Thom was on a contract job that started off at 6 months then had 3 months added then a month well you get the idea. There are a lot of others doing it too. Shes not doing anything wrong. What business do you actually conduct in Montana? And hey, Its not like that money is going to the kids detailing the car on the lot, anyway. Would love to be a full-timer with an organization like Sowers. Consistency between these items, license plates and driver license, is the best way to proceed. The state is calling these LLC's exactly what they are, a sham to avoid taxes. All this is perfectly legal in Montana. They want their money. Boot Camp will be conducted on Thursday+ Read More, Escapade is the largest, most extensive yearly gathering of all Escapees. Our Goal is to find affordable insurance solutions for every driver, regardless of your previous insurance or accident history. And then you have the gas expenses to get it home from Montana. Will there be a problem with the local taxing authorities for not having paid local sales tax? Establishing a Chain of Ownership for Your Vehicle 2. Jalpa44 Rookie Mar 10, 2015 1 #4 Nov 14, 2016 Hello, Forming an LLC in Montana is simple. There has been a lot of discussion on residency and registration of RV's throughout irv2.com. I would expect the the driver will get a bill in the future for use tax, DMV fees and Corporation minimum tax. https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, (You must log in or sign up to post here. Mike refers to Michigan a lot. Officer Josh Waites explains what prompted their. An LLC offers limited . 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. Your email address will not be published. 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. Essentially, it works like this: You form an LLC business in Montana. US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. But in California, the state revenue agents demand an additional $101,500 in sales tax on that car. 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! 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. 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. That's the difference. Setting Up Your Domicile In Texas 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. You can schedule online or by calling 888.871.8535. Worthless whiners like this blogger are just that. That way taxes would be paid in the high tax state but at greatly reduced rates. Or over time. 26. The National Conference of State Legislatures reports California and Massachusetts have passed legislation to prevent citizens from taking advantage of Montanas vehicle registration laws. 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. I purchased a new coach two weeks ago and looked at doing the same. Interestingly enough boats and aircraft are not taxed. Check it out by clicking here. 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. I loved the specifics Does someone know where I could possibly grab a template FL HSMV 85008 form to use ? 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. Since I am not trying to create MORE conflict in my life, I think I will let this idea of a Montana LLC be nothing more than an interesting thought and an interesting thread. Yet the get PO Boxes and list mailing addresses that end up being a Mail Boxes Ecetera. California has a big problem with California residents registering as Nevada Corporations. Montana vehicle registrations are yearly. LLC. It sounds like anybody with a Montana plate might get pulled over in CA. Join Date: Apr 2012. You really need to go with an agent and carrier who understands the luxury and high-value car market, and who knows how to write these policies up so that theyll stick. The basic problem is that most people who purchase an LLC and an RV, don't change their drivers licenses. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. Your counsel would be appreciated! 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. Call us today! November 03, 2022at12:12 am, Noneya Business said: Rich folks do this all the time to evade paying any form of higher taxes; additionally, no different than those making South Dakota their residency to avoid paying higher taxes. JMO. Regardless of if you own a vehicle or not or if youve maintained having prior insurance. 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. As a matter of fact, the California IFTA guide book states that RV's are not considered under that reg.Thats a 2003 edition that was sent to my next door neighbor and when he called, they reportedly told him that had been changed.!!! Did you know Oregon is where a majority of new aircraft are taken for delivery? Taxing a car multiple times is the same as stealing. Which gives them the right to deny your claim, flat-out. August 05, 2016at10:48 am, No Nonsense Landlord said: So you moved to a conservative state, because you like the environment better than where you were. Oregon has also enter the tax battle as they substantially fined and shut down an agent who was creating LLC's in that state which also has no sales tax. I sleep really well with that plate on my car. What is the requirement and legal. Required fields are marked *. Lots of carriers will take your premium, sure. Good thing she has friends. 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. Forming an LLC does not create a business nor does it create a corporation. A California resident is required to register with the Secretary of State and pay tax to California. 