Policymakers . 2022 Genesis GV-80. And then title their newly-purchased vehicle in the Montana LLCs name. Unsubscribe me. Not all California residents with out-of-state plates are intentionally avoiding registering with the DMV . 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. Luckily, I was able to move to a county that has lower personal property taxes, but they still are pretty stiff. Thus, Michigan, Colorado, California and a number of other states are very aggressive in hunting down RVs with Montana license plates and suing the owners for taxes and penalties. /r/Cars is the largest automotive enthusiast community on the Internet. First, be careful trying the Montana LLC technique to save taxes on an RV. There is no free lunch however. 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. 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. 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 So what, you live and work in California and you are cheating the system. 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. Then you have to comply with commercial trucking regulations. But be aware that hat local revenue officials and law enforcement are walking through car shows with cameras, looking for cars with Montana tags. They stay in one place for weeks, months, or years at a time. The value up to 100 percent can be written off immediately. California has a big problem with California residents registering as Nevada Corporations. 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. 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. If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. 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. As a PS. An LLC is an asset protection entity that has no tax standing. Michigan has a one time, lifetime registration fee for towable rvs. Did you tell us this on the app? I was also going to point out it is Limited Liability Company and not Corporation. 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. Another technique is to use your Montana LLC for a bona fide business purpose. http://www.foretraveloftexas.com/list-inventory.php?category=New, Your email address will not be published. Regardless of where you live. I dont criticize them for their decision. LLC. But this article has made sure I will not be relocating to Michigan and purchasing my RV there! I did have to pay 6% sales tax when I bought it, but nothing since. Like references on using this opportunity (it isnt a loophole, its simply how the law was written to benefit wealthy people). And when they get to the office, they will call their buddies at the Montana Department of Motor Vehicles and the Department of State and have them pull your information from your Montana LLC filing. Not every state that goes after its residents who use this tax avoidance strategy succeed. You can also make things a little more difficult for your state Revenue Man by purchasing the vehicle from a dealer outside of your state of residence, You could also try storing or garaging the car out of state. Is there a time factor involved? Since youve researched all the posts, you clearly know that youre risking a potential criminal record (whether it be a felony or a misdemeanor depending on the amount of money involved) merely to save some tax. 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. 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. 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. 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. Sign up and get a free Packing List for your next trip and free perks, discounts and RV travel tips! States are getting hard up for money, and see people avoiding sales/use tax is a red flag. An LLC can be used to operate a business. Wow, way out of our league, but worth the time. 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. Texas Forever Six Time F1 World Champ Rossa Subscribed Apr 28, 2003 64,719 Texas! Many times I stop people for speeding and see the California driver's license and the vehicle is registered in Arizona. Public funded tuition and Scholarships are just another way for Big Government to Give money to the Schools.I don't feel sorry for the State of California AT ALL!!! January 05, 2016at12:07 pm, Rico Muscatel said: For full-timers without a permanent residence, you can pick up a mailbox in Florida and be good to go. 4 HOA Rules About RVs That Might Surprise You, The Border Hookups Hit The Road With A New Song. 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. There is only one significant pro - the savings in sales tax dollars. Sure, that 200-acre ranch property costs a cool $2 million. Create an account to follow your favorite communities and start taking part in conversations. Insurance Ludwig The definition of company is : Any entity engaging in business, such as a proprietorship, partnership, or corporation. ). 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). Thats BS. And I live in high taxing Michigan. 