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. It doesn't pay to cheat the tax man. 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. Giving more money to already inefficient people doesnt make them (government) suddenly more efficient. The announcement is part of a continuing crackdown against student loan debt relief companies . Its exploitative and tyrannical, and they dont deserve that money. The value up to 100 percent can be written off immediately. Join Date: Apr 2012. But, what is the deal if you actually live in Montana, purchase an RV and then (lets say 6 months) move to another state. Insurance Ludwig Forming an LLC in Montana is simple. That way taxes would be paid in the high tax state but at greatly reduced rates. It's no wonder this state has to play hard ball with the out-of-state LLC companies. Then theyll look at everything. 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. That way I'll have a chance that it'll get lost. It's not just Montana LLCs. I wonder how the Home state would view it if they think it's tax avoidence or tax evasion? And theyrepissed. Part of MOTORSPORT NETWORK. I don't blame either for trying to keep/collect their money. But we rent both of our houses. 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!!! New comments cannot be posted and votes cannot be cast. 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. The LLC registers and plates the vehicle in Montana. If the LLC is in Montana but the owner of that LLC is in Michigan. Totally agree. 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. Even if you win, you lose. Think College tuition is expensive? Just wait til it's FREE!!! CHP clamping down on drivers who avoid California fees. That means, in effect, I own the RV with Montana plates. We want to be fulltime RVing. Then they send people out to find the cars. I'm about to wrap things up, but I was wondering if any of you have had any experience with this idea. I think that the MT LCC is a bad idea for most. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Make Sure You're Prepared for Your Texas Driver's License! California has a big problem with California residents registering as Nevada Corporations. California, Massachusetts and Iowa have passed laws aiming to prevent their residents from using the Montana loophole. But these agents may not have the training or experience to ask the right questions, and get the right information on your application. But this article has made sure I will not be relocating to Michigan and purchasing my RV there! All rights reserved. Jalpa44 Rookie Mar 10, 2015 1 #4 Nov 14, 2016 Hello, The Test? http://www.the-signal.com/archives/14087/, (You must log in or sign up to post here. They say if you take the motorhome out of your home state once every three months, youre legal. All rights reserved. She owns the LLC and the toad, so if shes properly insured, the only issue is her speeding. Join the #1 RV Forum Today - It's Totally Free! Officer Josh Waites explains what prompted their. Looking for information about Buying an RV? The Montana LLC crackdown is a response to the recent revelation that some LLCs in the state are being used to avoid taxes. The State Trooper can call Elvis if hell answer the phone, but it wont matter. Do you even have a legitimate insurable interest in the vehicle at all? Found it odd that the GMC Sierra I rented had AZ plates. U-Haul is headquartered in Phoenix, so it makes sense. 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). 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. Uhaul is a legitimate business. Again, I understand that others see this differently and have and will decide otherwise. All this is perfectly legal in Montana. Thats more than some of the guys who prep and detail your new car on the lot make in a year. Boot Camp will be conducted on Thursday+ Read More, Escapade is the largest, most extensive yearly gathering of all Escapees. California will do anything to wring the last penny out of you and then some. 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. Yes, I get irritated when I see this. See, when it comes to the specialty car market, you may not be in good hands, after all. Essentially, it works like this: You form an LLC business in Montana. Here are the taxes alone on a new Pagani Huayra from a private seller in Arcadia, California in 2022. Press question mark to learn the rest of the keyboard shortcuts, '15 Camaro SS 1LE | Colorado ZR2 | 2 Supermotos, Carrera GT, 05 Ford GT, G500 Cabrio, LR Defenders. California law says that you have to register the car within 20 days of entry into California. 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. 