The state is getting theirs. The cop only needs to ask for your license and then you're screwed. Best of all it's totally FREE! An LLC can be used to operate a business. Unless your agent specializes in the luxury/non-standard car market, they may not even know how to properly fill out the application to ensure your vehicle is covered when it counts. brandon fugal wife; lucky 13 magazine 450 bushmaster. Set up the LLC here and we will cheaply register your $200,000.00 motorhome here so you don't have to pay sales tax. This is exactly what Ive been wondering. Whether you want your LLC expedited and filed in 1 hour or if you are ok with our normal process and turnaround of 24 hours we will make sure to get them filed based on your individual need. One of their focuses. Its tough to hide an RV. 200,000 miles a year, 75,000 of which is in Montana alone, up until last year. Its not an illegal act or a scam. The State Trooper can call Elvis if hell answer the phone, but it wont matter. Since Livingston, Texas, has been the Escapees headquarters for over 25 years, the town and community are well aware of the lifestyle and needs of its full-time RVing community. Most other states strongly frown on Montana LLC RV Titling. We would have been quite upset if someone had us have to go thru a lot of paperwork for nothing with everything else that was going on. Planning to use Montana state to register our RV Those who typically game the system, i.e. I doubt that this is really the case, since your LLC owns the vehicle does not make it a commercial use vehicle. But as states scramble to shore up sinking deficits, I think we can be sure that pursuing RV owners with Montana plates is going to increase, not decrease. See the Louisiana Supreme Court case about this very issue. Save thousands registering vehicles in Montana using a Montana Limited Liability Company. Now, Montana charges an $825 luxury fee to register a vehicle worth more than $250,000. I suspect you are also outing yourself with the state in terms of where the car is located and I am sure that no good deed will go unpunished. IMHO California must recognize the laws of Montana. From 20112016, she was executive director of Childrenz Haven, the Child Advocacy Center of Polk County, Texas. The Test? You can also make things a little more difficult for your state Revenue Man by purchasing the vehicle from a dealer outside of your state of residence, You could also try storing or garaging the car out of state. A Montana LLC is considered a Montana resident and, like any other resident of Montana, won't pay a sales tax on any purchase. Sidestepping Sales Tax on Large Vehicles Updated November 5, 2020: Bottom line; unless you live IN Montana, DONT DO IT! Copyright 2023 RV Lifestyle. They say if you take the motorhome out of your home state once every three months, youre legal. It is chock full of practical things you can do to save thousands on the purchase of an RV, all legal. In fact, since you plan to travel extensively throughout the country, to firmly establish Texas as your home, you need to follow what I call the Ten Commandments of Domicile (in this order): The reason the Washington DPS officer suspected a problem was because of the discrepancy between Texas plates, Texas driver licenses and that Montana plate on the RV. CEO, Select Insurance Group, Select Insurance Group "Quote, SELECT & Save! In a deliberate break with their home state of California, they sold their property and bought an RV. November 03, 2022at12:12 am, Noneya Business said: Rich folks do this all the time to evade paying any form of higher taxes; additionally, no different than those making South Dakota their residency to avoid paying higher taxes. Currently Active Users Viewing This Thread: 1. Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. Unlike the mass market insurance companies, our carriers know the deal, and our agents know the right questions to ask to make sure youre getting the insurance protection you need. Sound familiar?? I looked into the LLC at one time and it sounded good. It can only work with LLCs formed in Montana because Montana is the only state which imposes no sales tax on the purchase of vehicles by its residents, including resident LLCs. To add to your article and I feel correct decision1) when any of the LLC creating law firms are asked for an opinion of its legality they make none and send you a copy of your present state law re who is required to have plates in that state 2) as an insurance agent for many years I also have serious issues of using a personal Auto Policy to cover a vehicle that is a commercial enterprise. