Thats more than some of the guys who prep and detail your new car on the lot make in a year. And some states are already cracking down on people caught parking cars in their state that have Montana tags. 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. Thus, the process for obtaining Texas vehicle registration and driver license is efficient and speedy. It's not just Montana LLCs. If youre buying a $400,000 Bentley, that means youre going to have to fork over the sales price of the car,plus $36,000in sales taxes. The National Conference of State Legislatures reports California and Massachusetts have passed legislation to prevent citizens from taking advantage of Montanas vehicle registration laws. 2023 MOTORSPORT NETWORK. The hassle of always looking over my shoulder just isnt worth the tax savings. The trooper didnt stop there. 200,000 miles a year, 75,000 of which is in Montana alone, up until last year. Most state laws are reciprocating. Please support our sponsors and let them know you heard about their products on iRV2. 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. See, when it comes to the specialty car market, you may not be in good hands, after all. Also, be careful driving your RV with Montana tags while towing your car with California tags in California with a California drivers license. Stay up-to-date with Club news, blog posts, events, and more. Iowa getting tough on recreational vehicle fees | TheGazette, Massachusetts Goes After RV Tax Evaders | RV Business, 2009 HR Navigator Fuel Door lock question. August 07, 2012at9:51 pm, Mike Jaye said: This article helps me in that Im from Michigan, but live in Oklahoma, a state that has some weird tax views (Im still researching the RV taxes here). My neighbor was stopped at an AG station on I-15 south going into CA and fined a total of $150. Youre very mistaken and your conscience is misguided. 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. In their defense, the couple had to swear that they had not been in Texas for more than 30 days during the past year. And they will be happy to collect a nice commission on the premium. Plates and registration will take about 1-3 days. 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. If they suspect youve been using a Montana LLC shell corporation solely to avoid tax bills in your home state, theyll present you with a bill for back taxes and penalties. Pay sales tax when car is purchased. 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. 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. Keep your Montana-registed car your garage the same garage you tell your insurance company you keep it in. The IRS treats one-member LLCs as sole proprietorships for tax purposes. Iowa is not alone in cracking down on RV fee avoidance. Planning to use Montana state to register our RV Will there be a problem with the local taxing authorities for not having paid local sales tax? That way I'll have a chance that it'll get lost. January 05, 2016at11:10 am, Barbara J Johnson said: February 22, 2013at7:12 am, Clive smith said: You are a fool if you think out Id unethical to avoid taxes any way you can. How long have I been telling folks the Montana LLC is a bad idea? The CHP warns participants not to confront the driver or write out a report while you're driving. Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. Thousands of RV owners around the country do this and dozens of Montana legal firms specialize in making it happen. But these agents may not have the training or experience to ask the right questions, and get the right information on your application. SKP #131800, Hi there! ", 1001 Boardwalk Springs Place,Suite 111O'Fallon, MO 63368, About Us Since the LLC never paid the sales or use tax but it still could be registered locally. IMHO California must recognize the laws of Montana. 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. But are you actually protected? 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. Heggen Law Office is located in a commercial building. Having a "Montana Attorney" will do you no good if that Attorney is not licensed in California and familiar with California law. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. Organize your Limited Liability Company in Sales Tax-Free Montana and save thousands on registration of exotic, collector or passenger vehicles. If so it would be boilerplate with no changes. Um no thanks. So technically fines and penalties can still come your way. It doesn't pay to cheat the tax man. What is the requirement and legal. So business buys it (its registered and delivered to Hillsboro Oregon) and then leases it back to themselves or a management/charter company. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. Your own neighbor whose kids come over to play in your pool, may be an informant. Tax evasion is not my goal, saving money is. Adhering to the advice of legal counsel will provide you with peace of mind and worry-free RV travels. 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. Theyre big and conspicuous. No problem getting insurance in LLC name and if I had wanted to finance that would not have been a problem either. Why in the world would I fabricate something like this, I still have a job to occupy my time. Of course WA looked like FL after the King County voting mess last year. Wonder why? Ridiculous. Part of MOTORSPORT NETWORK. Many Businesses own personal cars for their owners yet they are not licensed as Commercial vehicles. But in California, the state revenue agents demand an additional $101,500 in sales tax on that car. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); Location: 62nd Escapade - Tucson , AZ Information This special pre-Escapade program offers all the acclaimed Boot Camp training seminars, plus some extras! Changing domicile to Florida using Escapees was simple when the time came to become fulltimers. Live here, own property here and work here. Think Health Care is expensive now??? But be aware that hat local revenue officials and law enforcement are walking through car shows with cameras, looking for cars with Montana tags. Receive Escapees RV Club News straight to your inbox! (Truly, I forget).. This is because the BUSINESS own the vehicle, and the residence of the BUSINESS is Montana. Usually it is a cheater that got tagged for their avoiding what is rightfully owed to a state. Michigan has a one time, lifetime registration fee for towable rvs. California has a big problem with California residents registering as Nevada Corporations. I even got my old DL# back. . 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. 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.. Obviously, this is grey hat stuff. Totally agree. And your LLC is a Montana corporation. We want to be fulltime RVing. Which gives them the right to deny your claim, flat-out. We sold everything in Iowa where we had lived for almost 20 years. 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. We are Reddit's central hub for vehicle-related discussion including industry news, reviews, projects, videos, DIY guides, stories, and more. . I found this article very close to my case but I would like to make sure if we are going to be legally with our LLC Montana RV register and still have 2 cars CA register. 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. You can schedule online or by calling 888.871.8535. It sounds like anybody with a Montana plate might get pulled over in CA. Yet the get PO Boxes and list mailing addresses that end up being a Mail Boxes Ecetera. After arriving in Livingston, they visited Escapees RV Club national headquarters where they obtained their new Texas address. 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. When you return, you can stay another 89 days before you have to take an out-of-state trip. We have had so many expensive problems due to incompetent state employees for the past thirty years money to fix their errors has to come from some place - the residents. My first thought after reading the title was "doug demuro ", He's in California, but nonetheless, good on him. 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 This bi-weekly newsletter is full of everything you want to know. How much actual risk there is involved with thatwho knows. Then you have to comply with commercial trucking regulations. For example, buy some investment property in Montana, and own them within your LLC. 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 pay income tax to the state and federal government. For example, Louisiana slaps a 9% tax on vehicle sales. I've had an LLC and IFTA for many years. For a few, like, I think (my opinion) its not so much the original sales tax that CA people object to its the registration/plates fees you pay each year there after.It a out and out rip off. A Montana LLC vehicle registration is an option some out-of-state residents choose in order to purchase a vehicle without having to pay sales tax on it. Bill. This means that the LLC itself does not pay taxes and does not have to file a return with the IRS. There is absolutely nothing wrong with a MT LLC if you abide by the rules of the state you are a resident of. 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. I purchased a new coach two weeks ago and looked at doing the same. In a deliberate break with their home state of California, they sold their property and bought an RV. some state revenue agencies consider to be tax evasion. An LLC, or limited liability company, is a business structure that can combine the best features of a corporation and a partnership. 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. Forming an LLC in Montana is simple. All rights reserved. Our wills were last done in 2017 as I prepared to retire. There are a lot of others doing it too. Some of you are going to try anyway. Giving more money to already inefficient people doesnt make them (government) suddenly more efficient. Join the #1 RV Forum Today - It's Totally Free! Full time means the end could come for either/both of us anywhere other than SD. I did have to pay 6% sales tax when I bought it, but nothing since. Naturally, they caution the RV owner to keep detailed records that establish the motorhomes whereabouts. A California resident is required to register with the Secretary of State and pay tax to California. The Montana LLC crackdown is a response to the recent revelation that some LLCs in the state are being used to avoid taxes. Setting Up Your Domicile In Texas 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. Its not an illegal act or a scam. But we rent both of our houses. Featured Destinations - Campgrounds and Sights to See Inside This Renovated 1983 Scamp Trailer, RV Safe Turn By Turn Directions on Your Phone. 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. Is doing Montana LLC RV Titling a wise practice or will it get RVers in trouble in their home states? It goes down about 17% a year after the first, so it doesn't take too long for it to get to reasonable levels. Careful driving your RV with Montana tags while towing your car with Law... 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