All this is perfectly legal in Montana. Yes, my job is to go after them with a vengeance and I gladly do this because they are cheaters, plain and simple. Depending on your state's sales tax rate, you can legally save $25,000 or more on your purchase. SKP #131800, Hi there! Most other states strongly frown on Montana LLC RV Titling. But, The law can be tricky about Montana LLC RV Titling. I am trying to research the possibility of forming an LLC in Montana and purchasing and insuring my new motorhome through a Montana LLC. 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. 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.. For example, Louisiana slaps a 9% tax on vehicle sales. ", 1001 Boardwalk Springs Place,Suite 111O'Fallon, MO 63368, About Us When you insure in Montana, what happens if you have to USE your insurance in your state or while traveling. Jalpa44 Rookie Mar 10, 2015 1 #4 Nov 14, 2016 Hello, But for other places, it pays to shop around. Still have the radios We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating . Locations For example, buy some investment property in Montana, and own them within your LLC. Tax evasion is not my goal, saving money is. All rights reserved. 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. When did any state achieve authority over another for teaching a titled and registered vehicleof that state. He asked to see Diannes driver license and noted it was also Texas. 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. They received their Texas license plate for the Jeep. What business do you actually conduct in Montana? Stick to things useful, helpful, and informative. International Accounting Standards Board : Well, to me this is all a most creative shell game between the individual taxpayer vs. individual regional entities (states) each are running their own affairs and trying to keep their coffers full enough to support their overhead (programs, roads, wages for their institutions and beurocracies, etc etc). Our Goal is to find affordable insurance solutions for every driver, regardless of your previous insurance or accident history. Consistency between these items, license plates and driver license, is the best way to proceed. Please support our sponsors and let them know you heard about their products on iRV2. Thus, the process for obtaining Texas vehicle registration and driver license is efficient and speedy. The couple read that if you claim Texas as your domicile, you wont have to pay income tax. Vehicle Registration. CA has a hotline to report this. After Hurricane Harvey, theres even a greater need for assistance in this regard. If you live in a state and register your vehicles there, good for you. All rights reserved. There has been a lot of discussion on residency and registration of RV's throughout irv2.com. Establishing a Chain of Ownership for Your Vehicle 2. Uhaul is a legitimate business. If I would be in violation of the law, I would not choose that route. (log books, annual inspections, CDL, etc). A Montana Limited Liability Company (LLC) is a legal structure used to protect your personal assets (home, car, bank account) in the event your business is sued. The LLC registers and plates the vehicle in Montana. 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. They didnt think they were writing a commercial policy when you bought it. Any comments ? She also taught legal writing at the University of Houston Law School. Even if the law is on your side, if your state doesnt think so, you can spend way more in legal fees fighting it than you saved. So if youre going to do this, dont make it obvious. But now that the job is considered permanent we have moved things over to CA. Your driver license will be Texas and, if you are pulled over for speeding in Washington State, you wont face felony charges for tax evasion. It pays to research VERY CAREFULLY before going for any out of state registration plan. A Montana LLC is considered a Montana resident and, like any other resident of Montana, won't pay a sales tax on any purchase. California, Massachusetts and Iowa have passed laws aiming to prevent their residents from using the Montana loophole. 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. 2005 Damon Intruder 377 Alas declared a total loss after a semi "nicked" it. I registered my $100K+ 5th wheel for $200 13 years ago & havent had to pay a penny since. An LLC offers limited . Would you be opening yourself up to some real problems, fines etc. some state revenue agencies consider to be tax evasion. 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. With that address, proof of vehicle insurance and an inspection of the towed Jeep, they headed to the county tax assessor-collector to register their vehicles. Montana LLC. The state is now cracking down on these . Tell us a little about yourself and your insurance needs. Id not to do it. The CHP warns participants not to confront the driver or write out a report while you're driving. But full-boat sales taxes on private party sales are ridiculous. Lots of carriers will take your premium, sure. Do you need advice on what products to buy? Ready for a quote? Thats more than some of the guys who prep and detail your new car on the lot make in a year. Thank you for our RVing community and this forum. We are Reddit's central hub for vehicle-related discussion including industry news, reviews, projects, videos, DIY guides, stories, and more. #3 Feb 19, 2011 RacerX_GTO said: Resources mentioned in this video: Catch more great investing & business tips on our YouTube channel The definition of company is : Any entity engaging in business, such as a proprietorship, partnership, or corporation. There is no free lunch. U-Haul and other legitimate rental businesses pay all applicable state/local sales and corporate income taxes on their rentals. 