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.. The cop only needs to ask for your license and then you're screwed. Instead, it was bought by a Montana company, one formed for the sole purpose of buying the RV. And what additional fees and taxes are in Delaware? Looking for information about Buying an RV? We establish Montana LLCs for you to own your vehicles for only $300, and we do it in a couple days. LLC. We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating . 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. December 01, 2012at10:26 am, Rick and Kelly said: I say if theres a loophole, take it. Seems like unnecessary cost at an attorney. They were free to travel whenever they wanted and wherever they wanted, without worry. brandon fugal wife; lucky 13 magazine 450 bushmaster. 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. 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. I purchased a new coach two weeks ago and looked at doing the same. This Montana scheme is very appealing to many. Also, have you heard any war stories about California cracking down on Montana plates? Boot Camp will be conducted on Thursday+ Read More, Escapade is the largest, most extensive yearly gathering of all Escapees. Unlike the mass market insurance companies, our carriers know the deal, and our agents know the right questions to ask to make sure youre getting the insurance protection you need. Nevertheless, lots of higher-end car and RV owners have assessed the legal and enforcement landscape, and believe the tax savings to be worth the risk: Go to luxury or sports car shows outside of Montana, or any RV park well away from Montana, and chances are good youll see a lot of Montana plates. So it makes a lot of sense to do everything you can to maximize savings. Vehicle Registration. The state of Montana will not issue one as they do not consider an RV to be a commercial vehicle. After arriving in Livingston, they visited Escapees RV Club national headquarters where they obtained their new Texas address. 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. Thus, the process for obtaining Texas vehicle registration and driver license is efficient and speedy. The Montana LLC is the owner. Florida is one of the few states that does not charge property tax on cars so why would they care? Unsubscribe me. SKP #131800, Hi there! Taxing a car multiple times is the same as stealing. I know, I know, some will say the Montana LLC is the legal owner. 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. Just do a Google search on Montana LLCs and youll see how they are trying to drum up business by touting LLCs that allow you to buy no sales tax motorhomes or tax free.. So be discreet, and be judicious. So, in the story above where Dianne is traveling in Washingtonthats exactly what shes supposed to dostay out of Texas. Here are the taxes alone on a new Pagani Huayra from a private seller in Arcadia, California in 2022. 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. We cant say the same for all the name-brand mass market carriers do. We were within our rights to keep MI and not change everything to CA. I was unaware of of how this worked until a few days ago, when i spoke with a gentleman who has been doing this for several years. Given the specific nature of your questions, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. Tell us a little about yourself and your insurance needs. That's $36,000 that stays in your pocket. Springtime in the desert southwest promises sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read More. In a deliberate break with their home state of California, they sold their property and bought an RV. Finally insurance and finance make this even more complex. At least they used to be. . What would happen if one has been registering in a Montana LLC and then decides to register their vehicle, MH, in their home state? Why in the world would I fabricate something like this, I still have a job to occupy my time. California is aggressively going after both kinds of people now. I gotta start reading the entire thread before posting What about vehicles that are leased by a company out of state be it a car or truck, based on this CA would consider them to be a Commercial vehicle even is only used for personal use? 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. Obviously, this is grey hat stuff. As we mentioned, the CHiPs are out in force, looking for this specific circumstance. They may see no ethical dilemma. That means buy it out of state and travel anywhere but your home state for a year. 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). David and Dianne had completed the process in less than one day. Currently Active Users Viewing This Thread: 1. Get a BIGSKYGUY plate. I would suspect most people who do this fudge here and there when it comes to their home state. So is this a business-use vehicle? Go ask my friend who thought he was ok. Not so much. That way taxes would be paid in the high tax state but at greatly reduced rates. Policymakers . All which would be due California if the RV and LLC were properly set up in the first place. . And think of the money he can save on his tags! All vehicles inside the LLC are rated commercial - because it's a business. And if you do bring it back, you understand that you will be liable for the tax (at this point labeled as use tax but is the same amount). Create an account to follow your favorite communities and start taking part in conversations. Good thing she has friends. I've had an LLC and IFTA for many years. So technically fines and penalties can still come your way. You pay no sales or use tax and then bring your car to whatever state you live in and drive the vehicle with tax-free impunity. Why? 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. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. It can only work with LLCs formed in Montana because Montana is the only state which imposes no sales tax on the purchase of vehicles by its residents, including resident LLCs. iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? All rights reserved. They want their money. When youre buying a high-dollar luxury car, sports car, truck, or RV, those taxes can really put a hurting on you. Ngoc , Im certain that if a Cal State Trooper were to pull you over and find you had a Cal driver-license, a toad-car licensed in Cal and a motor-home with Montana plates it would not go well. So business buys it (its registered and delivered to Hillsboro Oregon) and then leases it back to themselves or a management/charter company. 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. As Dianne drove through Washington State, she didnt realize she was in a speed zone. I just eliminated their main focus which was tax evasion. 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. Have registered to vote etc. 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. 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. I sleep really well with that plate on my car. Ready for a quote? 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. Adhering to the advice of legal counsel will provide you with peace of mind and worry-free RV travels. I have to laugh when I read posts like this. If so it would be boilerplate with no changes. Make it look like you belong in Montana. I recently bought used RV from Texas on November 6th. Texas Forever Six Time F1 World Champ Rossa Subscribed Apr 28, 2003 64,719 Texas! Thats painting at target on your back. They left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep. Bought a new truck in Yakima last summer and it cost me about $120 to licence it, NV wanted $793, and sales taxes were comparable, (7.5% vs 7%). I get the appeal if youre buying a $350K RV. 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. So technically fines and penalties can still come your way. Find An Agent If you live in one state and register your vehicles in another because their fees are less, I hope you get caught. CEO, Select Insurance Group, Select Insurance Group "Quote, SELECT & Save! In their defense, the couple had to swear that they had not been in Texas for more than 30 days during the past year. But as states scramble to shore up sinking deficits, I think we can be sure that pursuing RV owners with Montana plates is going to increase, not decrease. You are currently viewing our boards as a guest so you have limited access to our community. A super car claim will get sent to a special underwriting desk for special scrutiny. 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. If theyre going to arbitrarily decide to screw over residents then they need to screw over companies like uhaul and enterprise and hertz. It goes down about 17% a year after the first, so it doesn't take too long for it to get to reasonable levels. I may not like those laws, but my conscience just wont let me do something that to me seems questionable. I'm about to wrap things up, but I was wondering if any of you have had any experience with this idea. Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. Discussion in 'Ferrari Discussion (not model specific)' started by Terence Courtnage, Oct 25, 2018. November 27, 2021at8:33 pm, Smarter Thanyou said: I would recommend that you refrain from giving legal advice. The CHP warns participants not to confront the driver or write out a report while you're driving. But your home state tax may be considered to be montana llc crackdown california rather than legal. Things up, but i was wondering if any of you have had any experience this. 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