">, Rallies Attended: 8;Gatherings Attended: 3, B.A.R.T. It's a never ending crackdown, if a driver is stopped with out of state plates registered to their name with an address out of state and holds a California drivers license, they are DEAD MEAT! Officer Josh Waites explains what prompted their. I ran the idea past my son who is both a lawyer and someone who can always find the cheapest way to do things. Yes, I get irritated when I see this. 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. An LLC is considered a legal entity, able to buy and sell property. Finally insurance and finance make this even more complex. What is the requirement and legal. Every Montana LLC is managed per the clients need. Should say to California, This is MY 2nd HOME as defined by the IRS!!!! Nebraska, which has a 7 percent sales tax, is the most recent, according. They dont pull out the green eyeshades until they receive a claim. This covid 19 situation has really put folks around here in a situation. If you live in Texas and setup a Montana LLC for the express purpose of not paying sales tax, you will be fine as long as you stay out of Texas with the LLC titled vehicle. It's not a front business that does zero deals with anyone a year set up solely for the purpose of the owner to evade paying taxes on a car. So, what has been happening is that the high tax states that do impose use and sales taxes and high registration fees on RVs have been taking aggresive steps to counter the scheme by writing laws and regulations that make it very difficult to take advantage of the plan. I paid my taxes. But I am the legal owner of the LLC. Some states have passed laws specifically targeting people who use out-of-state car registrations as a tax avoidance technique. All Rights Reserved. An LLC is an asset protection entity that has no tax standing. The Montana LLC scheme used by the Louisiana taxpayer has been around for years and continues to be promoted by Montana-based lawyers. Franchise Opportunity But, The law can be tricky about Montana LLC RV Titling. Besides this, many insurers have been known to frown at covering an RV that is titled in Montana when the owner of the LLC lives in another state. A Montana LLC is no different than filling up your fuel tank, before entering CA, because the fuel taxes are lower in an adjoining state. I did have to pay 6% sales tax when I bought it, but nothing since. A newly retired couple, lets call them David and Dianne, did their homework before becoming full-time RVers. 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. Think Health Care is expensive now??? 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. |Disclaimer|Privacy Policy | Terms of Service. February 20, 2016at7:54 pm, Keith Lowery said: I just wanted Montana license plates so no one would know Im from Texas. ). IFTA = International Fuel Tax Agreement. 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. Posts: 25,765. The more valuable the vehicle, the greater the tax savings. . Tax evasion is not my goal, saving money is. Tax avoidance is why the LLC's were used by Missoula area rv dealers. 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. 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. 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. Part of the issue here is California is going after Montana LLC with managing member(s) that are California residents. e.g. Pay sales tax when car is purchased. 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. Actually, they have Apportioned plates from Arizona. Planning to use Montana state to register our RV The value up to 100 percent can be written off immediately. #3 Feb 19, 2011 RacerX_GTO said: 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. When you return, you can stay another 89 days before you have to take an out-of-state trip. "But I own a home in Parker or Havasu. The taxes also provide funds necessary to keep Texas roads in good repair. Regardless of if you own a vehicle or not or if youve maintained having prior insurance. Taxation in this country is out of control, and people are fed up with it. Bill. This is because the BUSINESS own the vehicle, and the residence of the BUSINESS is Montana. Since you have a rental agreement with the MT LLC, do you need to file a tax return for the LLC. Featured Destinations - Campgrounds and Sights to See Inside This Renovated 1983 Scamp Trailer, RV Safe Turn By Turn Directions on Your Phone. 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. iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? And now you are trying to change it to be more like the state you moved away from? I would suspect most people who do this fudge here and there when it comes to their home state. 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. 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. but not tax evasion illegal since FL does not charge a property tax. February 09, 2022at10:27 pm, Lizzy Roma said: January 12, 2016at12:18 am, HD Case said: Im with you Mike. I don't blame either for trying to keep/collect their money. If you form a Montana LLC and have . They may look at it as 'evasion' and not be friendly when they give you the 'past due notice' for taxes they (key word, "they") feel you owe. They know the game. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. It is pretty obvious that Preston did not read all 711 prior posts in this thread, but he may want to read post #1. ). Thank you to everyone who responded. It certainly isnt for everyone. This HOP will give you the opportunity to participate in safe gun-handling skills,+ Read More, Location: Tombstone, AZ After a fun and eventful Escapade, take a relaxing HOP or two.Let us do the driving; sit back, relax, and enjoy!Board a luxury motor coach with a+ Read More, Copyright 2021 Escapees, Inc. All rights reserved. Absolutely. Thats painting at target on your back. I know, I know, some will say the Montana LLC is the legal owner. We know dozens of people whove purchased RVS in Montana and Wyoming, though none are from Michigan and all RV full-time. Montana Llc For Cars. Going with the wrong insurance companycould cost you big-time if you ever have a claim. Realistically speaking, if you intend to claim domicile in Texas, then bite the bullet and pay the Texas sales tax for your RV. A Montana LLC is considered a Montana resident and, like any other resident of Montana, won't pay a sales tax on any purchase. All rights reserved. ), 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. 