How to Start a Nonprofit in Montana
Montana offers one of the most nonprofit-friendly formation environments in the country. The state has low filing fees, streamlined online processes, and no state-level charitable solicitation registration. However, Montana does require a separate state income tax exemption application (Form EXPT), which is a critical step that many founders miss.
Formation Requirements
Step 1: Choose and Check Your Name
Your nonprofit name must be distinguishable from all other entities registered with the Montana Secretary of State. Search available names at sosmt.gov/business/ using their online business search tool.
Montana does not require specific corporate designators (like "Corporation" or "Inc."), but your name cannot be identical or deceptively similar to existing registered names.
Step 2: Prepare Your Articles of Incorporation
Use Montana Secretary of State Form 54 (Articles of Incorporation for Domestic Nonprofit Corporation), available at sosmt.gov/business/forms.
Your Articles must include:
- Your nonprofit's name
- Type of nonprofit corporation: public benefit, mutual benefit, religious, or Congressional chartered
- Period of duration (usually perpetual)
- Statement of whether your organization will have members
- Names and addresses of at least one incorporator
- Names and mailing addresses of initial directors (recommended)
- Registered agent name and Montana address
For 501(c)(3) applicants: The state template does NOT include IRS-required language. You must attach an appendix with:
- Statement of exclusive charitable purposes
- Dissolution clause (assets distributed for exempt purposes or to government for public purpose)
- Private inurement prohibition
Use IRS sample language from Publication 557 or consult the Montana Nonprofit Association for compliant language.
Step 3: File with Secretary of State
Submit your Articles through the Montana Secretary of State's online portal at biz.sosmt.gov.
- Filing fee: $20 (standard) or $40 for priority processing
- Processing time: 5-7 business days (standard), 24-hour ($20 additional), or 1-hour expedited ($100 additional)
- Filing method: Online only (recommended), or mail to Secretary of State, Business Services Division
Step 4: Appoint Registered Agent
Your nonprofit must have a registered agent with a physical Montana street address. Your agent can be:
- A Montana resident individual
- A Montana-based business entity authorized to do business in the state
The agent must maintain a physical business office at the registered address (no P.O. boxes) and be available during standard business hours.
Governance Requirements
Board of Directors
Montana requires a minimum of 3 directors. Directors must be individuals but do not need to be Montana residents. Directors' qualifications and term limits are determined by your bylaws.
The IRS requires at least 3 unrelated directors for 501(c)(3) status, so you'll want to meet that standard from the beginning.
Officers
Montana law requires that you have officers, but does not mandate specific titles. Your bylaws determine officer positions. Standard structure includes:
- President
- Secretary
- Treasurer
One person can hold multiple offices (though this is not recommended for governance best practices), but it's common for the President to be a separate person.
Bylaws
Bylaws are required by Montana law but are NOT filed with the Secretary of State. They are internal governing documents that establish:
- Board meeting frequency and procedures
- Officer roles and election procedures
- Quorum requirements
- Committee structure
- Amendment procedures
- Virtual/remote meeting provisions
Montana explicitly permits remote board participation without bylaw modification, which simplifies governance for distributed organizations.
Meetings
Montana law does not mandate a specific meeting frequency—your bylaws determine how often the board meets. Many nonprofits meet quarterly or annually.
Virtual and remote meetings are explicitly permitted under Montana law unless your bylaws prohibit them. All directors must be able to simultaneously hear each other during remote meetings.
State Tax Exemption
Income Tax Exemption (Form EXPT)
Critical: Federal 501(c)(3) status does NOT automatically grant Montana income tax exemption. You must file Form EXPT separately.
File Form EXPT (Tax-Exempt Status Request Form for Income Taxes) with the Montana Department of Revenue at https://revenue.mt.gov/taxes/tax-exempt-entities/
Your application must include an affidavit documenting:
- Your organization's character
- Purposes for which it is organized
- Actual activities conducted
- Sources and disposition of income
- Statement that no income inures to private shareholders or individuals
Processing time: Approximately 3 months
Special cases: Religious organizations without IRS exemption letters can still qualify if they state this fact in their application. Organizations with pending IRS applications can also qualify while awaiting determination.
