Complete guide to permits and licenses required to start a hotel / motel in Bozeman, MT. Fees, renewal cycles, and agency contacts.
All Montana LLCs must file an Annual Report to maintain good standing. The filing can be completed online.
Required per IFC 901; annual inspection
Required for all LLCs. Annual report required separately (see below).
Applies to all LLCs. Filing maintains good standing.
Required for all hotels/motels offering sleeping accommodations. Inspected by local sanitarian. No exam/prerequisites.
Confirms zoning, building, fire code compliance
Applies if business uses trade name/DBA different from registered LLC name. Publication in newspaper may be required in some counties.
Montana has 0% general sales tax rate, but lodging services are subject to lodging facility sales tax (collected and remitted). Specific to hotels/motels.
Specific to lodging establishments (hotels/motels). Tax rate 4% of gross room revenue; monthly returns required.
All employers must register and insure. Sole proprietor LLCs without employees exempt.
Initial registration creates the taxpayer account used for corporate income tax, withholding tax, and any other state tax filings. Must be completed before filing any state tax returns.
Montana has a flat corporate tax rate of 6.75% (2024). LLCs taxed as partnerships/file no corporate return.
Registration is completed through the same Montana Business Tax Registration portal. Employers must also file Form MW-3 (annual reconciliation).
Employers must obtain a UI account number before the first payroll. Wage base for 2024 is $46,800 per employee.
Other Montana counties (e.g., Flathead, Gallatin) have similar lodging taxes with rates ranging from 4%‑6%.
The license must be displayed at the primary place of business. Renewal can be completed online via the city portal.
If the hotel only sells grocery‑type food (unprepared), the tax does not apply.
Required for all businesses including hotels; apply online or in person
Helena Code 7.24; nuisance ordinance applies to ongoing operations
Flathead County Regs Section 5.3; traffic study for >50 rooms
Required for all employers with one or more employees, full-time or part-time. Sole proprietors and partners are exempt unless they opt in. Corporate officers in LLCs may be exempt if they own less than 10% and file a waiver.
Not legally required by Montana state law, but strongly recommended and often required by landlords, lenders, or franchise agreements. Covers third-party bodily injury, property damage, and personal injury claims.
Not required by Montana law for hotels/motels. May be required by third parties (e.g., management contracts). Covers claims of negligence or failure to perform services.
Required as part of the Short-Term Lodging License. A $10,000 surety bond is required to ensure compliance with Montana Code Annotated 15-67-112. Applies to all operators of hotels, motels, tourist camps, or lodging houses offering accommodations for less than 30 days.
Required for all vehicles registered in the business name. Minimum liability coverage: $25,000 bodily injury per person, $50,000 per accident, $10,000 property damage. Applies to shuttle vans, maintenance trucks, or any business-owned vehicle.
Not legally required in Montana. However, if the hotel sells retail products (e.g., snacks, toiletries), this coverage may be prudent. Not a standalone legal mandate.
Required for businesses holding a Class A, B, or C liquor license. Montana law (ARM 42.6.601) mandates coverage for dram shop liability. Minimum recommended coverage: $250,000–$1,000,000 per incident. Not a fixed statutory amount but enforced through licensing conditions.
While not insurance per se, compliance with fire safety codes is mandatory and often requires proof of insurance-backed risk mitigation. Hotels must pass annual fire inspections. Property and liability insurance is typically required by insurers and regulators to maintain compliance.
All LLCs with employees or that file any federal tax return must obtain an EIN.
Members receive Schedule K‑1. If the LLC elects corporate taxation, file Form 1120.
Covers hazard communication, fire safety, ergonomics, bloodborne pathogens, etc.
Requires accessible guest rooms, common areas, signage, service‑animal policies, etc.
Requires certified technicians for servicing, leak repair, and proper disposal of refrigerants.
Montana Department of Environmental Quality issues the permit under the federal NPDES program.