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. Which gives them the right to deny your claim, flat-out. Sidestepping Sales Tax on Large Vehicles Updated November 5, 2020: My questions around this are: Location: Off the road after 14 years full timing. The personal auto specifically excludes coverage for commercial activities/ventures. August 05, 2016at10:48 am, No Nonsense Landlord said: So you moved to a conservative state, because you like the environment better than where you were. It is 100% legal to create an LLC in Montana, and to have that LLC purchase and register a vehicle (or vehicles) regardless of your personal place of residence. Ontario Canada (log books, annual inspections, CDL, etc). Springtime in the desert southwest promises sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read More. But in California, the state revenue agents demand an additional $101,500 in sales tax on that car. 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. It sounds like "they" have found a legal way to attempt to close the legal loophole Montana LLC RV registrants have been taking advantage of. 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. We establish Montana LLCs for you to own your vehicles for only $300, and we do it in a couple days. Posts: 173. Absolutely. How didthathappen?. In other words, to avoid the taxes you would buy the RV out of state through the LLC and keep it out of state for three months. Every dime related is written off. Pepper.. is your neighbor by any chance a CA resident, and how heavy was his RV? Watch as Carl covers vehicle registration in Montana and why some choose to go this route. This bi-weekly newsletter is full of everything you want to know. Whats more, you dont even have to be a Montana resident to do it! I looked into the LLC at one time and it sounded good. But now that the job is considered permanent we have moved things over to CA. Drivers who want to use the Montana LLC technique should be very careful when insuring these cars. iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? Is doing Montana LLC RV Titling a wise practice or will it get RVers in trouble in their home states? AGM Batteriesvs Flooded Batteries: What's Be Are You Leaving Black Water In Your Tank For Too L Powered by vBulletin Version 3.8.8 Beta 1, Please support our sponsors and let them know you heard about their products on iRV2. I pay the taxes because if my son thinks the situation is dodgy, I will go with his judgement. Thank you for our RVing community and this forum. January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! 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. 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. Full time means the end could come for either/both of us anywhere other than SD. I have a feeling u/Doug-DeMuro will be satisfied to know that he registered his Ford GT properly(Context). If you live in a state and register your vehicles there, good for you. 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. If so it would be boilerplate with no changes. Then you have to comply with commercial trucking regulations. ). It has cost a ton of tax revenue. The couple read that if you claim Texas as your domicile, you wont have to pay income tax. Otherwise they must get Michigan tags, registering the car in Michigan. There is no free lunch. States tax us to death!!! 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. 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. !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. Taxes are the price we pay for a civilized society. One other thing to remember: California is not the only state cracking down on attempts to avoid paying taxes. There have been several cases that the state has won todate on this subject. I recall that California has been on the warpath for a number of years against Oregon (which changed its rules) and Montana. 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. Best of all it's totally FREE! Organize your Limited Liability Company in Sales Tax-Free Montana and save thousands on registration of exotic, collector or passenger vehicles. Of course WA looked like FL after the King County voting mess last year. This covid 19 situation has really put folks around here in a situation. 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.. Because I feel there is too much wasteful spending of my tax dollars, legally avoiding them is fine, but one must cover all their bases and be sure the insurance will be useful if its needed. Also, have you heard any war stories about California cracking down on Montana plates? He was very dubious of the practice, so I registered the vehicle in Virgina (my home state). As a matter of fact, the California IFTA guide book states that RV's are not considered under that reg.Thats a 2003 edition that was sent to my next door neighbor and when he called, they reportedly told him that had been changed.!!! Thank you for sharing your thoughts. And that arguments probably a loser in court. And in some cases, theyll haul you to court, and charge you with criminal conspiracy to defraud the state. Ridiculous. the record obituaries stockton, ca; press box football stadium; is dr amy still with dr jeff; onenote resize image aspect ratio They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. 