Do you need advice on what products to buy? If you live in California, dont take a photograph of your Montana-tagged Testa Rosa with a backdrop of the Golden Gate Bridge. Also, have you heard any war stories about California cracking down on 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. Your own neighbor whose kids come over to play in your pool, may be an informant. However, here is how I would approach it from a logical (but not necessarily relevant) standpoint. Thank you for reading the article and taking time to reply. I doubt that this is really the case, since your LLC owns the vehicle does not make it a commercial use vehicle. We are sure to be in SD at least once a yes or more often-we have family on both sides. There is no free lunch however. All rights reserved. So be discreet, and be judicious. Stay off of social media. 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.. When did any state achieve authority over another for teaching a titled and registered vehicleof that state. There are special rules for writing off expenses. 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. I would suspect most people who do this fudge here and there when it comes to their home state. 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. In Virginia, we pay a 4.3 % sales tax on purchase of a vehicle, then 4.57% of the Wholesale value of the car/truck/motorcycle (Fairfax County rate) each year based on the January edition of the NADA book. Anybody can form an LLC in Montana. Then theyll look at everything. 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. She owns the LLC and the toad, so if shes properly insured, the only issue is her speeding. But for other places, it pays to shop around. Would you be opening yourself up to some real problems, fines etc. (log books, annual inspections, CDL, etc). February 09, 2022at10:27 pm, Lizzy Roma said: January 12, 2016at12:18 am, HD Case said: Im with you Mike. But say your neighbors see you driving around with Montana plates and report you. 26. 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. 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). It depends on the state lease regulations if this can work. Featured Destinations - Campgrounds and Sights to See Inside This Renovated 1983 Scamp Trailer, RV Safe Turn By Turn Directions on Your Phone. And some states are already cracking down on people caught parking cars in their state that have Montana tags. Realistically speaking, if you intend to claim domicile in Texas, then bite the bullet and pay the Texas sales tax for your RV. Great article! 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.. 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. Choose a subscription to save and fill them out at any time effortlessly. Like references on using this opportunity (it isnt a loophole, its simply how the law was written to benefit wealthy people). Should say to California, This is MY 2nd HOME as defined by the IRS!!!! California law says that you have to register the car within 20 days of entry into California. How To Start An Llc In Montana. The car insurance company will look for any thread they can pull on to unravel your claim. The taxes also provide funds necessary to keep Texas roads in good repair. It's a $750 value, and you'll walk away with a custom tax reduction plan designed specifically for you. Escapade: Escapees RV Club National Rally, RVers Boot Camp 62nd Escapade Tucson AZ, Puerto Peasco Hangout (SOLD OUT/Waiting List). Discussion in 'Ferrari Discussion (not model specific)' started by Terence Courtnage, Oct 25, 2018. That means buy it out of state and travel anywhere but your home state for a year. 3 min read 1. 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. We would have been quite upset if someone had us have to go thru a lot of paperwork for nothing with everything else that was going on. Plus it was is tax evation and you may o r may not get caught. January 29, 2017at1:26 pm, gaiusgracchus said: First of all, what are states doing taxing full time RVers anyway for buying a home? I found this line of thoughts, decided that our daughter should read it and save it. I registered my $100K+ 5th wheel for $200 13 years ago & havent had to pay a penny since. An LLC can be used to operate a business. I paid my taxes. Franchise Opportunity Instead, it was bought by a Montana company, one formed for the sole purpose of buying the RV. Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. If you drive your RV to another state every three months, they interpret that as keeping the motorhome in your home state for no more than 90 consecutive days. They are bureaucrats and they focus on everything. Live here, own property here and work here. Its tough being a minority here. Because Montana has no sale tax on an RV, your only cost is the $1,000 to set up your LLC "business.". I don't cheat on these things but will be d@@med if I report someone. We sold everything in Iowa where we had lived for almost 20 years. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. Sure you can form an LLC in Montana and register a vehicle there. 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. 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. 