Employment Services Industry Licensing Guide
Potential employees lined up for the job interview

Montana Employment Agency

A businesswoman accepting her new job offer with a handshake

Licensing requirements for Montana employment, staffing and talent agencies.

This page provides an overview of employment services licensing in Montana for individuals and agencies. You will find state requirements, application fees, filing instructions, and more. For assistance with licensing, please contact us to learn about our software and managed license services.

Companies that provide employment services in Montana must apply for a license prior to doing business. Depending on the services offered, businesses may need to apply for more than one license type, and in some cases, an individual license will be required as well.

Company Licenses

Montana Employment Services Company Licenses

Companies acting as employment agencies in Montana must obtain the following licenses before offering employment services. Applications usually require proof of incorporation or a certificate of authority.

Montana Employment Agency License

Not required



Employment Agency licensure is not required on the State level in Montana.

Montana Professional Employer Organization License - Restricted

Agency:Montana Department of Labor and Industry
Law:

MT Code § 39-8-201

Foreign Qualification is Prerequisite:No
Notes:

Restricted licenses for PEOs or groups residing in another state may be issued if:

  • The applicant’s state of residence licenses PEO’s and the applicant is licensed and in good standing, and that state grants a similar privilege for restricted licensing;
  • The applicant does not maintain an office, sales force, or a sales representative in Montana and does not solicit clients who are residents of or domiciled in Montana; and
  • The applicant does not have more than 100 leased employees working in Montana
Registered Agent (Special Agency) Required?No
Fact Checked:6/17/21

Initial Registration

Form:

PEO Initial Application

Agency Fee:

$500

Notarize:Required
Required Attachments:
  • MT Identification Number (Withholding Tax)
  • State Unemployment Tax Account (SUTA)
  • Independent CPA quarterly submissions demonstrating all payroll-related taxes have been paid
  • Proof of workers’ compensation for each client company. If no clients, provide MT endorsed master policy
  • PEO Ownership Information form
  • PEO Group Guaranty form
  • List of Branch Offices
  • Business Operational History
  • Applicant Authorization for Release of Information form
  • Declaration of Accuracy form
  • Client Contract Agreement
  • Employee Disclosure
  • State of Montana Professional Employer Organization Client Initiation or
  • Termination Form
  • Benefit Program Information
  • Applicant/Controlling Person(s) Information form
  • Applicant/Controlling Person Questionnaire form
  • Controlling Person Authorization for Release of Information form
  • Character Reference Affidavit form
  • Complete a FBI fingerprint card for each control person 
  • Remittance in the amount of $30 payable to: Montana Criminal Records for each set of fingerprint cards
Fact Checked:6/17/21

Registration Renewal

Form:

PEO Renewal Application

Agency Fee:

$500

Due:

Annually at least 30 days prior to the expiration date, which is the date of issuance.

Required Attachments:
  • List of Montana client companies currently under contract with the applicant, including the name of the business, their Federal Employer ID number, business address, primary business operation and the beginning date of the contract
  • Applicant/Controlling Person Questionnaire form
  • Declaration of Accuracy form

The following items need only be submitted if there was a change during the previous license year:

  • Applicant Authorization for Release of Information
  • PEO Ownership Information Business Operational History
  • Applicant Controlling Person Information Sheet
  • Controlling Person Authorization for Release of Information
  • Character Reference Affadavit
Fact Checked:6/17/21

Supplemental Reporting
Quarterly Payroll Tax Report

Agency Fee:

$0

Due:

Within 90 days of the end of each calendar quarter.

Law:

MT Code § 38-8-207

Notes:

Every quarter PEOs must submit information certified by an independent certified public accountant demonstrating that all payroll-related taxes for the quarter have been paid.

Fact Checked:6/17/21

Montana Professional Employer Organization License - Unrestricted

Agency:Montana Department of Labor and Industry
Law:

MT Code § 39-8-201

Financial Requirements:

Applicants must maintain a tangible accounting net worth of not less than $50,000.

Bond Requirements:

If an applicant is unable to meet the net worth requirement, the applicant must provide a surety bond, a letter of credit, or marketable securities acceptable to the department in an amount of not less than $50,000 to cover the deficiency.