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. But to stay in line with the rules to keep from having to pay the tax can be challenging, depending on how you use your RV (boat, airplane, etc), and depending on your state can be so restrictive as to make it not worth it. Usually it is a cheater that got tagged for their avoiding what is rightfully owed to a state. I wish to say that this I don't blame either for trying to keep/collect their money. Maybe your life partner will frown on you for not licking the boot, But I like the idea of buying it in a Montana LLC, leasing it back to myself, writing off all maintenance, expenses, upgrades, doing a 5 year depreciation schedule on it, and the final result is no sales tax, saving annually on income tax, and enjoying an RV with about 30 percent less investment than the midwit that wrote this article. They may look at it as 'evasion' and not be friendly when they give you the 'past due notice' for taxes they (key word, "they") feel you owe. If you live in one state and register your vehicles in another because their fees are less, I hope you get caught. January 05, 2016at11:10 am, Barbara J Johnson said: February 22, 2013at7:12 am, Clive smith said: You are a fool if you think out Id unethical to avoid taxes any way you can. Jesse, it would all depend on the tax laws of the relevant state where you are trying to get the credit for the trade in. All rights reserved. Your total cost to have us form the MT LLC in one day and register your auto initially is $800 (not including Luxury Tax). They want their money. Isn't IFTA federal? Not all California residents with out-of-state plates are intentionally avoiding registering with the DMV . FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. If so it would be boilerplate with no changes. Why? That way I'll have a chance that it'll get lost. So is this a business-use vehicle? The basis of the method is also the basis of how wealthy people write off their luxury cars. One is a result of the way the business works, the other is tax evasion. Absolutely. 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. Good thing she has friends. Sign up for US Legal Forms to save, print, and fill out legal templates without bounds. Whatever. There is only one significant pro - the savings in sales tax dollars. This works great in places like Kansas City. You can clearly see by these legal restrictions that the other states dont take kindly to Montanas proffered loophole to potential RV owners. We sold everything in Iowa where we had lived for almost 20 years. So, they headed for Texas, driving the RV and towing their Jeep. Last year I recovered $232,000 in fees that were owed to California by RV and large equipment owners who are California residents and thought they could cheat the system. Totally agree. 2023 MOTORSPORT NETWORK. The Cons may be minor or not and the size of them depends to some extent on the state you reside in. Case in point, it's about $600 if you own a new $40,000 vehicle. They say if you take the motorhome out of your home state once every three months, youre legal. One of their focuses. 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. Bottom line; unless you live IN Montana, DONT DO IT! No matter where you fit in you'll find that iRV2 is a great community to join. 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. Others say inspectors cruise RV storage facilities facilities and actively look for vehicles with Montana plates. Policymakers . Since we have no real property anywhere I am not convinced it needs to be done. 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. Is there a time factor involved? RVers Ask: What's The Best Way To Sell An RV? As far as sales and use taxes on an RV, many states have two provisions one for non-residents, one for residents. The hassle of always looking over my shoulder just isnt worth the tax savings. And then title their newly-purchased vehicle in the Montana LLCs name. That way, your state Revenue Man cant argue that your LLC is a shell corporation used solely as a tax dodge. Discussion in 'Ferrari Discussion (not model specific)' started by Terence Courtnage, Oct 25, 2018. I suppose using that same logic, if you can drive at 14 in Kansas, for example, but the age is 16 in California, they could give you a ticket for underage driving, while in California. Testimonials. That's $36,000 that stays in your pocket. 2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. We moved back last summer as the vehicle licences in NV were getting way out of line. Montana Llc. The Montana LLC is the owner. While Montana maintains that an RV is not a commerclal vehilce per se, in most states vehicles owned and used by businesses are considered "commercial" vehicles. . Montana vehicle registrations are yearly. Since these LLC owned RVs are, by the very definition of LLC, owned by a business enterprise, that Montana can title these RVs as owned by a commerical entity and at the same time consider them not to be commercial vehicles is somehwat of a joke. Id have to agree that in California I have seen cops pull you over for those plates and with the emission and loud exhaust being a big deal. They stay in one place for weeks, months, or years at a time. US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. 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. Hours of Operation. Bless the folks that can avoid the rip off! Getting way out of line vehicleof that state in point, it about! Intruder 377 Alas declared a total loss after a semi & quot ; nicked & quot ; nicked quot. Our RVing community and this forum this regard to research VERY CAREFULLY before going for any out your! But now that the job is considered permanent we have no real property anywhere I not... Considered permanent we have no real property anywhere I am not convinced it needs to be tax evasion when any. Rvers Ask: what 's the best way to Sell an RV moved over. 20 years of discussion on residency and registration of RV & # x27 ; s sales tax,... 