What does Montana ask of a new house cleaner?
Less than almost any other state. Montana has no state license for cleaning and no sales tax, and its Secretary of State charges $20 to $35 for the filings most cleaners need. The real obligations are a workers’ comp decision on day one, a city license in places like Billings and Missoula, and payroll rules once you hire.
Here is the short list for a typical start in 2026:
- Pick a structure. A sole proprietorship needs no state filing. An LLC costs $35.
- Register your name if you trade under anything other than your own name: $20 with the Secretary of State.
- Sort out workers’ comp for yourself. Montana expects a self-employed person working away from their own premises to hold an exemption certificate or a policy. This is the step that surprises people moving from other states.
- Check the city. Billings requires a license for any business done inside city limits, and Missoula licenses most businesses grossing more than $6,000 a year.
- Plan for income tax. Profit from a sole proprietorship or single-member LLC is taxed at 4.7% and 5.65% in 2026.
None of this replaces the basics of choosing services, prices and equipment. The general guide to starting a cleaning business covers those, and the house cleaning price calculator helps you set rates for Bozeman, Billings or Great Falls.
Why Montana cleaners never add sales tax to an invoice
Because there isn’t one. Montana is one of the few states with no general sales tax at all, so a $160 clean is a $160 invoice, whether the client is a homeowner, a landlord or a dental office.
The Department of Revenue’s sales tax guidance says plainly that Montana does not have a general-use sales tax and has no sales tax exemption certificate. That has two practical effects for a cleaning business:
- No sales tax permit, no monthly or quarterly sales tax returns, and no tax line on your quotes.
- Vacuums, mops, microfiber and chemicals bought in Montana cost what the shelf says. If a vendor insists on a Montana tax permit or exemption number before selling to you, the same page explains what to tell them.
Business equipment tax: probably not you
Montana does tax business equipment as property, but the first $1 million of equipment value statewide is exempt. The department’s reporting notice says businesses at or below $1 million have no reporting requirement unless they buy enough to cross it or the department asks for a form. A cleaning company with a few vacuums and a car is nowhere near that line.
Pricing without a tax line
Clients moving from Washington or Idaho may expect tax on top. Montana prices can be quoted as the final number, which makes flat-rate cleans easy to sell. For office bids, the commercial cleaning calculator gives you a starting figure, and the house cleaning pricing guide explains flat, hourly and per-room pricing.
Registering a Montana assumed business name for $20
If your business name is anything other than your own personal name, register it with the Montana Secretary of State as an assumed business name. It costs $20, lasts five years and renews for another $20.
The Secretary of State’s fee sheet lists $20 for a registration of assumed business name, $20 for a renewal and $10 to reserve a name. Section 30-13-206 of the Montana Code sets the term at five years and says the Secretary of State sends a reminder at least 90 days before it expires. If you don’t renew in that window, the registration is canceled.
Who has to register
Montana registers names at the state level, not with counties. The Department of Labor and Industry’s contractor exemption FAQ says everyone using a business name other than their personal name must register it, and asks you to do it before applying for an exemption certificate. The City of Billings says the same thing on its license page.
- “Hannah Berg” cleaning homes under her own name: no filing.
- “Big Sky Shine” run by Hannah Berg: register the assumed name for $20.
- “Big Sky Shine LLC” trading as “Shine Maids”: the LLC registers “Shine Maids” as an assumed name too.
Search the Secretary of State’s business records before you order shirts or a van wrap. The name generator can give you a list of candidates to check.
A $35 Montana LLC, and an annual report that is free on time
Articles of Organization cost $35. Every LLC then files an annual report between January 1 and April 15, and the Secretary of State has waived that filing fee for reports filed on time in both 2026 and 2027. Miss April 15 and the report costs $35.
The Secretary of State’s business fee sheet lists for domestic LLCs:
- Articles of Organization: $35.
- Annual report before April 15: waived.
- Annual report after April 15: $35.
- Name reservation: $10.
