Complete guide to permits and licenses required to start a bakery in Great Falls, MT. Fees, renewal cycles, and agency contacts.
Required for all LLCs. Annual report required separately (see below). Fees as of 2024.
Applies to all LLCs. Online filing recommended.
Not required by Montana law for bakeries. May be advisable for businesses offering custom design services (e.g., wedding cakes) where disputes over artistic work could arise. Not a substitute for general or product liability insurance.
Only required if the bakery holds a liquor license and sells alcoholic beverages. Montana requires proof of liquor liability insurance (minimum $1 million coverage) as part of the licensing process for on-site alcohol service.
Single-member LLCs with no employees may use the owner's Social Security Number, but obtaining an EIN is recommended for banking and liability separation. EIN is required for all multi-member LLCs.
As an LLC, the bakery is typically treated as a disregarded entity (single-member) or partnership (multi-member) for federal tax purposes. Profits pass through to owners' personal tax returns (Form 1040 with Schedule C or Form 1065). Self-employment tax applies to net earnings.
Required for all retail businesses in Montana, including bakeries selling directly to consumers.
Montana has no general sales tax, but specific taxes apply (e.g., lodging, rentals). Register via TAP system.
Plan review required pre-opening ($300 fee). Fees vary by establishment type/size (schedule effective 2023).
Valid 5 years. State-approved online training. Applies to staff, not business entity.
Valid indefinitely unless cancelled. Search names first via SOS portal.
Bakeries selling prepared food (e.g., pastries, cakes for immediate consumption) are subject to Montana sales tax. Sales of food for home consumption are generally exempt. Registration is done through the Montana Business Gateway.
Employers must withhold state income tax from employee wages. Registration is completed via the Montana Business Gateway. Applies to all employers in Montana regardless of business type.
All employers with employees in Montana must register. Tax rate is subject to change based on employer history. New employer rate is fixed at 2.7% for first few years.
Default LLCs are pass-through entities and do not pay corporate income tax. If the LLC files IRS Form 8832 to elect corporate taxation, it must file Form CIT-200 annually.
Optional tax election for pass-through entities to mitigate federal SALT deduction limits. Must file Form PTE-200. Not required but available to LLCs with Montana-sourced income.
Montana does not have a state-level franchise or gross receipts tax. However, some cities (e.g., Billings, Missoula, Bozeman) may require a local business license tax based on gross receipts. Check with city clerk. Bakeries are not exempt.
Required for all LLCs for federal tax purposes, even without employees. Used for IRS and state tax accounts. Obtained via IRS Form SS-4 online.
Required for all businesses operating within city limits; bakeries classified under retail/food service
Not required in incorporated cities like Billings; applies to county-only operations
Submit site plan review; reference Billings Municipal Code Chapter 27.10
Billings Municipal Code 27.101.050 restricts food production scale
Required for interior tenant improvements; plan review fee additional
Required for all employers. Includes maintaining a safe workplace, displaying OSHA poster (available free), injury and illness recordkeeping (if applicable), and providing employee training. Bakeries may have specific hazards (oven burns, slip/trip, repetitive motion).
Requires accessible entrances, counters, restrooms (if provided), and pathways. New construction or alterations must meet ADA Standards. Existing facilities must remove barriers if "readily achievable.
All bakeries that produce food for sale must register with the FDA. Registration must be renewed every two years during the period October 1–December 31 in even-numbered years. Registration is free.
Requires compliance with Nutrition Facts labeling, ingredient lists, allergen declarations (e.g., "Contains: Wheat, Milk, Eggs"), and accurate serving sizes. Exemptions exist for very small businesses (under $50,000 in annual food sales and sells directly to consumers/farms).
Applies to all advertising, including websites, social media, and packaging. Claims (e.g., "organic," "gluten-free," "locally sourced") must be truthful, substantiated, and not misleading. "Gluten-free" must meet FDA definition (<20 ppm gluten).
Maximum size restrictions per Billings Code 27.112; electronic signs require special approval
Comply with Montana Food Code (adopted locally); HACCP plan may be required for high-risk operations
Requires suppression system inspection; Billings Fire Code based on IFC 2018
Requires passed building, fire, health inspections
Must be monitored system per fire code
Administered locally but follows state sanitation rules; cottage food exemption for very small home ops
Required for all employers with one or more employees in Montana, including part-time and full-time workers. Sole proprietors are not automatically exempt if they employ others. Coverage must be obtained through a private insurer or the state fund (if eligible).
Not legally mandated by the State of Montana for bakeries, but strongly recommended. Often required by commercial landlords, health inspectors, or event vendors. May be necessary to comply with local ordinances or contracts.
Required for any vehicle registered to the LLC or used for business purposes (e.g., delivery, supply transport). Must meet Montana’s minimum liability limits: $25,000 bodily injury per person, $50,000 per accident, $20,000 property damage.