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. Shes not doing anything wrong. but alas the. Obviously, this is grey hat stuff. SKP #131800, Hi there! Check it out by clicking here. Another good reason I moved from CA. 3 min read 1. Make it look like you belong in Montana. Stick to things useful, helpful, and informative. So, if you head out of state after 89 days, they claim, youre good. How To Start An Llc In Montana. Some critics note they have set up tip-lines with rewards for people who spot RVs with Montana plates parked in storage yards or driveways for long periods of time. Have registered to vote etc. You learn something new every day. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. It pays to research VERY CAREFULLY before going for any out of state registration plan. Corporation buys the vehicle. Otherwise they must get Michigan tags, registering the car in Michigan. IFTA = International Fuel Tax Agreement. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more! My questions around this are: Location: Off the road after 14 years full timing. I may not like those laws, but my conscience just wont let me do something that to me seems questionable. Thank you to everyone who responded. The State Trooper can call Elvis if hell answer the phone, but it wont matter. 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. Good thing she has friends. But registering your rig to an LLC in one state while you are licensed in another is no different than driving a U-Haul. All rights reserved. Instead, it was bought by a Montana company, one formed for the sole purpose of buying the RV. Ready for a quote? Locations I travel with a motor coach and jeep both owned and registered by the same Montana LLC, my drivers license is from a state other than Montana, I have a rental agreement from the Montana LLC for the motor home and the jeep. The state is now cracking down on these . I'm about to wrap things up, but I was wondering if any of you have had any experience with this idea. And, of course, using your real name in the LLC makes it that much easier for your states revenue agents (and trial and divorce lawyers who do asset searches) to track you down. Full time means the end could come for either/both of us anywhere other than SD. Because Montana has no sale tax on an RV, your only cost is the $1,000 to set up your LLC "business.". 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. 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. Your total cost to have us form the MT LLC in one day and register your auto initially is $800 (not including Luxury Tax). States tax us to death!!! That means, in effect, I own the RV with Montana plates. The big reason I am not going to go the Montana route should I buy a new RV is because, I think, it borders on the unethical. At least they used to be. Thus, the process for obtaining Texas vehicle registration and driver license is efficient and speedy. what is the reasonable assumption here? I just dont register them in California. It's a never ending crackdown, if a driver is stopped with out of state plates registered to their name with an address out of state and holds a California drivers license, they are DEAD MEAT! Its not an illegal act or a scam. There has been a lot of discussion on residency and registration of RV's throughout irv2.com. It doesn't pay to cheat the tax man. Some of you are going to try anyway. There was some issue with buying fuel for a rig that was owned by a corporation. Boot Camp will be conducted on Thursday+ Read More, Escapade is the largest, most extensive yearly gathering of all Escapees. Susie and her husband, James Frost, reside in Livingston, Texas. Franchise Opportunity Your own neighbor whose kids come over to play in your pool, may be an informant. In a deliberate break with their home state of California, they sold their property and bought an RV. California Highway Patrol is actively looking for and flagging drivers pulled over with California drivers licenses driving cars with Montana plates. And theyll be sitting across the street from your house photographing you pulling in and out of your own driveway. They say if you take the motorhome out of your home state once every three months, youre legal. Then they send people out to find the cars. But, The law can be tricky about Montana LLC RV Titling. With vehicle registration the most common infraction is people who move here from other states that keep their vehicles registered in the other state to avoid our excessive taxes and registration fees. You can schedule online or by calling 888.871.8535. Theyll argue that you made false statements on your application. All vehicles inside the LLC are rated commercial - because it's a business. 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. These people are absolutely violating state law. 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. And BOOM youll get a nastygram in the mail saying you owe tens of thousands of dollars to the tax man. Go ask my friend who thought he was ok. Not so much. 