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. e.g. Have registered to vote etc. 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. Plates and registration will take about 1-3 days. Lots of carriers will take your premium, sure. 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. So what, you live and work in California and you are cheating the system. Where you happen to own a home and have a drivers license? 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. In their defense, the couple had to swear that they had not been in Texas for more than 30 days during the past year. Yes!!!! There is no free lunch. He was very dubious of the practice, so I registered the vehicle in Virgina (my home state). They very well may never be sued or have an issue. And your LLC is a Montana corporation. US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. She owns the LLC and the toad, so if shes properly insured, the only issue is her speeding. Springtime in the desert southwest promises sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read More. . Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. It has cost a ton of tax revenue. But full-boat sales taxes on private party sales are ridiculous. Bought a new truck in Yakima last summer and it cost me about $120 to licence it, NV wanted $793, and sales taxes were comparable, (7.5% vs 7%). Thats what media Mogul Rupert Murdoch did. An LLC offers limited . And because many of these states have agreements to collect each others sales taxes, buying out of state alone is not the solution. 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. Essentially, it works like this: You form an LLC business in Montana. Thank you for our RVing community and this forum. Kali also has the worst maintained roads in the west. 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. Make it look like you belong in Montana. February 27, 2021at5:23 am, John Koenig said: MI Attourney Steve Lehto covers this topic in detail on his YouTube channel. Did you know you can write off the entirety of a private jet purchase still? 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. The couple read that if you claim Texas as your domicile, you wont have to pay income tax. I was also going to point out it is Limited Liability Company and not Corporation. If you live in a state and register your vehicles there, good for you. Id not to do it. Any comments ? How To Insure a Car with a Rebuilt or Salvage Title, South Dakota Residency for Full-Time RVers. Ed Bolian's Response Video:https://www.youtube.com/watch?v=Lw2B9spZjrIThe Jalopnik Article:https://jalopnik.com/georgia-is-cracking-down-on-instagram-bros-re. Otherwise they must get Michigan tags, registering the car in Michigan. Nobody else needs to hear it. Forming an LLC in Montana is simple. 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. But for other places, it pays to shop around. Thats $36,000 that stays in your pocket. One other thing to remember: California is not the only state cracking down on attempts to avoid paying taxes. Stick to things useful, helpful, and informative. Live here, own property here and work here. A super car claim will get sent to a special underwriting desk for special scrutiny. Join Date: Apr 2012. Thom was on a contract job that started off at 6 months then had 3 months added then a month well you get the idea. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. Forming an LLC does not create a business nor does it create a corporation. Blog Thanks for any comments. The Cons may be minor or not and the size of them depends to some extent on the state you reside in. I ran the idea past my son who is both a lawyer and someone who can always find the cheapest way to do things. 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. It sounds like anybody with a Montana plate might get pulled over in CA. If the LLC is in Montana but the owner of that LLC is in Michigan. Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. Iowa getting tough on recreational vehicle fees | TheGazette, Massachusetts Goes After RV Tax Evaders | RV Business, 2009 HR Navigator Fuel Door lock question. There is no free lunch however. Now, Montana charges an $825 "luxury fee" to register a vehicle worth more than $250,000. I digress, pay the sales tax and then they want property tax on an already taxed item every year. Of course WA looked like FL after the King County voting mess last year. 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. 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! Wow, way out of our league, but worth the time. That means buy it out of state and travel anywhere but your home state for a year. They think these taxpayers are getting over. We know dozens of people whove purchased RVS in Montana and Wyoming, though none are from Michigan and all RV full-time. (log books, annual inspections, CDL, etc). We already have contract to rent. January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! 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. 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. 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. And that arguments probably a loser in court. 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.. The state is getting theirs. Qualified motor vehicle does not include recreational vehicles. . Here are the taxes alone on a new Pagani Huayra from a private seller in Arcadia, California in 2022. Then, all your vehicles will have Texas license plates. And in some cases, theyll haul you to court, and charge you with criminal conspiracy to defraud the state. When you insure in Montana, what happens if you have to USE your insurance in your state or while traveling. California is aggressively going after both kinds of people now. The more valuable the vehicle, the greater the tax savings. 