- Certificate of existence: $5, if a bank or commercial client asks for proof of good standing.
- Change of registered agent or office: no fee.
The waiver, and the $150 letter to ignore
Secretary Christi Jacobsen announced the waiver for 2026 and confirmed it would continue in 2027, the fourth year in a row. Montana has no franchise tax on LLCs either, so an LLC filed on time costs $35 in state fees over its first two years.
Watch your mailbox. The office has warned businesses about an out-of-state mailing titled “2027 Annual Report Instruction Form” that asks for $150 to file a report the state will accept for free until April 15. It is a private solicitation, not a government notice. File directly on the Secretary of State’s site.
Should a Montana cleaner bother with an LLC?
At $35 the cost isn’t the question. An LLC keeps business debts separate from your house and savings and looks more established to property managers. It does nothing for a broken heirloom or an injured helper; that is what liability insurance and workers’ comp are for. Our LLC guide walks through the trade-offs, and the insurance guide covers the policies.
Montana’s $125 exemption certificate for solo cleaners
This is the rule that sets Montana apart. A self-employed person who regularly works somewhere other than their own fixed business location, which describes every house cleaner, must hold an Independent Contractor Exemption Certificate (ICEC) or carry their own workers’ comp coverage. Working without either can bring a fine of up to $5,000.
Who needs it
The Department of Labor and Industry’s ICEC FAQ applies the rule to sole proprietors, working members of a partnership and working members of a member-managed LLC. The certificate waives your own right to workers’ comp benefits for the occupations listed on it. In return, clients and the state treat you as an independent business rather than as somebody’s uninsured employee.
Cost and how to apply
The application costs $125, is non-refundable and is valid for two years. The ICEC program page says applications and renewals are done online, and you must attach documentation from the department’s list, worth 15 points for each occupation you list, to show you run an established business. Register your assumed name first, because the department asks for it.
What it doesn’t cover
- Your employees. The certificate covers only you. The FAQ says employers must cover employees under a Montana workers’ comp policy, from a private insurer or Montana State Fund.
- Your helpers on a 1099. The department warns that 1099s and labor agreements don’t make someone an independent contractor. A helper without their own certificate or policy may be treated as your employee, and you may be liable for their injury. Our guide to W-2 or 1099 cleaners explains why most crews end up as employees.
- Damage to a client’s home. That is general liability insurance, not workers’ comp.
Some residential clients and most property managers will ask for a copy of your certificate or proof of coverage before you start. Keep a PDF on your phone.
Billings, Missoula and Montana income tax
Montana has no general state business license, but its cities do license businesses. Billings licenses any business done inside the city, even by a cleaner based outside it, and Missoula licenses most businesses grossing over $6,000 a year in city limits. Your profit is taxed at 4.7% and 5.65% in 2026.
Billings
The City of Billings’ business license page says anyone who conducts business in the city or is based there must get a license before starting, including home-based businesses, which must also follow the zoning rules. The license is valid for one year from the month you buy it and is renewed annually. The city also points out that most Montana cities have their own business license tax, each with its own rates, so a cleaner working in two cities may need two licenses.
Missoula
The City of Missoula’s business licensing page requires a license if you gross more than $6,000 a year and conduct business inside city limits. A first-year cleaner with a handful of weekly clients crosses that quickly. The page lists the application forms and fees by license type.
Bozeman, Great Falls, Helena, Kalispell and Butte each set their own rules, so call the city clerk or finance office for every city where you will clean regularly.
State income tax
The Department of Revenue’s HB 337 page sets 2026 rates for single filers at 4.7% on taxable income up to $47,500 and 5.65% above it, with wider brackets for joint and head-of-household filers. Montana has no city income tax. Put aside part of every payment and make quarterly estimated payments once you are profitable.
Hiring your first Montana cleaner: wages, unemployment tax and new-hire reports
Pay at least $10.85 an hour in 2026, with no tip credit, buy a workers’ comp policy before the first shift, register for unemployment insurance and report each new hire within 20 days. The unemployment tax for a new service employer works out to at most about $605 a year per employee.