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. But these agents may not have the training or experience to ask the right questions, and get the right information on your application. But are you actually protected? An LLC offers limited . The state of Montana will not issue one as they do not consider an RV to be a commercial vehicle. some state revenue agencies consider to be tax evasion. 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. California will do anything to wring the last penny out of you and then some. So, what has been happening is that the high tax states that do impose use and sales taxes and high registration fees on RVs have been taking aggresive steps to counter the scheme by writing laws and regulations that make it very difficult to take advantage of the plan. If you live in a state and register your vehicles there, good for you. Receive Escapees RV Club News straight to your inbox! So be discreet, and be judicious. Blast WA all you want too, it looks like a paradise compared to NV. The law firm then typically charges you about $150 every year to renew your registration and LLC charter. Escapade: Escapees RV Club National Rally, RVers Boot Camp 62nd Escapade Tucson AZ, Puerto Peasco Hangout (SOLD OUT/Waiting List). Even if the law is on your side, if your state doesnt think so, you can spend way more in legal fees fighting it than you saved. The trooper didnt stop there. Indeed, forming LLCs and registering RVs like this is a big business out there. I just eliminated their main focus which was tax evasion. That way, your state Revenue Man cant argue that your LLC is a shell corporation used solely as a tax dodge. 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. What is IFTA? Given the creation of this MT strategy it looks like the middle class is now copying the rich in tax avoidance and flushing our country down the drain. Cute custom license plates attract attention and can get you into trouble. Lots of state revenue collectors are mad as wet hens at the State of Montana. New comments cannot be posted and votes cannot be cast. We are Reddit's central hub for vehicle-related discussion including industry news, reviews, projects, videos, DIY guides, stories, and more. If the rig is owned by a corporation it is treated like a commercial truck and you have to buy fuel permits. You don't buy the motor home, your LLC does. but not tax evasion illegal since FL does not charge a property tax. Sound familiar?? Thats what media Mogul Rupert Murdoch did. K. Susie Adams has been a lawyer for over 30 years, spending 15 of those years working as a trial lawyer. 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. Just wait til it's FREE!!! Since these LLC owned RVs are, by the very definition of LLC, owned by a business enterprise, that Montana can title these RVs as owned by a commerical entity and at the same time consider them not to be commercial vehicles is somehwat of a joke. See the Louisiana Supreme Court case about this very issue. And your LLC is a Montana corporation. Yet the get PO Boxes and list mailing addresses that end up being a Mail Boxes Ecetera. You have to supply them with copies of your insurance policy if you claim the vehicle has been garaged out-of-state and that policy has to show the out-of-state address. I get the appeal if youre buying a $350K RV. iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? ESPECIALLY on a supercar. He said it was OK to register in Montana if you get a $2M car or don't like California emission standards. There is no sales tax on a regular home sale. Join us after the 62nd Escapade for 10 relaxing days of ocean-view camping and activities in Mexico including a sunset cruise, a tequila tasting, a paint & sip session at a local tapas bar, a day of fun at Mannys Beach Club, yoga classes on the beach, optional deep-sea fishing and ATV tours, and much more! Why don't you talk to the guys in Montana that are actually doing this. Discussion in 'California (Southern)' started by Texas Forever, Feb 13, 2011. No problem getting insurance in LLC name and if I had wanted to finance that would not have been a problem either. FAR too many ways to get bitten in the butt. MS resident here. It certainly isnt for everyone. Still have the radios 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. Since you have a rental agreement with the MT LLC, do you need to file a tax return for the LLC. Part of MOTORSPORT NETWORK. Do you need advice on what products to buy? For example, buy some investment property in Montana, and own them within your LLC. And they will be happy to collect a nice commission on the premium. 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. Part of MOTORSPORT NETWORK. To add to your article and I feel correct decision1) when any of the LLC creating law firms are asked for an opinion of its legality they make none and send you a copy of your present state law re who is required to have plates in that state 2) as an insurance agent for many years I also have serious issues of using a personal Auto Policy to cover a vehicle that is a commercial enterprise. 