Essentially, it works like this: You form an LLC business in Montana. Thank you for our RVing community and this forum. I purchased a new coach two weeks ago and looked at doing the same. I just dont register them in California. and do not travel there anymore. I dont criticize them for their decision. iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? States tax us to death!!! We establish Montana LLCs for you to own your vehicles for only $300, and we do it in a couple days. If you form a Montana LLC and have . Is there a time factor involved? You are currently viewing our boards as a guest so you have limited access to our community. Pepper.. is your neighbor by any chance a CA resident, and how heavy was his RV? 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.. We moved back last summer as the vehicle licences in NV were getting way out of line. 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. We sold everything in Iowa where we had lived for almost 20 years. I've heard rumors that California agents are stopping RVs with MT plates, but I can't find any verification of thisand nothing RECENT that's been posted. If so it would be boilerplate with no changes. Its parked in Oregon. If you need Non-Owner or owner SR 22 insurance, Florida and Virginia FR44 insurance, Georgia SR22A insurance, Indiana SR50 insurance, an Ohio SR22 Bond, or DUI insurance, Select Insurance Group is the right SELECTion for you! Thank you for reading the article and taking time to reply. Being from Illinois, I would still have to pay Michigan sales tax if I bought from a dealer up there, so maybe low or no sales tax states would be better. 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.". California law says that you have to register the car within 20 days of entry into California. The law firm then typically charges you about $150 every year to renew your registration and LLC charter. 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. 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. Should You Leave On Your RV Exterior Lights At Nig 7 Romantic Ideas For Valentine's Day In An RV, Don't Miss Paradise Oaks RV Resort In Florida, Currently Active Users Viewing This Thread: 1. Going with the wrong insurance companycould cost you big-time if you ever have a claim. People who operate qualified motor vehicles are subject to IFTA licensing. Is this just a big hoax? This covid 19 situation has really put folks around here in a situation. 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. An LLC can be used to operate a business. For about 2 years we were quite legal with having MI plates on the vehicles while we were in CA. 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. December 01, 2012at10:26 am, Rick and Kelly said: I say if theres a loophole, take it. Press J to jump to the feed. 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. If I would be in violation of the law, I would not choose that route. California has an extremely large percentage of vehicles registered in other states (ie. Those who typically game the system, i.e. Yes, my job is to go after them with a vengeance and I gladly do this because they are cheaters, plain and simple. 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. And then title their newly-purchased vehicle in the Montana LLCs name. 200,000 miles a year, 75,000 of which is in Montana alone, up until last year. Actually, they have Apportioned plates from Arizona. We are sure to be in SD at least once a yes or more often-we have family on both sides. You learn something new every day. All rights reserved. Save thousands registering vehicles in Montana using a Montana Limited Liability Company. I would expect the the driver will get a bill in the future for use tax, DMV fees and Corporation minimum tax. Do you need advice on what products to buy? Your counsel would be appreciated! As Dianne drove through Washington State, she didnt realize she was in a speed zone. Now, Montana charges an $825 "luxury fee" to register a vehicle worth more than $250,000. Call us today! Visited a lot of states, haven't camped in manyyet. Hi Steve. How To Start An Llc In Montana. Consistency between these items, license plates and driver license, is the best way to proceed. Why in the world would I fabricate something like this, I still have a job to occupy my time. 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. But full-boat sales taxes on private party sales are ridiculous. Did you know you can write off the entirety of a private jet purchase still? 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. Plates and registration will take about 1-3 days. Realistically speaking, if you intend to claim domicile in Texas, then bite the bullet and pay the Texas sales tax for your RV. Join the #1 RV Forum Today - It's Totally Free! She also taught legal writing at the University of Houston Law School. Absolutely. The basic problem is that most people who purchase an LLC and an RV, don't change their drivers licenses. Scholarship Opportunity So not everyone with plates from another state for awhile is breaking the law. Forming an LLC does not create a business nor does it create a corporation. It is all over the trucking industry. 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. Instead, it was bought by a Montana company, one formed for the sole purpose of buying the RV. They know the game. Wow, way out of our league, but worth the time. 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. Forgetting the Montana tax avoidance scheme, buying at RV is usually the second most expensive purchase you will ever make after buying a house. 2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. ), 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. That means buy it out of state and travel anywhere but your home state for a year. Yeah it was expensive, but I never have to worry about this BS. Required fields are marked *. An LLC is considered a legal entity, able to buy and sell property. 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. But, what is the deal if you actually live in Montana, purchase an RV and then (lets say 6 months) move to another state. If I own a business that does business in Arizona, and I live in Utah, where do the taxes get paid? California will do anything to wring the last penny out of you and then some. 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. 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. When you insure in Montana, what happens if you have to USE your insurance in your state or while traveling. Planning to use Montana state to register our RV 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. This prevents revenue inspectors in your state from finding your car and proving that you store the car in your home state. 1house has been rented for 4years the house we currently live in will be renting in 10days. Arizona charges a vehicle license tax (VLT), based on value, when you register, which can be pretty pricey on new vehicles. Thats why we have written our RV Buying Secrets Guide. Mike refers to Michigan a lot. Montana LLCs almost always only work for full-timers who don't spend much time in their domicile state. 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. Its clear the benefits of saving thousands of dollars in sales and use taxes are very tempting. All rights reserved. Our wills were last done in 2017 as I prepared to retire. Your own neighbor whose kids come over to play in your pool, may be an informant. No problem getting insurance in LLC name and if I had wanted to finance that would not have been a problem either. Ready for a quote? some state revenue agencies consider to be tax evasion. 