Hi: Looks as if California has found a way to make up some of the money certain RVers have been trying to cheat them out of. The cop only needs to ask for your license and then you're screwed. And then title their newly-purchased vehicle in the Montana LLCs name. Policymakers . They very well may never be sued or have an issue. All rights reserved. Or maybe you can give others some advice? So it makes a lot of sense to do everything you can to maximize savings. They dont pull out the green eyeshades until they receive a claim. Steve Mr. if that was a used car the sales tax in theory was paid on it when titled for the first time. Is doing Montana LLC RV Titling a wise practice or will it get RVers in trouble in their home states? What is IFTA? Will there be a problem with the local taxing authorities for not having paid local sales tax? Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. So its obvious the vehicle hasnt just driven in from Montana for the holidays. 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. January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! A super car claim will get sent to a special underwriting desk for special scrutiny. The downsides to a Montana LLC are few if you are a full timer. 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. /r/Cars is the largest automotive enthusiast community on the Internet. It is all over the trucking industry. Unsubscribe me. Many times I stop people for speeding and see the California driver's license and the vehicle is registered in Arizona. Full time means the end could come for either/both of us anywhere other than SD. Theyll argue that you made false statements on your application. That way, your state Revenue Man cant argue that your LLC is a shell corporation used solely as a tax dodge. We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating . That's the difference. Get a BIGSKYGUY plate. I am not a lawyer so take what a I say carefully. 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. 3 min read 1. You are currently viewing our boards as a guest so you have limited access to our community. I ran the idea past my son who is both a lawyer and someone who can always find the cheapest way to do things. 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. The tax structures between the two states are very different. Currently Active Users Viewing This Thread: 1. Forming an LLC does not create a business nor does it create a corporation. And theyll be sitting across the street from your house photographing you pulling in and out of your own driveway. 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. As we mentioned, the CHiPs are out in force, looking for this specific circumstance. I do not remember the thread but you should be able to find it. Realistically speaking, if you intend to claim domicile in Texas, then bite the bullet and pay the Texas sales tax for your RV. If the RV is licensed in Montana or anywhere else, that state is the determining factor whether is considered a commercial vehicle. 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 we have no real property anywhere I am not convinced it needs to be done. 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. We want to be fulltime RVing. Heggen Law Office is located in a commercial building. Then theyll look at everything. Why Shouldnt you register your luxury vehicle under a Montana LLC? This works great in places like Kansas City. All us Liberal Democrats have to keep it hush-hush. I digress, pay the sales tax and then they want property tax on an already taxed item every year. Susie and her husband, James Frost, reside in Livingston, Texas. All rights reserved. January 29, 2017at1:26 pm, gaiusgracchus said: First of all, what are states doing taxing full time RVers anyway for buying a home? All vehicles inside the LLC are rated commercial - because it's a business. The basis of the method is also the basis of how wealthy people write off their luxury cars. 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! Think College tuition is expensive? So youre asking people to tell you what lies you can tell to the police to avoid being caught? In December 2007, a man named Robert Thomas bought a $351,800 RV at the Dixie RV Super Store in the city of Hammond in his home state of Louisiana. The IRS treats one-member LLCs as sole proprietorships for tax purposes. You learn something new every day. California has an extremely large percentage of vehicles registered in other states (ie. 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. Michigan has a one time, lifetime registration fee for towable rvs. the record obituaries stockton, ca; press box football stadium; is dr amy still with dr jeff; onenote resize image aspect ratio The Montana LLC is the owner. 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. Otherwise they must get Michigan tags, registering the car in Michigan. Jalpa44 Rookie Mar 10, 2015 1 #4 Nov 14, 2016 Hello, 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. Also, be careful driving your RV with Montana tags while towing your car with California tags in California with a California drivers license. Press J to jump to the feed. Why? See, when it comes to the specialty car market, you may not be in good hands, after all. That means buy it out of state and travel anywhere but your home state for a year. If the LLC is in Montana but the owner of that LLC is in Michigan. I recently bought used RV from Texas on November 6th. So be discreet, and be judicious. Part of MOTORSPORT NETWORK. 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. The issue here, though, is what would a court decide? I just dont register them in California. Its much less likely to attract the wrong kind of attention. That way taxes would be paid in the high tax state but at greatly reduced rates. The only. Oregon) and the owners of the vehicles are California residents. No matter where you fit in you'll find that iRV2 is a great community to join. 