MSB License in Montana 2025
Crypto license in Montana: cost, timeline, requirements
Montana is the only U.S. state where a state-level Money Transmitter License (MTL) is not required. This unique structure allows Money Service Businesses (including crypto exchanges and payment processors) to conduct cross-border activities from a legal U.S. base, without state-by-state licensing.
No State MTL
No state license; avoid ~$100k+ per state in bonds/fees
One Federal Filing
FinCEN Form 107 (MSB) — single registration, unified rules.
Launch in 4–8 weeks
From LLC to active MSB and banking
Bankable Status
U.S. FinCEN- registered MSB eases bank/EMI/PSP onboarding.
At AdamSmith we offer 2 options for obtaining your Montana MSB license
Сompany registration and FinCEN MSB Montana license obtainment
$9,500 4-6 weeks
- Montana LLC incorporation
- AML/KYC compliance framework (policies, onboarding manuals, SAR/CTR procedures)
- Business plan preparation aligned with FinCEN requirements
- Due diligence & Fit & Proper checks for directors/shareholders
- Preparation & submission of FinCEN MSB registration
- Legal guidance during the registration process
Ready-made FinCEN MSB Montana Company
$24,900 1 week
- Pre-formed Montana LLC with valid EIN
- Active FinCEN MSB registration included
- Complete compliance package (AML/KYC manuals)
- Ownership transfer & share transfer agreement
- Banking & payment provider introductions
- Post-transfer legal advisory & update of MSB registration
- Expansion support for additional state licenses if required
Additional services for ongoing operations
EU Compliance Officer
Provision of European AML or Compliance officer
Local Compliance Officer
Provision of US AML or Compliance officer
EU Director
Assistance with search EU director, registration and ongoing interests of the company
AML/KYC Policy
Tailored anti-money laundering and know your customer policies designed individually by blockchain and financial matter lawyer
Corporate account opening
Assistance in opening corporate account in local bank or payment system
Get Initial Consultation on Montana Crypto MSB License
We deliver end‑to‑end Montana company formation and FinCEN MSB licensing for a fixed fee.
1 Discovery call
2 Paperwork
Filing & Approval
Montana MSB (No State License): Advantages, Timeline, and Scope
The Montana MSB pathway delivers three core advantages: significantly faster market entry, lower capital outlay, and broader access to global financial infrastructure.
Key Facts about Crypto License in Montana
- Licensing: No state MTL in Montana; federal MSB registration via FinCEN Form 107 within 180 days of commencing operations; renewal every 2 years.
- BSA/AML: Written AML program, appointed Compliance Officer, SAR/CTR filings via BSA E-Filing, sanctions screening, independent testing, recordkeeping for 5 years.
- Timeline: LLC 1–5 business days; EIN 1–7; FinCEN filing 1–2 days; acknowledgment 2–4 weeks; banking 3–6 weeks. Typical end-to-end: 4–8 weeks.
- Taxes: Federal corporate tax 21%; Montana corporate tax 6.75% on MT-sourced income; no state sales tax.
- Founders: 100% foreign ownership allowed; registered agent address required; physical office optional (improves banking outcomes).
- Scope: Cross-border activities from a U.S. base without state licenses; serving residents of other U.S. states may still require that state’s MTL.
Launch in 2 Months, Not 2 Years
The state-by-state MTL process can take 12-24 months. Montana’s federal-only registration reduces this to 4-8 weeks, including LLC formation, EIN, FinCEN registration, AML policy drafting, and banking setup. The compressed timeline enables earlier market entry relative to multi-state MTL pathways.
Reduced Capital and Compliance Burden
State MTLs require surety bonds (often $100,000+ per state), NMLS fees, and state-specific legal reviews. By avoiding this layer, organizations typically avoid six-figure bonding and application costs per state. Compliance is consolidated under a single, predictable federal BSA/AML framework, reducing ongoing administrative overhead.
Unlock Global Banking and Partnerships
A U.S. entity registered with FinCEN is a recognized counterparty. This status is material for opening accounts with U.S. and international banks, EMIs, and payment processors that apply de-risking policies to offshore entities. It provides a recognized legal basis to build durable banking and payment relationships.
