Thats why we have written our RV Buying Secrets Guide. One of our expert agents will get you rolling with an instant quote so that you can return your focus back to where it belongs on the road ahead. It costs you about $1,000 to have a Montana law firm set up your LLC and do the registration and titling paperwork and send you back the Montana license plates. Sound familiar?? There is no free lunch however. Since you have a rental agreement with the MT LLC, do you need to file a tax return for the LLC. We moved back last summer as the vehicle licences in NV were getting way out of line. Tax avoidance is why the LLC's were used by Missoula area rv dealers. California Highway Patrol is actively looking for and flagging drivers pulled over with California drivers licenses driving cars with Montana plates. I don't blame either for trying to keep/collect their money. No matter where you fit in you'll find that iRV2 is a great community to join. Seems like unnecessary cost at an attorney. Its much less likely to attract the wrong kind of attention. Essentially, it works like this: You form an LLC business in Montana. 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. Regardless, the law is the same, if you bring it back to Texas, you will need to pay use/sales tax. NOT one iota!!! Luckily, I was able to move to a county that has lower personal property taxes, but they still are pretty stiff. I just dont register them in California. Do you even have a legitimate insurable interest in the vehicle at all? Why don't you talk to the guys in Montana that are actually doing this. Essentially, it works like this: You form an LLC business in Montana. If so it would be boilerplate with no changes. I think that the MT LCC is a bad idea for most. The Texas comptrollers office then opened their investigation of the couple. How didthathappen?. Choose a subscription to save and fill them out at any time effortlessly. AGM Batteriesvs Flooded Batteries: What's Be Are You Leaving Black Water In Your Tank For Too L Powered by vBulletin Version 3.8.8 Beta 1, Please support our sponsors and let them know you heard about their products on iRV2. The National Conference of State Legislatures reports California and Massachusetts have passed legislation to prevent citizens from taking advantage of Montanas vehicle registration laws. California is trying to crack down on the LLC crowd, that is the problem. I sleep really well with that plate on my car. They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. So, in the story above where Dianne is traveling in Washingtonthats exactly what shes supposed to dostay out of Texas. ", 1001 Boardwalk Springs Place,Suite 111O'Fallon, MO 63368, About Us I know, I know, some will say the Montana LLC is the legal owner. File an Affidavit o f Domicile with the court; Change to local businesses for banking, accountants, doctors and dentists; Have your estate planning documents (wills, trusts an d powers o f attorney) written i n Texas; If you still have real estate outside o f Texas, rent the real estate o r otherwise sho w that you arent using it as your hub., All The Things You Need To Know About Domicile As An RVer. Insurance Ludwig New comments cannot be posted and votes cannot be cast. The state is getting theirs. Kali has just figured out a way to get the use tax + penalties. 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. 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. Every Montana LLC is managed per the clients need. Going with the wrong insurance companycould cost you big-time if you ever have a claim. Florida is one of the few states that does not charge property tax on cars so why would they care? When youre buying a high-dollar luxury car, sports car, truck, or RV, those taxes can really put a hurting on you. This is exactly what Ive been wondering. My neighbor was stopped at an AG station on I-15 south going into CA and fined a total of $150. You might save a little bit of money for now. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. I ran the idea past my son who is both a lawyer and someone who can always find the cheapest way to do things. It is all over the trucking industry. Call us today! Any comments ? Just wait til it's FREE!!! When you insure in Montana, what happens if you have to USE your insurance in your state or while traveling. Ed Bolian's Response Video:https://www.youtube.com/watch?v=Lw2B9spZjrIThe Jalopnik Article:https://jalopnik.com/georgia-is-cracking-down-on-instagram-bros-re. I suspect you are also outing yourself with the state in terms of where the car is located and I am sure that no good deed will go unpunished. 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!!! Make it look like you belong in Montana. Have registered to vote etc. The state of Montana will not issue one as they do not consider an RV to be a commercial vehicle. Ready for a quote? That sort of exploitation only fuels the resolve of the high tax states to shut down the loophole. 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. I do not remember the thread but you should be able to find it. 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. 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. Since Livingston, Texas, has been the Escapees headquarters for over 25 years, the town and community are well aware of the lifestyle and needs of its full-time RVing community. 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. The taxes also provide funds necessary to keep Texas roads in good repair. What would happen if one has been registering in a Montana LLC and then decides to register their vehicle, MH, in their home state? Obviously, this is grey hat stuff. Other wise, Texas doesnt care. CEO, Select Insurance Group, Select Insurance Group "Quote, SELECT & Save! Once law enforcement suspects youre keeping your Montana-tagged high-value vehicle in your home state, theyll be checking your Facebook and Instagram. 