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). There is only one significant pro - the savings in sales tax dollars. And to the one comment about taking advantage of perks but not wanting to pay. Having three or more axles regardless of weight; or In that case, if the property is owned by a resident, Michigan and many other states say you must pay the tax unless the motorhome is brought into this state more than 360 days after the date of purchase.. And theyrepissed. 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. K. Susie Adams has been a lawyer for over 30 years, spending 15 of those years working as a trial lawyer. Several states have passed laws or regulations about persons being employed and residing in their state as to sales, personal property, and use taxes on vehicles they own. We want to be fulltime RVing. Theyll go on to say, You told us on the application that you were keeping the car in your garage in Provo, Utah. Again, I understand that others see this differently and have and will decide otherwise. I would expect the the driver will get a bill in the future for use tax, DMV fees and Corporation minimum tax. Especially California and Colorado are really cracking down on this. With vehicle registration the most common infraction is people who move here from other states that keep their vehicles registered in the other state to avoid our excessive taxes and registration fees. US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. And your LLC is a Montana corporation. Those who typically game the system, i.e. Invest in a Grizzlies or Bobcats-themed license plate frame. !The state of CA considers this RV a commercial vehicle and must have a IFTA sticker,thats a fuel tax stamp, thats is obtained in the state you are registered in. Thats how the Montana law firms insist you can avoid high registration fees. 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! Frequently Asked. Lots of carriers will take your premium, sure. Get a BIGSKYGUY plate. Did you know you can write off the entirety of a private jet purchase still? Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. Yes, your strip mall agent or call center drone will be happy to add your luxury car or RV to your policy and not ask any questions. Yet the get PO Boxes and list mailing addresses that end up being a Mail Boxes Ecetera. That way I'll have a chance that it'll get lost. But registering your rig to an LLC in one state while you are licensed in another is no different than driving a U-Haul. For example, buy some investment property in Montana, and own them within your LLC. California is trying to crack down on the LLC crowd, that is the problem. So youre asking people to tell you what lies you can tell to the police to avoid being caught? He contacted the Texas Secretary of States office to check on the discrepancy, and he was told that the couple was most likely guilty of tax fraud and tax evasion. Live here, own property here and work here. Do you even have a legitimate insurable interest in the vehicle at all? That way taxes would be paid in the high tax state but at greatly reduced rates. . 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. Montana vehicle registrations are yearly. Montana Limited Liability Companies. 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. They stay in one place for weeks, months, or years at a time. How didthathappen?. Drove it to Ca where we live. Springtime in the desert southwest promises sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read More. 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 . Boot Camp will be conducted on Thursday+ Read More, Escapade is the largest, most extensive yearly gathering of all Escapees. If you have an exceptional car for any reason, or youre considering registering your car in Montana, give us a call at the Select Insurance Group. I don't cheat on these things but will be d@@med if I report someone. 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!!! for having his RV titled as an LLC in Montana! The biggest bite in buying an RV in one of the high tax states comes in the form of a use tax, or sales tax. 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. The LLC in Montana is owned by a Michigan resident. Since the LLC never paid the sales or use tax but it still could be registered locally. 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). We would have been quite upset if someone had us have to go thru a lot of paperwork for nothing with everything else that was going on. Its not like totaling out a seven year old Ford Focus. in 5 years or so it was a break even. 855-721-0777. Go ask my friend who thought he was ok. Not so much. Just wait til it's FREE!!! I do not remember the thread that well since it does not apply to me but I believe that was the topic of it. Montana LLCs almost always only work for full-timers who don't spend much time in their domicile state. Sure, Americans should pay their fair share in taxes. 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. Why? Worthless. if that was a used car the sales tax in theory was paid on it when titled for the first time. People who operate qualified motor vehicles are subject to IFTA licensing. But full-boat sales taxes on private party sales are ridiculous. Montana Llc Crackdown . I recently bought used RV from Texas on November 6th. Thats why we have written our RV Buying Secrets Guide. If you are involved in a wreck in your $4oo,000 Lamborghini Aventador, and you call your brand-name giant car insurance company to file a claim, thinking youre covered, think again. 3 min read 1. It's a $750 value, and you'll walk away with a custom tax reduction plan designed specifically for you. What business do you actually conduct 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. And registration fees to buy and sell property a Michigan resident and own them within your LLC a., buy some investment property in Montana taxes would be paid in the future for use tax it... The IRS!!!!!!!!!!!!!!.!!!!!!!!!!!!!!!!... Cheapest way to do things cheat on these things but will be d @ med... 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