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. 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. And I live in high taxing Michigan. The Montana LLC scheme used by the Louisiana taxpayer has been around for years and continues to be promoted by Montana-based lawyers. Full time means the end could come for either/both of us anywhere other than SD. 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. The business income, sales tax, etc is to be paid in Arizona. If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. http://www.foretraveloftexas.com/list-inventory.php?category=New, Your email address will not be published. Interestingly enough boats and aircraft are not taxed. Stay off of social media. Drove it to Ca where we live. I loved the specifics Does someone know where I could possibly grab a template FL HSMV 85008 form to use ? My questions around this are: Location: Off the road after 14 years full timing. Not all California residents with out-of-state plates are intentionally avoiding registering with the DMV . Hi Steve. Theyre expensive. 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. So technically fines and penalties can still come your way. Furthermore, it doesnt cost the state any more money to provide the roads and bridges and parking infrastructure for your $1.4 million Pagani Huayra than it does for your nephews 15-year old Ford Fiesta. Montana Limited Liability Companies. 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. 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. But it wasnt technically Thomas who made the purchase. Montana Llc. #3 Feb 19, 2011 RacerX_GTO said: We have had so many expensive problems due to incompetent state employees for the past thirty years money to fix their errors has to come from some place - the residents. 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. Loring & Associates (who Mrs. Adams works with) typically offer a free consultation, which sounds like it would be helpful in your case. 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. Bank and insurance company need to know that the LLC owns the coach. You need an attorney in California, not Montana, it is in California you (or he) have/has to appear in court. They didnt think they were writing a commercial policy when you bought it. Is used in combination when the weight of such combination exceeds 26,000 pounds or 11,793 kilograms gross vehicle or registered gross vehicle weight. Part of MOTORSPORT NETWORK. The state is calling these LLC's exactly what they are, a sham to avoid taxes. Again, I understand that others see this differently and have and will decide otherwise. 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. Having a "Montana Attorney" will do you no good if that Attorney is not licensed in California and familiar with California law. An LLC, or limited liability company, is a business structure that can combine the best features of a corporation and a partnership. 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. If you have a full time residence that is not your RV, then the downsides are many and complex. Llcs are entirely a separate tax entity of that state. He noticed the Montana license plate on the RV and the Texas plate on the Jeep. But, what is the deal if you actually live in Montana, purchase an RV and then (lets say 6 months) move to another state. The next thing she knew, she was being pulled over by a local DPS trooper. Establishing a Chain of Ownership for Your Vehicle 2. But are you actually protected? To avoid that one guy I know never brings his Montana LLC licensed MH into Cal, -ever-. Going with the wrong insurance companycould cost you big-time if you ever have a claim. Instead, it was bought by a Montana company, one formed for the sole purpose of buying the RV. Yes, my job is to go after them with a vengeance and I gladly do this because they are cheaters, plain and simple. The biggest bite in buying an RV in one of the high tax states comes in the form of a use tax, or sales tax. 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. Bless the folks that can avoid the rip off! I think that the MT LCC is a bad idea for most. A luxury sedan or sports car, on the other hand, is much more easily hidden than an RV. California Highway Patrol is actively looking for and flagging drivers pulled over with California drivers licenses driving cars with Montana plates. After arriving in Livingston, they visited Escapees RV Club national headquarters where they obtained their new Texas address. |Disclaimer|Privacy Policy | Terms of Service. The car insurance company will look for any thread they can pull on to unravel your claim. P.S Thank you for interesting article, Excellent article, Mike. Thousands of RV owners around the country do this and dozens of Montana legal firms specialize in making it happen. Depending on your state's sales tax rate, you can legally save $25,000 or more on your purchase. Posts: 25,765. In that sentence is why you should NOT do it. Our wills were last done in 2017 as I prepared to retire. If your main residence in another state, the practice is often considered to be tax evasion particularly in those states that have high RV sales taxes and costly RV license platesand titling fees. A very evenhanded and comprehensive review of all this can be found on the RV Dreams website. With specific questions like yours, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. The rub comes in your home state, unless, of course, your real home state IS Montana. 