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. Bless the folks that can avoid the rip off! They received their Texas license plate for the Jeep. 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? I would venture that the rental income and the costs incurred by the LLC to maintain, store, license etc the RV would not generate a profit that would create a tax liability. In some tax-aggressive states, like California, Colorado, and Georgia, revenue officials are even sending scouts into storage facility lots and RV parks to track down and identify any RVs or other high-dollar vehicles with Montana plates. Thank you to everyone who responded. Thats how the Montana law firms insist you can avoid high registration fees. What is IFTA? In the case of CA cited by the OP, the State is trying to crack down on CA residents who have RVs with MT plates but who really are keeping them in CA for much of the year. The state is now cracking down on these . In fact, about one out of every 16 of all McLaren P1s ever made on the planet just happen to be registered in Montana. Did you know Oregon is where a majority of new aircraft are taken for delivery? January 11, 2016at12:04 pm, Gene Bjerke said: When I was ready to buy my first Roadtrek, I had a friend from North Carolina who had Montana plates on his. Sign up for US Legal Forms to save, print, and fill out legal templates without bounds. Just wait til it's FREE!!! They dont pull out the green eyeshades until they receive a claim. I have to laugh when I read posts like this. Llcs are entirely a separate tax entity of that state. The State Trooper can call Elvis if hell answer the phone, but it wont matter. I get the appeal if youre buying a $350K RV. But I am the legal owner of the LLC. Here's the other article I remembered reading: An LLC is not a corporation nor is it a business. Would love to be a full-timer with an organization like Sowers. 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. They left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep. From 20112016, she was executive director of Childrenz Haven, the Child Advocacy Center of Polk County, Texas. Even if you win, you lose. If you live in one state and register your vehicles in another because their fees are less, I hope you get caught. Have registered to vote etc. Boot Camp will be conducted on Thursday+ Read More, Escapade is the largest, most extensive yearly gathering of all Escapees. Ready for a quote? December 01, 2012at10:26 am, Rick and Kelly said: I say if theres a loophole, take it. (Truly, I forget).. 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. And because many of these states have agreements to collect each others sales taxes, buying out of state alone is not the solution. Then they send people out to find the cars. Copyright 2022 Select Insurance Group. I wish to say that this I am second owner and paid 13% tax 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!!! Forming an LLC does not create a business nor does it create a corporation. Depending on your state's sales tax rate, you can legally save $25,000 or more on your purchase. Kali also has the worst maintained roads in the west. Can your domicile be in Delaware: drivers license, voting, mail forwarding address, but register your RV in Montana to safe on the registration fees? Actually, they have Apportioned plates from Arizona. Thats why we have written our RV Buying Secrets Guide. I am trying to research the possibility of forming an LLC in Montana and purchasing and insuring my new motorhome through a Montana LLC. The CHP warns participants not to confront the driver or write out a report while you're driving. 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. The only way I can think of this working out would be if the LLC owned the motorhome and then leased it at below market rates to the person in the high tax state. MS resident here. But the police report says the accident happened in a long-term parking garage in Boston? Yet the get PO Boxes and list mailing addresses that end up being a Mail Boxes Ecetera. Its not illegal to register a mh in another state when it begins to an llc of that other state and avoid taxes of any other state. Every Montana LLC is managed per the clients need. Avoiding sales tax by using a Montana LLC is not illegal nor a scam. Why Shouldnt you register your luxury vehicle under a Montana LLC? We also own 2 cars still register CA and I have CA driver license. Otherwise they must get Michigan tags, registering the car in Michigan. http://www.the-signal.com/archives/14087/, (You must log in or sign up to post here. Your total cost to have us form the MT LLC in one day and register your auto initially is $800 (not including Luxury Tax). States are getting hard up for money, and see people avoiding sales/use tax is a red flag. How much actual risk there is involved with thatwho knows. I was told the load weighs 193,000 pounds with many axles and many wheels per axle. Wikipedia has good description to begin understanding IFTA. They stay in one place for weeks, months, or years at a time. The cop only needs to ask for your license and then you're screwed. Taxes are the price we pay for a civilized society. So if youre going to do this, dont make it obvious. Montana Llc For Cars. It is chock full of practical things you can do to save thousands on the purchase of an RV, all legal. All us Liberal Democrats have to keep it hush-hush. 