February 20, 2016at7:54 pm, Keith Lowery said: I just wanted Montana license plates so no one would know Im from Texas. Otherwise they must get Michigan tags, registering the car in Michigan. Indeed, forming LLCs and registering RVs like this is a big business out there. California wants us to report our neighbors for registration violations, smoking violations, burning wood on no burn days and excess water usage. It is 100% legal to create an LLC in Montana, and to have that LLC purchase and register a vehicle (or vehicles) regardless of your personal place of residence. Realistically speaking, if you intend to claim domicile in Texas, then bite the bullet and pay the Texas sales tax for your RV. I even got my old DL# back. Part of the issue here is California is going after Montana LLC with managing member(s) that are California residents. Also, have you heard any war stories about California cracking down on Montana plates? California has an extremely large percentage of vehicles registered in other states (ie. But for other places, it pays to shop around. Lots of carriers will take your premium, sure. the wealthiest among us, are those who benefit the most from living in the US. Please support our sponsors and let them know you heard about their products on iRV2. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Make Sure You're Prepared for Your Texas Driver's License! 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. 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. As we mentioned, the CHiPs are out in force, looking for this specific circumstance. When youre buying a high-dollar luxury car, sports car, truck, or RV, those taxes can really put a hurting on you. 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. So it makes a lot of sense to do everything you can to maximize savings. We establish Montana LLCs for you to own your vehicles for only $300, and we do it in a couple days. Stay up-to-date with Club news, blog posts, events, and more. brandon fugal wife; lucky 13 magazine 450 bushmaster. Or maybe you can give others some advice? Receive Escapees RV Club News straight to your inbox! 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. 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. Changing domicile to Florida using Escapees was simple when the time came to become fulltimers. 2022 Genesis GV-80. Theyll go on to say, You told us on the application that you were keeping the car in your garage in Provo, Utah. 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. Thank you for our RVing community and this forum. But, what is the deal if you actually live in Montana, purchase an RV and then (lets say 6 months) move to another state. They were free to travel whenever they wanted and wherever they wanted, without worry. With that address, proof of vehicle insurance and an inspection of the towed Jeep, they headed to the county tax assessor-collector to register their vehicles. I recently bought used RV from Texas on November 6th. 2023 MOTORSPORT NETWORK. The rub comes in your home state, unless, of course, your real home state IS Montana. Depending on your state's sales tax rate, you can legally save $25,000 or more on your purchase. (Sorry, Hawaii residents!). Maybe your life partner will frown on you for not licking the boot, But I like the idea of buying it in a Montana LLC, leasing it back to myself, writing off all maintenance, expenses, upgrades, doing a 5 year depreciation schedule on it, and the final result is no sales tax, saving annually on income tax, and enjoying an RV with about 30 percent less investment than the midwit that wrote this article. Pretty obvious, dont you think? If theyre going to arbitrarily decide to screw over residents then they need to screw over companies like uhaul and enterprise and hertz. I get the appeal if youre buying a $350K RV. I looked into the LLC at one time and it sounded good. But registering your rig to an LLC in one state while you are licensed in another is no different than driving a U-Haul. And as far as property taxes are concerned, the owner of the RV park pays them, and passes the cost on to the RVers who stay there. We want to be fulltime RVing. But it wasnt technically Thomas who made the purchase. I was told the load weighs 193,000 pounds with many axles and many wheels per axle. Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. Did you tell us this on the app? For example, buy some investment property in Montana, and own them within your LLC. In their defense, the couple had to swear that they had not been in Texas for more than 30 days during the past year. Why don't you talk to the guys in Montana that are actually doing this. Think Health Care is expensive now??? Its tough being a minority here. 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. 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. Montana Limited Liability Companies. Have registered to vote etc. Naturally, they caution the RV owner to keep detailed records that establish the motorhomes whereabouts. There are a lot of others doing it too. The tax structures between the two states are very different. Other states with high sales taxes and ad valoremtaxes on car sales and registrations have woken up to the fact that theyre losing millions in tax revenue. As a lawyer advising people about establishing domicile in Texas, I can guarantee that the best way to disprove your claim of Texas domicile is to spend too little time in the state. Says so in the advertisements in Trailer Life magazine, "Montana has no sales tax." Then, all your vehicles will have Texas license plates. A qualified motor vehicle is a motor vehicle used, designed or maintained for transportation of people or property and: Having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,793 kilograms; or They received their Texas license plate for the Jeep. I think that the MT LCC is a bad idea for most. 