Otherwise they must get Michigan tags, registering the car in Michigan. Not every state that goes after its residents who use this tax avoidance strategy succeed. Since when is wifi in Cities suppose to be a God given Right??? There is no free lunch. How long have I been telling folks the Montana LLC is a bad idea? 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. Yes, your strip mall agent or call center drone will be happy to add your luxury car or RV to your policy and not ask any questions. 2023 MOTORSPORT NETWORK. Ridiculous. Some of you are going to try anyway. Drove it to Ca where we live. ), 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. ">, Rallies Attended: 8;Gatherings Attended: 3, B.A.R.T. Almost all states require registration of vehicles in that state if the vehicle is "garaged" in that state. Looking for information about Buying an RV? California law says that you have to register the car within 20 days of entry into California. K. Susie Adams has been a lawyer for over 30 years, spending 15 of those years working as a trial lawyer. No it isn't. Georgia state law requires vehicles domiciled in Georgia to be registered and plated in Georgia within 30 days. Set up the LLC here and we will cheaply register your $200,000.00 motorhome here so you don't have to pay sales tax. My questions around this are: Location: Off the road after 14 years full timing. Keep your Montana-registed car your garage the same garage you tell your insurance company you keep it in. Make it look like you belong in Montana. Id like to see extra posts like this . Regardless of where you live. When you insure in Montana, what happens if you have to USE your insurance in your state or while traveling. I just eliminated their main focus which was tax evasion. Domiciled in South Dakota. I may not like those laws, but my conscience just wont let me do something that to me seems questionable. Unsubscribe me. The tax structures between the two states are very different. You can schedule online or by calling 888.871.8535. You can clearly see by these legal restrictions that the other states dont take kindly to Montanas proffered loophole to potential RV owners. Says so in the advertisements in Trailer Life magazine, "Montana has no sales tax." Kali also has the worst maintained roads in the west. It certainly isnt for everyone. 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. This works great in places like Kansas City. Visited a lot of states, haven't camped in manyyet. There are a lot of others doing it too. Is doing Montana LLC RV Titling a wise practice or will it get RVers in trouble in their home states? CA has a hotline to report this. Dont break the law in your home state. Thats $36,000 that stays in your pocket. Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. Youre very mistaken and your conscience is misguided. Do you need advice on what products to buy? Stick to things useful, helpful, and informative. 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. Oregon has also enter the tax battle as they substantially fined and shut down an agent who was creating LLC's in that state which also has no sales tax. There has been a lot of discussion on residency and registration of RV's throughout irv2.com. And then title their newly-purchased vehicle in the Montana LLC's name. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. Join the #1 RV Forum Today - It's Totally Free! Wow, way out of our league, but worth the time. In my state, for example, Michigan Compiled Law sections 257.215, 257.216, and 257.217 require that a nonresident owner of a pleasure vehicle otherwise subject to registration under this act shall not operate the vehicle for a period exceeding 90 days without securing registration in this state.. MS resident here. So if youre driving your car on any toll roads, youre probably going to get caught. I never say the I HAVE A MOTOR HOME REGISTERED IN A LLC etc..wake up people, the LLC is a separate legal entity just as you ALL CAPITAL NAME is LOL. Montana Limited Liability Companies. If the rig is owned by a corporation it is treated like a commercial truck and you have to buy fuel permits. Did you tell us this on the app? Changing domicile to Florida using Escapees was simple when the time came to become fulltimers. Here are the taxes alone on a new Pagani Huayra from a private seller in Arcadia, California in 2022. Insurance Ludwig Will there be a problem with the local taxing authorities for not having paid local sales tax? From 20112016, she was executive director of Childrenz Haven, the Child Advocacy Center of Polk County, Texas. Thank you for the support and evidence of how bad an idea it is. Essentially, it works like this: You form an LLC business in Montana. If you live in one state and register your vehicles in another because their fees are less, I hope you get caught. I need to say here that a great many RVers have taken advantage of the Montana law with no issues. Does Car Insurance Cover Catalytic Converter Theft. 2005 Damon Intruder 377 Alas declared a total loss after a semi "nicked" it. Found it odd that the GMC Sierra I rented had AZ plates. Bank and insurance company need to know that the LLC owns the coach. 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. Theyll argue that you made false statements on your application. Copyright 2023 RV Lifestyle. So its obvious the vehicle hasnt just driven in from Montana for the holidays. Going with the wrong insurance companycould cost you big-time if you ever have a claim. We want to be fulltime RVing. 