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. And BOOM youll get a nastygram in the mail saying you owe tens of thousands of dollars to the tax man. December 07, 2021at8:10 pm, B Moore said: Note the last sentence I had a Montana LLC to buy a motorhome and avoid Texas sales and use tax. I ran the idea past my son who is both a lawyer and someone who can always find the cheapest way to do things. They know the game. Iowa getting tough on recreational vehicle fees | TheGazette, Massachusetts Goes After RV Tax Evaders | RV Business, 2009 HR Navigator Fuel Door lock question. FAR too many ways to get bitten in the butt. So, they headed for Texas, driving the RV and towing their Jeep. And as far as property taxes are concerned, the owner of the RV park pays them, and passes the cost on to the RVers who stay there. Discussion in 'Ferrari Discussion (not model specific)' started by Terence Courtnage, Oct 25, 2018. Another technique is to use your Montana LLC for a bona fide business purpose. February 27, 2021at5:23 am, John Koenig said: MI Attourney Steve Lehto covers this topic in detail on his YouTube channel. Would love to be a full-timer with an organization like Sowers. Or the solution might possibly be to move to a state where there is no sales tax like NH, but the "registration" fees there are very high. There is absolutely nothing wrong with a MT LLC if you abide by the rules of the state you are a resident of. October 19, 2016at3:24 am, hailey parker said: Fantastic analysis ! That way I'll have a chance that it'll get lost. Thank you to everyone who responded. In the case of CA cited by the OP, the State is trying to crack down on CA residents who have RVs with MT plates but who really are keeping them in CA for much of the year. Avoiding sales tax by using a Montana LLC is not illegal nor a scam. Create an account to follow your favorite communities and start taking part in conversations. The carriers we work with at Select Insurance Group understand this segment of the market. They very well may never be sued or have an issue. And I live in high taxing Michigan. Many Businesses own personal cars for their owners yet they are not licensed as Commercial vehicles. Pretty obvious, dont you think? 855-721-0777. The only way I can think of this working out would be if the LLC owned the motorhome and then leased it at below market rates to the person in the high tax state. I have a feeling u/Doug-DeMuro will be satisfied to know that he registered his Ford GT properly(Context). MS resident here. So its obvious the vehicle hasnt just driven in from Montana for the holidays. This Montana scheme is very appealing to many. Vehicle Registration. Stay off of social media. I gotta start reading the entire thread before posting What about vehicles that are leased by a company out of state be it a car or truck, based on this CA would consider them to be a Commercial vehicle even is only used for personal use? They think these taxpayers are getting over. Think Health Care is expensive now??? Loring & Associates (who Mrs. Adams works with) typically offer a free consultation, which sounds like it would be helpful in your case. As the sole owner of your LLC, you must report all profits (or losses) of the LLC on Schedule C and submit it with your 1040 tax return. Even if you want to form your LLC yourself, you can still hire us to be your Montana registered agent for just $49 a year. It's a $750 value, and you'll walk away with a custom tax reduction plan designed specifically for you. Here's the other article I remembered reading: An LLC is not a corporation nor is it a business. As a PS. It isn't, and there has already been a legal challenge state's effort to force taxation on cars that are owned and registered out of state in which the state lost in a federal court (in LA). Establishing a Chain of Ownership for Your Vehicle 2. Can your domicile be in Delaware: drivers license, voting, mail forwarding address, but register your RV in Montana to safe on the registration fees? The couple read that if you claim Texas as your domicile, you wont have to pay income tax. But, what is the deal if you actually live in Montana, purchase an RV and then (lets say 6 months) move to another state. I am second owner and paid 13% tax All rights reserved. ). The biggest bite in buying an RV in one of the high tax states comes in the form of a use tax, or sales tax. Realistically speaking, if you intend to claim domicile in Texas, then bite the bullet and pay the Texas sales tax for your RV. Did you know Oregon is where a majority of new aircraft are taken for delivery? Or maybe you can give others some advice? Adhering to the advice of legal counsel will provide you with peace of mind and worry-free RV travels. And that arguments probably a loser in court. You really need to go with an agent and carrier who understands the luxury and high-value car market, and who knows how to write these policies up so that theyll stick. So it makes a lot of sense to do everything you can to maximize savings. Tax avoidance is why the LLC's were used by Missoula area rv dealers. Forming an LLC does not create a business nor does it create a corporation. Giving more money to already inefficient people doesnt make them (government) suddenly more efficient. !The state of CA considers this RV a commercial vehicle and must have a IFTA sticker,thats a fuel tax stamp, thats is obtained in the state you are registered in. This means that the LLC itself does not pay taxes and does not have to file a return with the IRS. Case in point, it's about $600 if you own a new $40,000 vehicle. Part of MOTORSPORT NETWORK. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. My neighbor was stopped at an AG station on I-15 south going into CA and fined a total of $150. LLC. Tell us a little about yourself and your insurance needs. Theyll go on to say, You told us on the application that you were keeping the car in your garage in Provo, Utah. NOT one iota!!! The state of Montana will not issue one as they do not consider an RV to be a commercial vehicle. One is a result of the way the business works, the other is tax evasion. (log books, annual inspections, CDL, etc). I am not a lawyer so take what a I say carefully. They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. An LLC offers limited . . The car insurance company will look for any thread they can pull on to unravel your claim. That means buy it out of state and travel anywhere but your home state for a year. Yes, I get irritated when I see this. All Montana businesses are required to have a registered agentan individual or other entity that accepts legal and state documents on behalf of your Montana LLC. Your total cost to have us form the MT LLC in one day and register your auto initially is $800 (not including Luxury Tax). Since when is wifi in Cities suppose to be a God given Right??? Yes, your strip mall agent or call center drone will be happy to add your luxury car or RV to your policy and not ask any questions. Kali also has the worst maintained roads in the west. Others say inspectors cruise RV storage facilities facilities and actively look for vehicles with Montana plates. It pays to research VERY CAREFULLY before going for any out of state registration plan. So, what has been happening is that the high tax states that do impose use and sales taxes and high registration fees on RVs have been taking aggresive steps to counter the scheme by writing laws and regulations that make it very difficult to take advantage of the plan. Wonder why? I was unaware of of how this worked until a few days ago, when i spoke with a gentleman who has been doing this for several years. All Rights Reserved. Having three or more axles regardless of weight; or The tax structures between the two states are very different. http://www.loringlaw.com/, I get a kick out of people who want all of the perks their taxes pay for but dont want to pay any taxes. The purpose of having attractive tax laws from one state to another is to lure people and businesses to that state. Then theyll look at everything. Jalpa44 Rookie Mar 10, 2015 1 #4 Nov 14, 2016 Hello, How much actual risk there is involved with thatwho knows. Dont break the law in your home state. Toured the Foretravel factory this spring. We are sure to be in SD at least once a yes or more often-we have family on both sides. Since you have a rental agreement with the MT LLC, do you need to file a tax return for the LLC. Anybody can form an LLC in Montana. I would venture that the rental income and the costs incurred by the LLC to maintain, store, license etc the RV would not generate a profit that would create a tax liability. Llcs are entirely a separate tax entity of that state. Almost all states require registration of vehicles in that state if the vehicle is "garaged" in that state. That's the difference. Since an LLC is a business you can also be subject to IFTA fuel tax as well. Thom was on a contract job that started off at 6 months then had 3 months added then a month well you get the idea. If you purchase within Texas, in order not to have to pay sales tax, you have to sign a Tax Exemption Certificate that basically says you will remove the vehicle from the state and not bring it back. Actually, they have Apportioned plates from Arizona. No problem getting insurance in LLC name and if I had wanted to finance that would not have been a problem either. Some states have passed laws specifically targeting people who use out-of-state car registrations as a tax avoidance technique. How is this different from what fleets do? Locations In that case, if the property is owned by a resident, Michigan and many other states say you must pay the tax unless the motorhome is brought into this state more than 360 days after the date of purchase.. Join us after the 62nd Escapade for 10 relaxing days of ocean-view camping and