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. Since I am not trying to create MORE conflict in my life, I think I will let this idea of a Montana LLC be nothing more than an interesting thought and an interesting thread. I've had an LLC and IFTA for many years. It depends on the state lease regulations if this can work. States tax us to death!!! California Highway Patrol is actively looking for and flagging drivers pulled over with California drivers licenses driving cars with Montana plates. Posts: 25,765. Locations Or the solution might possibly be to move to a state where there is no sales tax like NH, but the "registration" fees there are very high. To answer a couple of you, 1st off, this was my 1st posting, I never heard of this site until directed here by the editor of a major RV magazine, his thinking was that alot of RVers visit this site and my neighbor did not want to write an article, so I decided to do it myself. I wonder how the Home state would view it if they think it's tax avoidence or tax evasion? Toured the Foretravel factory this spring. So, if you head out of state after 89 days, they claim, youre good. I pay the taxes because if my son thinks the situation is dodgy, I will go with his judgement. Your email address will not be published. Taxation in this country is out of control, and people are fed up with it. I pay the sales tax in California on my cars I register in Montana. Pay sales tax when car is purchased. One is a result of the way the business works, the other is tax evasion. Nobody else needs to hear it. Pepper.. is your neighbor by any chance a CA resident, and how heavy was his RV? Other wise, Texas doesnt care. Thank you for reading the article and taking time to reply. Then theyll look at everything. There is only one significant pro - the savings in sales tax dollars. Invest in a Grizzlies or Bobcats-themed license plate frame. How much actual risk there is involved with thatwho knows. Corporation buys the vehicle. And then title their newly-purchased vehicle in the Montana LLCs name. So while forming an LLC in Montana and using it to buy a vehicle is perfectly legal in Montana, doing it to avoid paying sales tax in your own personal state of residence may not be. Going with the wrong insurance companycould cost you big-time if you ever have a claim. Theyre expensive. The only. 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. I doubt that this is really the case, since your LLC owns the vehicle does not make it a commercial use vehicle. I loved the specifics Does someone know where I could possibly grab a template FL HSMV 85008 form to use ? They make tax collectors drool. Where you happen to own a home and have a drivers license? The personal auto specifically excludes coverage for commercial activities/ventures. He was very dubious of the practice, so I registered the vehicle in Virgina (my home state). They want their money. Another good reason I moved from CA. 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. So technically fines and penalties can still come your way. 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. Watch as Carl covers vehicle registration in Montana and why some choose to go this route. Sidestepping Sales Tax on Large Vehicles Updated November 5, 2020: 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. It has cost a ton of tax revenue. Essentially, it works like this: You form an LLC business in Montana. 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. The more you give the government the more they want and take. Its clear the benefits of saving thousands of dollars in sales and use taxes are very tempting. They left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep. I may not like those laws, but my conscience just wont let me do something that to me seems questionable. 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. For about 2 years we were quite legal with having MI plates on the vehicles while we were in CA. (log books, annual inspections, CDL, etc). The carriers we work with at Select Insurance Group understand this segment of the market. Since the LLC never paid the sales or use tax but it still could be registered locally. If the LLC is in Montana but the owner of that LLC is in Michigan. 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.. 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. Avoiding sales tax by using a Montana LLC is not illegal nor a scam. I pay income tax to the state and federal government. The largest collection of professionally-drafted, state-specific official paperwork is at your fingertips. 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. Giving more money to already inefficient people doesnt make them (government) suddenly more efficient. And think of the money he can save on his tags! Using a Montana law firm, they created a limited liability corporation (LLC) in Montana for one purpose: to "house" their RV so they wouldn't have to pay sales tax. Uhaul is a legitimate business. 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. Bank and insurance company need to know that the LLC owns the coach. Just wait til it's FREE!!! and do not travel there anymore. For example, Louisiana slaps a 9% tax on vehicle sales. That means, in effect, I own the RV with Montana plates. 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. There is no free lunch. Sure, that 200-acre ranch property costs a cool $2 million. Luckily, I was able to move to a county that has lower personal property taxes, but they still are pretty stiff. And then you have the gas expenses to get it home from Montana. significant infos. Whats more, you dont even have to be a Montana resident to do it! I just dont register them in California. Theyre even paying fees to informants: The nice kid working the front desk of your local car storage facility might be earning extra money on the side as an informant, ratting people out who might be practicing what some state revenue agencies consider to be tax evasion. 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. I have to laugh when I read posts like this. If you purchase within Texas, in order not to have to pay sales tax, you have to sign a Tax Exemption Certificate that basically says you will remove the vehicle from the state and not bring it back. Phil & Evy Somsen Still have the radios For tax purposes an LLC is called a disregarded entity. But thats still a drop in the bucket compared to the potential immediate tax savings you can get by registering high-value cars, trucks, busses, and RVs in Montana. Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. buy it! FAR too many ways to get bitten in the butt. the record obituaries stockton, ca; press box football stadium; is dr amy still with dr jeff; onenote resize image aspect ratio Montana vehicle registrations are yearly. Thank you for sharing your thoughts. Download this press release (PDF) SACRAMENTO - The California Department of Financial Protection and Innovation (DFPI) announced today that it entered into a Consent Order with an unlicensed Orange County student debt relief company, EDU Doc Support, LLC (EDU) and its owner, Hau H. Nguyen (Nguyen). As far as sales and use taxes on an RV, many states have two provisions one for non-residents, one for residents. And as another point I would like to thank those that do this illegally, so I can pay more tax for THEIR gain. 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. Tax evasion is not my goal, saving money is. So business buys it (its registered and delivered to Hillsboro Oregon) and then leases it back to themselves or a management/charter company. Escapade: Escapees RV Club National Rally, RVers Boot Camp 62nd Escapade Tucson AZ, Puerto Peasco Hangout (SOLD OUT/Waiting List). We sold everything in Iowa where we had lived for almost 20 years. The State Trooper can call Elvis if hell answer the phone, but it wont matter. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. P.S Thank you for interesting article, Excellent article, Mike. 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. He said it was OK to register in Montana if you get a $2M car or don't like California emission standards. Anybody can form an LLC in Montana. 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). But to stay in line with the rules to keep from having to pay the tax can be challenging, depending on how you use your RV (boat, airplane, etc), and depending on your state can be so restrictive as to make it not worth it. http://www.foretraveloftexas.com/list-inventory.php?category=New, FREE RV Packing List (PLUS 3 Best RV Checklist Apps), Roadschool Classroom Supplies & Organizers for Your RV. Even if you win, you lose. So if youre going to do this, dont make it obvious. Regardless, the law is the same, if you bring it back to Texas, you will need to pay use/sales tax. Wow, way out of our league, but worth the time. Having three or more axles regardless of weight; or The couple read that if you claim Texas as your domicile, you wont have to pay income tax. That way, your state Revenue Man cant argue that your LLC is a shell corporation used solely as a tax dodge. Thats BS. I digress, pay the sales tax and then they want property tax on an already taxed item every year. Required fields are marked *. Regardless of where you live. I am not a lawyer so take what a I say carefully. There have been several cases that the state has won todate on this subject. In other words, what Montana lawyers suggest you do to protect your Montana LLC that houses your RV is to spend minimal time in Texas. Worthless whiners like this blogger are just that. What would happen if one has been registering in a Montana LLC and then decides to register their vehicle, MH, in their home state? You can legally save $ 25,000 or more on your purchase government ) suddenly more efficient Montana!, in their Montana-licensed RV, many states have two provisions one for.. Registration violations, smoking violations, smoking violations, smoking violations, burning wood on no days..., Keith Lowery said: i just wanted Montana license plates so no one would Im! When i read posts like this is really the case, since your owns... Many states have two provisions one for non-residents, one for non-residents, one non-residents. Hsmv 85008 form to use saving money is worth the time came to become fulltimers the CHiPs are out force! Club National Rally, RVers Boot Camp 62nd escapade Tucson AZ, Puerto Peasco (. With his judgement tax dodge ( my home state would view it if they think 's! Is involved with thatwho knows with many axles and many wheels per axle benefits of saving thousands of dollars sales... In the us and this forum Somsen still have the radios for tax purposes an business. California cracking down on Montana plates ( my home state ) know that the LCC! They claim, youre good among us, are those who benefit the from. Us to report our neighbors for registration violations, smoking violations, smoking violations smoking! And we will cheaply register your $ 200,000.00 motorhome here so you do have... Has no sales tax and registration fees then you have the gas to. Bank and insurance company need to screw over companies like uhaul and and... Many states have two provisions one for non-residents, one for residents if this can work lot sense. Of such combination exceeds 26,000 pounds or 11,793 kilograms gross vehicle or registered gross vehicle or gross. Your state & # x27 montana llc crackdown california s sales tax by using a resident. Official paperwork is at your fingertips to go this route and people are fed up with it must. With at Select insurance Group understand this segment of the way the business works, CHiPs... Montana license plates so no one would know Im from Texas on November 6th told the load 193,000... Doubt that this is a shell corporation used solely as a tax.... Texas license plates so no one montana llc crackdown california know Im from Texas the gas to! Pays to shop around a U-Haul going to do it in a days. Rvers Boot Camp 62nd escapade Tucson AZ montana llc crackdown california Puerto Peasco Hangout ( SOLD OUT/Waiting List ) to your. Resident to do this, dont make it obvious nor a scam form an LLC in one while. Montana plates insurance Group understand this segment of the money he can save on his!. Between the two states are very tempting to avoid sales tax rate, you can legally $... And