How to Become a Contractor in Montana

General contractors in Montana can enjoy the Bighorn Mountains, secluded wildlife, and some of the highest contractor salaries in the U.S. With an average income of over $240,000, it’s no wonder many are researching how to become a contractor in Montana this year. 

Montana divides their contractors into two groups: Independent Contractors and Registered Contractors. The big difference between the two is whether or not you have employees and contract Worker’s Compensation Insurance. 

Let’s learn more about the differences between the two groups and how each type of contractor can legally work in MT.  

Do You Need a Contractor’s License in Montana?

The MT Department of Labor and Industry requires contractors to have either an exemption or a registration to work in the state. You will decide between applying for an Independent Contractor Certificate or Contractor Registration before undergoing any contracting work in Montana. 

  • Registered construction contractors add or take away from structures or projects, have employees, and have Worker’s Comp coverage. This profession is monitored by the Construction Contractor Registration Unit.
  • Independent contractors have an independent business or profession and a self-elected Worker’s Comp policy or an Exemption Certificate. This profession is monitored by the Independent Contractor Central Unit.

If you are not registered and should be, you will be fined up to $500 per violation. If you have employees and no Worker’s Comp or Exemption, you’ll be fined up to $1,000 per violation.

Becoming a Registered Contractor in Montana

Registered contractors must complete an application form and pay a fee to register. To apply, you must be a manager-managed LLC, corporation, or have employees. 

Requirements are as follows:

  • Complete the application
  • Have a Business registration with the MT Secretary of State for LLCs and Corporations
  • Have valid Montana Worker’s Compensation coverage
    • Provide a declarations page OR
    • A certificate of insurance
  • List all owners, partners, members, managers, and officers of your business
  • Pay a $70 application fee via check or online

Mail your completed application to:

Department of Labor and Industry

Registration Section

PO Box 8011

Helena, MT 59604

Registered Contractor licenses are valid for 2 years. 

Becoming an Independent Contractor in Montana

Independent contractors have a separate application process and fee. To apply for the independent contractor exemption, you must “be free from the control and direction of your hiring agent” and not have Worker’s Comp coverage.

Application requirements are as follows:

  • Complete the application with notarized signatures
  • Attach documentation related to your business
  • Pay a $125 via check or online

Mail completed applications to:

Registration Section

PO Box 8011

Helena, MT 59604

These licenses are valid for 2 years.

Contractor Salaries in Montana

Your income will depend on whether you’re an independent contractor or registered, where in Montana you work, and your years of experience. 

General (registered) contractors average well over six figures, whereas independent contractors may start out in the $60,000 range.

Below are some of the average salaries for contractors across the state:

  • Independent contractors in:
    • Helena, MT: $58,000
    • Billings, MT: $55,500
    • Bozeman, MT: $58,500
  • General contractors in:
    • Helena, MT: $108,800
    • Billings, MT: $108,400
    • Bozeman, MT: $109,600

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