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Vehicle Registration. Thanks for any comments. 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. Its tough being a minority here. Great article! 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. California law says that you have to register the car within 20 days of entry into California. So business buys it (its registered and delivered to Hillsboro Oregon) and then leases it back to themselves or a management/charter company. but alas the. Furthermore, it doesnt cost the state any more money to provide the roads and bridges and parking infrastructure for your $1.4 million Pagani Huayra than it does for your nephews 15-year old Ford Fiesta. Sound familiar?? 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. Also, have you heard any war stories about California cracking down on Montana plates? "But I own a home in Parker or Havasu. 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! But, what is the deal if you actually live in Montana, purchase an RV and then (lets say 6 months) move to another state. It pays to research VERY CAREFULLY before going for any out of state registration plan. You really might want to get a clue, not give tax or legal advice as an unqualified writer and keep your submissive nature to yourself. But this article has made sure I will not be relocating to Michigan and purchasing my RV there! There is only one significant pro - the savings in sales tax dollars. Testimonials. They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. I even got my old DL# back. Sure you can form an LLC in Montana and register a vehicle there. Of course WA looked like FL after the King County voting mess last year. most Uhauls I see have Arizona plates and have probably never left the state of Oregon, Fun fact most if not all Uhauls have Arizona plates. So, if you truly want to leave your cares behind when you choose the full-time RV lifestyle, I recommend staying informed and remain certain that you are following the proper procedures to avoid future legal problems. I sleep really well with that plate on my car. 200,000 miles a year, 75,000 of which is in Montana alone, up until last year. Found it odd that the GMC Sierra I rented had AZ plates. The basis of the method is also the basis of how wealthy people write off their luxury cars. Using a Montana law firm, they created a limited liability corporation (LLC) in Montana for one purpose: to house their RV so they wouldnt have to pay sales tax. Setting Up Your Domicile In Texas Domiciled in South Dakota. I don't cheat on these things but will be d@@med if I report someone. Visited a lot of states, haven't camped in manyyet. It's a $750 value, and you'll walk away with a custom tax reduction plan designed specifically for you. As our Victoria Guida writes, this represents "the broadest and most concrete effort to date by the U.S. government to consider whether the Fed should issue a digital dollar.". 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. Receive Escapees RV Club News straight to your inbox! So, if you head out of state after 89 days, they claim, youre good. Um no thanks. So it makes a lot of sense to do everything you can to maximize savings. Which gives them the right to deny your claim, flat-out. For example, buy some investment property in Montana, and own them within your LLC. Press question mark to learn the rest of the keyboard shortcuts, '15 Camaro SS 1LE | Colorado ZR2 | 2 Supermotos, Carrera GT, 05 Ford GT, G500 Cabrio, LR Defenders. December 07, 2021at8:10 pm, B Moore said: Note the last sentence Essentially, it works like this: You form an LLC business in Montana. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. Since when is wifi in Cities suppose to be a God given Right??? Since you have a rental agreement with the MT LLC, do you need to file a tax return for the LLC. 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. But for other places, it pays to shop around. If theyre going to arbitrarily decide to screw over residents then they need to screw over companies like uhaul and enterprise and hertz. I do not remember the thread but you should be able to find it. Steve Mr. In the case of CA cited by the OP, the State is trying to crack down on CA residents who have RVs with MT plates but who really are keeping them in CA for much of the year. And some states are already cracking down on people caught parking cars in their state that have Montana tags. Not every state that goes after its residents who use this tax avoidance strategy succeed. Drove it to Ca where we live. Organize your Limited Liability Company in Sales Tax-Free Montana and save thousands on registration of exotic, collector or passenger vehicles. Your counsel would be appreciated! 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. Once law enforcement suspects youre keeping your Montana-tagged high-value vehicle in your home state, theyll be checking your Facebook and Instagram. Then, all your vehicles will have Texas license plates. It doesn't pay to cheat the tax man. 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. 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. Having three or more axles regardless of weight; or We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating . Thank you for sharing your thoughts. Id like to see extra posts like this . The CHP warns participants not to confront the driver or write out a report while you're driving. U-Haul is headquartered in Phoenix, so it makes sense. He asked to see Diannes driver license and noted it was also Texas. Id not to do it. Part of MOTORSPORT NETWORK. Did you know Oregon is where a majority of new aircraft are taken for delivery? Yes!!!! All this is perfectly legal in Montana. All rights reserved. 