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. 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. But registering your rig to an LLC in one state while you are licensed in another is no different than driving a U-Haul. 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. 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. Part of MOTORSPORT NETWORK. If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. Montana Llc. I had a Montana LLC to buy a motorhome and avoid Texas sales and use tax. The Montana LLC is the owner. Have registered to vote etc. 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. We are Reddit's central hub for vehicle-related discussion including industry news, reviews, projects, videos, DIY guides, stories, and more. And when they get to the office, they will call their buddies at the Montana Department of Motor Vehicles and the Department of State and have them pull your information from your Montana LLC filing. 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. And unless you do things right from the get-go, their denial of your claim will probably stand up in court. People who operate qualified motor vehicles are subject to IFTA licensing. They left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep. Bank and insurance company need to know that the LLC owns the coach. If you drive your RV to another state every three months, they interpret that as keeping the motorhome in your home state for no more than 90 consecutive days. 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. Just wait until they start taxing home purchases. January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! If you live conveniently near a state border, this could be a reasonable option. Those who typically game the system, i.e. 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. Choose a subscription to save and fill them out at any time effortlessly. , a 2005 Volvo tractor converted to carry the smart and tow the 5'er. All this is perfectly legal in Montana. The local DPS promptly presented David and Dianne with their new Texas driver licenses (paper copies to use until the laminated plastic copies arrive by mail). The taxes also provide funds necessary to keep Texas roads in good repair. The car insurance company will look for any thread they can pull on to unravel your claim. And theyll be sitting across the street from your house photographing you pulling in and out of your own driveway. I think that the MT LCC is a bad idea for most. 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 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. They were being accused of a felony, potentially punishable with six months to two years in prison. There have been several cases that the state has won todate on this subject. 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! I don't cheat on these things but will be d@@med if I report someone. But for other places, it pays to shop around. http://www.the-signal.com/archives/14087/, (You must log in or sign up to post here. Hi Steve. For example, buy some investment property in Montana, and own them within your LLC. Theyre expensive. 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. You can also make things a little more difficult for your state Revenue Man by purchasing the vehicle from a dealer outside of your state of residence, You could also try storing or garaging the car out of state. I just eliminated their main focus which was tax evasion. Or, so they thought! Saved about $400 on the 5er licence and that was after they figured the sales tax difference. Thank you for sharing your thoughts. Just to clarify some of the initial posts. I loved the specifics Does someone know where I could possibly grab a template FL HSMV 85008 form to use ? Thats how the Montana law firms insist you can avoid high registration fees. 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. 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. And they will be happy to collect a nice commission on the premium. Indeed, forming LLCs and registering RVs like this is a big business out there. This is exactly what Ive been wondering. and do not travel there anymore. (Truly, I forget).. But full-boat sales taxes on private party sales are ridiculous. 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. Forming an LLC does not create a business nor does it create a corporation. Forming an LLC does not create a business nor does it create a corporation. 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. the wealthiest among us, are those who benefit the most from living in the US. US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. Also, be careful driving your RV with Montana tags while towing your car with California tags in California with a California drivers license. Tell us a little about yourself and your insurance needs. I was also going to point out it is Limited Liability Company and not Corporation. Join Date: Apr 2012. 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. That way I'll have a chance that it'll get lost. Of course WA looked like FL after the King County voting mess last year. One is a result of the way the business works, the other is tax evasion. I recently bought used RV from Texas on November 6th. And hey, Its not like that money is going to the kids detailing the car on the lot, anyway. 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?? Pretty obvious, dont you think? 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. Your email address will not be published. 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. Thats $36,000 that stays in your pocket. Franchise Opportunity January 05, 2016at12:07 pm, Rico Muscatel said: For full-timers without a permanent residence, you can pick up a mailbox in Florida and be good to go. When did any state achieve authority over another for teaching a titled and registered vehicleof that state. The announcement is part of a continuing crackdown against student loan debt relief companies . New comments cannot be posted and votes cannot be cast. Its exploitative and tyrannical, and they dont deserve that money. 