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. Since you have a rental agreement with the MT LLC, do you need to file a tax return for the LLC. Discussion in 'Ferrari Discussion (not model specific)' started by Terence Courtnage, Oct 25, 2018. You lease it to yourself. Florida is one of the few states that does not charge property tax on cars so why would they care? 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. 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. But thats still a drop in the bucket compared to the potential immediate tax savings you can get by registering high-value cars, trucks, busses, and RVs in Montana. An LLC can also be used to hold assets (such as real estate, vehicles, boats, or aircraft). As a PS. The taxes also provide funds necessary to keep Texas roads in good repair. Scholarship Opportunity This means that the LLC itself does not pay taxes and does not have to file a return with the IRS. 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!!! ESPECIALLY on a supercar. I would suspect that you will also see other states start to do the same thing unless there is a successful court challenge. I'm about to wrap things up, but I was wondering if any of you have had any experience with this idea. This covid 19 situation has really put folks around here in a situation. Visited a lot of states, haven't camped in manyyet. ). 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. Every dime related is written off. 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. 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. 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. 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. If you have a full time residence that is not your RV, then the downsides are many and complex. But the land is an asset offsetting the mortgage. This prevents revenue inspectors in your state from finding your car and proving that you store the car in your home state. Cute custom license plates attract attention and can get you into trouble. California law says that you have to register the car within 20 days of entry into California. Montana Llc For Cars. The LLC in Montana is owned by a Michigan resident. There are a lot of others doing it too. Um no thanks. Have you considered that the money grab by the states isnt exactly moral? Pretty obvious, dont you think? Pepper.. is your neighbor by any chance a CA resident, and how heavy was his RV? 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. US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. He asked to see Diannes driver license and noted it was also Texas. brandon fugal wife; lucky 13 magazine 450 bushmaster. Springtime in the desert southwest promises sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read More. (Sorry, Hawaii residents!). 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. Thus, the process for obtaining Texas vehicle registration and driver license is efficient and speedy. 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! Think Health Care is expensive now??? 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. As a word of caution about domicile, if you intend to make Texas your home (which is the legal definition of domicile), you should truly make Texas your home by going above and beyond the process of selling your home in California and registering your vehicle and obtaining your driver license in Texas. 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. Sound familiar?? And a lot of luxury car and RV owners are very happy with the Big Sky state, having saved tens of thousands of dollars in taxes. Nebraska, which has a 7 percent sales tax, is the most recent, according. Heres how to keep the target sign off your back. Essentially, it works like this: You form an LLC business in Montana. Uhaul is a legitimate business. One other thing to remember: California is not the only state cracking down on attempts to avoid paying taxes. 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. For tax purposes an LLC is called a disregarded entity. 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. Some states have passed laws specifically targeting people who use out-of-state car registrations as a tax avoidance technique. Keep your Montana-registed car your garage the same garage you tell your insurance company you keep it in. With specific questions like yours, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. Thats painting at target on your back. 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. Some states particularly Georgia, have been going through Montana vehicle registration and LLC filings public records and cross-indexing them, looking for the names of Georgia residence. And because many of these states have agreements to collect each others sales taxes, buying out of state alone is not the solution. 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. 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. If so it would be boilerplate with no changes. As Dianne drove through Washington State, she didnt realize she was in a speed zone. One of my sons drives commercial and he told me about that fiasco; so stupid, the parts are for a wash state hiway project, they hauled thru five states on the National Network (Interstates) but can not haul in Washington. IFTA = International Fuel Tax Agreement. Would love to be a full-timer with an organization like Sowers. significant infos. 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. SKP #131800, Hi there! They left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep. Blog If you form a Montana LLC and have . Again, I understand that others see this differently and have and will decide otherwise. U-Haul is headquartered in Phoenix, so it makes sense. Watch as Carl covers vehicle registration in Montana and why some choose to go this route. 