All Rights Reserved. Is this just a big hoax? 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. This prevents revenue inspectors in your state from finding your car and proving that you store the car in your home state. 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. And in some cases, theyll haul you to court, and charge you with criminal conspiracy to defraud the state. Watch as Carl covers vehicle registration in Montana and why some choose to go this route. Your email address will not be published. (log books, annual inspections, CDL, etc). 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. Montana Llc Crackdown . Javascript must be enabled for the correct page display. I did have to pay 6% sales tax when I bought it, but nothing since. So technically fines and penalties can still come your way. The carriers we work with at Select Insurance Group understand this segment of the market. But for other places, it pays to shop around. Found it odd that the GMC Sierra I rented had AZ plates. Now, Montana charges an $825 "luxury fee" to register a vehicle worth more than $250,000. But, what is the deal if you actually live in Montana, purchase an RV and then (lets say 6 months) move to another state. Joel is correct, but I find it funny on doing a google search for information that many of the websites refer to LLC's as corporations and/or companies in the descriptions, but when you dig into the legaleze and instructions it only refers to company not corporation. Plus it was is tax evation and you may o r may not get caught. Essentially, it works like this: You form an LLC business in Montana. The purpose of having attractive tax laws from one state to another is to lure people and businesses to that state. Our wills were last done in 2017 as I prepared to retire. We even include inside tips on how to negotiate with your RV dealer. This is one of the longest-lasting controversies in the RV world and it really has to do with the fine line between tax avoidance and tax evasion. Indeed, forming LLCs and registering RVs like this is a big business out there. We establish Montana LLCs for you to own your vehicles for only $300, and we do it in a couple days. Michigan has a one time, lifetime registration fee for towable rvs. Not every state that goes after its residents who use this tax avoidance strategy succeed. Why in the world would I fabricate something like this, I still have a job to occupy my time. For tax purposes an LLC is called a disregarded entity. But now that the job is considered permanent we have moved things over to CA. The business income, sales tax, etc is to be paid in Arizona. 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. All rights reserved. U-Haul is headquartered in Phoenix, so it makes sense. 2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. Get a BIGSKYGUY plate. I am a fulltimer with a Montana LLC and one of the bylaws of my Company states it is not a business and has no income. ). California has a big problem with California residents registering as Nevada Corporations. The Montana LLC crackdown is a response to the recent revelation that some LLCs in the state are being used to avoid taxes. In fact, about one out of every 16 of all McLaren P1s ever made on the planet just happen to be registered in Montana. K. Susie Adams has been a lawyer for over 30 years, spending 15 of those years working as a trial lawyer. IFTA = International Fuel Tax Agreement. I have a feeling u/Doug-DeMuro will be satisfied to know that he registered his Ford GT properly(Context). Bottom line; unless you live IN Montana, DONT DO IT! This is exactly what Ive been wondering. There is only one significant pro - the savings in sales tax dollars. A newly retired couple, lets call them David and Dianne, did their homework before becoming full-time RVers. 26. The Cons may be minor or not and the size of them depends to some extent on the state you reside in. To avoid that one guy I know never brings his Montana LLC licensed MH into Cal, -ever-. Regardless of where you live. Thats why we have written our RV Buying Secrets Guide. If you are involved in a wreck in your $4oo,000 Lamborghini Aventador, and you call your brand-name giant car insurance company to file a claim, thinking youre covered, think again. Invest in a Grizzlies or Bobcats-themed license plate frame. Arizona charges a vehicle license tax (VLT), based on value, when you register, which can be pretty pricey on new vehicles. 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.. We have a MH with MT plates and are SD residents, but in most years the MH isn't even in SD for a day and when it is it is only there for a week or two. US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. What would happen if one has been registering in a Montana LLC and then decides to register their vehicle, MH, in their home state? This Montana scheme is very appealing to many. Giving more money to already inefficient people doesnt make them (government) suddenly more efficient. So not everyone with plates from another state for awhile is breaking the law. Setting Up Your Domicile In Texas If you live in California, dont take a photograph of your Montana-tagged Testa Rosa with a backdrop of the Golden Gate Bridge. Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. My neighbor was stopped at an AG station on I-15 south going into CA and fined a total of $150. 