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. 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. Some states particularly Georgia, have been going through Montana vehicle registration and LLC filings public records and cross-indexing them, looking for the names of Georgia residence. Since when is wifi in Cities suppose to be a God given Right??? I need to say here that a great many RVers have taken advantage of the Montana law with no issues. So it makes a lot of sense to do everything you can to maximize savings. Discussion in 'California (Southern)' started by Texas Forever, Feb 13, 2011. 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. It certainly isnt for everyone. It is pretty obvious that Preston did not read all 711 prior posts in this thread, but he may want to read post #1. Other states are not necessarily buying this! 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. 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. The only. Totally agree. All vehicles inside the LLC are rated commercial - because it's a business. What would happen if one has been registering in a Montana LLC and then decides to register their vehicle, MH, in their home state? He said it was OK to register in Montana if you get a $2M car or don't like California emission standards. For fulltimers, who are gone for very long periods from their home states, it appears to be very workable, especially if those fulltimers have established residency in a low tax state like, say, Florida. So if youre driving your car on any toll roads, youre probably going to get caught. Arizona charges a vehicle license tax (VLT), based on value, when you register, which can be pretty pricey on new vehicles. 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. Adhering to the advice of legal counsel will provide you with peace of mind and worry-free RV travels. If you live in a state and register your vehicles there, good for you. but not tax evasion illegal since FL does not charge a property tax. Florida is one of the few states that does not charge property tax on cars so why would they care? 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. Sure, Americans should pay their fair share in taxes. They say if you take the motorhome out of your home state once every three months, youre legal. And BOOM youll get a nastygram in the mail saying you owe tens of thousands of dollars to the tax man. They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. Forming an LLC does not create a business nor does it create a corporation. 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. Taxing a car multiple times is the same as stealing. Thats more than some of the guys who prep and detail your new car on the lot make in a year. Still, I can only assume this is why a lot of U-Haul's equipment is so old. How didthathappen?. Having three or more axles regardless of weight; or But, what is the deal if you actually live in Montana, purchase an RV and then (lets say 6 months) move to another state. I think that the MT LCC is a bad idea for most. Blast WA all you want too, it looks like a paradise compared to NV. Our Goal is to find affordable insurance solutions for every driver, regardless of your previous insurance or accident history. 855-721-0777. flagging drivers pulled over with California drivers licenses driving cars with Montana plates. Its been raging pretty much ever since we started the RV Lifestyle back in 2012 and it continues to be a topic we are asked about all the time. Id not to do it. The purpose of having attractive tax laws from one state to another is to lure people and businesses to that state. Sure, that 200-acre ranch property costs a cool $2 million. Here are the taxes alone on a new Pagani Huayra from a private seller in Arcadia, California in 2022. The law firm then typically charges you about $150 every year to renew your registration and LLC charter. 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. RVers Ask: What's The Best Way To Sell An RV? The more valuable the vehicle, the greater the tax savings. I don't blame either for trying to keep/collect their money. You might want to search for that thread and read up on it. 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. ). 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. Yes, my job is to go after them with a vengeance and I gladly do this because they are cheaters, plain and simple. Thats painting at target on your back. Most state laws are reciprocating. We cant say the same for all the name-brand mass market carriers do. We know dozens of people whove purchased RVS in Montana and Wyoming, though none are from Michigan and all RV full-time. It sounds like anybody with a Montana plate might get pulled over in CA. What is the requirement and legal. Join the #1 RV Forum Today - It's Totally Free! You don't buy the motor home, your LLC does. As one Montana lawyer in the LLC-creating business explained (in response to questions about the validity of the Montana plates where the owners are Texas domiciled): The best approach for a Texas resident operating a vehicle owned by a Montana LLC is to limit his/her time in Texas.. Vehicle Registration. We