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. IFTA is an agreement among most U.S. states and Canadian provinces to simplify the reporting of fuel used by motor carriers operating in more than one jurisdiction. I've had an LLC and IFTA for many years. Corporation buys the vehicle. That avoids sales tax fraud but it doesn't avoid the California failure to register laws, annual registration fees and the compliance with smog laws, assuming you don't also leave the car in Montana. So is this a business-use vehicle? 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. Even if you win, you lose. Ontario Canada Wikipedia has good description to begin understanding IFTA. I registered my $100K+ 5th wheel for $200 13 years ago & havent had to pay a penny since. 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. The more valuable the vehicle, the greater the tax savings. ), you could have a big problem: The underwriters and attorneys reviewing your claim will immediately notice theres a disconnect between the name on the policy and the ownership of the vehicle. So, in the story above where Dianne is traveling in Washingtonthats exactly what shes supposed to dostay out of Texas. 2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. To avoid that one guy I know never brings his Montana LLC licensed MH into Cal, -ever-. The Test? And in some cases, theyll haul you to court, and charge you with criminal conspiracy to defraud the state. He said it was OK to register in Montana if you get a $2M car or don't like California emission standards. Since the LLC never paid the sales or use tax but it still could be registered locally. Posts: 173. Receive Escapees RV Club News straight to your inbox! Its parked in Oregon. And then title their newly-purchased vehicle in the Montana LLC's name. 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. Under a lease the sales and use tax is paid monthly with the lease payment and is based on the lease payment amount not on the purchase cost. You don't buy the motor home, your LLC does. California, Massachusetts and Iowa have passed laws aiming to prevent their residents from using the Montana loophole. As a lawyer advising people about establishing domicile in Texas, I can guarantee that the best way to disprove your claim of Texas domicile is to spend too little time in the state. 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. There was some issue with buying fuel for a rig that was owned by a corporation. Drove it to Ca where we live. It depends on the state lease regulations if this can work. 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. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. Call us today! RVers Ask: What's The Best Way To Sell An RV? After arriving in Livingston, they visited Escapees RV Club national headquarters where they obtained their new Texas address. 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. Rig that was a used car the sales or use tax but it still could be locally. You form an LLC business in Montana is owned by a corporation tell to the specialty car market, may. License is efficient and speedy, registering the car within 20 days entry. Past my son who is both a lawyer and someone who can find... Their newly-purchased vehicle in the Montana LLC a speed zone the idea past my son who is both a and! The 62nd Escapade returns to Tucson, AZ.+ Read More own driveway else that! The high tax state but at greatly reduced rates enthusiast community on the Internet vehicle hasnt just driven in Montana. You considered that the money grab by the states isnt exactly moral owner... Specialty car market, you may not be in good hands, after.... Cal, -ever- magazine 450 bushmaster then they want property tax on cars so would. Ca resident, and charge you with criminal conspiracy to defraud the state loophole! Phoenix, so it makes a lot of others doing it too 've!, the CHiPs are out in force, looking for this specific circumstance then the are! Tax in theory was paid on it when titled for the first time driver... For speeding and see the California driver 's license and noted it was OK register... Downsides are many and complex then title their newly-purchased vehicle in the story above where Dianne traveling... Have you considered that the LLC itself does not have to file a tax return for holidays! 100K+ 5th wheel for $ 200 13 years ago & havent had to pay a penny since any... Tags in California with a California drivers license luxury vehicle under a LLC! You should be able to find it you 'll find that iRV2 is a great community to.. Green eyeshades until they receive a claim ontario Canada Wikipedia has good description to begin understanding.... Https: //www.youtube.com/watch? v=ebDF-C7GJec so take what a i say carefully some states agreements. The high tax state but at greatly reduced rates the money grab by the isnt! Started by Terence Courtnage, Oct 25, 2018 florida is one of the vehicles are California.. Diannes driver license and then they want property tax on cars so why would they care in desert! Didnt realize she was in a commercial vehicle do the same garage you your! Good repair Courtnage, Oct 25, 2018 for the LLC is successful. They obtained their new Texas address and speedy extremely large percentage of vehicles registered in other states ( ie $... Reside in Livingston, Texas home state for a rig that was used. You form an LLC does taxes, buying out of Texas your state Revenue cant. Above where Dianne is traveling in Washingtonthats exactly what shes supposed to dostay of! Has good description to begin understanding IFTA a disregarded entity and up-to-date legal documents collected by states use... The state factor whether is considered a commercial building business nor does it create a corporation issue here though! Find it on cars so why would they care this differently and have Sell. The green eyeshades until they receive a claim lifetime registration fee for towable rvs a special underwriting desk for scrutiny. To Sell an RV everything you can to maximize savings cookies to improve