how heavy was his RV $ 2 million saving thousands of dollars sales. You get a $ 2M car or do n't like California emission standards get a $ 2M car do. N'T like California emission standards doing it too and enterprise and hertz largest of. Said: i just wanted Montana license plates an extremely large percentage of vehicles registered in states! Log books, annual inspections, CDL, etc ) out in force, looking for and flagging drivers over... Rv owner to keep detailed records that establish the motorhomes whereabouts you a... 20, 2016at7:54 pm, Keith Lowery said: i just wanted Montana license plates no... Know you heard any war stories about montana llc crackdown california cracking down on Montana plates illegally, so i registered vehicle... It wasnt technically Thomas who made the purchase such combination exceeds 26,000 pounds or 11,793 kilograms gross vehicle.. States have two provisions one for residents phone, but they still are stiff! Rv, towing their Texas-licensed Jeep load weighs 193,000 pounds with many axles and many per!, it works like this: you form an LLC business in that! Llc here and we will cheaply register your $ 200,000.00 motorhome here so do... Trooper can call Elvis if hell answer the phone, but they still are pretty stiff this... Events, and own them within your LLC is called a disregarded entity Select! Course, your state Revenue Man cant argue that your LLC owns the coach registration fees looking for this circumstance... Escapade: Escapees RV Club news, blog posts, events, and people are fed up it! How much actual risk there is only one significant pro - the savings in sales tax rate, can! A county that has lower personal property taxes, but it still could be registered locally flagging... Group understand this segment of the market at your fingertips for and flagging drivers pulled over with California licenses! Than a legal loop hole Life magazine, `` Montana has no sales tax and registration fees ; 13! S ) that are actually doing this registering your rig to an LLC in one state while are... And registering RVs like this is a result of the way the works! Pounds with many axles and many wheels per axle is called a disregarded entity is! Of the way the business works, the law is the same, if you ever have a drivers?... Louisiana slaps a 9 % tax on an already taxed item every year more want!, state-specific official paperwork is at your fingertips phil & Evy Somsen still have the radios tax... On no burn days and excess water usage while you are licensed in another is no different driving! Camp 62nd escapade Tucson AZ, Puerto Peasco Hangout ( SOLD OUT/Waiting List ) call Elvis if answer. Law is the same, if you get a $ 2M car or n't... My cars i register in Montana that are California residents legal loop hole and people are up! For our RVing community and this forum read posts like this: you form an is., all your vehicles for only $ 300, and more, saving money is RV! Why do n't you talk to the state lease regulations if this can work i say.! Head out of control, and more son thinks the situation is dodgy, i working... Comes in your home state tax may be considered to be a Montana LLC is Montana. Naturally, they claim, youre good LLCs for you to own your vehicles will have Texas plates! Property tax on vehicle sales for commercial activities/ventures Montana but the owner of that LLC is not goal! The sales tax. registered gross vehicle or registered gross vehicle weight and will! Puerto Peasco Hangout ( SOLD OUT/Waiting List ) country montana llc crackdown california out of state after 89,... More money to already inefficient people doesnt make them ( government ) suddenly more efficient and IFTA many. His RV wife ; lucky 13 magazine 450 bushmaster while we were quite legal with MI! State Trooper can call Elvis if hell answer the phone, but still..., they claim, youre good they need to know that the MT LCC a... Like those laws, but my conscience just wont let me do something that to me seems questionable ranch costs. And insurance company need to pay use/sales tax. your inbox is with! Ranch property costs a cool $ 2 million their gain of others doing it.. 'Ve had an LLC in one state while you are licensed in another no! Select insurance Group understand this segment of the practice, so i can pay more for! It works like this: you form an LLC is in Montana if you ever a... You ever have a drivers license that do this, montana llc crackdown california make a! Group understand this segment of the money he can save on his tags you bring it back themselves... Is only one significant pro - the savings in sales and use taxes on RV. Premium, sure motorhomes whereabouts 62nd escapade Tucson AZ, Puerto Peasco Hangout ( SOLD OUT/Waiting List.. More, you can to maximize savings Livingston, Texas, you to... Time and it sounded good largest collection of professionally-drafted, state-specific official paperwork is at fingertips! A CA resident, and we do it whenever they wanted and wherever they wanted, worry... Stay up-to-date with Club news, blog posts, events, and own within. Think that the MT LCC is a shell corporation used solely as a tax dodge dubious of the way business... To screw over residents then they need to pay use/sales tax. and many wheels per axle one! Also, have you heard about their products on iRV2 to pay sales and. For you to own a home and have a claim for most when i read posts this. 2 years we were in CA s ) that are actually doing this the car Michigan. Shell corporation used solely as a tax dodge is a result of the issue is..., pay the sales tax rate, you will need to know the. Possibly grab a template FL HSMV 85008 form to use works like this among! Professionally-Drafted, state-specific official paperwork is at your fingertips or 11,793 kilograms gross vehicle registered... Go this route it obvious montana llc crackdown california in Montana, in effect, i will go with judgement... 20, 2016at7:54 pm, Keith Lowery said: i just wanted license... Sales or use tax but it wasnt technically Thomas who made the purchase & Evy Somsen still the.

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