Applies to transient businesses like motels; hotels may require additional review
Missoula Municipal Code Title 20, Chapter 5; site plan review required for hotels
Required per International Building Code adoption; plan review for occupancy >50
Bozeman Municipal Code 21.04.080; limits on size/height in commercial zones
Montana Code Annotated 50-51; covers sanitation, pest control
Applies to all promotional materials, online bookings, rate representations, loyalty programs, etc.
Must post wage notices, keep payroll records, and pay at least the federal minimum wage ($7.25) or Montana’s higher rate.
Hotels typically meet the employee‑count threshold.
Must be completed for each employee; E‑Verify optional but may be required by state law.
State liquor license also required; ATF permit covers federal excise tax compliance.
Most hotels rely on commercial cellular services, which do not require a license.
Reports withheld income tax, Social Security, and Medicare taxes.
Not required if the hotel does not maintain an employee benefit plan.
Exemptions apply only to specific low‑hazard categories.
Certification required for any employee or contractor who repairs, maintains, or disposes of such refrigerants.
All hotels and motels operating in Montana must hold a state license. Renewal is required annually and must be submitted before the deadline to avoid interruption of operations.
Every municipality in Montana that issues a business license requires an annual renewal. Verify the specific deadline with the local licensing office.
All hotels/motels that charge for lodging must collect and remit the 5% state lodging tax. Returns are filed electronically via the Montana Revenue Online Services portal.
LLCs taxed as corporations must file Form 15. Estimated tax payments are due quarterly on the same schedule as the federal estimated payments.
LLC taxed as partnership files Form 1065; if electing corporate tax treatment, file Form 1120.
All employers with one or more employees in Montana must file quarterly wage reports and remit UI contributions.
Montana requires all employers to maintain workers’ compensation coverage. Renewal notices are sent by the insurer.
Fire codes require annual inspection of fire suppression systems, alarms, and egress routes.
All establishments that prepare or serve food must undergo an annual health inspection.
NFPA 101 adopted; hazardous occupancy permit for larger hotels
Renewal must be submitted online or by mail with proof of recent health inspection.
Renewal requires submission of a renewal application, payment of fees, and proof of compliance with ABC regulations.
The “Job Safety and Health: It’s the Law” poster must be posted in a conspicuous place.
Post the Minimum Wage, Workers’ Compensation, Unemployment Insurance, and other required labor law notices.
Records must be kept in a format that is readily accessible for inspection.
Include copies of all filed returns, W‑2s, 1099s, and supporting schedules.
Summarizes total wages paid and UI contributions for the previous calendar year.
Provides data used to calculate experience modification factor for premium adjustments.
Summarizes total room charges, tax collected, and remitted for the calendar year.
ADA Title III requires hotels to provide accessible facilities and services to individuals with disabilities, covering areas like parking, guest rooms, and public spaces. The U.S. Department of Justice (DOJ) enforces these requirements, and non-compliance can lead to significant penalties, potentially ranging from $5000.00 to $200000.00.
Yes, hotels are subject to OSHA General Industry Safety Standards (29 CFR 1910) to ensure a safe working environment for employees. This includes things like hazard communication, fire safety, and proper equipment maintenance, and failure to comply can result in citations and fines.
The Federal Trade Commission (FTC) has rules about truthful advertising, and hotels must avoid deceptive practices like bait-and-switch tactics or misleading pricing. Compliance with FTC Hotel Advertising and Booking Compliance is crucial to avoid investigations and potential penalties.
Hotels operating as LLCs have Federal Income and Self-Employment Tax Filing obligations with the IRS, which can be complex and require professional assistance. The IRS may assess a fee of $160400.00 for these obligations, and proper record-keeping is essential.
The IRS requires businesses to retain tax records for a specific period, generally three years from the date the return was filed or two years from the date the tax was paid, whichever is later. Proper Record Retention for Tax Purposes is crucial to avoid penalties during an audit.
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