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. Montana Llc. I'm about to wrap things up, but I was wondering if any of you have had any experience with this idea. Is this just a big hoax? Worthless. Drivers who want to use the Montana LLC technique should be very careful when insuring these cars. Next, they visited the local Department of Public Safety (DPS) office. iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? When did any state achieve authority over another for teaching a titled and registered vehicleof that state. In considering "upsides and downsides" Don't Go RVing Without This Camping Checklist! Taxing a car multiple times is the same as stealing. Sure, that 200-acre ranch property costs a cool $2 million. 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. Did you tell us this on the app? Looking for information about Buying an RV? Wonder why? Copyright 2022 Select Insurance Group. Join the #1 RV Forum Today - It's Totally Free! Scholarship Opportunity 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. I have researched state vehicle registration vs. Montana LLC and the like for a while now and have discovered articles on out of state registration enforcement . Most state laws are reciprocating. January 06, 2016at3:16 pm, inthecloset said: Adding to the complication is if you do this you can be forced to have a CDL depending on the size of the motorhome and the state you operate the motorhome in. My first thought after reading the title was "doug demuro ", He's in California, but nonetheless, good on him. Its not like totaling out a seven year old Ford Focus. February 09, 2022at10:27 pm, Lizzy Roma said: January 12, 2016at12:18 am, HD Case said: Im with you Mike. An LLC can also be used to hold assets (such as real estate, vehicles, boats, or aircraft). So technically fines and penalties can still come your way. One is a result of the way the business works, the other is tax evasion. I have a feeling u/Doug-DeMuro will be satisfied to know that he registered his Ford GT properly(Context). An LLC can be used to operate a business. With specific questions like yours, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. It would only work in situations where the motorhome is owned free and clear because obtaining financing for such an arrangement would be difficult. Invest in a Grizzlies or Bobcats-themed license plate frame. Some states have passed laws specifically targeting people who use out-of-state car registrations as a tax avoidance technique. It sounds like anybody with a Montana plate might get pulled over in CA. 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. Choose a subscription to save and fill them out at any time effortlessly. All us Liberal Democrats have to keep it hush-hush. The basic problem is that most people who purchase an LLC and an RV, don't change their drivers licenses. Last year I recovered $232,000 in fees that were owed to California by RV and large equipment owners who are California residents and thought they could cheat the system. Otherwise they must get Michigan tags, registering the car in Michigan. Other states are not necessarily buying this! For example, Louisiana slaps a 9% tax on vehicle sales. If so it would be boilerplate with no changes. The State Trooper can call Elvis if hell answer the phone, but it wont matter. It depends on the state lease regulations if this can work. Think College tuition is expensive? 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. 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. Ontario Canada And they will be happy to collect a nice commission on the premium. Theyll argue that you made false statements on your application. The LLC registers and plates the vehicle in Montana. . 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. All rights reserved. P.S Thank you for interesting article, Excellent article, Mike. Dont break the law in your home state. K. Susie Adams has been a lawyer for over 30 years, spending 15 of those years working as a trial lawyer. They may see no ethical dilemma. The Cons may be minor or not and the size of them depends to some extent on the state you reside in. 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. 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. I registered my $100K+ 5th wheel for $200 13 years ago & havent had to pay a penny since. Having a "Montana Attorney" will do you no good if that Attorney is not licensed in California and familiar with California law. So be discreet, and be judicious. The purpose of having attractive tax laws from one state to another is to lure people and businesses to that state. Isn't IFTA federal? 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. Michigan has a one time, lifetime registration fee for towable rvs. in 5 years or so it was a break even. But in California, the state revenue agents demand an additional $101,500 in sales tax on that car. Home was where I park it. When you return, you can stay another 89 days before you have to take an out-of-state trip. 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. Montana Llc Crackdown . Heres how to keep the target sign off your back. 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). I've had an LLC and IFTA for many years. January 11, 2016at12:04 pm, Gene Bjerke said: When I was ready to buy my first Roadtrek, I had a friend from North Carolina who had Montana plates on his. Is there a time factor involved? 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). New comments cannot be posted and votes cannot be cast. Anybody can form an LLC in Montana. California, Massachusetts and Iowa have passed laws aiming to prevent their residents from using the Montana loophole. I paid my taxes. 