Locations However, here is how I would approach it from a logical (but not necessarily relevant) standpoint. They left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep. And your LLC is a Montana corporation. Seems like unnecessary cost at an attorney. Copyright 2023 RV Lifestyle. Kali also has the worst maintained roads in the west. |Disclaimer|Privacy Policy | Terms of Service. 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. We have a MH with MT plates and are SD residents, but in most years the MH isn't even in SD for a day and when it is it is only there for a week or two. When you insure in Montana, what happens if you have to USE your insurance in your state or while traveling. Did you tell us this on the app? However, by not spending time in Texas, the place you are claiming as your home, you will undermine your claim that you are domiciled in Texas. 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. Wikipedia has good description to begin understanding IFTA. I may not like those laws, but my conscience just wont let me do something that to me seems questionable. January 06, 2016at3:16 pm, inthecloset said: Adding to the complication is if you do this you can be forced to have a CDL depending on the size of the motorhome and the state you operate the motorhome in. There is only one significant pro - the savings in sales tax dollars. December 01, 2012at10:26 am, Rick and Kelly said: I say if theres a loophole, take it. 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. Keep your Montana-registed car your garage the same garage you tell your insurance company you keep it in. Also, be careful driving your RV with Montana tags while towing your car with California tags in California with a California drivers license. My neighbor was stopped at an AG station on I-15 south going into CA and fined a total of $150. Georgia (and we presume, other states, but we know Georgia, for sure) is also cross-referencing all cars with Montana registrations and Peach Pass toll accounts, and then having toll authorities hand over photographs of those cars passing through toll stations. Luckily, I was able to move to a county that has lower personal property taxes, but they still are pretty stiff. 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. A California resident is required to register with the Secretary of State and pay tax to California. Even if you should be sued and won, the legal costs of defending yourself could far exceed what you saved on the taxes you avoided. Home. For example, buy some investment property in Montana, and own them within your LLC. if that was a used car the sales tax in theory was paid on it when titled for the first time. It costs you about $1,000 to have a Montana law firm set up your LLC and do the registration and titling paperwork and send you back the Montana license plates. There is no sales tax on a regular home sale. Im talking about the practice of setting up an LLC business in Montana to purchase a motorhome, thus avoiding sales and use tax and often stiff registration fees in the owners home state. Is doing Montana LLC RV Titling a wise practice or will it get RVers in trouble in their home states? All states have rules about how long a vehicle can be in the state in the possession of a resident before it needs to be registered. And a lot of luxury car and RV owners are very happy with the Big Sky state, having saved tens of thousands of dollars in taxes. Public funded tuition and Scholarships are just another way for Big Government to Give money to the Schools.I don't feel sorry for the State of California AT ALL!!! The Cons may be minor or not and the size of them depends to some extent on the state you reside in. , a 2005 Volvo tractor converted to carry the smart and tow the 5'er. The state is now cracking down on these . Um no thanks. Almost all states require registration of vehicles in that state if the vehicle is "garaged" in that state. And unless you do things right from the get-go, their denial of your claim will probably stand up in court. California wants us to report our neighbors for registration violations, smoking violations, burning wood on no burn days and excess water usage. I am trying to research the possibility of forming an LLC in Montana and purchasing and insuring my new motorhome through a Montana LLC. 26. Other wise, Texas doesnt care. Whatever. This works great in places like Kansas City. They want their money. They know the game. Which gives them the right to deny your claim, flat-out. Theyre big and conspicuous. 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). Does Car Insurance Cover Catalytic Converter Theft. Out-of-State Car Registration Crackdown 18,626 views Feb 7, 2020 86 Dislike Share Save NBC Connecticut 5.04K subscribers Drive the streets of Connecticut, and you might have seen a lot of people. Worthless. As we mentioned, the CHiPs are out in force, looking for this specific circumstance. Home was where I park it. 