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. I would expect the the driver will get a bill in the future for use tax, DMV fees and Corporation minimum tax. Its tough being a minority here. All Rights Reserved. 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 offers limited . Thats when our law firm received the call from the frantic couple. These people are absolutely violating state law. Since when is wifi in Cities suppose to be a God given Right??? Another good reason I moved from CA. Isn't IFTA federal? Good thing she has friends. Still, I can only assume this is why a lot of U-Haul's equipment is so old. "Just write down the information and get it to us, we will take it from there," said California Highway Patrol Officer David Singer. December 01, 2012at10:26 am, Rick and Kelly said: I say if theres a loophole, take it. Is there a time factor involved? Pay sales tax when car is purchased. 2022 Genesis GV-80. 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. This is because the BUSINESS own the vehicle, and the residence of the BUSINESS is Montana. LLC. 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. Scholarship Opportunity I have to laugh when I read posts like this. The state of Montana will not issue one as they do not consider an RV to be a commercial vehicle. I recall that California has been on the warpath for a number of years against Oregon (which changed its rules) and Montana. 855-721-0777. But these agents may not have the training or experience to ask the right questions, and get the right information on your application. That way taxes would be paid in the high tax state but at greatly reduced rates. 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. 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. Arizona charges a vehicle license tax (VLT), based on value, when you register, which can be pretty pricey on new vehicles. So technically fines and penalties can still come your way. With that address, proof of vehicle insurance and an inspection of the towed Jeep, they headed to the county tax assessor-collector to register their vehicles. A very evenhanded and comprehensive review of all this can be found on the RV Dreams website. Taxing a car multiple times is the same as stealing. All Montana businesses are required to have a registered agentan individual or other entity that accepts legal and state documents on behalf of your Montana LLC. ). 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. Home was where I park it. 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. Or maybe you can give others some advice? From 20112016, she was executive director of Childrenz Haven, the Child Advocacy Center of Polk County, Texas. Or over time. So its obvious the vehicle hasnt just driven in from Montana for the holidays. He asked to see Diannes driver license and noted it was also Texas. An LLC can also be used to hold assets (such as real estate, vehicles, boats, or aircraft). but alas the. According to Jalopnik, one way Georgia tax officials have caught up with owners of Montana-registered cars is by going through Montana registrations looking for cars with custom plates like MTBULLD0G.. We even include inside tips on how to negotiate with your RV dealer. If I own a business that does business in Arizona, and I live in Utah, where do the taxes get paid? Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. Not every state that goes after its residents who use this tax avoidance strategy succeed. It sounds like anybody with a Montana plate might get pulled over in CA. In my state, for example, Michigan Compiled Law sections 257.215, 257.216, and 257.217 require that a nonresident owner of a pleasure vehicle otherwise subject to registration under this act shall not operate the vehicle for a period exceeding 90 days without securing registration in this state.. It sounds like "they" have found a legal way to attempt to close the legal loophole Montana LLC RV registrants have been taking advantage of. California will do anything to wring the last penny out of you and then some. 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. See, when it comes to the specialty car market, you may not be in good hands, after all. They say if you take the motorhome out of your home state once every three months, youre legal. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. Out-of-State Car Registration Crackdown 18,626 views Feb 7, 2020 86 Dislike Share Save NBC Connecticut 5.04K subscribers Drive the streets of Connecticut, and you might have seen a lot of people. The state is now cracking down on these . Essentially, it works like this: You form an LLC business in Montana. Montana LLCs almost always only work for full-timers who don't spend much time in their domicile state. Wow, way out of our league, but worth the time. 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. Almost all states require registration of vehicles in that state if the vehicle is "garaged" in that state. Forming a Montana LLC and using it to purchase vehicles and other expensive pieces of personal property isnt a new concept.Thousands of car owners across the country have successfully benefited from using this technique. Since you have a rental agreement with the MT LLC, do you need to file a tax return for the LLC. document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); Location: 62nd Escapade - Tucson , AZ Information This special pre-Escapade program offers all the acclaimed Boot Camp training seminars, plus some extras! Next, they visited the local Department of Public Safety (DPS) office. 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.