As we mentioned, the CHiPs are out in force, looking for this specific circumstance. Consistency between these items, license plates and driver license, is the best way to proceed. We may earn a commission from links on this page. Please refresh the page and try again, Do Not Sell or Share My Personal Information. what is the reasonable assumption here? Looks like he's living The Dream. While it's legal to purchase pricey vehicles and avoid paying sales tax in Montana, other states frown upon the practice when their residents set up LLCs out of state for the sole purpose of avoiding these taxes. Regardless of if you own a vehicle or not or if youve maintained having prior insurance. Phil & Evy Somsen Ontario Canada The basic concept of the process is known to many, but the specifics are a little harder to nail down. The next thing she knew, she was being pulled over by a local DPS trooper. Maybe someone who lives in New York can chime in and tell us. 35-8-901. Dissolution, MCA - Montana State Legislature If Montana had a state inspection each year, this would stop overnight. You can see Channel 2 WSBTV's coverage here - https://www.wsbtv.com/news/local/wealthy-georgians-with-exotic-cars-accused-of-cheating-local-taxpayers/858532353Tune in at 6 PM on wsbtv.com to livestream the news broadcast.Buy our hilariously ironic \"No Taxation With OUR Representation\" Montana License Plate T-Shirt - https://vinwiki.com/r/montanaEd was very skeptical about ceramic coatings and recently tried it. Understanding the Vermont Registration Loophole, Why is car insurance going up? document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); Fairbanks, Alaska is home to the famed midnight sun with twilight illuminating the very brief summer night. Thank you to everyone who responded. When your vehicle is registered, we charge you the rest. Feb 10, 2021 46 San Francisco . Javascript must be enabled for the correct page display. What is IFTA? Part of MOTORSPORT NETWORK. We even include inside tips on how to negotiate with your RV dealer. Forming an LLC does not create a business nor does it create a corporation. And an insurance adjuster, scrutinizing your claim might wonder what false statements you made on your insurance application. The only. Worthless whiners like this blogger are just that. Besides this, many insurers have been known to frown at covering an RV that is titled in Montana when the owner of the LLC lives in another state. Required fields are marked *. Does any one have any recomendations on the pros and cons of doing this. Is a Montana LLC Right for You? - Escapees RV Club Use US Legal Forms to get access to 85,000 professionally-drafted, state-specific forms. Other wise, Texas doesnt care. I would suspect most people who do this fudge here and there when it comes to their home state. Some states take a dim view of this and have pursued people doing this, so be sure you won't wind up in the worst of both worlds. K. Susie Adams has been a lawyer for over 30 years, spending 15 of those years working as a trial lawyer. And in some cases, theyll haul you to court, and charge you with criminal conspiracy to defraud the state. Since you have a rental agreement with the MT LLC, do you need to file a tax return for the LLC. And unless you do things right from the get-go, their denial of your claim will probably stand up in court. He asked to see Dianne's driver license and noted it was also Texas. Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. Reorganization and Dissolution; Part 5. They dont pull out the green eyeshades until they receive a claim. If you live in Texas and setup a Montana LLC for the express purpose of not paying sales tax, you will be fine as long as you stay out of Texas with the LLC titled vehicle. Nothing has changed but reading your blog makes me wonder if it would be best to redo our wills in SD. And think of the money he can save on his tags! I get asked from time to time about the so-called Montana License Plate Scam: Can you safely register your vehicle in Montana and drive it in your non-Montana home state? the wealthiest among us, are those who benefit the most from living in the US. How to start an LLC in Montana | Legalzoom We sold everything in Iowa where we had lived for almost 20 years. For example, buy some investment property in Montana, and own them within your LLC. The real beauty of the Montana LLC for holding exotic or specialty vehicles is if your car or truck is over 11 years old, you can get a permanent plate. Its not an illegal act or a scam. But for other places, it pays to shop around. Every dime related is written off. That can pretty much wipe out any tax savings. Ready for a quote? Or Need Vehicle Registration We're here for you: +1 406-540-6222 START REGISTRATION FOR $1, RISK FREE We only charge you $1 to start. As I have noted in the past, the solution is to get the law changed. This bi-weekly newsletter is full of everything you want to know. How to Dissolve a LLC in Montana, How to Close a Montana Business But full-boat sales taxes on private party sales are ridiculous. The next thing she knew, she was being pulled over by a local DPS trooper. We won't know unless someone spends the money to challenge the crackdown. Sure, that 200-acre ranch property costs a cool $2 million. Thats what media Mogul Rupert Murdoch did. This is one of the longest-lasting controversies in the RV world and it really has to do with the fine line between tax avoidance and tax evasion. Downside is that he's already put hundreds if not thousands of posts of his cars out there - at his house in GA - so denying it would be problematic https://www.ajc.com/news/luxury-car-owners-dodge-tax-with-montana-scheme/eF1HopLGbDX8EuvYzgNo6J/, (You must log in or sign up to post here. But your winters are too cold, I could not hang. Clear up any business debt. Two years later, when the Louisiana Department of Revenue caught up with Thomas, officials said he owed $49,509 in Louisiana sales tax and penalties, but Thomas appealed and won. Looking for information about Buying an RV? I am second owner and paid 13% tax However, if the vehicle is based in California, then it is subject to California laws and taxes, regardless of who owns it, so this scheme isn't going to save you anything if you do it legally. If you use the Find function in the toolbar at the top of this thread and enter "Montana LLC", you'll find days of reading material. 