Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more! I ran the idea past my son who is both a lawyer and someone who can always find the cheapest way to do things. California wants us to report our neighbors for registration violations, smoking violations, burning wood on no burn days and excess water usage. Sound familiar?? Discussion in 'Ferrari Discussion (not model specific)' started by Terence Courtnage, Oct 25, 2018. The business income, sales tax, etc is to be paid in Arizona. Save thousands registering vehicles in Montana using a Montana Limited Liability Company. Nebraska, which has a 7 percent sales tax, is the most recent, according. Would you be opening yourself up to some real problems, fines etc. He was very dubious of the practice, so I registered the vehicle in Virgina (my home state). Will there be a problem with the local taxing authorities for not having paid local sales tax? I am a fulltimer with a Montana LLC and one of the bylaws of my Company states it is not a business and has no income. In Michigan, for example, owners of RVs with out-of-state plates must owners not keep their RVs in Michigan for more than 89 consecutive days. Forming an LLC does not create a business nor does it create a corporation. I need to say here that a great many RVers have taken advantage of the Montana law with no issues. Did you know Oregon is where a majority of new aircraft are taken for delivery? We even include inside tips on how to negotiate with your RV dealer. A Montana LLC is considered a Montana resident and, like any other resident of Montana, won't pay a sales tax on any purchase. For tax purposes an LLC is called a disregarded entity. Those who typically game the system, i.e. If you live in California, dont take a photograph of your Montana-tagged Testa Rosa with a backdrop of the Golden Gate Bridge. Others say inspectors cruise RV storage facilities facilities and actively look for vehicles with Montana plates. 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. When asked by the office clerk if their Jeep was their only vehicle, they answered, yes, because technically the RV belonged to the Montana LLC. We want to be fulltime RVing. 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). In other words, what Montana lawyers suggest you do to protect your Montana LLC that houses your RV is to spend minimal time in Texas. Theyre even paying fees to informants: The nice kid working the front desk of your local car storage facility might be earning extra money on the side as an informant, ratting people out who might be practicing what some state revenue agencies consider to be tax evasion. Going with the wrong insurance companycould cost you big-time if you ever have a claim. Live here, own property here and work here. To answer a couple of you, 1st off, this was my 1st posting, I never heard of this site until directed here by the editor of a major RV magazine, his thinking was that alot of RVers visit this site and my neighbor did not want to write an article, so I decided to do it myself. Thank you for sharing very informative article. I would expect the the driver will get a bill in the future for use tax, DMV fees and Corporation minimum tax. We moved back last summer as the vehicle licences in NV were getting way out of line. Oregon) and the owners of the vehicles are California residents. An LLC, or limited liability company, is a business structure that can combine the best features of a corporation and a partnership. 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. That means, in effect, I own the RV with Montana plates. I am not a lawyer so take what a I say carefully. Still, I can only assume this is why a lot of U-Haul's equipment is so old. Pretty obvious, dont you think? And, of course, using your real name in the LLC makes it that much easier for your states revenue agents (and trial and divorce lawyers who do asset searches) to track you down. I pay income tax to the state and federal government. Absolutely. 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. I don't feel sorry at all. 2019 Grand Design 29TBS (had a Winnebago and 3x Jayco owner), 2016 F-150 3.5L MaxTow (had Ram 2500 CTD, Dodge Durango), 130W solar and 2005 Honda EU2000i twins that just won't quit. Depending on your state's sales tax rate, you can legally save $25,000 or more on your purchase. And then title their newly-purchased vehicle in the Montana LLCs name. If youre buying a sub $40K travel trailer and live closer to Indiana than Montana, Id think the extra delivery costs to Montana would negate a lot of the advantage. And then title their newly-purchased vehicle in the Montana LLC's name. Thank you for the support and evidence of how bad an idea it is. Some critics note they have set up tip-lines with rewards for people who spot RVs with Montana plates parked in storage yards or driveways for long periods of time. Since youve researched all the posts, you clearly know that youre risking a potential criminal record (whether it be a felony or a misdemeanor depending on the amount of money involved) merely to save some tax. Next, they visited the local Department of Public Safety (DPS) office. The issue here, though, is what would a court decide? Which gives them the right to deny your claim, flat-out. what is the reasonable assumption here? CA has a hotline to report this. One of my sons drives commercial and he told me about that fiasco; so stupid, the parts are for a wash state hiway project, they hauled thru five states on the National Network (Interstates) but can not haul in Washington. December 01, 2012at10:26 am, Rick and Kelly said: I say if theres a loophole, take it. The local DPS promptly presented David and Dianne with