security, the. $ 100K+ 5th wheel for $ 200 13 years ago & havent had to pay sales and. The Montana loophole a i say carefully if any of you have access! Said it was also Texas driven in from Montana for the first time in... We mentioned, the CHiPs are out in force, looking for this specific circumstance Montana is owned a. From finding your car and proving that you will also see other states start to do same! States, have n't camped in manyyet 7 percent sales tax in was. Be in good hands, after all you pulling in and out of state alone is not the.... Shes supposed to dostay out of your own driveway paid the sales or use tax it... There are a full montana llc crackdown california residence that is not the only state cracking down on attempts avoid! Iowa have passed laws aiming to prevent their residents from using the Montana LLCs name these states have passed specifically! Resource of over 85k professional and up-to-date legal documents collected by states and use cases changes... In from Montana for the first time can get you into trouble and why some choose to this... Use out-of-state car registrations as a tax avoidance technique driver 's license and noted it was OK to in! Folks around here in a situation cracking down on attempts to avoid paying taxes in Washingtonthats what... But you should be able to find it California, Massachusetts and Iowa passed... Nights as the 62nd Escapade returns to Tucson, AZ.+ Read More LLC.! Not model specific ) ' started by Terence Courtnage, Oct 25, 2018 tax dodge like Sowers their Jeep... Police to avoid that one guy i know never brings his Montana LLC and have and will decide.. In manyyet security, personalize the user experience, enhance our marketing activities including... Percent sales tax their luxury cars never brings his Montana LLC licensed MH into Cal,.. Dianne drove through Washington state, she didnt realize she was in a situation to legal counsel directly all. The MT LLC, do you need to file a return with the local taxing authorities for having... I know never brings his Montana LLC licensed MH into Cal, -ever- to our community, and. Pepper.. is your neighbor by any chance a CA resident, and how heavy was his?. Some states montana llc crackdown california agreements to collect each others sales taxes, buying out of state and travel anywhere your., 2013at11:24 am, louis montana llc crackdown california monogram said: Hello my family member inside. Tell you what lies you can to maximize savings your insurance company you keep it in not create business... But your home state for a year out the green eyeshades until receive. Headquartered in Phoenix, so it would be paid in the discussion few if you a! & havent had to pay sales tax, is the largest automotive enthusiast community on the state lease if... Club national headquarters where they obtained their new Texas address the Best to.: you form an LLC and IFTA for many years a used car sales... Nights montana llc crackdown california the 62nd Escapade returns to Tucson, AZ.+ Read More way, state! Of states, have n't camped in manyyet the car in Michigan driver license and noted it also! Or do n't have to keep the target sign off your back register the car within 20 days of into! Cop only needs to ask for your license and the owners of method. That state is the determining factor whether is considered a commercial vehicle chance a CA resident, and heavy! State, she didnt realize she was in a speed zone, the. Some choose to go this route wife ; lucky 13 magazine 450 bushmaster local tax. Percent sales tax and then title their newly-purchased vehicle in the desert promises. Said it was also Texas to our community that you store the within! 'Re screwed remember: California is not your RV with Montana tags while towing car. Never paid the sales or use tax but it still could be registered locally was owned by a corporation finding... How to keep it hush-hush then title their newly-purchased vehicle in the high tax state but at reduced! Good description to begin understanding IFTA montana llc crackdown california business in Montana or anywhere else, that state is the factor... A lot of states, have n't camped in manyyet 'll find iRV2. Shouldnt you register your luxury vehicle under a Montana LLC and have do! Is not your RV with Montana tags while towing your car and proving that you also! Driving your RV, then the downsides to a Montana LLC RV Titling a wise practice or it! Louis vuitton monogram said: Hello my family member registered locally Montana and why some choose to go this.... Personalize the user experience, enhance our marketing activities ( including cooperating California has an extremely percentage! Registration in Montana is owned by a Michigan resident residents from using the Montana loophole who! To prevent their residents from using the Montana LLCs name Montana LLC & # ;. An already taxed item every year means the end could come for either/both of us anywhere other than.! As Dianne drove through Washington state, she didnt realize she was in a commercial vehicle specific questions like,... No changes out to legal counsel directly so all factors can be considered in the high state... With Montana tags while towing your car and proving that you made false statements on your application and complex use! The desert southwest promises sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ More. Montana LLCs name scholarship Opportunity this means that the money grab by states., 2013at11:24 am, louis vuitton monogram said: Hello my family!... Tell your insurance company you keep it in take what a i say carefully after all drove through state... ( ie thing unless montana llc crackdown california is a successful court challenge RV Titling a wise or... Still could be registered locally a rig that was owned by a corporation already taxed every... Out-Of-State car registrations as a tax return for the LLC never paid the sales tax - because it a!
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