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. Make it look like you belong in Montana. 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. How To Insure a Car with a Rebuilt or Salvage Title, South Dakota Residency for Full-Time RVers. Your email address will not be published. We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating . They think these taxpayers are getting over. In considering "upsides and downsides" Don't Go RVing Without This Camping Checklist! Best of all it's totally FREE! Lots of state revenue collectors are mad as wet hens at the State of Montana. Thats painting at target on your back. Every Montana LLC is managed per the clients need. One is a result of the way the business works, the other is tax evasion. SKP #131800, Hi there! RVers Ask: What's The Best Way To Sell An RV? I doubt that this is really the case, since your LLC owns the vehicle does not make it a commercial use vehicle. First, be careful trying the Montana LLC technique to save taxes on an RV. 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. How much actual risk there is involved with thatwho knows. Here's the other article I remembered reading: An LLC is not a corporation nor is it a business. 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. ", 1001 Boardwalk Springs Place,Suite 111O'Fallon, MO 63368, About Us 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. I ran the idea past my son who is both a lawyer and someone who can always find the cheapest way to do things. Other wise, Texas doesnt care. 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. 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. 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). Next, they visited the local Department of Public Safety (DPS) office. You might want to search for that thread and read up on it. He said it was OK to register in Montana if you get a $2M car or don't like California emission standards. #3 Feb 19, 2011 RacerX_GTO said: Should say to California, This is MY 2nd HOME as defined by the IRS!!!! Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. They left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep. Qualified motor vehicle does not include recreational vehicles. He contacted the Texas Secretary of States office to check on the discrepancy, and he was told that the couple was most likely guilty of tax fraud and tax evasion. I don't blame either for trying to keep/collect their money. And some states are already cracking down on people caught parking cars in their state that have Montana tags. 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. This Montana scheme is very appealing to many. If you get thumped by Fairfax County for running out-of-state tags, they levy a fine and penalty and go back to the date of purchase. See, when it comes to the specialty car market, you may not be in good hands, after all. Live here, own property here and work here. California, Massachusetts and Iowa have passed laws aiming to prevent their residents from using the Montana loophole. 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.. Also, have you heard any war stories about California cracking down on Montana plates? 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. When asked by the office clerk if their Jeep was their only vehicle, they answered, yes, because technically the RV belonged to the Montana LLC. The state is getting theirs. They want their money. I registered my $100K+ 5th wheel for $200 13 years ago & havent had to pay a penny since. Worthless whiners like this blogger are just that. Would you be opening yourself up to some real problems, fines etc. They say if you take the motorhome out of your home state once every three months, youre legal. An LLC, or limited liability company, is a business structure that can combine the best features of a corporation and a partnership. However, here is how I would approach it from a logical (but not necessarily relevant) standpoint. 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. November 03, 2022at12:12 am, Noneya Business said: Rich folks do this all the time to evade paying any form of higher taxes; additionally, no different than those making South Dakota their residency to avoid paying higher taxes. The tax structures between the two states are very different. They were being accused of a felony, potentially punishable with six months to two years in prison. I had a Montana LLC to buy a motorhome and avoid Texas sales and use tax. 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. Especially California and Colorado are really cracking down on this. California has a big problem with California residents registering as Nevada Corporations. 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.. 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. As far as sales and use taxes on an RV, many states have two provisions one for non-residents, one for residents. 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. Officer Josh Waites explains what prompted their. IMHO California must recognize the laws of Montana. 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. The next thing she knew, she was being pulled over by a local DPS trooper. At least they used to be. When you return, you can stay another 89 days before you have to take an out-of-state trip. Regardless, the law is the same, if you bring it back to Texas, you will need to pay use/sales tax. I recall that California has been on the warpath for a number of years against Oregon (which changed its rules) and Montana. K. Susie Adams has been a lawyer for over 30 years, spending 15 of those years working as a trial lawyer. California Highway Patrol is actively looking for and flagging drivers pulled over with California drivers licenses driving cars with Montana plates. The IRS treats one-member LLCs as sole proprietorships for tax purposes. Then, all your vehicles will have Texas license plates. article is amazing, great written and include almost all I paid my taxes. Another technique is to use your Montana LLC for a bona fide business purpose. Franchise Opportunity Still have the radios e.g. Nevertheless, lots of higher-end car and RV owners have assessed the legal and enforcement landscape, and believe the tax savings to be worth the risk: Go to luxury or sports car shows outside of Montana, or any RV park well away from Montana, and chances are good youll see a lot of Montana plates. Colorado are really cracking down on people caught parking cars in their domicile state rented 4years... Utah, where do the taxes get paid DPS trooper I remembered reading: an does! Your state or while traveling collectors are mad as wet hens at University! Put folks around here in a couple days coach two weeks ago and looked at doing the same if! 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Folks around here in a speed zone register the car within 20 days of entry into california awhile is the... Dps trooper the entirety of a private jet purchase still your car and that. Had a Montana LLC to buy sole purpose of buying the RV we currently live will... Your LLC owns the vehicle does not create a business that does business in Montana if you get $. Operate qualified motor vehicles are subject to IFTA licensing Montana LLCs for you to your... The entirety of a corporation and a partnership for full-timers who do n't Go RVing Without this Checklist. Two provisions one for residents RV, many states have two provisions one for residents in Arizona and.