Is the Montana Crypto MSB Route Right for Your Business?
Who must register as an MSB (crypto‑focused)
- Money transmission: Receiving funds or value from one person and transmitting it to another (domestic or cross‑border).
- Foreign exchange (FX): Exchanging fiat currencies, including crypto‑fiat conversions where the business is the counterparty.
- Convertible virtual currency (CVC) exchangers: Buying/selling CVC (e.g., BTC/ETH/stablecoins) as a business for customers.
- Custody/hosted wallets: Holding private keys or controlling customer assets; omnibus or segregated custody.
- Payment processing / merchant acquiring: Facilitating crypto or crypto‑to‑fiat payments for merchants or platforms.
- OTC brokers / desk operators: Executing customer orders bilaterally or via liquidity networks.
- Stored value / prepaid programs: Issuing or administering stored value (including stablecoin programs).
Borderline cases (require legal assessment)
- Non‑custodial wallets / self‑hosted solutions: Generally outside MSB scope if no custody or transmission; risk increases if the provider intermediates transfers.
- Pure software providers / SDKs / APIs: Typically not MSBs if they provide tools only and do not take possession or control of funds.
- Miners / validators / node operators: Not MSBs when only validating transactions without customer fund control.
- DeFi front‑ends: May be out of scope if non‑custodial; MSB exposure increases where routing, order‑matching, or settlement is intermediated on behalf of users.
- Aggregators / gateways: If they touch custody or intermediate settlement, MSB registration is commonly required.
- Serving residents of other U.S. states: May trigger those states’ MTL requirements even with a Montana base.
Note: Montana’s absence of a state MTL does not remove federal obligations — MSB registration with FinCEN and ongoing BSA/AML compliance remain mandatory.
Sources: FinCEN (Financial Crimes Enforcement Network) — The Bank Secrecy Act, MSB Registration (Form 107)
Requirements to Obtain an MSB License in Montana
Main requirements
- Incorporation of a Montana LLC
- U.S. Registered Agent and business address.
- Federal Employer Identification Number (EIN) from the IRS.
- MSB registration with FinCEN under the Bank Secrecy Act.
- Drafting and adoption of AML/KYC/CFT policies.
- Appointment of a Compliance Officer (local or part-time possible).
Additional requirements
- Detailed business plan covering services, revenue streams, and risk controls.
- Preparation of Suspicious Activity Reporting (SAR/CTR) procedures.
- Fit and Proper checks for directors, shareholders, and key personnel.
- Secure data protection and cybersecurity framework.
- Periodic renewal of MSB registration (every two years).
- Ongoing compliance reporting to FinCEN and recordkeeping in line with BSA.
Sources: FinCEN (Financial Crimes Enforcement Network), OFAC (Office of Foreign Assets Control) Sanctions, IRS (Internal Revenue Service) — EIN
Step‑by‑Step Montana MSB Registration Process
- 1
Initial Consultation
1 day- Define services, flow of funds, customer geographies, and MSB categories.
- Company name reservation in Montana
- We map your funds flow, classify MSB activities, provide a risk‑assessment template.
- 2
Company Incorporation
1-3 weeks- Registering and setting up the company following US, Montana law
- Appointment of registered agent for 1 year
- Provision of registered address for 1 year (with mail receipt and forwarding by email, and a compliant business address)
- Preparation of the necessary documentation for remote registration
- EIN (Employer Identification Number)
- ITIN for foreign stakeholders (if applicable)
- 3
FinCEN MSB Registration
2-4 weeks- Enroll for BSA E-Filing to submit SAR/CTR.
- File Form 107 electronically (FinCEN) within 180 days of starting activity.
- Provide: structure; UBOs/control; activities; target markets; locations/agents; compliance contacts.
- We respond to RFIs, enroll you in BSA E-Filing, and configure reporting contacts and permissions.
- 4
Post-Registration Setup
1-2 days- Preparing the full AML Program and risk assessment documents in accordance with 31 CFR § 1022.210
- SAR & CTR filing procedures
- Record retention policy compliant with federal requirements
- 5
Company is ready and MSB License obtained
- 6
Ongoing Compliance & Renewals
- Annual risk assessment refresh and independent testing; periodic training.