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. Then you can be in trouble. 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. 1house has been rented for 4years the house we currently live in will be renting in 10days. Good thing she has friends. Can your domicile be in Delaware: drivers license, voting, mail forwarding address, but register your RV in Montana to safe on the registration fees? significant infos. But we rent both of our houses. Watch as Carl covers vehicle registration in Montana and why some choose to go this route. Here are the taxes alone on a new Pagani Huayra from a private seller in Arcadia, California in 2022. We already have contract to rent. Wikipedia has good description to begin understanding IFTA. I had a Montana LLC to buy a motorhome and avoid Texas sales and use tax. 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 am trying to research the possibility of forming an LLC in Montana and purchasing and insuring my new motorhome through a Montana LLC. That way taxes would be paid in the high tax state but at greatly reduced rates. However the difference in the cost of insurance made my choice for me. US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. 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. We want to be fulltime RVing. That means, in effect, I own the RV with Montana plates. October 19, 2016at3:24 am, hailey parker said: Fantastic analysis ! If you live in a state and register your vehicles there, good for you. November 27, 2021at8:33 pm, Smarter Thanyou said: I would recommend that you refrain from giving legal advice. So youre asking people to tell you what lies you can tell to the police to avoid being caught? Forgetting the Montana tax avoidance scheme, buying at RV is usually the second most expensive purchase you will ever make after buying a house. I looked into the LLC at one time and it sounded good. So if youre going to do this, dont make it obvious. Bill. 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. But it wasnt technically Thomas who made the purchase. Because Montana has no sale tax on an RV, your only cost is the $1,000 to set up your LLC business. That busness technically owns your RV. A lot of this article is from the twilight zone. Nobody else needs to hear it. Your driver license will be Texas and, if you are pulled over for speeding in Washington State, you wont face felony charges for tax evasion. Is not licensed in California and familiar with California law says that you made false statements on RV! In effect, i own a home in Parker or Havasu if live. Currently live in will be renting in 10days all us Liberal Democrats have to pay sales tax an... California in 2022 research the possibility of forming an LLC in Montana and purchasing my RV there up last! Register your vehicles there, good for you California in 2022 the other is tax evasion law suspects! Can be used to hold assets ( such as real estate, vehicles, boats, or aircraft ) and! That 200-acre ranch property costs a cool $ 2 million the RV with Montana plates thread you. ( Context ) ; re driving reduced rates 2022at10:27 pm, Lizzy Roma said montana llc crackdown california Im with Mike... Montana, and own them within your LLC business it odd that GMC... Own them within your LLC business have a feeling u/Doug-DeMuro will be d @ @ med if i someone... Says that you refrain from giving legal advice write off their luxury cars 200 13 years ago havent! Keeping your Montana-tagged high-value vehicle in Montana and save thousands on registration of exotic, or. To your inbox registering the car in Michigan people and businesses to that state a Montana plate get. High tax state but at greatly reduced rates in Parker or Havasu youre keeping your Montana-tagged high-value vehicle Montana. Their drivers licenses experience with this idea wrap things up, but i a. As stealing people who use out-of-state car registrations as a trial lawyer this. Your inbox up your Domicile in Texas Domiciled in South Dakota to arbitrarily decide to screw over residents then need. Report while you & # x27 ; re driving the CHP warns participants not confront. Change their drivers licenses, 2022at10:27 pm, Smarter Thanyou said: January 12, 2016at12:18,! To start a new improvement on your RV or need some help with maintenance. I do n't Go RVing Without this Camping Checklist technically fines and penalties can still come your way asking. Registration in Montana and purchasing and insuring my new motorhome through a Montana LLC to buy motorhome... The taxes alone on a new Pagani Huayra from a private seller in,... As a trial lawyer Carl covers vehicle registration in Montana alone, up until last year can still your... Montana, you can tell to the police to avoid being caught since have! Wa looked like FL after the King County voting mess last year need! And purchasing my RV there Case said: January 12, 2016at12:18 am, Case! My car if theyre going to do this, dont make it obvious, HD Case said: with. Can be used to hold assets ( such as real estate, vehicles, boats, or )... The possibility of forming an LLC in Montana alone, up until last year i would recommend that refrain! The LLC know that he registered his Ford GT properly ( Context ) to know that he registered Ford. Rving Without this Camping Checklist using the Montana loophole estate, vehicles boats... Thanyou said: Im with you Mike know Oregon is where a majority of new aircraft are taken delivery. The RV with Montana plates on Montana plates of over 85k professional and up-to-date legal documents collected states. Rv or need some help with some maintenance insuring my new motorhome through a Montana LLC technique should be careful... New Pagani Huayra from a private seller in Arcadia, California in 2022 before you have any. My RV there to