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. The Secret To Snagging RV Campsites At Popular Cam Iowa getting tough on recreational vehicle fees | TheGazette, Massachusetts Goes After RV Tax Evaders | RV Business, 2009 HR Navigator Fuel Door lock question. If youre buying a $400,000 Bentley, that means youre going to have to fork over the sales price of the car,plus $36,000in sales taxes. By going this route instead of buying it as an out-of-state resident, they avoid hefty sales taxes. 10. They want their money. Check out LLC Cost in Montana for more info on the fees to start an LLC. If the LLC is in Montana but the owner of that LLC is in Michigan. It is chock full of practical things you can do to save thousands on the purchase of an RV, all legal. I agree. Interestingly, even the websites of the companies that promote this scam scheme hint that what you are doing is illegal: Sales tax is generally due in the state of registration. I loved the specifics Does someone know where I could possibly grab a template FL HSMV 85008 form to use ? You must have your bill of sale notarized. Next steps. cld8 4 yr. ago. Again, I understand that others see this differently and have and will decide otherwise. Especially California and Colorado are really cracking down on this. Too many Montana lawyers making bank on LLCs. In 2021, fully 10% of all McLaren P1s ever made cars worth well over $1 million apiecewere registered in Montana, according to the Montana DMV . 7327 reviews See why hundreds of customers have trusted us to start a Montana LLC. This was a poorly written article. If you purchase outside of Texas, of course you wont have to sign a Texas form, but some states share this information back to Texas, or any other state for that matter. Ouch. My questions around this are: Location: Off the road after 14 years full timing. Although taxation is theft, it was just a matter of time. We even have water conservancy laws relating to plumbing! I did have to pay 6% sales tax when I bought it, but nothing since. But the police report says the accident happened in a long-term parking garage in Boston? Montana LLCs and Car Registration: Everything You Need to Know Shareholder Protection; Downside of a Montana LLC? - iRV2 Forums After Hurricane Harvey, theres even a greater need for assistance in this regard. Need Professional Help? This simple fact alone may make Montana registration worth it. And your LLC is a Montana corporation. Not knowing where to park the RV, our daughter is now parked in a friends driveway, just waiting for the lifting of the law saying she must stay there Until she leaves the state where she is parked. And they will be happy to collect a nice commission on the premium. Here's Why So Many Exotic Cars Have Montana License Plates And hey, Its not like that money is going to the kids detailing the car on the lot, anyway. (Sorry, Hawaii residents!). I'm not looking at this for the financial aspects, (I'd save maybe $800 up front and $400/year, so not enough to be worth the hassle if this was the only benefit), but for the lack of yearly mandated inspections and testing. Thank you for sharing your thoughts. January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! Depending on where you live, however, sales tax can be over 8% or slightly under 3%. if that was a used car the sales tax in theory was paid on it when titled for the first time. The saleman we are working with said we may want to register it in Montana under a LLC for sales tax purposes. 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. So if youre driving your car on any toll roads, youre probably going to get caught. Californian Driving Vehicle owned by Montana LLC : r/legaladvice - Reddit How To Start An LLC In Montana (2023 Guide) - Forbes Advisor His savings would be minimal to use the Montana LLC so it probably would not be worth it. And to the one comment about taking advantage of perks but not wanting to pay. Heggen Law Office, P.C. The bad news is that you shouldnt act upon any of the information without consulting a qualified professional attorney who will, probably, bill you by the hour. So if youre going to do this, dont make it obvious. Or, so they thought! For example the LLC would purchase a $250,000 motorhome and then turn around and lease it for $200 per month to a Michigan resident. Thank you for sharing very informative article. Larry. The port city of Seward occupies a breathtaking area shaped by glaciers, nestled between mountains and the ocean. Then you'll pay yearly about $90-$220 to the Flathead DMV, $20 to the State of Montana for the LLC, and $49 a year for us to be your registered agent and for you to use our address. Is there a secret pineapple meaning and what about flamingos at campsites? In many states, you'll avoid use tax only if you don't use the vehicle in your state of residence for a full year after you buy it. Montana Limited Liability Company - Montana LLC taxes should be reasonable. December 01, 2012at10:26 am, Rick and Kelly said: I say if theres a loophole, take it. Great article! ESPECIALLY on a supercar. 2022 Genesis GV-80. An LLC is considered a legal entity, able to buy and sell property. Beat The Heat In Your RV This Summer: 10 Ways To S Power Outages At RV Parks: What You Need To Know, Find the perfect campground, RV Park or RV Resort. 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? Obviously, this is grey hat stuff. The LLC registers and plates the vehicle in Montana. You'll sign your name as the manager acting on behalf of your LLC. 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. This covid 19 situation has really put folks around here in a situation. Corporation buys the vehicle. Add to the stories of your cars and the cars you love on VINwiki. And that arguments probably a loser in court. Best of all it's totally FREE! ag512bbi, ScottS and Texas Forever like this. Hi Steve. 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. When you buy an expensive item of personal property like a top-grade motorhome or RV, the sales tax can be enormous. If I own a business that does business in Arizona, and I live in Utah, where do the taxes get paid?
quote:Originally posted by GaryKD: How To Get Internet While Traveling With A Cell Ph Are You Replacing Your RV Anode Rod Often Enough?quote:Originally posted by RV Roamer: I would like to know if Gary actually knows of anybody first hand that has been hassled by a state over a LLC? Colorado has pretty high property tax on new vehicles but they decline over time per a formula until they are near zero after 10 years so pretty friendly to car collectors. We may earn a commission from links on this page. 6. Is it possible the Montana LLC loophole is actually legal? How much does it cost to set up an LLC in Montana? Thank you for our RVing community and this forum.