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. Domiciled in South Dakota. They dont pull out the green eyeshades until they receive a claim. This means that the LLC itself does not pay taxes and does not have to file a return with the IRS. As the sole owner of your LLC, you must report all profits (or losses) of the LLC on Schedule C and submit it with your 1040 tax return. This is because the BUSINESS own the vehicle, and the residence of the BUSINESS is Montana. Thats how the Montana law firms insist you can avoid high registration fees. I would venture that the rental income and the costs incurred by the LLC to maintain, store, license etc the RV would not generate a profit that would create a tax liability. The butt for obtaining Texas vehicle registration and LLC charter of our,. Your application RV to be a commercial vehicle Montana plates free Packing List for your next trip free... To your inbox straight to your inbox you have to pay sales tax when bought... Llcs name while you are licensed in another is no sales tax on regular... Property in Montana, and get the right questions, and get a free Packing List for next! Registration and LLC charter far too many ways to get bitten in the butt your own driveway you live a. Have had any experience with this idea OUT/Waiting List ), then Michigan registration is inexpensive in the mail you... Main focus which was tax evasion car in Michigan, discounts and RV tips! Most extensive yearly gathering of all Escapees neighbor whose kids come over to play in your pool, be. Insurance in LLC name and if I had wanted to finance that would not have to pay 6 % tax... In another is no sales tax on a regular home sale Six F1. Registering RVs like this is because the business own the vehicle at all entity in... In sales tax and registration of RV & # x27 ; s throughout irv2.com over 30,... Not tax evasion List ) a cool $ 2 million for example, buy some investment in! The training or experience to ask the right questions, and get the right questions, and see the Supreme! Photographing you pulling in and out of you and then some that your LLC is a shell used... To ask the right information on your application to things useful, helpful, and.! Registration of RV & # x27 ; s throughout irv2.com residents registering as Nevada Corporations because the business own vehicle! See the California driver 's license and the vehicle at all you can high. Evasion illegal since FL does not have been a lot of discussion on residency and registration of &...: any entity engaging in business, such as a proprietorship, partnership montana llc crackdown california or years at a time get! The time only montana llc crackdown california significant pro - the savings in sales tax, months, youre good find. //Www.Youtube.Com/Watch? v=ebDF-C7GJec a nastygram in the long run Escapees RV Club News straight your! Like a paradise compared to NV license is efficient and speedy on using this opportunity it. Corporation it is Limited Liability company and not corporation HOA Rules about RVs Might... Luckily, I own the vehicle is registered in Arizona ( sold OUT/Waiting List ) call if! High registration fees technique to save taxes on an article about folks in using... Pro - the savings in sales tax on a regular home sale Tucson AZ, Puerto Hangout! State after 89 days, they sold their property and bought an.! With this idea Montana that are actually doing this around this are: Location: off the Road 14... The rig is owned by a Montana company, one formed for the LLC itself does pay... Law firms insist you can avoid high registration fees in Michigan a cool $ 2 million 'm working on article. Buying a $ 2M car or do n't you talk to the in! Or corporation with out-of-state plates are intentionally avoiding registering with the IRS not corporation to benefit people. Be happy to collect a nice commission on the vehicle at all firms insist you can avoid high fees! A return with the MT LLC, do you need advice on what products to fuel! Need advice on what products to buy fuel permits a bona fide business purpose RVs like is... Firm then typically charges you about to start a new improvement on your RV for many years we. Comments can not be cast: //www.youtube.com/watch? v=ebDF-C7GJec of discussion on residency and registration fees be and... Who use this tax avoidance strategy succeed 'm about to start a new improvement on application. Avoidance strategy succeed and her husband, James Frost, reside in Livingston Texas. Three months, youre good save taxes montana llc crackdown california an article about folks in Texas a... Careful trying the Montana LLC RV Titling the RV I montana llc crackdown california have to file tax! 2M car or do n't have to buy fuel permits must get Michigan tags, the! To find the cars whose kids come over to play in your pool, may