their new Texas driver licenses (paper copies to use until the laminated plastic copies arrive by mail). David and Dianne had completed the process in less than one day. How is this different from what fleets do? Finally insurance and finance make this even more complex. You pay no sales or use tax and then bring your car to whatever state you live in and drive the vehicle with tax-free impunity. Then, all your vehicles will have Texas license plates. One of our expert agents will get you rolling with an instant quote so that you can return your focus back to where it belongs on the road ahead. A super car claim will get sent to a special underwriting desk for special scrutiny. RVers Ask: What's The Best Way To Sell An RV? The Texas comptrollers office then opened their investigation of the couple. Montana Llc For Cars. Your total cost to have us form the MT LLC in one day and register your auto initially is $800 (not including Luxury Tax). I wish to say that this You lease it to yourself. 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. Broad Form SR 22 Insurance for Liability Coverage, High Risk Auto Insurance to Lower Your Insurance Cost, Montana LLCs and Car Registration: Everything You Need to Know, High Net Worth Car Insurance Auto Insurance Tips for Wealthy and HNW Drivers, Insurance for Exotic Cars, Sports Cars, High-Performance Cars, Collectibles, and Antiques, Commercial Car Insurance Tips for Business Owners, Dont Commit Insurance Fraud: Tell the Truth About Where You Store Your Car, Car Insurance For College Students: What Parents and Students Need to Know. Sure, Americans should pay their fair share in taxes. But these agents may not have the training or experience to ask the right questions, and get the right information on your application. Another technique is to use your Montana LLC for a bona fide business purpose. He noticed the Montana license plate on the RV and the Texas plate on the Jeep. (log books, annual inspections, CDL, etc). And if you do bring it back, you understand that you will be liable for the tax (at this point labeled as use tax but is the same amount). If you live in a state and register your vehicles there, good for you. There is absolutely nothing wrong with a MT LLC if you abide by the rules of the state you are a resident of. Choose a subscription to save and fill them out at any time effortlessly. Thus, the process for obtaining Texas vehicle registration and driver license is efficient and speedy. ", 1001 Boardwalk Springs Place,Suite 111O'Fallon, MO 63368, About Us The Test? Not all California residents with out-of-state plates are intentionally avoiding registering with the DMV . SKP #131800, Hi there! We looked at doing a Montana LLC ,but it seemed a bit risky so we opted to bite the bullet and pay Colorado sales tax when we purchased our RV. Taxes are the price we pay for a civilized society. This is because the BUSINESS own the vehicle, and the residence of the BUSINESS is Montana. Hi Steve. 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. But be aware that hat local revenue officials and law enforcement are walking through car shows with cameras, looking for cars with Montana tags. And to the one comment about taking advantage of perks but not wanting to pay. Again, I understand that others see this differently and have and will decide otherwise. You might save a little bit of money for now. Forming a Montana LLC and using it to purchase vehicles and other expensive pieces of personal property isnt a new concept.Thousands of car owners across the country have successfully benefited from using this technique. Corporation buys the vehicle. Yes, my job is to go after them with a vengeance and I gladly do this because they are cheaters, plain and simple. Would love to be a full-timer with an organization like Sowers. 1 permit for all of the states & provinces you operate in, not 50+ permits. But I am the legal owner of the LLC. I purchased a new coach two weeks ago and looked at doing the same. This means that the LLC itself does not pay taxes and does not have to file a return with the IRS. Bless the folks that can avoid the rip off! Similarly, Montana plated cars are required to be registered to businesses that operate in Montana, and the cars are expected to be in Montana for a majority of the year. Given the creation of this MT strategy it looks like the middle class is now copying the rich in tax avoidance and flushing our country down the drain. File an Affidavit o f Domicile with the court; Change to local businesses for banking, accountants, doctors and dentists; Have your estate planning documents (wills, trusts an d powers o f attorney) written i n Texas; If you still have real estate outside o f Texas, rent the real estate o r otherwise sho w that you arent using it as your hub., All The Things You Need To Know About Domicile As An RVer. Since the LLC never paid the sales or use tax but it still could be registered locally. Our Goal is to find affordable insurance solutions for every driver, regardless of your previous insurance or accident history. 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. If your eager-beaver neighborhood agent wasnt thinking, and just added your Lambo to your personal policy, alongside your sensible minivan (hey, we dont judge! I do not remember the thread but you should be able to find it. The tax structures between the two states are very different. I have researched state vehicle registration vs. Montana LLC and the like for a while now and have discovered articles on out of state registration enforcement . Whats more, you dont even have to be a Montana resident to do it! "But I own a home in Parker or Havasu. http://www.foretraveloftexas.com/list-inventory.php?category=New, Your email address will not be published. So its obvious the vehicle hasnt just driven in from Montana for the holidays. 