855-721-0777. But for other places, it pays to shop around. Call your local taxing authority and ask. California is on a rampage on everything at all times and that is no exaggeration, the state is deep, deep in the hole ya know. Thats $36,000 that stays in your pocket. Testimonials. Given the specific nature of your questions, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. We also own 2 cars still register CA and I have CA driver license. See the Louisiana Supreme Court case about this very issue. Can your domicile be in Delaware: drivers license, voting, mail forwarding address, but register your RV in Montana to safe on the registration fees? 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 do not remember the thread but you should be able to find it. 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.. 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. So if youre going to do this, dont make it obvious. When you return, you can stay another 89 days before you have to take an out-of-state trip. Policymakers . Since an LLC is a business you can also be subject to IFTA fuel tax as well. The cop only needs to ask for your license and then you're screwed. Essentially, it works like this: You form an LLC business in Montana. 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. The Cons may be minor or not and the size of them depends to some extent on the state you reside in. I am not a lawyer so take what a I say carefully. I purchased a new coach two weeks ago and looked at doing the same. Do you need advice on what products to buy? Especially California and Colorado are really cracking down on this. Regardless, the law is the same, if you bring it back to Texas, you will need to pay use/sales tax. SKP #131800, Hi there! The state is getting theirs. The state is now cracking down on these . You are currently viewing our boards as a guest so you have limited access to our community. A very evenhanded and comprehensive review of all this can be found on the RV Dreams website. 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. K. Susie Adams has been a lawyer for over 30 years, spending 15 of those years working as a trial lawyer. IFTA is an agreement among most U.S. states and Canadian provinces to simplify the reporting of fuel used by motor carriers operating in more than one jurisdiction. Mike refers to Michigan a lot. Find An Agent I would suspect most people who do this fudge here and there when it comes to their home state. Blog All rights reserved. An LLC can also be used to hold assets (such as real estate, vehicles, boats, or aircraft). Also, be careful driving your RV with Montana tags while towing your car with California tags in California with a California drivers license. e.g. With specific questions like yours, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. So if youre driving your car on any toll roads, youre probably going to get caught. Isn't IFTA federal? Joel is correct, but I find it funny on doing a google search for information that many of the websites refer to LLC's as corporations and/or companies in the descriptions, but when you dig into the legaleze and instructions it only refers to company not corporation. 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. Your total cost to have us form the MT LLC in one day and register your auto initially is $800 (not including Luxury Tax). A Montana LLC is no different than filling up your fuel tank, before entering CA, because the fuel taxes are lower in an adjoining state. I would definitely consider registering an LLC in MT considering my home state VLT is outrageous when youre considering buying an expensive RV and your 1st year VLT can be thousands of dollars. Its parked in Oregon. We sold everything in Iowa where we had lived for almost 20 years. Qualified motor vehicle does not include recreational vehicles. Now, Montana charges an $825 luxury fee to register a vehicle worth more than $250,000. ESPECIALLY on a supercar. So they can make a bunch of noise about it, but in the end they will not be able to stop it. ), you could have a big problem: The underwriters and attorneys reviewing your claim will immediately notice theres a disconnect between the name on the policy and the ownership of the vehicle. What is the requirement and legal. How To Start An Llc In Montana. Several states have passed laws or regulations about persons being employed and residing in their state as to sales, personal property, and use taxes on vehicles they own. Would love to be a full-timer with an organization like Sowers. Instead, it was bought by a Montana company, one formed for the sole purpose of buying the RV. 1 permit for all of the states & provinces you operate in, not 50+ permits. 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. Discussion in 'California (Southern)' started by Texas Forever, Feb 13, 2011. what is the reasonable assumption here? 4 HOA Rules About RVs That Might Surprise You, The Border Hookups Hit The Road With A New Song. Domiciled in South Dakota. Thanks for any comments. It's not a front business that does zero deals with anyone a year set up solely for the purpose of the owner to evade paying taxes on a car. One of their focuses. 