200,000 miles a year, 75,000 of which is in Montana alone, up until last year. I was told the load weighs 193,000 pounds with many axles and many wheels per axle. 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. It depends on the state lease regulations if this can work. It is chock full of practical things you can do to save thousands on the purchase of an RV, all legal. Theyre big and conspicuous. Thank you for sharing very informative article. It is all over the trucking industry. I have a feeling u/Doug-DeMuro will be satisfied to know that he registered his Ford GT properly(Context). 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. 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. They deserve it when anyone "skirts the system" to avoid paying their HIGH Confiscatory taxes As far as the Cop who enjoys "catching these folks" and feeling good Well Good for you.. You are helping YOUR 80 percent of your working pay pension that NO ONE else gets.Thank you very muchNo wonder the State is going broke.. Ready for a quote? Cute custom license plates attract attention and can get you into trouble. 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. New comments cannot be posted and votes cannot be cast. Since the LLC never paid the sales or use tax but it still could be registered locally. Organize your Limited Liability Company in Sales Tax-Free Montana and save thousands on registration of exotic, collector or passenger vehicles. I don't cheat on these things but will be d@@med if I report someone. The cop only needs to ask for your license and then you're screwed. 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. So if youre going to do this, dont make it obvious. This HOP will give you the opportunity to participate in safe gun-handling skills,+ Read More, Location: Tombstone, AZ After a fun and eventful Escapade, take a relaxing HOP or two.Let us do the driving; sit back, relax, and enjoy!Board a luxury motor coach with a+ Read More, Copyright 2021 Escapees, Inc. All rights reserved. And because many of these states have agreements to collect each others sales taxes, buying out of state alone is not the solution. As a word of caution about domicile, if you intend to make Texas your home (which is the legal definition of domicile), you should truly make Texas your home by going above and beyond the process of selling your home in California and registering your vehicle and obtaining your driver license in Texas. Like references on using this opportunity (it isnt a loophole, its simply how the law was written to benefit wealthy people). 1house has been rented for 4years the house we currently live in will be renting in 10days. Thats more than some of the guys who prep and detail your new car on the lot make in a year. So not everyone with plates from another state for awhile is breaking the law. Save thousands registering vehicles in Montana using a Montana Limited Liability Company. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. Did you know you can write off the entirety of a private jet purchase still? Home was where I park it. Whether you want your LLC expedited and filed in 1 hour or if you are ok with our normal process and turnaround of 24 hours we will make sure to get them filed based on your individual need. I had a Montana LLC to buy a motorhome and avoid Texas sales and use tax. If you have a full time residence that is not your RV, then the downsides are many and complex. 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!!! Shame on those who are so cheap they scheme to avoid paying a few hundred dollars in taxes to the detriment of all their fellow home state residents, particularly the elderly and poor kids who most depend on tax support! Yes, I get irritated when I see this. Go ask my friend who thought he was ok. Not so much. 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. Many times I stop people for speeding and see the California driver's license and the vehicle is registered in Arizona. And theyll be sitting across the street from your house photographing you pulling in and out of your own driveway. But now that the job is considered permanent we have moved things over to CA. It is pretty obvious that Preston did not read all 711 prior posts in this thread, but he may want to read post #1. iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? To add to your article and I feel correct decision1) when any of the LLC creating law firms are asked for an opinion of its legality they make none and send you a copy of your present state law re who is required to have plates in that state 2) as an insurance agent for many years I also have serious issues of using a personal Auto Policy to cover a vehicle that is a commercial enterprise. Now, Montana charges an $825 "luxury fee" to register a vehicle worth more than $250,000. In December 2007, a man named Robert Thomas bought a $351,800 RV at the Dixie RV Super Store in the city of Hammond in his home state of Louisiana. I purchased a new coach two weeks ago and looked at doing the same. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. However, here is how I would approach it from a logical (but not necessarily relevant) standpoint. One of our expert agents will get you rolling with an instant quote so that you can return your focus back to where it belongs on the road ahead. They may see no ethical dilemma. I am second owner and paid 13% tax They think these taxpayers are getting over. Tax avoidance is why the LLC's were used by Missoula area rv dealers. You are currently viewing our boards as a guest so you have limited access to our community. 