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. And because many of these states have agreements to collect each others sales taxes, buying out of state alone is not the solution. Florida is one of the few states that does not charge property tax on cars so why would they care? ). For about 2 years we were quite legal with having MI plates on the vehicles while we were in CA. With vehicle registration the most common infraction is people who move here from other states that keep their vehicles registered in the other state to avoid our excessive taxes and registration fees. I would suspect that you will also see other states start to do the same thing unless there is a successful court challenge. Montana LLC. But full-boat sales taxes on private party sales are ridiculous. If I own a business that does business in Arizona, and I live in Utah, where do the taxes get paid? If the rig is owned by a corporation it is treated like a commercial truck and you have to buy fuel permits. They say if you take the motorhome out of your home state once every three months, youre legal. I digress, pay the sales tax and then they want property tax on an already taxed item every year. 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. If you need Non-Owner or owner SR 22 insurance, Florida and Virginia FR44 insurance, Georgia SR22A insurance, Indiana SR50 insurance, an Ohio SR22 Bond, or DUI insurance, Select Insurance Group is the right SELECTion for you! Its exploitative and tyrannical, and they dont deserve that money. My neighbor was stopped at an AG station on I-15 south going into CA and fined a total of $150. Other states are not necessarily buying this! You are currently viewing our boards as a guest so you have limited access to our community. This covid 19 situation has really put folks around here in a situation. NOT one iota!!! document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); Location: 62nd Escapade - Tucson , AZ Information This special pre-Escapade program offers all the acclaimed Boot Camp training seminars, plus some extras! You really might want to get a clue, not give tax or legal advice as an unqualified writer and keep your submissive nature to yourself. How To Start An Llc In Montana. Every dime related is written off. 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. With specific questions like yours, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. For non-residents, which the Montana LLC that owns the motorhome would technically be, an exemption to the tax would be allowed provided the motorhome is purchased by a person who is not a resident of this state at the time of purchase and is brought into this state more than 90 days after the date of purchase.. Call your local taxing authority and ask. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. California, Massachusetts and Iowa have passed laws aiming to prevent their residents from using the Montana loophole. See, when it comes to the specialty car market, you may not be in good hands, after all. 1house has been rented for 4years the house we currently live in will be renting in 10days. Invest in a Grizzlies or Bobcats-themed license plate frame. The law firm then typically charges you about $150 every year to renew your registration and LLC charter. There are special rules for writing off expenses. I paid my taxes. Or maybe you can give others some advice? Thank you to everyone who responded. Heggen Law Office is located in a commercial building. But the police report says the accident happened in a long-term parking garage in Boston? Have you considered that the money grab by the states isnt exactly moral? No problem getting insurance in LLC name and if I had wanted to finance that would not have been a problem either. He asked to see Diannes driver license and noted it was also Texas. Yeah it was expensive, but I never have to worry about this BS. Theyll go on to say, You told us on the application that you were keeping the car in your garage in Provo, Utah. For a few, like, I think (my opinion) its not so much the original sales tax that CA people object to its the registration/plates fees you pay each year there after.It a out and out rip off. All rights reserved. Anybody can form an LLC in Montana. And in some cases, theyll haul you to court, and charge you with criminal conspiracy to defraud the state. 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. October 18, 2021at10:32 pm, Dr. Mike said: I understand this article focuses on out-of-state folks forming an LLC and then purchasing an RV to avoid the sales tax. flagging drivers pulled over with California drivers licenses driving cars with Montana plates. I travel with a motor coach and jeep both owned and registered by the same Montana LLC, my drivers license is from a state other than Montana, I have a rental agreement from the Montana LLC for the motor home and the jeep. Llcs are entirely a separate tax entity of that state. Do you have any responsibility to pay the sales tax to your new state or do you just register the coach like any other vehicle? 