing — City of Missoula · accessed 13 October 2026
9. 9.Lodging Facility Sales and Use Tax Guide — Montana Department of Revenue · accessed 13 October 2026