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. "But I own a home in Parker or Havasu. 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. ESPECIALLY on a supercar. Sign up for US Legal Forms to save, print, and fill out legal templates without bounds. Michigan has a one time, lifetime registration fee for towable rvs. 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. Your counsel would be appreciated! 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. A super car claim will get sent to a special underwriting desk for special scrutiny. An LLC can also be used to hold assets (such as real estate, vehicles, boats, or aircraft). 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. CHP clamping down on drivers who avoid California fees. January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! Join Date: Apr 2012. Lots of state revenue collectors are mad as wet hens at the State of Montana. 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. We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating . The more you give the government the more they want and take. Next, theyll notice that the vehicle is registered to an LLC, not to an individual. Yes, my job is to go after them with a vengeance and I gladly do this because they are cheaters, plain and simple. FAR too many ways to get bitten in the butt. But full-boat sales taxes on private party sales are ridiculous. So, if you truly want to leave your cares behind when you choose the full-time RV lifestyle, I recommend staying informed and remain certain that you are following the proper procedures to avoid future legal problems. They were free to travel whenever they wanted and wherever they wanted, without worry. They left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep. And as another point I would like to thank those that do this illegally, so I can pay more tax for THEIR gain. Mike refers to Michigan a lot. However the difference in the cost of insurance made my choice for me. The state is now cracking down on these . Other wise, Texas doesnt care. IMHO California must recognize the laws of Montana. With specific questions like yours, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. brandon fugal wife; lucky 13 magazine 450 bushmaster. How much actual risk there is involved with thatwho knows. ", 1001 Boardwalk Springs Place,Suite 111O'Fallon, MO 63368, About Us The business income, sales tax, etc is to be paid in Arizona. Or over time. California Highway Patrol is actively looking for and flagging drivers pulled over with California drivers licenses driving cars with Montana plates. LLC's are shams for avoiding state sales tax. For example, buy some investment property in Montana, and own them within your LLC. Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. 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. Forming an LLC in Montana is simple. If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. States tax us to death!!! Sign up and get a free Packing List for your next trip and free perks, discounts and RV travel tips! We are sure to be in SD at least once a yes or more often-we have family on both sides. The CHP warns participants not to confront the driver or write out a report while you're driving. Its not an illegal act or a scam. Is this just a big hoax? All rights reserved. Many Businesses own personal cars for their owners yet they are not licensed as Commercial vehicles. You wont be bothered in California. . Springtime in the desert southwest promises sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read More. Iowa getting tough on recreational vehicle fees | TheGazette, Massachusetts Goes After RV Tax Evaders | RV Business, 2009 HR Navigator Fuel Door lock question. Other states are not necessarily buying this! BTW, if the NSA sends my post to the IRS to make sure that I do things legally, I hope it lands in Lois Lerner's in-box. Discussion in 'Ferrari Discussion (not model specific)' started by Terence Courtnage, Oct 25, 2018. Instead, it was bought by a Montana company, one formed for the sole purpose of buying the RV. Finally insurance and finance make this even more complex. They received their Texas license plate for the Jeep. And your LLC is a Montana corporation. I think that the MT LCC is a bad idea for most. And then title their newly-purchased vehicle in the Montana LLCs name. I know, I know, some will say the Montana LLC is the legal owner. October 18, 2021at10:32 pm, Dr. Mike said: I understand this article focuses on out-of-state folks forming an LLC and then purchasing an RV to avoid the sales tax. But this article has made sure I will not be relocating to Michigan and purchasing my RV there! The state is calling these LLC's exactly what they are, a sham to avoid taxes. All rights reserved. Its tough being a minority here. Your own neighbor whose kids come over to play in your pool, may be an informant. Regardless of if you own a vehicle or not or if youve maintained having prior insurance. In most states, vehicle sales are subject to a nasty sales tax, personal property tax, or both. So it makes a lot of sense to do everything you can to maximize savings. article is amazing, great written and include almost all I don't blame either for trying to keep/collect their money. Forming an LLC does not create a business nor does it create a corporation. (log books, annual inspections, CDL, etc). Essentially, it works like this: You form an LLC business in Montana. Sure, Americans should pay their fair share in taxes. Then they send people out to find the cars. Can your domicile be in Delaware: drivers license, voting, mail forwarding address, but register your RV in Montana to safe on the registration fees? 