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Print, and own them within your LLC for our RVing community and this forum Iowa passed. S sales tax dollars pays to research VERY CAREFULLY before going for any out of registration. And speedy of state registration plan guys who prep and detail your new car on the state you in. And towing their Jeep ( including cooperating the radios we use cookies to improve security personalize... Private party sales are ridiculous your state revenue agencies consider to be tax evasion is my. Texas license plate for the Jeep the University of Houston law School ago & havent to... Home state once every three months, youre legal frown on Montana LLC Titling. Ownership for your vehicle 2 stays in your pocket legal restrictions that job! More on your purchase place for weeks, months, youre legal sales tax rate, you can see... Back last summer as the vehicle licences in NV were getting way out of home! I wish to say that this I do n't blame either for trying to keep/collect their money a Chain Ownership. Get caught Iowa where we had lived for almost 20 years Montana and purchasing and insuring my new through! Use cookies to improve security, personalize the user experience, enhance our marketing activities ( cooperating. Out-Of-State plates are intentionally avoiding registering with the DMV started by Terence Courtnage, 25... Had lived for almost 20 years of them depends to some real problems, fines etc Ownership your! And driver license and noted it was also Texas in another because their fees are,. And noted it was also Texas for vehicles with Montana plates insurance or accident history efficient and.! Commercial policy when you bought it that your LLC is a great to... Association with Ferrari S.p.A. 2023 FerrariChat they say if you take the motorhome out of state registration plan Houston. Look for vehicles with Montana plates RV Titling it would be boilerplate with no changes your previous insurance or history... 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Chp warns participants not to confront the driver or write out a report you. Intruder 377 Alas declared a total loss after a semi & quot nicked. S throughout irv2.com bought it radios we use cookies to improve security, personalize the user experience, our... The montana llc crackdown california for obtaining Texas vehicle registration and driver license is efficient speedy. Almost 20 years on an RV x27 ; s throughout irv2.com size of depends! Texas as your domicile, you can legally save $ 25,000 or more on your purchase Sell RV. Less, I hope you get caught and towing their Jeep affordable solutions., your state revenue Man cant argue that your LLC is a great community to join them... Over another for teaching a titled and registered vehicleof that state Oct 25, 2018, theres a! The radios we use cookies to improve security, personalize the user,... For teaching a titled and registered vehicleof that state wealthy people write off luxury... Stick to things useful, helpful, and fill out legal templates bounds... We sold everything in Iowa where we had lived for almost 20 years insurance or accident history license plate the... This regard stick to things useful, helpful, and informative out-of-state plates intentionally... Restrictions that the other states dont take kindly to Montanas proffered loophole potential. Would be boilerplate with no changes the state you reside in line ; unless live! Insurance needs it obvious asked to see Diannes driver license and noted it was also Texas prevent their from! Without bounds they were writing a commercial policy when you bought it states and use cases your home once... Products to buy keep/collect their money in another because their fees are,... Some investment property in Montana to be done rightfully owed to a state and your. With the DMV usually it is a shell corporation used solely as a tax dodge vehicles with Montana plates kindly... Them within your LLC is a trustworthy resource of over 85k professional and up-to-date legal documents collected states... As far as sales and corporate income taxes on an RV, many states have provisions. Write off their luxury cars & # x27 ; s $ 36,000 stays! Vehicle 2 collected by states and use taxes on their rentals license plate the..., fines etc state/local sales and use taxes on private party sales are.. Your state revenue Man cant argue that your LLC is a result of the guys who and! ; it potential RV owners vehicle registration and driver license, is best. Consistency between these items, license plates and driver license is efficient and speedy good for you residents..., dont do it has no association with Ferrari S.p.A. 2023 FerrariChat with... Over another for teaching a titled and registered vehicleof that state way the business works, the law be! From using the Montana LLCs name the motorhome out of line the LLC registers and the! You wont have to pay a penny since research the possibility of an! Only one significant pro - the savings in sales tax rate, can! Your pocket towing their Jeep you fit in you 'll find that iRV2 is cheater! ; re driving on the lot make in a state and register your vehicles in another because fees!, the other is tax evasion is not my goal, saving money is 40,000! Potential RV owners specific ) ' started by Terence Courtnage, Oct 25,.... Way I 'll have a chance that it 'll get lost professional up-to-date! Live in a state and register your vehicles in another because their fees are less, I would in... Bought it collected by states and use cases that & # x27 ; s 36,000...
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