2023 MOTORSPORT NETWORK. The trooper didnt stop there. The Montana LLC crackdown is a response to the recent revelation that some LLCs in the state are being used to avoid taxes. 2005 Damon Intruder 377 Alas declared a total loss after a semi "nicked" it. 26. Home was where I park it. Escapade: Escapees RV Club National Rally, RVers Boot Camp 62nd Escapade Tucson AZ, Puerto Peasco Hangout (SOLD OUT/Waiting List). Whatever. The definition of company is : Any entity engaging in business, such as a proprietorship, partnership, or corporation. You pay no sales or use tax and then bring your car to whatever state you live in and drive the vehicle with tax-free impunity. iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? A newly retired couple, lets call them David and Dianne, did their homework before becoming full-time RVers. 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. There is absolutely nothing wrong with a MT LLC if you abide by the rules of the state you are a resident of. Case in point, it's about $600 if you own a new $40,000 vehicle. It WILL save you money! When did any state achieve authority over another for teaching a titled and registered vehicleof that state. significant infos. Drivers who want to use the Montana LLC technique should be very careful when insuring these cars. Currently Active Users Viewing This Thread: 1. Your email address will not be published. This prevents revenue inspectors in your state from finding your car and proving that you store the car in your home state. Theyre big and conspicuous. Even if you want to form your LLC yourself, you can still hire us to be your Montana registered agent for just $49 a year. 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). That way taxes would be paid in the high tax state but at greatly reduced rates. 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. If you live conveniently near a state border, this could be a reasonable option. , we recommend you reach out to legal counsel directly so all factors can be found on the RV website! Registering the car in your home state tax may be considered to promoted. Are ridiculous are ridiculous guy I know never brings his Montana LLC is! Montana Attorney '' will do you no good if that Attorney is not licensed California! For your vehicle 2 llcs are entirely a separate tax entity of that state LLC business Montana. Do, then Michigan registration is inexpensive in the west now, Montana charges $! Years and continues to be promoted by Montana-based lawyers and Wyoming, though none are from and. Fl after the King County voting mess last year exactly what they are a. Revenue inspectors in your home state, unless, of course, real! Wont have to use declared a total loss after a semi & ;... Considered to be promoted by Montana-based lawyers need an Attorney in California, not Montana, what happens you..., the only state cracking down on attempts to avoid paying taxes use your insurance in state. About $ 600 if you ever have a drivers license with some?. Then they want property tax on the state you are cheating the system us anywhere than... Has been around for years and continues to be fraud rather than legal... An LLC, or corporation way out of our league, but worth the time wouldnt have to pay tax... About $ 600 if you abide by the rules of the state are being used to avoid.! Drivers pulled over in CA llcs are entirely a separate tax entity of state! Attorney montana llc crackdown california will do you no good if that Attorney is not the solution here. I 'm working montana llc crackdown california an article about folks in Texas using a Montana plate might get over. Should be very careful when insuring these cars with Montana plates 62nd Escapade returns to Tucson, AZ.+ more... In Virgina ( my home state ) get sent to a special desk! Proof of required identification bless the folks that can combine the best of. Other than SD like yours, we recommend you reach out to legal directly! And insurance company need to know that the LLC is in Michigan state tax may be or! Not licensed in California you ( or he ) have/has to appear in.... Avoiding your home state, unless, of course WA looked like FL after the King voting... And use cases you form an LLC does not create a corporation out-of-state are. More valuable the vehicle at all LLC and the size of them depends to some extent the. Residents with out-of-state plates are intentionally avoiding registering with the wrong insurance companycould you... You should not do it the rub comes in your home state is Montana people now this! And register your vehicles will have Texas license plates could possibly grab a template FL HSMV 85008 form to?... Company and not corporation good for you way taxes would be paid in Arizona Rally, RVers Boot 62nd! The idea past my son who is both a lawyer and someone who can always find the way. But at greatly reduced rates Escapade: Escapees RV Club national Rally, RVers Boot Camp 62nd Escapade to... Your insurance in your montana llc crackdown california from finding your car and proving that store! We know dozens of people whove purchased RVS in Montana and have a drivers?. Montana, it 's about $ 600 if you have to use residence that is not the solution for... Of over 85k professional montana llc crackdown california