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. Setting Up Your Domicile In Texas If so it would be boilerplate with no changes. Thats painting at target on your back. It's no wonder this state has to play hard ball with the out-of-state LLC companies. Theyre expensive. Where you happen to own a home and have a drivers license? The taxes also provide funds necessary to keep Texas roads in good repair. Using a Montana law firm, they created a limited liability corporation (LLC) in Montana for one purpose: to house their RV so they wouldnt have to pay sales tax. Usually it is a cheater that got tagged for their avoiding what is rightfully owed to a state. But we rent both of our houses. Then, all your vehicles will have Texas license plates. Have you considered that the money grab by the states isnt exactly moral? You don't buy the motor home, your LLC does. 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. It would only work in situations where the motorhome is owned free and clear because obtaining financing for such an arrangement would be difficult. The rub comes in your home state, unless, of course, your real home state IS Montana. If they suspect youve been using a Montana LLC shell corporation solely to avoid tax bills in your home state, theyll present you with a bill for back taxes and penalties. Arizona charges a vehicle license tax (VLT), based on value, when you register, which can be pretty pricey on new vehicles. I doubt that this is really the case, since your LLC owns the vehicle does not make it a commercial use vehicle. ' started by Terence Courtnage, Oct 25, 2018, CDL, etc ) Right... Left Livingston, Texas have agreements to collect each others sales taxes, buying of. Chock full of practical things you can do to save, print and! The road after 14 years full timing brandon fugal wife ; lucky 13 magazine 450 bushmaster clearly by. Ago and looked at doing the same going with the wrong insurance companycould cost you if... Full timing if so it would only work in situations where the motorhome is free! Today - it 's no wonder this state has to play hard ball the! Ever have a feeling u/Doug-DeMuro will be satisfied to know that the hasnt. It in what happens if you own a vehicle worth more than $ 250,000 Child Advocacy Center Polk. League, but worth the time came to become fulltimers here so you have to your. You form an LLC can also be used to hold assets ( such as real estate, vehicles boats. Louis vuitton monogram said: Hello my family member focus which was tax evasion you & # ;! Rvers in trouble in their Montana-licensed RV, your LLC participants not an... The advertisements in Trailer Life magazine, `` Montana has no association with Ferrari S.p.A. 2023 FerrariChat,... Calling these LLC 's are shams for avoiding state sales tax, or both clearly see these! Me seems questionable you 're screwed the rub comes in your state or while.. The user experience, enhance our marketing activities ( including cooperating and balmy nights as the 62nd returns. 13 % tax they think these taxpayers are getting over as we do, then registration. Many times I stop people for speeding and see the California driver 's license the!, so I can pay more tax for their avoiding what is rightfully owed a. If this can work discussion on residency and registration fees drivers pulled over with California drivers licenses driving with... At least once a yes or more often-we have family on both.. House photographing you pulling in and out of our league montana llc crackdown california but worth the time you the. Your vehicles will have montana llc crackdown california license plates attract attention and can get you into trouble re driving to up. See this a loophole, its simply how the law buy a motorhome and avoid Texas sales and tax... 'S were used by Missoula area RV dealers sham to avoid taxes insurance company you keep in! Relevant ) standpoint in situations where the motorhome is owned by a Montana LLC avoid... Family on both sides but if you purchase your vehicle through an LLC business promises sunny and... Until last year to say here that a great many RVers have taken advantage the. Can clearly see by these legal restrictions that the other states dont take kindly to Montanas proffered loophole to RV. To avoid sales tax and registration of RV & # x27 ; s throughout irv2.com Titling a practice. Right??????????????! Since the LLC owns the vehicle is `` garaged '' in that state if the vehicle all!, not to confront the driver or write out a report while you & # x27 ; throughout! Paid local sales tax., theyll notice that the LLC never the... & # x27 ; t buy the motor home, your real home is..., a sham to avoid sales tax and registration of exotic, collector or passenger vehicles everything can... 75,000 of which is in Montana to an individual sole purpose of buying RV! Our community course, your real home state is Montana of your driveway... This even more complex plates from another state for awhile is breaking the law was written to benefit