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. February 09, 2022at10:27 pm, Lizzy Roma said: January 12, 2016at12:18 am, HD Case said: Im with you Mike. I was told the load weighs 193,000 pounds with many axles and many wheels per axle. Our Goal is to find affordable insurance solutions for every driver, regardless of your previous insurance or accident history. Its much less likely to attract the wrong kind of attention. They were free to travel whenever they wanted and wherever they wanted, without worry. Under a lease the sales and use tax is paid monthly with the lease payment and is based on the lease payment amount not on the purchase cost. I found this line of thoughts, decided that our daughter should read it and save it. Consistency between these items, license plates and driver license, is the best way to proceed. Visited a lot of states, haven't camped in manyyet. There is absolutely nothing wrong with a MT LLC if you abide by the rules of the state you are a resident of. The Montana LLC scheme used by the Louisiana taxpayer has been around for years and continues to be promoted by Montana-based lawyers. According to Jalopnik, one way Georgia tax officials have caught up with owners of Montana-registered cars is by going through Montana registrations looking for cars with custom plates like MTBULLD0G.. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. 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. Ridiculous. The state is calling these LLC's exactly what they are, a sham to avoid taxes. I recently bought used RV from Texas on November 6th. If I own a business that does business in Arizona, and I live in Utah, where do the taxes get paid? All rights reserved. As a PS. 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). Uhaul is a legitimate business. Sure, that 200-acre ranch property costs a cool $2 million. Thats why we have written our RV Buying Secrets Guide. /r/Cars is the largest automotive enthusiast community on the Internet. Florida is one of the few states that does not charge property tax on cars so why would they care? Id like to see extra posts like this . If you get thumped by Fairfax County for running out-of-state tags, they levy a fine and penalty and go back to the date of purchase. Since we have no real property anywhere I am not convinced it needs to be done. I registered my $100K+ 5th wheel for $200 13 years ago & havent had to pay a penny since. I've had an LLC and IFTA for many years. Part of MOTORSPORT NETWORK. I paid my taxes. #3 Feb 19, 2011 RacerX_GTO said: 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. If you live conveniently near a state border, this could be a reasonable option. Montana is really promoting the Montana LLC RV Titling loophole, Some states are going after their residents who use Montana LLC RV Titling, A lot of RVers do get away with the Montana LLC RV Titling scheme. Since an LLC is a business you can also be subject to IFTA fuel tax as well. The basis of the method is also the basis of how wealthy people write off their luxury cars. Put yourself in the Trooper/Officer's shoes for a moment: You are assigned to a CA checkpoint, you see a high-dollar RV roll up, you see the Montana plates, the driver hands you a CA license and a registration for a Montana business entity. Good thing she has friends. Thats painting at target on your back. 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 big reason I am not going to go the Montana route should I buy a new RV is because, I think, it borders on the unethical. Essentially, it works like this: You form an LLC business in Montana. Javascript must be enabled for the correct page display. Our wills were last done in 2017 as I prepared to retire. IMHO California must recognize the laws of Montana. Is used in combination when the weight of such combination exceeds 26,000 pounds or 11,793 kilograms gross vehicle or registered gross vehicle weight. Your email address will not be published. Unsubscribe me. Phil & Evy Somsen I'm about to wrap things up, but I was wondering if any of you have had any experience with this idea. 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. Is this just a big hoax? I ran the idea past my son who is both a lawyer and someone who can always find the cheapest way to do things. He asked to see Diannes driver license and noted it was also Texas. Furthermore, it doesnt cost the state any more money to provide the roads and bridges and parking infrastructure for your $1.4 million Pagani Huayra than it does for your nephews 15-year old Ford Fiesta. California has an extremely large percentage of vehicles registered in other states (ie. 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. I purchased a new coach two weeks ago and looked at doing the same. Changing domicile to Florida using Escapees was simple when the time came to become fulltimers. Again, I understand that others see this differently and have and will decide otherwise. Theyll argue that you made false statements on your application. Says so in the advertisements in Trailer Life magazine, "Montana has no sales tax." some state revenue agencies consider to be tax evasion. Why in the world would I fabricate something like this, I still have a job to occupy my time. And as another point I would like to thank those that do this illegally, so I can pay more tax for THEIR gain. How To Start An Llc In Montana. Theyre expensive. And I live in high taxing Michigan. No problem getting insurance in LLC name and if I had wanted to finance that would not have been a problem either. Organize your Limited Liability Company in Sales Tax-Free Montana and save thousands on registration of exotic, collector or passenger vehicles. Press J to jump to the feed. 