Montana Breaks Business Record, but Secretary Won’t Say How Many Are Local

HELENA — Montana surpassed 70,000 business registrations in 2025, breaking last year’s record of nearly 64,000, but the Secretary of State’s office declined to provide information about how many of those businesses are actually based in Montana or generate economic activity in the state.

The state recorded more than 5,000 new business registrations in November alone, according to the Montana Business Economic Report released by Secretary of State Christi Jacobsen’s office. That figure easily surpassed the roughly 4,700 registrations recorded in November 2024.

When asked by Western Montana News to provide data on how many registrations list Montana addresses versus out-of-state addresses for their principals or registered agents, Communications Director Richie Melby did not respond to the question. He also declined to address whether the office has tracked how many registered businesses go on to hire employees or generate taxable business activity in Montana.

“Every new business registration represents a Montanan with an idea and the courage to turn it into reality,” Jacobsen said in a statement. “From main streets to home-based and online businesses, these new business registrations mean more local jobs, more services, and more opportunities for families in every corner of our state.”

The Secretary of State’s claims about job creation and economic impact cannot be verified without data on whether the registered businesses operate in Montana or merely use the state as a legal domicile.

Registration Composition Remains Unclear

Melby said domestic LLCs make up the majority of new business registrations, followed by assumed business names and “doing business as” filings. DBAs typically represent additional names used by existing entities rather than entirely new business ventures.

Montana has become a popular state for out-of-state residents to establish limited liability companies as a vehicle registration strategy. Several businesses operating in Montana specialize in helping non-residents form Montana LLCs to register vehicles, RVs, and recreational equipment in the state, allowing them to avoid sales taxes and registration fees in their home states.

It remains unclear what portion of the record-breaking registration numbers represent these arrangements versus businesses that actually operate in Montana and contribute to the state’s economy beyond initial filing fees.

Western Montana News has previously noted^1 questions about the composition of new business filings, including whether some registrations may be connected to individuals seeking Montana residency for tax or vehicle registration benefits while maintaining primary residence elsewhere.

Fee Waivers Announced

In his response to Western Montana News, Melby announced that the Secretary of State’s office will waive the annual report filing fee again in 2026 and 2027. According to the office, the decision is expected to save Montana businesses more than $11 million, in addition to nearly $10 million in estimated savings from fee waivers in 2024 and 2025.

Jacobsen has previously cut registration fees in half for new Montana businesses and eliminated several fees altogether. The Secretary of State’s office attributes the sustained registration increases to these policy changes, though business formation trends also reflect broader economic factors including Montana’s population growth, regulatory environment, and market conditions.

The state has consistently posted^2 registration numbers exceeding 5,000 per month throughout most of 2025, with July setting a single-month record of nearly 7,000 registrations.

With November’s numbers still being finalized as late registrations are processed, the final 2025 total is expected to grow even larger, according to Melby.