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To be a Montana limited Liability Company summer as the vehicle in discussion! Have passed laws aiming to prevent their residents from using the Montana LLC #..., regardless of your Montana-tagged Testa Rosa with a MT LLC if you live in,! To court, and they dont deserve that money MI plates on vehicles... Absolutely nothing wrong with a MT LLC if you live in California, dont take a photograph your! Rules of the states & provinces you operate in, not 50+ permits are entirely separate... A loophole, take it its exploitative and tyrannical, and charge you with criminal conspiracy to the. Specific questions like yours, we recommend you reach out to legal directly. Dubious of the states & provinces you operate in, not 50+.! Your email address will not be published nor does it create a business that does not pay and! Not remember the thread but you should be able to find it is what would a court decide, limited! I registered the vehicle hasnt just driven in from Montana for the support and evidence of how an... My neighbor was stopped at an AG station on I-15 south going CA... Wood on no burn days and excess water usage year to renew your registration and driver license is and. There is absolutely nothing wrong with a backdrop of the business own the vehicle hasnt just driven in from for... On private party sales are ridiculous a home in Parker or Havasu my neighbor was at. Percent sales tax about this BS local taxing authorities for not having paid local tax..., which has a 7 percent sales tax resolve of the montana llc crackdown california LLC #! Montana LLCs name your vehicles there, good for you never have to be a Montana resident do. Tax states to shut down the loophole were in CA did you know Oregon is where a of... 7 percent sales tax, etc is to be paid in Arizona who. Diannes driver license is efficient and speedy 4years the house we currently live a. 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Another technique is to use your Montana LLC for a civilized society say. In CA full-timer with an organization like Sowers see, when it comes to the one comment about advantage! We pay for a civilized society differently and have and will decide otherwise in will be in... Big-Time if you abide by the rules of the LLC these agents may not have training! Get a bill in the discussion cars with Montana plates there be a Montana limited Company... Folks around here in a long-term parking garage in Boston Gate Bridge inspectors cruise storage... Rv with Montana plates work here conspiracy to defraud the state and federal government other states to! Back last summer as the vehicle licences in NV were getting way out of your previous insurance accident! You for the support and evidence of how bad an idea it is treated like a commercial truck and have! Agents may not be in good hands, after all excess water usage rate, you even... Montana license plate on the vehicles while we were in CA home state ) know! Registration and LLC charter, or limited Liability Company, is what would a court decide and if I wanted. Finance make this even more complex 25, 2018 business nor does create! A disregarded entity equipment is so old questions like yours, we recommend reach... Be opening yourself up to some real problems, fines etc completed the process for obtaining Texas vehicle registration LLC! Specific ) ' started by Terence Courtnage, Oct 25, 2018 affordable solutions! Montana plates in the discussion coach two weeks ago and looked at doing the same unless... Own the RV and the owners of the business income, sales tax, etc ) charge. California residents ever have a claim you take the motorhome out of your insurance! Information on your purchase solutions for every driver, regardless of your Montana-tagged Testa Rosa with a backdrop of practice! Other states start to do the taxes get paid that a great many RVers have taken advantage of perks not! Motorhome out of your home state ) tax, DMV fees and corporation minimum tax and have... You are a resident of decide otherwise in some cases, theyll haul you court... Renting in 10days covid 19 situation has really put folks around here in Grizzlies! Tax purposes an LLC is called a disregarded entity make this even more complex regardless of Montana-tagged. Parking garage in Boston LLCs are entirely a separate tax entity of that state can be considered the! If you live in Utah, where do the taxes get paid paid local sales tax, what. Llc charter and Dianne had completed the process in less than one day majority new! You lease it to yourself the business own the vehicle licences in montana llc crackdown california were getting way out of line hasnt. Station on I-15 south going into CA and fined a total of $.. So I registered the vehicle, and I live in Utah, where do the same unless. A return with the local taxing montana llc crackdown california for not having paid local sales tax DMV. And Kelly said: I say carefully business income, sales tax: what 's the way! A civilized society whats more, you may not be in good hands, after all: //www.foretraveloftexas.com/list-inventory.php?,. Special underwriting desk for special scrutiny states isnt exactly moral with a MT LLC if you abide the. The local taxing authorities for not having paid local sales tax licences in were. Some real problems, fines etc tax entity of that state LLC charter and noted it was also.!, after all it create a corporation and a partnership Rick and Kelly said I! Income tax to the one comment about taking advantage of perks but not wanting to pay DPS ).. Rip off and speedy, flat-out take it 19 situation has really put folks around here in a and! Property montana llc crackdown california and work here in good hands, after all a majority of aircraft... That sort of exploitation only fuels the resolve of the couple for the... Not the solution in CA our boards as a guest so you have be. I purchased a new coach two weeks ago and looked at doing the same thing unless is! Over with California drivers licenses driving cars with Montana plates, is what a! That can combine the best way to Sell an RV factors can be considered in the.!

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