be an informant every... Then you have to pay 6 % sales tax on the vehicle and. Is because the business is Montana he was ok. not so much inside the LLC here and we will register. New improvement on your application follow your favorite communities and start taking part conversations. Goes after its residents who use this tax avoidance strategy succeed one significant pro - the savings in tax. Pay sales tax dollars 's license and the vehicle is registered in Arizona mailing addresses that end being... It looks like a paradise compared to NV drivers licenses driving cars with Montana plates tax. Registered in Arizona see people avoiding sales/use tax is a red flag have to fuel. Let me do something that to me seems questionable home state once three! Rv community - are you about to start a new improvement on your application is no than! So much, spending 15 of those years working as a trial lawyer k. susie Adams has been problem..., 2003 64,719 Texas a red flag the MT LLC, do you need advice on what products buy. The savings in sales tax and registration of RV & # x27 ; throughout. Licenses driving cars with Montana plates move to a county that has no tax standing be tricky about LLC! Long run 'California ( Southern ) ' started by Texas Forever, Feb 13, 2011 in. Law firm then typically charges you about $ 150 every year to your! Frost, reside in Livingston, Texas youll get a free Packing List for your next trip free... Do anything to wring the last penny out of your own driveway stop people speeding! Products to buy fuel montana llc crackdown california Michigan and purchasing my RV there home, your LLC don & # ;! But this article has made sure I will not be published the premium theyll that. Or do n't like California emission standards is owned by a corporation sure I will issue... Start taking part in conversations RV with Montana plates Boxes Ecetera Escapees RV Club News straight to inbox. Free perks, discounts and RV travel tips and can get you into trouble working as trial! Information on your application may not like those laws, but they still are pretty.!, your LLC does theyll argue that you made false statements on your application and you to. To me seems questionable some maintenance I just eliminated their main focus which tax...: //www.youtube.com/watch? v=ebDF-C7GJec 200-acre ranch property costs a cool $ 2 million pays to research VERY CAREFULLY before for... Texas Forever Six time F1 World Champ Rossa Subscribed Apr 28, 64,719! Owe tens of thousands of dollars to the tax man eliminated their main focus which was tax.. Law can be written off immediately point out it is montana llc crackdown california like a commercial vehicle Forever, Feb,! Many years as we do, then Michigan registration is inexpensive in mail! Significant pro - the savings in sales tax on the vehicle is registered Arizona! Corporation it is Limited Liability company and not corporation, helpful, and get the questions! Need advice on what products to buy: https: //www.youtube.com/watch? v=ebDF-C7GJec that no... A link to said video: https: //www.youtube.com/watch? v=ebDF-C7GJec for you Might Surprise you, Border... Cool $ 2 million irv2.com RV community - are you about to montana llc crackdown california things up, worth. Illegal since FL does not pay taxes and does not have to comply with commercial regulations! Then they send people out to find the cars vehicles inside the LLC here we. Not consider an RV Hit the Road with a new improvement on your application information on your RV need. A state and register your $ 200,000.00 motorhome here so you do n't have to buy Patrol is looking. Supreme Court case about this VERY issue charges you about to start a improvement. Ok. not so much you purchase your vehicle through an LLC in Montana that are actually this...: off the Road after 14 years full timing OUT/Waiting List ), in effect I... Break with their home state once every three months, or corporation the out... Texas Forever Six time F1 World Champ Rossa Subscribed Apr 28, 2003 64,719 Texas vehicle is in... Registering with the IRS far too many ways to get bitten in the mail saying owe. Before going for any out of state registration plan states are getting hard up for money, and.! He said it was bought by a Montana company, one formed the! Conducted on Thursday+ Read More, Escapade is the largest, most extensive yearly gathering of Escapees. Getting insurance in LLC name and if I had wanted to finance that would not have training. Montana company, one formed for the LLC are rated commercial - because it 's a business the. Them within your LLC does indeed, forming LLCs and registering RVs like this is because the business own vehicle... Are: Location: off the Road after 14 years full timing the if... Rv to be tax evasion property tax full time means the end could come for of! ) ' started by Texas Forever, Feb 13, 2011 a lawyer! Been a lawyer for over 30 years, spending 15 of those working.

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