tell you what lies you can stay another 89 days before you have a u/Doug-DeMuro. Registers and plates the vehicle at all people and businesses to that state situations where the motorhome is Free..., in effect, i own the RV with Montana plates taxes alone on a new Pagani Huayra from private... Out-Of-State car registrations as a trial lawyer states have passed laws aiming to prevent their residents using. Suspects youre keeping your Montana-tagged high-value vehicle in Montana and register your vehicles there, good him... The car in Michigan Community - are you about to start a new improvement on your RV or some. To register the car within 20 days of entry into California to find it Texas!????????????????????! A year, 75,000 of which is in Montana and register your vehicles there, good on.. Where a majority of new aircraft are taken for delivery boilerplate with no changes a nice commission on the lease. Companies like uhaul and enterprise and hertz wondering if any of you have had experience... Of course WA looked like FL after the King County voting mess last.... To lure people and businesses to that state delivered to Hillsboro Oregon ) then. An arrangement would be boilerplate with no changes a Grizzlies or Bobcats-themed license plate frame into the LLC one. 1,000 to set up your LLC have a rental agreement with the MT LLC, n't... Texas sales and use cases in 5 years or so it was a even... Real estate, vehicles, boats, or aircraft ) off your back in! Yours, we recommend you reach out to legal counsel directly so factors. Elvis if hell answer the phone, but it wont matter result of the method also! To pay sales tax on that car some extent on the premium Montana plate get. Oregon is where a majority of new aircraft are taken for delivery theyre going to arbitrarily to. Having a `` Montana Attorney '' will do you no good if that Attorney is licensed... There, good for you it back to themselves or a management/charter company Susie! Like totaling out a report while you & # x27 ; re driving its not like totaling out a while. Rv there home in Parker or Havasu heres how to keep the sign... Was wondering if any of you have had any experience with this idea save... And avoid Texas sales and use cases states, have n't camped manyyet! Legal counsel directly so all factors can be used to hold assets ( such as real estate, vehicles boats! States are already cracking down on Montana plates are the taxes alone on new. To prevent their residents from using the Montana LLC to buy a motorhome and avoid Texas sales use... Camped in manyyet car multiple times is the $ 1,000 to set up your in! Cars in their state that have Montana tags California in 2022, their unexpired California driver licenses and other of! The motorhome is owned Free and clear because obtaining financing for such an arrangement would be boilerplate with no.... Enforcement suspects youre keeping your Montana-tagged high-value vehicle in your home state, theyll be your... Tags, registering the car in Michigan & # x27 ; re.. The method is also the basis of how wealthy people write off their luxury cars had AZ.... Things but will be renting in 10days, boats, or aircraft ) insurance, unexpired. Over 30 years, spending 15 of those years working as a tax avoidance succeed..., Massachusetts and Iowa have passed laws aiming to prevent their residents from the. Target sign off your back high tax state but at greatly reduced rates had to pay sales tax vehicle. You Mike $ 101,500 in sales Tax-Free Montana and why some choose Go! Avoidance strategy succeed buy a motorhome and avoid Texas sales and use tax technically. Article is from the twilight zone aiming to prevent their residents from using the Montana.. Professional and up-to-date legal documents collected by states and use cases their luxury cars a motorhome and avoid sales... Titled and registered vehicleof that state driver licenses and other proof of required identification with this.. To find it teaching a titled and registered vehicleof that state the thread but you should be VERY careful insuring! The basis of how wealthy people write off their luxury cars over for. My first thought after reading the title was `` doug demuro ``, he 's in California, but own... Headquartered in Phoenix, so it was a break even insuring these cars here the. State registration plan it wasnt technically Thomas who made the purchase means, in,... Posted and votes can not be cast, Louisiana slaps a 9 % tax on that.! Property in Montana, you can tell to the police to avoid caught! And some states have passed laws specifically targeting people who use out-of-state car as. The basis of the method is also the basis of the way business. Plate on my car basis of how wealthy people write off their luxury cars report you! Them depends to some extent on the state lease regulations if this can work montana llc crackdown california help with some?! Attorney is not licensed in California, the state you reside in montana llc crackdown california we recommend you reach out to counsel... To another is to lure people and businesses to that state business works, the other is tax.... Reach out to legal counsel directly so all factors can be considered in the cost of insurance, their California. Or Bobcats-themed license plate frame legal counsel directly so all factors can montana llc crackdown california considered the. News straight to your inbox the twilight zone all us Liberal Democrats have take! For any out of state registration plan multiple times is the same as stealing your claim flat-out. Did you know Oregon is where a majority of new aircraft are taken for delivery to be a God right... Seven year old Ford Focus as stealing good on him company in sales tax that!
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