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. Theyll argue that you made false statements on your application. They can get the ownership of the company from Montana. The car insurance company will look for any thread they can pull on to unravel your claim. Taxation in this country is out of control, and people are fed up with it. The CHP warns participants not to confront the driver or write out a report while you're driving. In their defense, the couple had to swear that they had not been in Texas for more than 30 days during the past year. Broad Form SR 22 Insurance for Liability Coverage, High Risk Auto Insurance to Lower Your Insurance Cost, Montana LLCs and Car Registration: Everything You Need to Know, High Net Worth Car Insurance Auto Insurance Tips for Wealthy and HNW Drivers, Insurance for Exotic Cars, Sports Cars, High-Performance Cars, Collectibles, and Antiques, Commercial Car Insurance Tips for Business Owners, Dont Commit Insurance Fraud: Tell the Truth About Where You Store Your Car, Car Insurance For College Students: What Parents and Students Need to Know. I wonder how the Home state would view it if they think it's tax avoidence or tax evasion? Please support our sponsors and let them know you heard about their products on iRV2. Phil & Evy Somsen I paid my taxes. Escapade: Escapees RV Club National Rally, RVers Boot Camp 62nd Escapade Tucson AZ, Puerto Peasco Hangout (SOLD OUT/Waiting List). Iowa is not alone in cracking down on RV fee avoidance. See, when it comes to the specialty car market, you may not be in good hands, after all. ), 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. Is there a loophole for those who do Montana LLC RV Titling? Bill. All rights reserved. /r/Cars is the largest automotive enthusiast community on the Internet. in 5 years or so it was a break even. Check it out by clicking here. 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). If I would be in violation of the law, I would not choose that route. 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. Then you have to comply with commercial trucking regulations. I am second owner and paid 13% tax Hi Steve. One of their focuses. If you live conveniently near a state border, this could be a reasonable option. . Llcs are entirely a separate tax entity of that state. Anybody can form an LLC in Montana. 2023 MOTORSPORT NETWORK. In fact, about one out of every 16 of all McLaren P1s ever made on the planet just happen to be registered in Montana. Many Businesses own personal cars for their owners yet they are not licensed as Commercial vehicles. 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. Join Date: Apr 2012. Watch as Carl covers vehicle registration in Montana and why some choose to go this route. He was very dubious of the practice, so I registered the vehicle in Virgina (my home state). Would you be opening yourself up to some real problems, fines etc. If you live in one state and register your vehicles in another because their fees are less, I hope you get caught. 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. They deserve it when anyone "skirts the system" to avoid paying their HIGH Confiscatory taxes As far as the Cop who enjoys "catching these folks" and feeling good Well Good for you.. You are helping YOUR 80 percent of your working pay pension that NO ONE else gets.Thank you very muchNo wonder the State is going broke.. To avoid that one guy I know never brings his Montana LLC licensed MH into Cal, -ever-. Pay sales tax when car is purchased. And they will be happy to collect a nice commission on the premium. The next thing she knew, she was being pulled over by a local DPS trooper. We cant say the same for all the name-brand mass market carriers do. As an aside, it is important to remember that paying Texas sales tax helps to fund the local Livingston, Texas, community, a low-income, rural area, 70 miles northeast of Houston. I've heard rumors that California agents are stopping RVs with MT plates, but I can't find any verification of thisand nothing RECENT that's been posted. Thank you for our RVing community and this forum. I was told the load weighs 193,000 pounds with many axles and many wheels per axle. 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. ESPECIALLY on a supercar. What is the requirement and legal. David and Dianne had completed the process in less than one day. You can clearly see by these legal restrictions that the other states dont take kindly to Montanas proffered loophole to potential RV owners. One other thing to remember: California is not the only state cracking down on attempts to avoid paying taxes. Montana Llc For Cars. If the rig is owned by a corporation it is treated like a commercial truck and you have to buy fuel permits. Do you need advice on what products to buy? He asked to see Diannes driver license and noted it was also Texas. And as another point I would like to thank those that do this illegally, so I can pay more tax for THEIR gain. If you form a Montana LLC and have . As Dianne drove through Washington State, she didnt realize she was in a speed zone. 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). From 20112016, she was executive director of Childrenz Haven, the Child Advocacy Center of Polk County, Texas. There has been a lot of discussion on residency and registration of RV's throughout irv2.com. some state revenue agencies consider to be tax evasion. California law says that you have to register the car within 20 days of entry into California. buy it! U-Haul is headquartered in Phoenix, so it makes sense. 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. P.S Thank you for interesting article, Excellent article, Mike. Your total cost to have us form the MT LLC in one day and register your auto initially is $800 (not including Luxury Tax). RVers Ask: What's The Best Way To Sell An RV? They think these taxpayers are getting over. We establish Montana LLCs for you to own your vehicles for only $300, and we do it in a couple days. It would only work in situations where the motorhome is owned free and clear because obtaining financing for such an arrangement would be difficult. 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! So its obvious the vehicle hasnt just driven in from Montana for the holidays. 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. How To Start An Llc In Montana. In a deliberate break with their home state of California, they sold their property and bought an RV. The hassle of always looking over my shoulder just isnt worth the tax savings. That's the difference. Pepper.. is your neighbor by any chance a CA resident, and how heavy was his RV? The more valuable the vehicle, the greater the tax savings. What is IFTA? e.g. Go ask my friend who thought he was ok. Not so much. You can schedule online or by calling 888.871.8535. Think College tuition is expensive? Some of you are going to try anyway. Sign up for US Legal Forms to save, print, and fill out legal templates without bounds. My questions around this are: Location: Off the road after 14 years full timing. We are Reddit's central hub for vehicle-related discussion including industry news, reviews, projects, videos, DIY guides, stories, and more. It is pretty obvious that Preston did not read all 711 prior posts in this thread, but he may want to read post #1.