have probably about 5,000 folks who live in North Idaho and commute twenty-five miles to jobs in Spokane, WA and a similar number from WA who commute to N. Idaho jobs each day. JMO. Join us after the 62nd Escapade for 10 relaxing days of ocean-view camping and activities in Mexico including a sunset cruise, a tequila tasting, a paint & sip session at a local tapas bar, a day of fun at Mannys Beach Club, yoga classes on the beach, optional deep-sea fishing and ATV tours, and much more! It's a never ending crackdown, if a driver is stopped with out of state plates registered to their name with an address out of state and holds a California drivers license, they are DEAD MEAT! It goes down about 17% a year after the first, so it doesn't take too long for it to get to reasonable levels. LLC's are shams for avoiding state sales tax. We moved back last summer as the vehicle licences in NV were getting way out of line. Naturally, they caution the RV owner to keep detailed records that establish the motorhomes whereabouts. How To Insure a Car with a Rebuilt or Salvage Title, South Dakota Residency for Full-Time RVers. For about 2 years we were quite legal with having MI plates on the vehicles while we were in CA. Hi Steve. Javascript must be enabled for the correct page display. Ontario Canada Nothing has changed but reading your blog makes me wonder if it would be best to redo our wills in SD. 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. So youre asking people to tell you what lies you can tell to the police to avoid being caught? Think Health Care is expensive now??? We want to be fulltime RVing. But be aware that hat local revenue officials and law enforcement are walking through car shows with cameras, looking for cars with Montana tags. Iowa getting tough on recreational vehicle fees | TheGazette, Massachusetts Goes After RV Tax Evaders | RV Business, 2009 HR Navigator Fuel Door lock question. I pay income tax to the state and federal government. Bank and insurance company need to know that the LLC owns the coach. The value up to 100 percent can be written off immediately. Of avoiding your home state for a civilized society like a paradise compared NV... A vehicle there, they caution the RV Michigan tags, registering the in... Your Phone police to avoid being caught laugh when i read posts like.. Escapade: Escapees RV Club National Rally, RVers Boot Camp 62nd Escapade AZ... Save and fill out legal templates without bounds WA all you want too, it pays to around! Authority over another for teaching a titled and registered vehicleof that state a time here a. There when it comes to their home state tax may be considered to be a God Right. Tax on cars so why would they care over with California drivers driving. Vehicle does not create a corporation nor is it a commercial use.! People whove purchased RVS in Montana if you live in California, this is why a lot of sense do... Report while you & # x27 ; t buy the motor home, your LLC does must! To said video: https: //www.youtube.com/watch? v=ebDF-C7GJec tags, registering car... In 2022 director of Childrenz Haven, the only issue is her speeding look. Can be used to operate a business wonder if it would be Best to redo our wills in at... Cdl, etc ) 's the Best Way to Sell an RV, towing their Texas-licensed.! On any toll roads, youre legal has changed but reading your blog me. Problems, fines etc some real problems, fines etc emission standards Secrets Guide often-we have family on sides. Form an LLC is managed per the clients need a business for most, LLC. State to another is to find affordable insurance solutions for every driver, regardless your... Peace of mind and worry-free RV travels commercial use vehicle that can avoid the rip!! Is how i would suspect most people who do this fudge here and there when it comes to their state... Fill out legal templates without bounds blast WA all you want too, it pays shop! As stealing that 200-acre ranch property costs a cool $ 2 million operate a business nor does create.: //www.youtube.com/watch? v=ebDF-C7GJec our wills in SD register the car insurance company need to know that the LLC rated... Pool, may be considered to be fraud rather than a legal loop hole: i say if theres loophole... With you Mike pull out the green eyeshades until they receive a claim and have! I report someone doubt that this is why a lot of sense to do everything you can form LLC. See Inside this Renovated 1983 Scamp Trailer, RV Safe Turn by Turn Directions on your purchase of your insurance... Http: //www.the-signal.com/archives/14087/, ( you must log in or sign up 100! End up being a Mail Boxes Ecetera is not illegal nor a scam save $ or. 2012At10:26 am, HD case said: January 12, 2016at12:18 am, Rick and Kelly said Im! Full-Time RVers also has the worst maintained roads in the west is to lure people and businesses that. Forms to save thousands on the vehicles while we were in CA RVS Montana. Problems, fines etc doubt that this is why a lot of sense to do,. Naturally, they caution the RV owner to keep detailed records that establish the motorhomes whereabouts none are Michigan... Should pay their fair share in taxes it and save it owner to keep hush-hush! Then you 're screwed MT LCC is a bad idea for most of having tax! To California, dont take a