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. You wont be bothered in California. Absolutely. JMO. Think Health Care is expensive now??? Totally agree. The Texas comptrollers office then opened their investigation of the couple. 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. That means buy it out of state and travel anywhere but your home state for a year. It would only work in situations where the motorhome is owned free and clear because obtaining financing for such an arrangement would be difficult. As our Victoria Guida writes, this represents "the broadest and most concrete effort to date by the U.S. government to consider whether the Fed should issue a digital dollar.". If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. I found this article very close to my case but I would like to make sure if we are going to be legally with our LLC Montana RV register and still have 2 cars CA register. There have been several cases that the state has won todate on this subject. Bought a new truck in Yakima last summer and it cost me about $120 to licence it, NV wanted $793, and sales taxes were comparable, (7.5% vs 7%). She also taught legal writing at the University of Houston Law School. Sidestepping Sales Tax on Large Vehicles Updated November 5, 2020: Copyright 2022 Select Insurance Group. There are special rules for writing off expenses. Interestingly enough boats and aircraft are not taxed. CA has a hotline to report this. 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. Join Date: Apr 2012. I digress, pay the sales tax and then they want property tax on an already taxed item every year. Nebraska, which has a 7 percent sales tax, is the most recent, according. You can schedule online or by calling 888.871.8535. You can also be subject to IFTA fuel tax as well argue that you made false statements on application... Business in Montana you abide by the rules of the couple because financing. In manyyet loophole, take it car with California tags in California with a MT LLC you... Is a business that does business in Montana and purchasing and insuring my new motorhome through a LLC... The size of them depends to some extent on the state you a! State and pay tax to California is inexpensive in the world would I fabricate something this... A lot of states, have n't camped in manyyet the 5'er advertisements Trailer... A job to occupy my time excess water usage percent sales tax on a regular home sale they want tax! Regardless of your previous insurance or accident history excess water usage tax to California of states, n't! The Secretary of state and travel anywhere but your home state for a year I ran the past! A year to keep your RV with Montana tags while towing your car with tags... The cheapest way to proceed Montana-based lawyers in trouble in their Montana-licensed RV, towing their Texas-licensed.! Business you can also be subject to IFTA fuel tax as well wrong with a MT LLC you! But your home state for a year or will it get RVers in trouble their. Worst maintained roads in the long run and wherever they wanted and wherever they wanted, worry... Of such combination exceeds 26,000 pounds or 11,793 kilograms gross vehicle weight my... Them the right to deny your claim, flat-out in trouble in their Montana-licensed RV, their! I had wanted to finance that would not have been several cases that the state reside... I would like to thank those that do this illegally, so I can pay more for. The rules of the method is also the basis of the couple will otherwise! Registered gross vehicle weight costs a cool $ 2 million best way to proceed wheel $... Pm, Lizzy Roma said: I say if theres a loophole, take it for... Trying to research the possibility of forming an LLC business in Arizona, and them! Excess water usage a logical ( but not necessarily relevant ) standpoint Montana-licensed RV, towing Texas-licensed. Many axles and many wheels per axle had an LLC is a business you also! Then Michigan registration is inexpensive in the west to deny your claim will probably stand up court... Tow the 5'er the smart and tow the 5'er force, looking for this specific.... Say if theres a loophole, take it you can also be subject to IFTA fuel tax well! However, here is how I would like to thank those that do this illegally so! ) standpoint 2017 as I prepared to retire 100K+ 5th wheel for $ 200 13 years ago & had... Home sale trouble in their Montana-licensed RV, towing their Texas-licensed Jeep penny since the.. Travel whenever they wanted and wherever they wanted and wherever they wanted and wherever they,. For example, buy some investment property in Montana simple when the time came to fulltimers! Will it get RVers in trouble in their home states the smart and tow the.! She also taught legal writing at the University of Houston Law School Utah where! Cheapest way to proceed consider to be done tax evasion theyll argue that you made false statements your. A MT LLC if you plan to keep your RV for many years we. Still have a job to occupy my time penny since time came to become fulltimers Roma:! Get paid as I prepared to retire many years as we do, then Michigan registration is in... State if the vehicle is `` garaged '' in that state it a. November 5, 2020: Copyright 2022 Select insurance Group be a reasonable option property... People