Fact Checked:6/9/21

Initial Registration

Form:

PEO Initial Application

Agency Fee:

$750

Notarize:Required
Required Attachments:
  • Financial Statements that have been independently audited by a certified public accountant in accordance with generally accepted accounting principles or independently compiled financial statements and a $100,000 security deposit
  • Attestation of Financial Statement
  • Montana Secretary of State registration documents
  • MT Identification Number (Withholding Tax)
  • State Unemployment Tax Account (SUTA)
  • Independent CPA quarterly submissions demonstrating all payroll-related taxes have been paid
  • Proof of workers’ compensation for each client company. If no clients, provide MT endorsed master policy
  • PEO Ownership Information form
  • PEO Group Guaranty form
  • List of Branch Offices
  • Business Operational History
  • Applicant Authorization for Release of Information form
  • Declaration of Accuracy form
  • Client Contract Agreement
  • Employee Disclosure
  • State of Montana Professional Employer Organization Client Initiation or Termination Form
  • Benefit Program Information
  • Applicant/Controlling Person(s) Information form
  • Applicant/Controlling Person Questionnaire form
  • Controlling Person Authorization for Release of Information form
  • Character Reference Affidavit form
  • Complete a FBI fingerprint card for each control person 
  • Remittance in the amount of $30 payable to: Montana Criminal Records for each set of fingerprint cards
Fact Checked:6/8/21

Registration Renewal

Form:

PEO Renewal Application

Agency Fee:

$750

Due:

Annually at least 30 days prior to the expiration date, which is the date of issuance.

Notarize:Required
Required Attachments:
  • Financial statements that have been independently audited by a certified public accountant in accordance with generally accepted accounting principles or independently compiled financial statements and a $100,000 security deposit
  • Attestation of Financial Statement
  • List of Montana client companies currently under contract with the applicant, including the name of the business, their Federal Employer ID number, business address, primary business operation and the beginning date of the contract
  • Applicant/Controlling Person Questionnaire form
  • Declaration of Accuracy form
  • Professional Employer Organization Group Guarantee form (if applicable)

The following items need only be submitted if there was a change during the previous license year:

  • Applicant Authorization for Release of Information
  • PEO Ownership Information Business Operational History
  • Applicant Controlling Person Information Sheet
  • Controlling Person Authorization for Release of Information
  • Character Reference Affadavit
Fact Checked:6/8/21

Supplemental Reporting
Quarterly Payroll Tax Report

Agency Fee:

$0

Due:

Within 90 days of the end of each calendar quarter.

Law:

MT Code § 38-8-207

Notes:

Every quarter PEOs must submit information certified by an independent certified public accountant demonstrating that all payroll-related taxes for the quarter have been paid.

Fact Checked:6/17/21

Montana Talent Agency License

Not required



Talent Agency licensure is not required on the State level in Montana.

Employee Leasing Company - Enter into leasing contracts with other businesses that require labor. The leasing company loans its workers to the lessee while still providing specified responsibilities, such as workers compensation insurance, to the employees. This includes long term (6 months or more) temporary arrangements but often excludes temporary help arrangements. Unlike professional employer organizations, employee leasing companies are contracted when an employer needs to hire staff and does not want to handle human resources responsibilities.

Employment Agency - An entity that, for compensation, procures or attempts to procure employment for a person.

Professional Employer Organization - PEOs take on the human resources role for businesses and act as a co-employer in the sense that the client company's workers are administratively employees of the PEO but functionally these employees are controlled by the client company. Unlike employee leasing companies, PEOs are contracted when an employer already has staff and does not want to handle human resources responsibilities.

Staffing Agency - An entity that procures temporary or part-time employment for a person who then works under the supervision of a worksite employer.

Talent Agency - An entity that, for compensation, procures or attempts to procure employment or placement for an artist. (Certain art forms are excluded)

American Staffing Association
Staffing, recruiting, and workforce solution industry advocacy group.

National Association of Personnel Services (NAPS)
Education and training oriented association for personnel services providers.

National Association of Professional Employer Organizations (NAPEO)
Provides advocacy efforts, information, and other services to members of the employment industry.

© 2012 - 2021 Harbor Compliance. All rights reserved. Harbor Compliance does not provide tax, financial, or legal advice. Use of our services does not create an attorney-client relationship. Harbor Compliance is not acting as your attorney and does not review information you provide to us for legal accuracy or sufficiency. Access to our website is subject to our Terms of Use and Service Agreement.