Minimum wage
The Department of Labor and Industry’s minimum wage page sets the 2026 rate at $10.85 and the 2027 rate at $11.20, adjusted each year for inflation. Tips can’t count toward it: Montana allows no tip credit, meal credit or training wage. A business not covered by the federal Fair Labor Standards Act with gross annual sales of $110,000 or less may pay $4.00, but you won’t keep a good cleaner in Missoula or Bozeman at that rate. Price your cleans on the wage you will really pay.
Unemployment insurance
The Unemployment Insurance Division’s 2026 rate explanation sets the taxable wage base at $47,300 per employee. New employers are rated by industry: services pay 1.10%, plus a 0.18% administrative fund tax. That is 1.28% of the first $47,300, or up to $605.44 per employee for the year.
New-hire reporting
The state’s New Hire Reporting Program, run by the Child Support Services Division, requires employers to report new and rehired employees within 20 days of the hire date, online, by fax or by mail.
A Montana visit priced out
Say you pay $17 an hour. A 3-hour clean plus 30 minutes of driving costs 3.5 × $17 = $59.50 in wages, plus workers’ comp, unemployment tax, the employer’s share of Social Security and Medicare, and supplies. On a $165 clean that leaves room for profit, but not much for long drives between rural jobs. The profit calculator shows where your margin goes, and our guide on hiring cleaners covers interviews and trial cleans.
What does a Montana cleaning business cost to start?
State fees are among the lowest in the country: $20 for a name, $35 for an LLC and $125 for the exemption certificate. Insurance and equipment cost more than all of the paperwork combined.
Fees were checked on official Montana pages on October 10, 2026. Rows marked “estimate” are our ranges, not quotes.
| Item | Cost | Notes |
|---|---|---|
| Assumed business name | $20 | Five years. Not needed under your own name. |
| LLC Articles of Organization | $35 | Optional. |
| LLC annual report | $0 by April 15, $35 after | Fee waived for on-time filings in 2026 and 2027. |
| Independent Contractor Exemption Certificate | $125 | Valid two years. Or buy your own workers’ comp policy instead. |
| City business license | Varies by city | Billings for any work in city limits; Missoula above $6,000 gross. |
| Sales tax permit | None | Montana has no general sales tax. |
| Unemployment tax | Up to $605 per employee | 1.28% of the first $47,300, new service employers, 2026. |
| General liability and workers’ comp | Get quotes | Compare a private insurer with Montana State Fund once you hire. |
| Supplies and equipment | $250 to $600 (estimate) | See the supplies list. |
| Booking and scheduling software | Optional | BroomBook starts at $29 a month. |
A solo cleaner working under their own name can be legal in Montana for $125 plus a city license, insurance and supplies. Add $55 for a name and an LLC, and you have a registered company for less than one deep clean brings in.
Finding Montana clients across long drives, and where BroomBook fits
Distance is the hidden cost in Montana. Group clients by town and day, so Tuesday is Belgrade and Thursday is Four Corners, and set a minimum charge for anything outside your core area. Vacation rentals around Whitefish, Big Sky and Red Lodge can fill weekdays once your homeowner list is steady. Our guide on how to get clients for a cleaning business has scripts for referrals and local groups, and the Airbnb cleaning guide covers turnover work. Neighbors in Wyoming and Idaho face different rules if you clean across the line.
We make BroomBook, a booking, scheduling and crew app for residential cleaning businesses. Clients book online and see an exact price from your price list, recurring cleans stay on the calendar, cleaners get a private link with their visits, checklists, the day’s route and clock-in, and cards are charged after the clean through your own Stripe account, tips included. Montana is easy on the money side: leave the optional sales tax setting off.
Plans are $29 a month on Solo (up to 2 cleaners) or $59 a month on Team (unlimited cleaners), with a 14-day free trial. The cleaning booking software page shows how online booking works.