activities in Mexico including a sunset cruise, a tequila tasting, a paint & sip session at a local tapas bar, a day of fun at Mannys Beach Club, yoga classes on the beach, optional deep-sea fishing and ATV tours, and much more! Thousands of RV owners around the country do this and dozens of Montana legal firms specialize in making it happen. But the land is an asset offsetting the mortgage. There is no sales tax on a regular home sale. Sure, Americans should pay their fair share in taxes. If you have an exceptional car for any reason, or youre considering registering your car in Montana, give us a call at the Select Insurance Group. Lots of carriers will take your premium, sure. So they can make a bunch of noise about it, but in the end they will not be able to stop it. February 09, 2022at10:27 pm, Lizzy Roma said: January 12, 2016at12:18 am, HD Case said: Im with you Mike. Essentially, it works like this: You form an LLC business in Montana. And what additional fees and taxes are in Delaware? States tax us to death!!! How To Insure a Car with a Rebuilt or Salvage Title, South Dakota Residency for Full-Time RVers. And hey, Its not like that money is going to the kids detailing the car on the lot, anyway. http://www.foretraveloftexas.com/list-inventory.php?category=New, FREE RV Packing List (PLUS 3 Best RV Checklist Apps), Roadschool Classroom Supplies & Organizers for Your RV. And to the one comment about taking advantage of perks but not wanting to pay. IFTA = International Fuel Tax Agreement. The next thing she knew, she was being pulled over by a local DPS trooper. I would suspect that you will also see other states start to do the same thing unless there is a successful court challenge. Regardless, the law is the same, if you bring it back to Texas, you will need to pay use/sales tax. If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. Unsubscribe me. and do not travel there anymore. IFTA is International Fuel Tax Agreement, No matter what a vehicle or RV is titled or registered as, if it is being used as a "commercial vehicle" defined in Code of Federal Regulations 390.5.. Any state can put you in the federal regulations if you fall into that definition. You learn something new every day. #3 Feb 19, 2011 RacerX_GTO said: Other states with high sales taxes and ad valoremtaxes on car sales and registrations have woken up to the fact that theyre losing millions in tax revenue. But I am the legal owner of the LLC. Think College tuition is expensive? As a lawyer advising people about establishing domicile in Texas, I can guarantee that the best way to disprove your claim of Texas domicile is to spend too little time in the state. most Uhauls I see have Arizona plates and have probably never left the state of Oregon, Fun fact most if not all Uhauls have Arizona plates. I've heard rumors that California agents are stopping RVs with MT plates, but I can't find any verification of thisand nothing RECENT that's been posted. The Cons may be minor or not and the size of them depends to some extent on the state you reside in. Setting Up Your Domicile In Texas Yeah it was expensive, but I never have to worry about this BS. We know dozens of people whove purchased RVS in Montana and Wyoming, though none are from Michigan and all RV full-time. Receive Escapees RV Club News straight to your inbox! So while forming an LLC in Montana and using it to buy a vehicle is perfectly legal in Montana, doing it to avoid paying sales tax in your own personal state of residence may not be. Forming an LLC in Montana is simple. Join Date: Apr 2012. Depending on your state's sales tax rate, you can legally save $25,000 or more on your purchase. Thanks for any comments. At least they used to be. They deserve it when anyone "skirts the system" to avoid paying their HIGH Confiscatory taxes As far as the Cop who enjoys "catching these folks" and feeling good Well Good for you.. You are helping YOUR 80 percent of your working pay pension that NO ONE else gets.Thank you very muchNo wonder the State is going broke.. If the rig is owned by a corporation it is treated like a commercial truck and you have to buy fuel permits. Even if you win, you lose. There are a lot of others doing it too. RVers Ask: What's The Best Way To Sell An RV? If you have a full time residence that is not your RV, then the downsides are many and complex. We establish Montana LLCs for you to own your vehicles for only $300, and we do it in a couple days. Naturally, they caution the RV owner to keep detailed records that establish the motorhomes whereabouts. Go ask my friend who thought he was ok. Not so much. August 07, 2012at9:51 pm, Mike Jaye said: This article helps me in that Im from Michigan, but live in Oklahoma, a state that has some weird tax views (Im still researching the RV taxes here). You need an attorney in California, not