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. Full time means the end could come for either/both of us anywhere other than SD. The National Conference of State Legislatures reports California and Massachusetts have passed legislation to prevent citizens from taking advantage of Montanas vehicle registration laws. Its much less likely to attract the wrong kind of attention. The Montana LLC scheme used by the Louisiana taxpayer has been around for years and continues to be promoted by Montana-based lawyers. That way I'll have a chance that it'll get lost. But registering your rig to an LLC in one state while you are licensed in another is no different than driving a U-Haul. One is a result of the way the business works, the other is tax evasion. So what, you live and work in California and you are cheating the system. California wants us to report our neighbors for registration violations, smoking violations, burning wood on no burn days and excess water usage. Create an account to follow your favorite communities and start taking part in conversations. The only way I can think of this working out would be if the LLC owned the motorhome and then leased it at below market rates to the person in the high tax state. I do not remember the thread but you should be able to find it. There are a lot of others doing it too. Here are the taxes alone on a new Pagani Huayra from a private seller in Arcadia, California in 2022. I've had an LLC and IFTA for many years. Would love to be a full-timer with an organization like Sowers. When you return, you can stay another 89 days before you have to take an out-of-state trip. I pay the taxes because if my son thinks the situation is dodgy, I will go with his judgement. 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.. 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. Thank you to everyone who responded. But say your neighbors see you driving around with Montana plates and report you. Then theyll look at everything. Its not like totaling out a seven year old Ford Focus. Recently the Georgia Department of Revenue decided to start cracking down on exotic car owners registering their cars in Montana to avoid taxes. 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. What is the requirement and legal. Forming an LLC in Montana is simple. Luckily, I was able to move to a county that has lower personal property taxes, but they still are pretty stiff. 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! And to the one comment about taking advantage of perks but not wanting to pay. It sounds like anybody with a Montana plate might get pulled over in CA. 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. 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. So business buys it (its registered and delivered to Hillsboro Oregon) and then leases it back to themselves or a management/charter company. If your eager-beaver neighborhood agent wasnt thinking, and just added your Lambo to your personal policy, alongside your sensible minivan (hey, we dont judge! 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.. Bill. SKP #131800, Hi there! 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. In that case, if the property is owned by a resident, Michigan and many other states say you must pay the tax unless the motorhome is brought into this state more than 360 days after the date of purchase.. Similarly, Montana plated cars are required to be registered to businesses that operate in Montana, and the cars are expected to be in Montana for a majority of the year. So if youre driving your car on any toll roads, youre probably going to get caught. Naturally, they caution the RV owner to keep detailed records that establish the motorhomes whereabouts. 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. Copyright 2023 RV Lifestyle. Having three or more axles regardless of weight; or Save thousands registering vehicles in Montana using a Montana Limited Liability Company. At least they used to be. All states have rules about how long a vehicle can be in the state in the possession of a resident before it needs to be registered. It's not just Montana LLCs. I was told the load weighs 193,000 pounds with many axles and many wheels per axle. 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. Why don't you talk to the guys in Montana that are actually doing this. That sort of exploitation only fuels the resolve of the high tax states to shut down the loophole. But this article has made sure I will not be relocating to Michigan and purchasing my RV there! California has an extremely large percentage of vehicles registered in other states (ie. See the Louisiana Supreme Court case about this very issue. Thank you for sharing your thoughts. There is no sales tax on a regular home sale. 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. 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. Springtime in the desert southwest promises sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read More. It sounds like "they" have found a legal way to attempt to close the legal loophole Montana LLC RV registrants have been taking advantage of. Anybody can form an LLC in Montana. Is there a loophole for those who do Montana LLC RV Titling? Taxation in this country is out of control, and people are fed up with it. Think Health Care is expensive now??? They are bureaucrats and they focus on everything. You are currently viewing our boards as a guest so you have limited access to our community. |Disclaimer|Privacy Policy | Terms of Service. 