- File amendments on material changes; renew MSB registration (if needed).
Get Initial Consultation on Montana Crypto MSB
We deliver end‑to‑end Montana company formation and FinCEN MSB licensing for a fixed fee.
1 Discovery call
2 Paperwork
Filing & Approval
Taxation of MSB Companies in Montana
Most MSBs operating from Montana earn revenue globally, yet U.S. federal and Montana tax rules still apply based on structure and income sourcing. AdamSmith coordinates international structuring with U.S. and cross‑border tax advisors. This is general information, not tax advice. Always confirm with tax counsel.
| Tax | Applies when | Typical rate | Who pays/files | Notes & planning |
|---|---|---|---|---|
| Federal Corporate Tax | U.S. C‑corp earns taxable income (worldwide basis) | 21% | Corporation files Form 1120; quarterly estimates | Minimal (LLC fees; no MTL bond) |
| Montana State Corporate Tax | Nexus in Montana and apportionable income sourced to MT | 6.75% (MT‑sourced income) | Corporate MT return; apportion/allocate as required | High (bonding, fees, examinations) |
| Withholding on Dividends | Dividends paid to non‑U.S. shareholders | Up to 30% (treaties 5%–15% typical) | Company withholds; files Forms 1042/1042‑S | Bond + application fees |
| Personal Income Tax (Local Staff) | Employees work physically in Montana | ~1%–6.75% | Employee pays; employer withholds/remits payroll tax | Remote staff in other states may trigger other state taxes |
| Sales Tax | General sales tax does not apply to services | None (state‑level) | — | Check for local excise/resort taxes if applicable |
FinCEN MSB Registration — Form 107 Explained
What it is
Form 107 is the federal filing that registers a business as a Money Services Business (MSB) with the Financial Crimes Enforcement Network (FinCEN) under the Bank Secrecy Act (BSA).
Key data points required
- Legal name, EIN, jurisdiction of formation; trade names/DBAs.
- Ownership and control: UBOs/control persons and senior management.
- MSB categories/activities (e.g., money transmission, currency exchange, CVC exchange/custody, stored value/stablecoins).
- Target markets/geographies and customer segments.
- Business locations: principal office, branches, and agents (if applicable).]
- Compliance contacts and designated Compliance Officer.
Deadlines and lifecycle
- Initial filing within 180 days of commencing MSB activity.
- File amendments upon material changes (activities, ownership/control, addresses, compliance contacts, agent list).
- Renew registration every 2 years.
- Maintain an agent registry (if using agents) and update at least annually; retain records for 5 years.
Practical checklist
- Corporate documents: Articles of Organization, Operating Agreement, EIN confirmation.
- UBO/KYC files for owners, directors, and the Compliance Officer.
- Service description and documented risk assessment; AML/CTF program; SAR/CTR procedures via BSA E‑Filing.
- List of office locations and agents (if any) with contacts.
- Website overview, product/user flows, onboarding/KYC procedures.
Who Regulates MSBs at the Federal Level
Authority
Scope / Role
What MSBs Must Do
FinCEN (U.S. Treasury)
Administers the Bank Secrecy Act; issues AML rules and guidance; maintains MSB registration (Form 107); collects SAR/CTR; civil enforcement coordination.
Register as an MSB and renew every 2 years; maintain a risk‑based AML program; file SAR/CTR via BSA E‑Filing; keep records for 5 years; respond to regulatory requests.
IRS (SB/SE) — delegated examiner
Conducts BSA compliance examinations of MSBs on FinCEN’s behalf; may assess civil penalties.
Prepare for exams: AML program, risk assessment, training records, SAR/CTR evidence, customer/transaction records, agent list.
OFAC (U.S. Treasury)
Administers U.S. economic sanctions (e.g., SDN lists); licensing and enforcement.
Screen customers and transactions; block or reject prohibited dealings; maintain sanctions records; align with the 50% rule.
BSA E‑Filing System
Treasury platform for submitting SARs, CTRs, and related filings.
Enroll and submit timely SAR/CTR filings; retain confirmations and supporting documentation.
SEC / CFTC (activity‑dependent)
Securities or derivatives activities (e.g., security tokens, swaps/futures) may trigger separate federal regimes.