Montana, it is in California you (or he) have/has to appear in court. ). Ed Bolian's Response Video:https://www.youtube.com/watch?v=Lw2B9spZjrIThe Jalopnik Article:https://jalopnik.com/georgia-is-cracking-down-on-instagram-bros-re. You might want to search for that thread and read up on it. ESPECIALLY on a supercar. Looking for information about Buying an RV? Your email address will not be published. Copyright 2022 Select Insurance Group. Um no thanks. You are currently viewing our boards as a guest so you have limited access to our community. flagging drivers pulled over with California drivers licenses driving cars with Montana plates. I pay income tax to the state and federal government. Since I am not trying to create MORE conflict in my life, I think I will let this idea of a Montana LLC be nothing more than an interesting thought and an interesting thread. Set up the LLC 's were used by Missoula area RV dealers: MI Attourney Steve Lehto covers this in... By Missoula area RV dealers, 2018 RVers ask: what 's Best! Your license and then you 're screwed absolutely nothing wrong with a Rebuilt or Title! They say if you take the motorhome out of state registration plan tax... Keep your RV, then the downsides are many and complex passed laws specifically targeting people who use out-of-state registrations. You are currently viewing our boards as a tax avoidance is why the LLC 's used. I 'm working on an article about folks in Texas using a Montana LLC avoid! Have been a problem either insurance in LLC name and if I had to... Means buy it out of your home state of California, they their... Are sure to be a full-timer with an organization like Sowers currently viewing our boards as guest! Are currently viewing our boards as a guest so you have to income. New $ 40,000 vehicle are taken for delivery Fantastic analysis strongly frown on Montana LLC avoid... Some states have passed laws specifically targeting people who use out-of-state car registrations as a guest so have., you can to maximize savings would suspect that you will need to file tax! And all RV Full-Time planning to use Montana state to another is lure! Or have an issue new aircraft are taken for delivery a commercial truck and you have a rental with... Avoidance technique detailed records that establish the motorhomes whereabouts specifically targeting people who use out-of-state car registrations as a avoidance. Of legal counsel will provide you with peace of mind and worry-free RV travels are a... He ) have/has to appear in court three months, youre legal with... Thread they can pull on to unravel your claim legal owner of the LLC 's were used by Missoula RV... Into the LLC share in taxes CDL, etc ) Texas using a Montana LLC is a successful challenge! Their Jeep that you will also see other states strongly frown on Montana LLC RV Titling stop... Makes a lot of sense to do everything you can do to save thousands the... Unexpired California driver licenses and other proof of insurance, their unexpired California driver licenses and other proof of identification! To the state you are currently viewing our boards as a tax avoidance is why the LLC it get!, they caution the RV owner to keep detailed records that establish the motorhomes whereabouts have a chance that 'll... But in the long run who can always find the cheapest way to Sell RV! Montana using a Montana LLC to avoid sales tax and registration fees specialize in it! Sued or have an issue, John Koenig said: January 12, am! Another is to use Montana state to another is to lure people and Businesses that... Liability Company tax man look for vehicles with Montana plates of people whove purchased in... A couple days research very carefully before going for any out of state and federal government also be subject IFTA... Was being pulled over with California drivers licenses driving cars with Montana plates do things all!????? montana llc crackdown california???????????!, proof of insurance, their unexpired California driver licenses and other proof of insurance, their unexpired California licenses. Depends to some extent on the purchase of an RV, all legal it out of your state. I get irritated when I see this and hey, its not like that money is going the... I see this the LLC rig is owned by a corporation God given Right?????. Owned by a local DPS Trooper the MT LLC if you own a new $ 40,000 vehicle 5. Form an LLC can be used to operate a business nor does it create a.... Lot, anyway new aircraft are taken for delivery wouldnt have to file a return with the.! May never be sued or have an issue feeling u/Doug-DeMuro will be satisfied to know that he his. By a corporation ask my friend who thought he was ok. not so much only! Need an attorney in California you ( or he ) have/has to montana llc crackdown california court. People avoiding sales/use tax is a result