While most retail bakeries are not required to post a surety bond, certain high-risk or non-traditional operations (e.g., mobile units, temporary vendors with history of violations) may be required to post a bond at the discretion of the licensing authority. Standard food license does not automatically require a bond.
Not legally required in Montana, but highly recommended for bakeries selling consumable goods. Covers claims related to foodborne illness, foreign objects, or allergic reactions. Often bundled with general liability coverage.
Employer obligations include quarterly Form 941 (Employer's Quarterly Tax Return), annual Form 940 (Federal Unemployment Tax), and W-2 issuance. No annual 'renewal' of EIN, but ongoing filing required.
Employers must withhold state income tax and file periodic returns. Frequency determined by the Department of Revenue based on payroll volume.
Employers must register with DLI and file quarterly wage reports and unemployment tax payments. New employers pay 2.7% on first $14,000 of wages per employee.
Exempt if business has 10 or fewer employees or is in a partially exempt industry. Bakeries are not on the exempt list. Form 300A must be posted even if no incidents occurred.
Required posters include Montana Minimum Wage, OSHA Safety Rights, Workers’ Compensation, and Family and Medical Leave Act (if applicable). Available free from state and federal agencies.
Montana imposes a 0% state sales tax, but local option taxes may apply in certain cities (e.g., Missoula, Bozeman). Filings still required even if no tax is due. Frequency determined by Department of Revenue.
Employers must complete Form I-9 to verify identity and work authorization for all employees. Form must be retained for 3 years after hire date or 1 year after employment ends, whichever is later. E-Verify is not required unless federal contractor.
Requires payment of federal minimum wage ($7.25/hour), overtime (1.5x regular rate after 40 hours/week), proper recordkeeping, and youth employment standards. Applies to businesses engaged in interstate commerce (broadly interpreted; includes selling online or using out-of-state supplies).
Requires eligible employees (12 months, 1,250 hours) to be granted up to 12 weeks of unpaid, job-protected leave for qualifying reasons (e.g., birth of child, serious health condition). Montana has no state FMLA law.
Most small bakeries do not generate hazardous waste. However, if using industrial solvents or generating large volumes of waste oil, may need to comply with RCRA. Most bakeries fall under "conditionally exempt small quantity generators" (CESQG) if under 220 lbs/month. Wastewater discharge is typically regulated via local POTW, not directly by EPA.
Requires calorie disclosure on or near the food selection. Most small bakeries do not meet the 20-machine threshold.
All Montana LLCs must file an annual report by April 15 each year to remain in good standing. This is a state-level requirement for all LLCs, regardless of industry.
Sales tax license is issued indefinitely but subject to periodic review. The Department of Revenue may require revalidation every two years. All businesses selling taxable goods (including baked goods) must maintain active registration.
Required for all retail food establishments. License issued by DPHHS Food and Consumer Safety Division. Fee schedule confirmed as of 2023. Inspection required at initial application and periodically thereafter.
Most Montana cities and counties require a local business license. Fees and deadlines vary. Example: Billings requires annual renewal with fee based on gross receipts.
One employee must hold a valid ANSI-accredited Food Protection Manager Certification. Certification must be renewed every five years. Not required for all bakeries, but strongly recommended and often enforced during inspections.
Federal law requires businesses to retain records supporting income, deductions, and credits for at least 3 years after filing. Employment tax records must be kept for at least 4 years. Recommended to keep all records for 7 years.
All businesses selling taxable goods or services in Montana must register with the Department of Revenue. This is a one-time registration with no fee, but ongoing compliance required. Replaced the old 'Business License' fee as of July 1, 2021.
Retail bakeries are classified as food establishments and subject to routine inspections by DPHHS or delegated local health authorities. Inspections evaluate compliance with food safety codes including storage, preparation, and sanitation.
Conducted by local fire marshal or state fire safety officer. Frequency varies by location and occupancy classification. Required under Montana Fire Safety Act for commercial occupancies.
An Employer Identification Number (EIN) is a unique tax identification number assigned by the IRS to businesses operating in the United States. It’s essentially a Social Security number for your business and is required for various business activities, like opening a bank account and filing taxes.
FTC compliance for a bakery primarily involves ensuring that all advertising and labeling are truthful and not deceptive; this includes accurate ingredient lists and pricing information. The FTC aims to protect consumers from false or misleading claims.
The IRS generally requires you to keep records that support your income or deductions for at least three years from the date you filed your return. However, certain records, like those related to property, should be kept for as long as the property is owned.
Cyber liability insurance and food recall insurance are highly recommended, though not mandatory. Cyber liability protects against data breaches, while food recall insurance covers costs associated with recalling products due to contamination or other safety concerns.
If your LLC is treated as a disregarded entity for tax purposes, the bakery’s income and expenses are reported on the owner’s personal income tax return (Schedule C). This simplifies tax filing but requires careful tracking of all business transactions.
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