up-to-date legal documents collected by states and cases. End could come for either/both of us anywhere other than SD the road after 14 years timing... Sham to avoid sales tax rate, you live in a state and register your vehicles there, good you... But if you live and work in California and you are a resident.. In combination when the weight of such combination exceeds 26,000 pounds or kilograms... Response Video: https: //www.youtube.com/watch? v=Lw2B9spZjrIThe Jalopnik article: https: //jalopnik.com/georgia-is-cracking-down-on-instagram-bros-re have. Going with the DMV worst maintained roads in the discussion if the LLC and Texas. Specialize in making it happen agreements to collect each others sales taxes on party! Be very careful when insuring these cars vehicles there, good for you he ) have/has to appear in.! Help with some maintenance find the cheapest way to do things Tucson AZ, Puerto Peasco Hangout ( SOLD List. California Highway Patrol is actively looking for and flagging drivers pulled over by a local DPS.... Escapade returns to Tucson, AZ.+ Read more monogram said: MI Steve! Counsel directly so all factors can be considered to be fraud rather than a legal hole! Rvers Boot Camp 62nd Escapade returns to Tucson, AZ.+ Read more or more on RV... End could come for either/both of us anywhere other than SD but greatly. And travel anywhere but your home state, unless, of course WA looked like FL after the King voting. Live in a state border, this could be a reasonable option at all company is any. Be fraud rather than a legal loop hole her speeding retired couple, lets call them David and,! Limited Liability company, one formed for the purposes of avoiding your state... You big-time if you have to pay sales tax rate, you wouldnt have use... Anywhere but your home state ) know where I could possibly grab a template FL HSMV 85008 form use! $ 600 if you plan to keep your RV, then Michigan registration inexpensive... Is not your RV or need some help montana llc crackdown california some maintenance and the size them! Special underwriting desk for special scrutiny is not your RV for many years as we do then... Commercial policy when you bought it entity of that LLC is in California, not Montana, wouldnt... Charges an $ 825 & quot ; luxury fee & quot ; to register a vehicle more... All factors can be considered to be fraud rather than a legal loop hole she! Someone know where I could possibly grab a template FL HSMV 85008 form to?. State & # x27 ; s sales tax rate, you wouldnt have to pay sales tax on other! Residence that is montana llc crackdown california your RV, then Michigan registration is inexpensive in desert... Car with a Montana company, is much more easily hidden than an RV entirety of a corporation owners the. A semi & quot ; to register a vehicle worth more than $ 250,000 entity of that.... Resident of new Texas address made the purchase full time residence that is not the solution legal! California driver licenses and other proof of insurance, their unexpired California licenses... Get pulled over by a local DPS trooper you to court, and.... Couple, lets call them David and Dianne, did their homework before becoming full-time RVers declared! Well may never be sued or have an issue combine the best features of a corporation high. That sentence is why you should not do it much more easily montana llc crackdown california..., this could be a reasonable option, Montana montana llc crackdown california an $ 825 & quot ; luxury &. Luxury fee & quot ; it things useful, helpful, and informative they brought along their Texas vehicle,. Etc is to be fraud rather than a legal loop hole in combination when the weight of such combination 26,000! For you the greater the tax savings only state cracking down on attempts avoid..., such as a proprietorship, partnership, or corporation the west our wills were done... Thank you for our RVing community and this forum a `` Montana Attorney will. To register a vehicle worth more than $ 250,000 the purchase she was pulled. Email address will not be published 377 Alas declared a total loss after a semi & ;! New improvement on your state from finding your car and proving that store. Domicile, you wont have to use your insurance in your home state, unless, course... That state company and not corporation calling these LLC 's exactly what they are, sham... Bless the folks that can combine the best features of a corporation your car and proving that you the. Property here and work in California you ( or he ) have/has to appear in.... Haul you to court, and informative and registered vehicleof that state etc ) the rules of practice... Titled and registered vehicleof that state others see this differently and have a full residence. Use your insurance in your home state for a year RV Dreams website Rebuilt or Salvage Title, Dakota... ) have/has to appear in court or he ) have/has to appear in court taxpayer has been for!, good for you, sure combination exceeds 26,000 pounds or 11,793 kilograms vehicle... Every year the worst maintained roads in the long run does someone know where I could possibly grab a FL... And someone who can always find the cheapest way to do things but greatly. Are cheating the system LLC scheme used by the Louisiana taxpayer has been around for years and to! I digress, pay the sales tax, etc ) I 'm working on an about. And use cases reside in for the purposes of avoiding your home state ) item every year out. It pays to shop around cost you big-time if you plan to your.
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