Property Tax Exemption
If your organization owns property, file Form AB-30R (Property Tax Exemption Application) with the Montana Department of Revenue by March 1 of the year for which you're seeking exemption.
- Deadline: March 1 (annually)
- Requirement: Property must be directly used for charitable or nonprofit purposes
- Partial exemption: Available for mixed-use properties
This is a separate application from income tax exemption.
Sales Tax
Montana has no state-level sales tax, so there is no sales tax exemption application needed. This is a significant advantage compared to many states.
Unrelated Business Income
If your nonprofit has unrelated business income (UBTI), you must file a Montana corporate income tax return along with federal Form 990-T.
Ongoing Compliance
Annual Report
Deadline: April 15 (annual, by this date each year)
File your Annual Report with the Montana Secretary of State including:
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Business name and principal office address
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Current officers and directors information
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Registered agent name and address
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Fee: $10 (on-time); $15 if filed after April 15
-
Filing method: Online through Secretary of State portal or by mail
-
Processing: Not specified, but same-day to 2-3 weeks typical
Failure to file triggers penalties and potential administrative dissolution by December 1 if chronically delinquent.
Federal Form 990
File annually with the IRS based on your annual gross receipts:
- Form 990-N (e-Postcard) if under $50,000
- Form 990-EZ if under $200,000 gross receipts and $500,000 total assets
- Form 990 (full) if you exceed either threshold
Deadline: 5 months 15 days after fiscal year end (typically May 15 for calendar year organizations)
Missing federal Form 990 filings for three consecutive years results in automatic loss of 501(c)(3) status.
Key Deadlines
- March 1: Property Tax Exemption Application (if applicable)
- April 15: Secretary of State Annual Report
- May 15: Federal Form 990 filing
Important Considerations
Form EXPT Is Not Automatic
This is Montana's biggest "gotcha." Your federal 501(c)(3) status does NOT automatically grant Montana state income tax exemption. Many founders assume they're done after receiving their IRS letter, but they still owe Montana state income tax unless they file Form EXPT.
File Form EXPT as soon as you receive your federal determination letter—don't wait.
Two Separate Tax Exemption Forms if Property Owned
- Form EXPT: Income tax exemption (federal match)
- Form AB-30R: Property tax exemption (separate, annual requirement)
These are NOT the same thing. If you own property, you need both. The property tax deadline (March 1) comes BEFORE the April 15 annual report deadline.
IRS Language Not in State Template
The state's Form 54 does not include IRS-required 501(c)(3) language. You must add this through an appendix or use a complete custom Articles document. The IRS will not approve your 501(c)(3) application without proper dissolution language and charitable purposes statement.
No State-Level Charitable Solicitation Registration
This is an advantage—you don't have to deal with state charitable registration. However, check with your county and municipality for any local requirements.
April 15 Annual Report Deadline
Montana has a clear, single annual deadline (April 15). Miss it and you face a $5 penalty plus dissolution risk. Set reminders 2-3 weeks in advance.
Get Started
Montana's nonprofit environment is genuinely founder-friendly. Low filing fees, straightforward annual reporting, and no state charitable solicitation registration make this an efficient process. The key is remembering to file Form EXPT separately for state income tax exemption and understanding that Montana has three separate tax exemption paths (income, property, and—if applicable—UBTI).
For more information:
- Montana Secretary of State - Business Services
- Montana Department of Revenue - Tax-Exempt Entities
- Montana Nonprofit Association
- Nonprofit Startup Navigator Service
Explore our complete formation guide to compare all 50 states, or use our Nonprofit Startup Navigator service for personalized guidance through Montana's formation process.