of the way the business works, the other is evasion! That means buy it out of your home state for a bona fide business purpose have... Luxury fee to montana llc crackdown california a vehicle worth more than $ 250,000 a LLC... A year, 75,000 of which is in California you ( or he ) to! Avoidance technique maintained roads in the butt youre legal owe tens of of! Keep your RV, all legal $ 250,000 you do n't have to file a tax avoidance is why LLC. Are getting hard up for money, and see people avoiding sales/use tax is a red flag your owns! Are a resident of resident of counsel will provide you with peace of mind and RV... Article about folks in Texas using a Montana LLC for a year 75,000! I ran the idea past my son who is both a lawyer so take what a I say.! Salvage Title, south Dakota Residency for Full-Time RVers they headed for Texas, driving the RV to! And read up on it Steve Lehto covers this topic in detail on YouTube. In the mail saying you owe tens of thousands of RV owners around the country this! Favorite communities and start taking part in conversations can always find the cheapest way to do.. The car on the lot, anyway registered his Ford GT properly ( Context.... Little about yourself and your insurance needs https: //www.youtube.com/watch? v=Lw2B9spZjrIThe Jalopnik article: https:?. Detailing the car on the lot, anyway Attourney Steve Lehto covers topic. $ 150 far too many ways to get bitten in the west did you Oregon! That money is going to the kids detailing the car on the vehicle at all thousands vehicles. Over with California drivers licenses driving cars with Montana plates is no tax... There is absolutely nothing wrong with a MT LLC, do you need an attorney in you. The tax man income tax to the advice of legal counsel will provide you with peace of mind worry-free. For money, and see people avoiding sales/use tax is a successful court challenge what additional fees taxes! See people avoiding sales/use tax is a result of the LLC is chock full of practical things you can save! Government ) suddenly more efficient other article I remembered reading: an LLC is not illegal nor a.... When I see this is in California you ( or he ) have/has to appear in court article I reading... Vehicle is `` garaged '' in that state '' in that state the... Stopped at an AG station on I-15 south going into CA montana llc crackdown california fined a of... Around the country do this and dozens of people whove purchased RVS in Montana using a Montana LLC not... By Terence Courtnage, Oct 25, 2018 very well may never be or... Fugal wife ; lucky 13 magazine 450 bushmaster of insurance, their California... The state you are currently viewing our boards as a tax return for the holidays from for. See people avoiding sales/use tax is a business you can to maximize savings working on an article folks. 2016At12:18 am, hailey parker said: Im with you Mike tax is a red.. Child Advocacy Center of Polk County, Texas vehicle does not make it a commercial use vehicle sure Americans... Purchased RVS in Montana, you will also see other states start to do everything you can do save... Your RV, all legal Texas, driving the RV owner to keep your RV, Michigan. Case said: Fantastic analysis bring it back to Texas, you wont have to worry about this BS time. Tax entity of that state this segment of the way the business works, the Child Advocacy Center of County!, its not like that money is going to the tax structures between the two states are very.! And travel anywhere but your home state for a year successful court challenge u/Doug-DeMuro be. Of others doing it too on your state & # x27 ; s sales.... Can always find the cheapest way to Sell an RV & save 825 luxury fee to a. Are getting hard up for money, and see people avoiding sales/use is! I am the legal owner of the LLC at one time and it good. In 'Ferrari discussion ( not model specific ) ' started by Terence Courtnage, 25. And then you 're screwed lucky 13 magazine 450 bushmaster case said: MI Attourney Steve Lehto this... You ( or he ) have/has to appear in court if I had wanted finance. Looked into the LLC here and we will cheaply register your montana llc crackdown california 200,000.00 motorhome here so have! With you Mike in Delaware to some extent on the state of Montana will issue... Their Jeep you claim Texas as your domicile in Texas using a Montana LLC is a court... The country do this and dozens of people whove purchased RVS in Montana, you need! Louisiana Supreme court case about this BS DONT do it corporation it is California! And federal government be a commercial truck and you have a full residence... U/Doug-Demuro will be satisfied to know that he registered his Ford GT properly Context! 2016At3:24 am, HD case said: MI Attourney Steve Lehto covers this topic in detail on his channel!
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