If relevant, obtain specialized counsel; consider registration/exemptions; segregate activities from MSB operations.
Note: State regulators may still require Money Transmitter Licenses to serve their residents, even if the MSB is based in Montana.
Montana vs Other U.S. Paths
| Jurisdiction | State MTL | Crypto Specific | Time to Start | Upfront State Costs | Notes |
|---|---|---|---|---|---|
| Montana (FinCEN‑only) | No | No | 4–8 weeks | Minimal (LLC fees; no MTL bond) | Cross‑border from U.S. base; other states may require their MTL to serve residents. |
| New York (NYDFS) | Yes | Yes (BitLicense) | 9–18 months | High (bonding, fees, examinations) | Most stringent regime; extensive oversight and capitalization expectations. |
| Florida (OFR) | Yes | MTL covers virtual currency | 6–12 months | Bond + application fees | Explicit coverage of virtual currency under MTL framework. |
| California (DFPI) | Yes | Crypto oversight evolving | 6–12 months | Bond + application fees | Subject to DFPI guidance and developing crypto regime |
| Washington (DFI) | Yes | Includes virtual currency | 6–12 months | Bond + application fees | Active enforcement and detailed guidance on digital assets. |
| Multi‑state MTL expansion | Yes | Varies | 12-24 months | High cumulative (bonds + fees + counsel) | Needed to serve residents widely; plan phased filings via NMLS. |
The above timelines and costs are indicative and vary by business model, risk profile, and regulator workload. Always confirm current requirements before filing.
Get Initial Consultation on Montana Crypto MSB
We handle FinCEN MSB registration, AML program, and banking setup for a fixed fee
1 Discovery call
2 Dossier Build
Filing & Approval
Other Jurisdictions
FAQ — Montana MSB
Does Montana require a state Money Transmitter License (MTL)?
No. Montana does not require a state MTL. MSBs operate under federal FinCEN registration and BSA/AML obligations.
Who must register as an MSB?
Businesses that transmit money/value, exchange currencies (incl. crypto), provide hosted wallets/custody, process payments, operate OTC desks, issue/administer stored value/stablecoins, or run crypto ATMs as principal.
What is the timeline to go live?
Typical path is 4–8 weeks: LLC/EIN (1–7 days), AML/CTF (~1 week), Form 107 filing (1–2 days), FinCEN acknowledgment (2–4 weeks), banking (3–6 weeks).
What does Form 107 include?
Structure and DBAs, UBOs/control, activities, geographies/target markets, office/agent locations, compliance contacts. File within 180 days of commencing activity; renew every 2 years; amend on material changes.
What are core BSA/AML requirements?
Written AML program, enterprise risk assessment, KYC/CDD, sanctions screening, transaction monitoring, appointed Compliance Officer, independent testing, staff training, 5‑year recordkeeping.
What reports must MSBs file?
CTR for cash transactions over $10,000 in one business day; SAR when suspicious activity is detected (commonly at or above $2,000 for MSBs). Submit via BSA E‑Filing.
Do non‑U.S. founders qualify?
Yes. 100% foreign ownership is permitted. A registered agent address in Montana is required; a physical office is optional but can help with banking.
Can I serve customers in other U.S. states from Montana?
Possibly, but many states require their own MTL to serve residents. Plan phased NMLS filings where applicable.
How difficult is banking?
Expect 3–6 weeks. MSB‑friendly banks/EMIs will review AML program, UBO/KYC, sources of funds, product flows, website, and key partners.
What taxes apply?
Federal corporate tax 21%; Montana corporate tax 6.75% on MT‑sourced income; no state sales tax. Tax treatment varies by structure and nexus.
Are non‑custodial wallets/DeFi in scope?
Generally not, provided there is no custody or intermediation of settlement. Risk increases if the provider controls funds or routes transactions for users.
Crypto License in Montana: From Application to Approval
$9,500
We handle the entire Montana MSB licensing process for fixed fee:
- Montana LLC incorporation
- AML/KYC compliance framework
- Business plan preparation aligned with FinCEN requirements
- Due diligence & Fit & Proper checks for directors/shareholders
- Preparation & submission of FinCEN MSB registration
- Legal guidance during the registration process