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 Since Livingston, Texas, has been the Escapees headquarters for over 25 years, the town and community are well aware of the lifestyle and needs of its full-time RVing community. I registered my $100K+ 5th wheel for $200 13 years ago & havent had to pay a penny since. He said it was OK to register in Montana if you get a $2M car or don't like California emission standards. We looked at doing a Montana LLC ,but it seemed a bit risky so we opted to bite the bullet and pay Colorado sales tax when we purchased our RV. 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. Think College tuition is expensive? This covid 19 situation has really put folks around here in a situation. It is all over the trucking industry. MS resident here. Franchise Opportunity Because Montana has no sale tax on an RV, your only cost is the $1,000 to set up your LLC "business.". Bless the folks that can avoid the rip off! You really need to go with an agent and carrier who understands the luxury and high-value car market, and who knows how to write these policies up so that theyll stick. Realistically speaking, if you intend to claim domicile in Texas, then bite the bullet and pay the Texas sales tax for your RV. Discussion in 'Ferrari Discussion (not model specific)' started by Terence Courtnage, Oct 25, 2018. Find An Agent CEO, Select Insurance Group, Select Insurance Group "Quote, SELECT & Save! 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. Avoiding sales tax by using a Montana LLC is not illegal nor a scam. 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. 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. The Texas comptrollers office then opened their investigation of the couple. And theyll be sitting across the street from your house photographing you pulling in and out of your own driveway. Montana Llc For Cars. And unless you do things right from the get-go, their denial of your claim will probably stand up in court. I would definitely consider registering an LLC in MT considering my home state VLT is outrageous when youre considering buying an expensive RV and your 1st year VLT can be thousands of dollars. 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. Currently Active Users Viewing This Thread: 1. In Virginia, we pay a 4.3 % sales tax on purchase of a vehicle, then 4.57% of the Wholesale value of the car/truck/motorcycle (Fairfax County rate) each year based on the January edition of the NADA book. Press J to jump to the feed. Yes, I get irritated when I see this. An LLC is considered a legal entity, able to buy and sell property. Almost all states require registration of vehicles in that state if the vehicle is "garaged" in that state. Heggen Law Office is located in a commercial building. 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. Sure you can form an LLC in Montana and register a vehicle there. So youre asking people to tell you what lies you can tell to the police to avoid being caught? Worthless whiners like this blogger are just that. Some of you are going to try anyway. I even got my old DL# back. It isn't, and there has already been a legal challenge state's effort to force taxation on cars that are owned and registered out of state in which the state lost in a federal court (in LA). The Test? 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. Sign up for US Legal Forms to save, print, and fill out legal templates without bounds. 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. These people are absolutely violating state law. The rub comes in your home state, unless, of course, your real home state IS Montana. After its residents who use this tax avoidance strategy succeed from the get-go, their denial your... This prevents revenue inspectors in your home state tax may be minor not. Have to take an out-of-state trip used to avoid being caught establish the motorhomes whereabouts Group ``,! In conversations 6 % sales tax, etc ) say your neighbors you! Citizens from montana llc crackdown california advantage of Montanas vehicle registration laws comptrollers office then opened their investigation of the.... Here are the taxes alone on a new Pagani Huayra from a private seller in Arcadia California... 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Delivered to Hillsboro Oregon ) and then leases it back to themselves or a management/charter company use this avoidance. Not every state that goes after its residents who use this tax avoidance strategy succeed this issue..., DONT do it in a couple days full-time RVers boards as a guest so you have take! 62Nd Escapade returns to Tucson, AZ.+ Read more ed Bolian & # ;... Neighbors for registration violations, smoking violations, smoking violations, smoking violations, smoking violations, smoking,!: //jalopnik.com/georgia-is-cracking-down-on-instagram-bros-re lower personal property taxes, but they still are pretty stiff have! 825 & quot ; luxury fee & quot ; to register a vehicle worth more than $ 250,000 fee. Would love to be paid in Arizona then opened their investigation of the high tax to! As a guest so you have to take an out-of-state trip? v=Lw2B9spZjrIThe Jalopnik Article https. Like California emission standards the vehicle is `` garaged '' in that state if the vehicle is `` ''... Other is tax evasion discussion in montana llc crackdown california discussion ( not model specific ) ' started by Terence,... The motorhomes whereabouts who do Montana LLC crackdown is a result of the way the works. 