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 don't cheat on these things but will be d@@med if I report someone. As one Montana lawyer in the LLC-creating business explained (in response to questions about the validity of the Montana plates where the owners are Texas domiciled): The best approach for a Texas resident operating a vehicle owned by a Montana LLC is to limit his/her time in Texas.. Tell us a little about yourself and your insurance needs. What is IFTA? 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. Thats painting at target on your back. Having a "Montana Attorney" will do you no good if that Attorney is not licensed in California and familiar with California law. U-Haul and other legitimate rental businesses pay all applicable state/local sales and corporate income taxes on their rentals. 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. A Montana LLC is considered a Montana resident and, like any other resident of Montana, won't pay a sales tax on any purchase. January 29, 2017at1:26 pm, gaiusgracchus said: First of all, what are states doing taxing full time RVers anyway for buying a home? Again, I understand that others see this differently and have and will decide otherwise. and do not travel there anymore. IMHO California must recognize the laws of Montana. The IRS treats one-member LLCs as sole proprietorships for tax purposes. At least they used to be. 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 suspect that you will also see other states start to do the same thing unless there is a successful court challenge. Regardless, the law is the same, if you bring it back to Texas, you will need to pay use/sales tax. 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. Press J to jump to the feed. Lots of state revenue collectors are mad as wet hens at the State of Montana. Sure you can form an LLC in Montana and register a vehicle there. Home. All rights reserved. For example, Louisiana slaps a 9% tax on vehicle sales. A very evenhanded and comprehensive review of all this can be found on the RV Dreams website. Bank and insurance company need to know that the LLC owns the coach. California Highway Patrol is actively looking for and flagging drivers pulled over with California drivers licenses driving cars with Montana plates. what is the reasonable assumption here? Giving more money to already inefficient people doesnt make them (government) suddenly more efficient. Then theyll look at everything. Taxes are the price we pay for a civilized society. 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. And some states are already cracking down on people caught parking cars in their state that have Montana tags. 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. 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. If theyre going to arbitrarily decide to screw over residents then they need to screw over companies like uhaul and enterprise and hertz. Most state laws are reciprocating. but not tax evasion illegal since FL does not charge a property tax. He was very dubious of the practice, so I registered the vehicle in Virgina (my home state). They didnt think they were writing a commercial policy when you bought it. If the LLC is in Montana but the owner of that LLC is in Michigan. The law firm then typically charges you about $150 every year to renew your registration and LLC charter. |Disclaimer|Privacy Policy | Terms of Service. I don't blame either for trying to keep/collect their money. FAR too many ways to get bitten in the butt. Think College tuition is expensive? Taxation in this country is out of control, and people are fed up with it. That's $36,000 that stays in your pocket. The Test? I wonder how the Home state would view it if they think it's tax avoidence or tax evasion? 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. The taxes also provide funds necessary to keep Texas roads in good repair. 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. The State Trooper can call Elvis if hell answer the phone, but it wont matter. The value up to 100 percent can be written off immediately. Sidestepping Sales Tax on Large Vehicles Updated November 5, 2020: Wikipedia has good description to begin understanding IFTA. ), 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. All vehicles inside the LLC are rated commercial - because it's a business. I paid my taxes. We already have contract to rent. Discussion in 'Ferrari Discussion (not model specific)' started by Terence Courtnage, Oct 25, 2018. So what, you live and work in California and you are cheating the system. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. Ridiculous. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. Not every state that goes after its residents who use this tax avoidance strategy succeed. They can get the ownership of the company from Montana. ). They were free to travel whenever they wanted and wherever they wanted, without worry. And then title their newly-purchased vehicle in the Montana LLC's name. October 19, 2016at3:24 am, hailey parker said: Fantastic analysis ! buy it! It pays to research VERY CAREFULLY before going for any out of state registration plan. How To Insure a Car with a Rebuilt or Salvage Title, South Dakota Residency for Full-Time RVers. "Just write down the information and get it to us, we will take it from there," said California Highway Patrol Officer David Singer. A lot of this article is from the twilight zone. Massachusetts have passed legislation to prevent citizens from taking advantage of Montanas vehicle registration.... List mailing addresses that end up being a Mail Boxes Ecetera out of state Legislatures reports California and have! % tax on that car a template FL HSMV 85008 form to use South Dakota residency for RVers! 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