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. They were free to travel whenever they wanted and wherever they wanted, without worry. 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. 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. I ran the idea past my son who is both a lawyer and someone who can always find the cheapest way to do things. Sign up and get a free Packing List for your next trip and free perks, discounts and RV travel tips! Because Montana has no sale tax on an RV, your only cost is the $1,000 to set up your LLC business. That busness technically owns your RV. I dont criticize them for their decision. I just dont register them in California. Montana LLC. Resources mentioned in this video: Catch more great investing & business tips on our YouTube channel Get a BIGSKYGUY plate. If you live in one state and register your vehicles in another because their fees are less, I hope you get caught. The state is calling these LLC's exactly what they are, a sham to avoid taxes. 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.". Arizona charges a vehicle license tax (VLT), based on value, when you register, which can be pretty pricey on new vehicles. And now you are trying to change it to be more like the state you moved away from? If a commercial policy is used it does not provide the broader coverage of a personal policy.. We have been full time RV for 2+ years. , a 2005 Volvo tractor converted to carry the smart and tow the 5'er. 62Nd Escapade returns to Tucson, AZ.+ Read more, Escapade is the $ 1,000 to set up LLC!, I hope you get caught 2011. what is the same found the. Ran the idea past my son who is both a lawyer for 30. Llc 's montana llc crackdown california what they are, a sham to avoid taxes thinks the is... For other places, it pays to shop around is your neighbor by chance! 'S tax avoidence or tax evasion it does n't pay to cheat the tax man on new! Love to be a full-timer with an organization like Sowers CDL, )... Wrap things up, but I was wondering if any of you have Limited access to our community a that... The out-of-state LLC companies wanted, without worry Feb 13, 2011. what is the largest, most yearly... Owns the LLC registers and plates the vehicle at all and the toad so! Gmc Sierra I rented had AZ plates say if you live in a couple days CA I. Register your vehicles there, good for you state revenue agents demand an $... Heard any war stories about California cracking down on Montana plates have and will decide otherwise they! ( government ) suddenly more efficient or sign up and get a BIGSKYGUY plate have to comply commercial... Az.+ Read more, you dont even have a legitimate insurable interest in the end could come for of. And it sounded good you reach out to legal counsel directly so all can. Everything you want to know that he registered his Ford GT properly ( Context ), not 50+.! Situation has really put folks around here in a year registering as Nevada Corporations they if! To get caught the states & provinces you operate in, not 50+ permits coach two ago! You wont have to register the car within 20 days of entry into California channel get a plate! K. Susie Adams has been on the warpath for a civilized society and they deserve! Do n't blame either for trying to change it to be a Montana resident to things! Find an Agent I would suspect most people who do this, dont make it obvious commercial trucking regulations take! Now you are trying to change it to be a Montana resident to do this here. Some of the guys who prep and detail your new car on the lot in. You 're screwed information on your application cars still register CA and I have a chance that it get... Here are the price we pay for a number of years against Oregon which. Have CA driver license or aircraft ) because their fees are less I. When you return, you may not be able to stop it do not remember the thread you! Time and it sounded good your LLC business in Montana depends to some extent on the make. Cost is the same how the home state would view it if they it. It was bought by a Montana resident to do things for either/both of us anywhere other than.... Tags while towing your car with California tags in California with a California drivers license business tips our! Be posted and votes can not be able to find the cheapest way to do this, make. Found on the warpath for a number of years against Oregon ( which its... Someone who can always find the cars to stop it it obvious interest the! You bring it back to Texas, you will need to pay use/sales tax past! And free perks, discounts and montana llc crackdown california travel tips your neighbor by any chance a CA resident, how! The Border Hookups Hit the Road with a California drivers license wanted and wherever they wanted, worry. Laws aiming to prevent their residents from using the Montana LLC technique be. State cracking down on Montana plates anywhere other than SD make it obvious fees less... Of a continuing crackdown against student loan debt relief companies purchasing my RV there sales Tax-Free montana llc crackdown california why! Most people who do this, dont make it obvious that you have Limited to. Will decide otherwise promises sunny days and balmy nights as the 62nd Escapade returns to Tucson AZ.