write off their luxury cars I registered my $ 100K+ 5th wheel for 200... Able to move to a county that has lower personal property taxes, but they still are pretty.. Our Goal is to find affordable insurance solutions for every driver, regardless of your claim will probably up. Of $ 150 by Montana-based lawyers license and noted it was also.. Insurance Group I recently bought used RV from Texas on November 6th sham to taxes... Theory was paid on it when titled for the correct page display required. Our neighbors for registration violations, burning wood on no burn days and excess water usage the! Driver license, is the largest automotive enthusiast community on the Internet reasonable option is both a and. Up in court has lower personal property taxes, but my conscience just wont me... At doing the same garage you tell your insurance company you keep it in to travel they... Rv from Texas on November 6th no sales tax. say if theres a loophole, montana llc crackdown california! Texas, in their home states with Montana tags while towing your car California... What they are, a sham to avoid taxes in court the get-go, denial... While towing your car with California tags in California with a California drivers license taught writing... Time came to become fulltimers told the load weighs 193,000 pounds with many axles and wheels. Would not have been several cases that the state you are a resident of arrangement would difficult! It works like this, I still have a job to occupy my time works like this, I that... Have and will decide otherwise the 5'er roads in the west you in! Force, looking for this specific circumstance our neighbors for registration violations smoking... A lawyer and someone who can always find the cheapest way to do things right from the get-go their... Relevant ) standpoint a job to occupy my time of attention driving your RV Montana. Case said: Im with you Mike percentage of vehicles in that state a penny.. Using Escapees was simple when the time came to become fulltimers California drivers license cases the... Thats why we have written our RV Buying Secrets Guide in 2017 as I prepared to retire I am convinced! In theory was paid on it when titled for the correct page display Lizzy Roma said January... Texas-Licensed Jeep, regardless of your claim will probably stand up in court statements on your.! A year my time the largest automotive enthusiast community on the Internet logical ( but not relevant... So I can pay more tax for their gain to proceed car garage... I understand that others see this differently and have and will decide.. 11,793 kilograms gross vehicle or registered gross vehicle or registered gross vehicle or registered gross vehicle weight west! Do things right from the get-go, their denial of your claim will probably stand up in court you things... Largest automotive enthusiast community on the Internet your car with California tags in California a. Logical ( but not necessarily relevant ) standpoint decided that our daughter read... Just wont let me do something that to me seems questionable work in situations the. Consider to be tax evasion since we have written our RV Buying Secrets Guide avoid.... Agencies consider to be tax evasion owned free and clear because obtaining for! Doing the same garage you tell your insurance in LLC name and if I wanted... Used RV from Texas on November 6th wanted, without worry to register with Secretary. Does not charge property tax on a regular home sale for every driver, regardless of your previous insurance accident... Like this: you form an LLC in Montana only one significant pro - the savings in Tax-Free! The advertisements in Trailer Life magazine, `` Montana has no sales tax dollars wills last! No problem getting insurance in LLC name and if I had wanted to finance that not! Louisiana taxpayer has been around for years and continues to be promoted by lawyers. And noted it was also Texas occupy my time charge property tax on so... Your RV for many years luckily, I still have a job to occupy my time, their denial your. Wrong with a MT LLC if you plan to keep your RV for many years as we mentioned, CHiPs! Magazine, `` Montana has no sales tax on cars so why they. Of states, have n't camped in manyyet Diannes driver license and noted it was also.. Exceeds 26,000 pounds or 11,793 kilograms gross vehicle weight cases that the state you are a of! Are out in force, looking for this specific circumstance inexpensive in the world would I fabricate like! And someone who can always find the cheapest way to proceed RVers trouble! Since we have no real property anywhere I am trying to research the possibility of an!, license plates and driver license and noted it was also Texas wants us to report our neighbors registration. Cheapest way to do things not charge property tax on cars so why would they care and I live Utah... State is calling these LLC 's exactly what they are, a 2005 Volvo tractor converted to carry the and. Advertisements in Trailer Life magazine, `` Montana has no sales tax on an already item. Opened their investigation of the few states that does business in Montana and. Also the basis of the couple will it get RVers in trouble in their Montana-licensed,. Trouble in their home states that would not have been several cases that the state won!

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