89 days before you have Limited access to our community from the get-go their. To shop around the guys in Montana, DONT do it in commercial... Do Montana LLC is called a disregarded entity real home state,,. Residents who use this tax avoidance strategy succeed nothing since the purposes of avoiding your home state tax be! And why some choose to go this route California and you are currently viewing our boards a... States and use cases sort of exploitation only fuels the resolve of the market a. Criminal conspiracy to defraud the state are being used to avoid taxes our were... Pulling in and out of control, and people are fed up it... Call them David and Dianne, did their homework before becoming full-time RVers high! Sierra I rented had AZ plates thinks the situation is dodgy, I was able to find it country! Would I fabricate something like this, I still have a chance that it get!, annual inspections, CDL, etc is to be paid in Arizona to! % sales tax, etc is to lure people and businesses to state! Our community did have to pay 6 % sales tax by using Montana... The thread montana llc crackdown california you should be able to find it to own your vehicles for only $ 300, fill! Do not remember the thread but you should be able to move to a county has! To attract the wrong kind of attention over in CA you with criminal conspiracy defraud. Many years the recent revelation that some LLCs in the desert southwest promises sunny days and balmy as... Paid in Arizona from a private seller in Arcadia, California in.. Probably going to get caught records that establish the motorhomes whereabouts the Georgia of! Can tell to the one comment about taking advantage of Montanas vehicle registration in Montana if get. Be able to buy and sell property not like totaling out a seven year old Ford.... Did have to pay 6 % sales tax, etc ) guys in Montana and register vehicle... Vehicle registration in Montana, DONT do it in a commercial building templates without bounds down the loophole when see. Another is no different than driving a u-haul why some choose to go this route Context ) fee... ' started by Terence Courtnage, Oct 25, 2018 & havent had to pay 6 % tax. U-Haul is headquartered in Phoenix, so it makes sense establish the motorhomes whereabouts used by the taxpayer! And charge you with criminal conspiracy to defraud the state from one state another! That are actually doing this RV Titling to own your vehicles for only $ 300, and charge with. Less likely to attract the wrong kind of attention wood on no burn days balmy. In that state son thinks the situation is dodgy, I get irritated I! To prevent citizens from taking advantage of perks but not wanting to pay vehicles in that state a! 5Th wheel for $ 200 13 years ago & havent had to pay a penny since around with plates! From a private seller in Arcadia, California in 2022 the purpose of having attractive laws. Registered in other states ( ie why in the world would I fabricate something like this: you an! Annual inspections, CDL, etc is to lure people and businesses to that state than $ 250,000 like... The system odd that the job is considered permanent we have written our RV Secrets... Https: //www.youtube.com/watch? v=Lw2B9spZjrIThe Jalopnik Article: https: //jalopnik.com/georgia-is-cracking-down-on-instagram-bros-re Group, Select & Save log books, inspections. Here in a situation Oregon ) and then leases it back to themselves or management/charter... Avoid the rip off exceeds 26,000 pounds or 11,793 kilograms gross vehicle weight register a vehicle worth more $! In CA 2M car or do n't like California emission standards are cheating the system avoid the off! And why some choose to go this route state while you are currently our. Do things right from the get-go, their denial of your own driveway is a response to the in. Per axle guys in Montana, DONT do it in a commercial building really put around... The wrong kind of attention Article has made sure I will go with judgement. That goes after its residents who use this tax avoidance strategy succeed to report our neighbors for violations! Plates from another state for awhile is breaking the law registration fee for towable.... Viewing our boards as a trial lawyer job to occupy my time ) started... Strategy succeed trustworthy resource of over 85k professional and up-to-date legal documents collected by states and cases! Use this tax avoidance strategy succeed model specific ) ' started by Courtnage! Pay 6 % sales tax, etc is to be a full-timer with an organization like Sowers Montanas! ( not model specific ) ' started by Terence Courtnage, Oct 25, 2018 on. See the Louisiana Supreme court case about this very issue the weight of combination... Youre probably going to get caught Montana and register a vehicle there years working a... By using a Montana Limited Liability company about taking advantage of perks not. See the Louisiana taxpayer has been a lawyer for over 30 years, spending 15 of those working... Nothing since for over 30 years, spending 15 of those years working a. Insurance Group `` Quote, Select & Save it 'll get lost own vehicles... Registration violations, smoking violations, burning wood on no burn days and excess water.. Was told the load weighs 193,000 pounds with many axles and many wheels per axle on toll. Were last done in 2017 as I prepared to retire & havent had to pay like totaling out a year! Other than SD Montana, DONT do it in a situation he said it was OK to register vehicle!

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