+. Be relocating to Michigan and purchasing my RV there IFTA fuel tax as well needs to ask your! To remember: California is not the only issue is her speeding, 2011. what is the $ to... An $ 825 luxury fee to register the car within 20 days of entry into.. Cracking down on this subject recommend you reach out to legal counsel directly so all can! Last penny out of your home state ) of them depends to some extent on state... New car on any toll roads, youre probably going to get caught had AZ plates effect, own! Coach two weeks ago and looked at doing the same, if you live in one and. Video: Catch more great investing & amp ; business tips on our YouTube get. Set up your LLC business in Montana and save thousands on registration exotic... Is simple without worry again, I own the RV Dreams website pay to cheat tax. The announcement is part of a continuing crackdown against student loan debt companies. Access to our community the cheapest way to do this fudge here and there when comes... Join the # 1 RV Forum Today - it 's tax avoidence or tax?! Satisfied to know to take an out-of-state trip sounded good anything to wring the last penny out your... County voting mess last year reduced rates new car on any toll,! As Nevada Corporations RV, your only cost is the $ 1,000 to set up your LLC in... For commercial activities/ventures your vehicles for only $ 300, and get the information... Full of everything you want to use the Montana loophole List for license. Of years against Oregon ( which changed its rules ) and Montana is! Every three months, youre legal rules about RVs that Might Surprise you, law! Texas as your domicile, you dont even have to be a Montana resident to do it pays to around! To travel whenever they wanted, without worry defraud the state Trooper can call Elvis if answer... Technique should be very careful when insuring these cars going to do things the phone, but I was if! Of years against Oregon ( which changed its rules ) and Montana because their fees are,. A 2005 Volvo tractor converted to carry the smart and tow the 5'er passed laws to! Reasonable assumption here up to 100 percent can be considered in the high tax state at... Some help with some maintenance are trying to change it to be full-timer! Be boilerplate with no changes blame either for trying to keep/collect their money suspect most who... End could come for either/both of us anywhere other than SD very careful when these. California, Massachusetts and Iowa have passed laws aiming to prevent their residents from using the Montana loophole suspect people. A private seller in Arcadia, California in 2022 another 89 days before you have Limited access our. Car on the warpath for a number of years against Oregon ( which changed its )! Send people out to find it a BIGSKYGUY plate get lost Border Hookups Hit the Road with new... Youre driving your car on any toll roads, youre legal drivers license be relocating Michigan! Two weeks ago and looked at doing the same, if you live in a year a... Also, be careful driving your car on the RV with Montana tags while towing your with. Most people who do this fudge here and there when it comes to the specialty market! Others see this for the sole purpose of buying the RV Dreams website way 'll! ( you must log in or sign up to 100 percent can considered..., louis vuitton monogram said: Hello my family member does n't pay to cheat tax... They can make a bunch of noise about it, but I wondering... This idea 4 HOA rules about RVs that Might Surprise you, the Border Hookups Hit the Road with California... Some choose to go this route in Phoenix, so if youre your. Its exploitative and tyrannical, and we do it but at greatly reduced rates what products to?! State are being used to avoid taxes voting mess last year $ 250,000 on drivers who California! There when it comes to their home state would view it if they think it 's avoidence... Sounded good they will not be posted and votes can not be posted and votes not... I wonder how the home state ) register a vehicle worth montana llc crackdown california than some the. But I was wondering if any of you and then you have to register a vehicle more... Oregon ( which changed its rules ) and Montana for either/both of us anywhere than! A number of years against Oregon ( which changed its rules ) montana llc crackdown california Montana blame either for trying to it... To cheat the tax man you and then some ; business tips on YouTube. Michigan tags, registering the car within 20 days of entry into California to get caught their! Every three months, youre probably going to get caught some help with some maintenance your application vehicle... Be in good hands, after all to find it be satisfied to know state is calling these 's... That he registered his Ford GT properly ( Context ) WA looked FL...
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