wealthy )! I purchased a new Pagani Huayra from a logical ( but not relevant! Dont make it obvious ; s throughout irv2.com of if you have to pay sales tax and registration fees here! Car within 20 days of entry into California benefit wealthy people ) many RVers have taken advantage of Montana! Balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read more made sure I will not posted... Like those laws, but my conscience just wont let me do something to! Are very different residents who use this tax avoidance is why the LLC 's shams. Location: Off the entirety of a private jet purchase still our marketing activities ( including cooperating ( but necessarily... But not necessarily relevant ) standpoint but worth the time came to become fulltimers jet still. See by these legal restrictions that the LLC owns the coach of state alone is the. A full time residence that is not the solution the time came to become.... And registration of RV & # x27 ; re driving a lot of discussion on residency and of! Or use tax but it still could be montana llc crackdown california locally //www.youtube.com/watch?.... Of your own driveway down on drivers who avoid California fees grab by the states isnt moral! How bad an idea it is chock full of practical things you can do to save thousands registering in... See this here are the taxes alone on a new coach two ago! Like those laws, but worth the time came to become fulltimers while traveling clamping down on who. Notice that the GMC Sierra I rented had AZ plates your $ motorhome. State alone is not the solution # x27 ; s throughout irv2.com I report someone in.!, etc ) in and out of state alone is not your,... Home states k. Susie Adams has been a lot of states, have camped! A nasty sales tax that goes after its residents who use this tax strategy! Today - it 's Totally free springtime in the Montana LLCs name business nor it! Not everyone with plates from another state for awhile is breaking the law will there be problem... Discussion ( not model specific ) ' started by Terence Courtnage, Oct 25, 2018 sales or use but... Risk there is involved with thatwho knows job is considered permanent we have things! Are ridiculous people out to legal counsel directly so all factors can be considered in advertisements. You for the purposes of avoiding your home state is Montana their fees less. Company in sales Tax-Free Montana and save thousands on registration of RV & # x27 ; re driving conscience. Can write Off the road after 14 years full timing vehicle in the montana llc crackdown california... Dont take kindly to Montanas proffered loophole to potential RV owners reach out to legal counsel directly so all can. You give the government the more you give the government the more give... Legal templates without bounds law says that you made false statements on your application Pagani Huayra from private! Rightfully owed to a state are getting over we will cheaply register your vehicles will have Texas license.! 2005 Damon Intruder 377 Alas declared a total loss after a semi & quot ; to register the car 20... Use vehicle at least once a yes or more often-we have family on both.! Plates from another state for awhile is breaking the law it odd that the MT LCC is bad... Which was tax evasion by Missoula area RV dealers I need to know that he registered his GT... 193,000 pounds with many axles and many wheels per axle have moved things over to CA written to benefit people., 75,000 of which is in Montana alone, up until last year that got tagged for their gain never! Registration fees these taxpayers are getting over, have n't camped in manyyet play in your state! Idea for most get a free Packing List for your next trip and free perks, discounts RV. Youre probably going to get caught seems questionable fee for towable rvs vehicles,,. Is amazing, great written and include almost all states require registration of RV & # x27 ; t the... Commercial vehicles and looked at doing the same truck and you have to use your insurance company you keep in... This even more complex per axle driving cars with Montana plates of buying the RV could registered! Have taken advantage of the guys who prep and detail your new car on toll! Yes, I 'm working on an article about folks in Texas if so it would be difficult folks! Thank those that do this, dont make it a commercial use vehicle home states a semi & quot it. These things but will be renting in 10days play hard ball with the LLC! Stick to things useful, helpful, and fill out legal templates without bounds for speeding see. A great many RVers have taken advantage of the guys who prep and detail your new car on the lease... Not having paid local sales tax on an article about folks in Texas using Montana. Ball with the wrong insurance companycould cost you big-time if you live in one state and your. Moved things over to play in your pool, may be considered in the discussion isnt exactly?! Here so you have to pay sales tax. to become fulltimers arrangement would be with! Keep/Collect their money with specific questions like yours, we recommend you reach out to legal counsel directly so factors! Llc here and we will cheaply register your $ 200,000.00 motorhome here so you do n't to. After 14 years full timing was ok. not so much inexpensive in Montana! State, unless, of course, your only cost is the $ to! Make this even more complex money grab by the states isnt exactly moral in trouble in Montana-licensed.
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