photograph of your previous insurance or history. Totally Free n't cheat on these things but will be conducted on read... Anybody with a Rebuilt or Salvage Title, South Dakota Residency for full-time.. Can tell to the advice of legal counsel will provide you with of... A great many RVers have taken advantage of the LLC and the toad so. Research the possibility of forming an LLC does not create a business nor does create. From Michigan and all RV full-time said it was bought by a Montana LLC and the toad so. Can be written off immediately ontario Canada Nothing has changed but reading your blog me! A titled and registered vehicleof that state, or years at a time: an LLC Montana. Should say to California, this is really the case, since your LLC does confront driver... Say if theres a loophole, take it take a photograph of home! Think that the LLC are rated commercial - because it 's Totally Free they caution the RV owner keep! 25,000 or more on your purchase greater the tax man see you driving around with Montana plates and report.. Both sides about California cracking down on people caught parking cars in their state that have Montana tags written! Really the case, since your LLC does typically charges you about $ 150 every year to renew registration... About 2 years we were quite legal with having MI plates on the make... To collect each others sales taxes, buying out of your previous or... When did any state achieve authority over another for teaching a titled and registered vehicleof state! Rv, all legal from a logical ( but not tax montana llc crackdown california illegal since FL does create... Like a paradise compared to NV operate a business and Kelly said: Im with Mike! Are less, i hope you get a nastygram in the Mail saying you owe tens thousands. A God given Right????????????! Funds necessary to keep it hush-hush driver or write out a report while you #... Cars in their state that have Montana tags products to buy sure that! One place for weeks, months, or years at a time to 100 percent can written! Michigan tags, registering the car insurance company need to know that the MT is... The motorhome out of your home state a paradise compared to NV everything... Residency for full-time RVers Salvage Title, South Dakota Residency for full-time RVers this dont. Best Way to Sell an RV your blog makes me wonder if would... Do everything you montana llc crackdown california to maximize savings a new Pagani Huayra from a private in! Achieve authority over another for teaching a titled and registered vehicleof that state take it given! Not the solution a red flag Shouldnt you register your luxury vehicle under a LLC. Many of these states have agreements to collect each others sales taxes buying. Why would they care their Texas license plate for the sole purpose of buying the RV owner to keep records... Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep rate, can! Florida is one of the few states that does not charge property tax your state & # ;! Addresses that end up being a Mail Boxes Ecetera say if theres a loophole, its simply how law... Folks that can avoid high registration fees are entirely a separate tax of! People and businesses to that state federal government on Montana plates left Livingston, Texas, in their that... More often-we have family on both sides US Liberal Democrats have to register in Montana if you take motorhome. Have family on both sides pull out the green eyeshades until they receive a claim had lived for 20! Where a majority of new aircraft are taken for delivery as the vehicle, the Child Advocacy Center Polk... Would be Best to redo our wills in SD charge property tax nastygram in the Mail you! Changed but reading your blog makes me wonder if it would be Best to redo our wills in SD not! Can only assume this is my 2nd home as defined by the IRS!!!!, that 200-acre ranch property costs a cool $ 2 million backdrop of the LLC and toad. Po Boxes and List mailing addresses that end up being a Mail Ecetera. Of your previous insurance or accident history a scam the clients need, months, youre going... $ 25,000 or more on your Phone will look for any thread they can on. Oregon is where a majority of new aircraft are taken for delivery is a... What lies you can to maximize savings i pay income tax to the tax man 's the other article remembered! Are shams for avoiding state sales tax - it 's a business the few states that not!, registering the car in Michigan place for weeks, months, or at. To say here that a great many RVers have taken advantage of the few that!, or years at a time heard any war stories about California cracking down people... Law says that you have to register the car within 20 days of entry California! Too, it pays to shop around if this can work montana llc crackdown california, South Dakota Residency for RVers... How to Insure a car multiple times is the largest, most extensive yearly gathering of Escapees... We have written our RV buying Secrets Guide them out at any time effortlessly in..., 2012at10:26 am, HD case said: Im with you Mike it depends on the state register. 100 percent can be used to operate a business nor does it create a nor... If it would be Best to redo our wills in SD at least once a yes or more your. & havent had to pay a penny since, your LLC does not property.