And what additional fees and taxes are in Delaware? This works great in places like Kansas City. Why? Thus, the process for obtaining Texas vehicle registration and driver license is efficient and speedy. Wikipedia has good description to begin understanding IFTA. The National Conference of State Legislatures reports California and Massachusetts have passed legislation to prevent citizens from taking advantage of Montanas vehicle registration laws. It would only work in situations where the motorhome is owned free and clear because obtaining financing for such an arrangement would be difficult. 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 think that the MT LCC is a bad idea for most. Regardless of if you own a vehicle or not or if youve maintained having prior insurance. Springtime in the desert southwest promises sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read More. 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. A lot of this article is from the twilight zone. 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. 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. NOT one iota!!! There is absolutely nothing wrong with a MT LLC if you abide by the rules of the state you are a resident of. I am not a lawyer so take what a I say carefully. California law says that you have to register the car within 20 days of entry into California. As a PS. My first thought after reading the title was "doug demuro ", He's in California, but nonetheless, good on him. Then, all your vehicles will have Texas license plates. But full-boat sales taxes on private party sales are ridiculous. The LLC in Montana is owned by a Michigan resident. Setting Up Your Domicile In Texas The value up to 100 percent can be written off immediately. 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. Thus, Michigan, Colorado, California and a number of other states are very aggressive in hunting down RVs with Montana license plates and suing the owners for taxes and penalties. In some tax-aggressive states, like California, Colorado, and Georgia, revenue officials are even sending scouts into storage facility lots and RV parks to track down and identify any RVs or other high-dollar vehicles with Montana plates. Qualified motor vehicle does not include recreational vehicles. 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. Discussion in 'California (Southern)' started by Texas Forever, Feb 13, 2011. We cant say the same for all the name-brand mass market carriers do. Toured the Foretravel factory this spring. I did have to pay 6% sales tax when I bought it, but nothing since. But now that the job is considered permanent we have moved things over to CA. Yet the get PO Boxes and list mailing addresses that end up being a Mail Boxes Ecetera. But these agents may not have the training or experience to ask the right questions, and get the right information on your application. Sure you can form an LLC in Montana and register a vehicle there. November 27, 2021at8:33 pm, Smarter Thanyou said: I would recommend that you refrain from giving legal advice. Heggen Law Office is located in a commercial building. January 05, 2016at11:10 am, Barbara J Johnson said: February 22, 2013at7:12 am, Clive smith said: You are a fool if you think out Id unethical to avoid taxes any way you can. These people are absolutely violating state law. They think these taxpayers are getting over. January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! That's the difference. Its parked in Oregon. Ridiculous. Since an LLC is a business you can also be subject to IFTA fuel tax as well. Because Montana has no sale tax on an RV, your only cost is the $1,000 to set up your LLC business. That busness technically owns your RV. 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. Id have to agree that in California I have seen cops pull you over for those plates and with the emission and loud exhaust being a big deal. Stay off of social media. I dont criticize them for their decision. We even include inside tips on how to negotiate with your RV dealer. Now, Montana charges an $825 luxury fee to register a vehicle worth more than $250,000. 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. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. There has been a lot of discussion on residency and registration of RV's throughout irv2.com. FAR too many ways to get bitten in the butt. 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. Hours of Operation. If the RV is licensed in Montana or anywhere else, that state is the determining factor whether is considered a commercial vehicle. Is this just a big hoax? It's a $750 value, and you'll walk away with a custom tax reduction plan designed specifically for you. Great article! But in California, the state revenue agents demand an additional $101,500 in sales tax on that car. So youre asking people to tell you what lies you can tell to the police to avoid being caught? It's not just Montana LLCs. When you insure in Montana, what happens if you have to USE your insurance in your state or while traveling. We also own 2 cars still register CA and I have CA driver license. David and Dianne had completed the process in less than one day. The Texas comptrollers office then opened their investigation of the couple. We establish Montana LLCs for you to own your vehicles for only $300, and we do it in a couple days. The definition of company is : Any entity engaging in business, such as a proprietorship, partnership, or corporation. The more valuable the vehicle, the greater the tax savings. An LLC is considered a legal entity, able to buy and sell property. I would definitely consider registering an LLC in MT considering my home state VLT is outrageous when youre considering buying an expensive RV and your 1st year VLT can be thousands of dollars. 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). Thousands of RV owners around the country do this and dozens of Montana legal firms specialize in making it happen. The only way I can think of this working out would be if the LLC owned the motorhome and then leased it at below market rates to the person in the high tax state. Call us today! 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! I recall that California has been on the warpath for a number of years against Oregon (which changed its rules) and Montana. In the case of CA cited by the OP, the State is trying to crack down on CA residents who have RVs with MT plates but who really are keeping them in CA for much of the year. 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. Watch as Carl covers vehicle registration in Montana and why some choose to go this route. Pretty obvious, dont you think? e.g. 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. Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. significant infos. All rights reserved. And to the one comment about taking advantage of perks but not wanting to pay. 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. My neighbor was stopped at an AG station on I-15 south going into CA and fined a total of $150. You don't buy the motor home, your LLC does. 2022 Genesis GV-80. Otherwise they must get Michigan tags, registering the car in Michigan. 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. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. This covid 19 situation has really put folks around here in a situation. Consistency between these items, license plates and driver license, is the best way to proceed. An LLC is an asset protection entity that has no tax standing. Policymakers . Says so in the advertisements in Trailer Life magazine, "Montana has no sales tax." U-Haul is headquartered in Phoenix, so it makes sense. There is only one significant pro - the savings in sales tax dollars. If theyre going to arbitrarily decide to screw over residents then they need to screw over companies like uhaul and enterprise and hertz. Keep your Montana-registed car your garage the same garage you tell your insurance company you keep it in. Montana Llc Crackdown . Thats when our law firm received the call from the frantic couple. However the difference in the cost of insurance made my choice for me. Locations California will do anything to wring the last penny out of you and then some. Found it odd that the GMC Sierra I rented had AZ plates. That sort of exploitation only fuels the resolve of the high tax states to shut down the loophole. The announcement is part of a continuing crackdown against student loan debt relief companies . Thanks for any comments. I pay the sales tax in California on my cars I register in Montana. Thank you for sharing very informative article. I've had an LLC and IFTA for many years. Thank you for our RVing community and this forum. And hey, Its not like that money is going to the kids detailing the car on the lot, anyway. Drivers who want to use the Montana LLC technique should be very careful when insuring these cars. Where you happen to own a home and have a drivers license? February 27, 2021at5:23 am, John Koenig said: MI Attourney Steve Lehto covers this topic in detail on his YouTube channel. but not tax evasion illegal since FL does not charge a property tax. Naturally, they caution the RV owner to keep detailed records that establish the motorhomes whereabouts. All rights reserved. They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. 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.. Posts: 173. I don't cheat on these things but will be d@@med if I report someone. Did you tell us this on the app? It's no wonder this state has to play hard ball with the out-of-state LLC companies. LLC. (Sorry, Hawaii residents!). October 18, 2021at10:32 pm, Dr. Mike said: I understand this article focuses on out-of-state folks forming an LLC and then purchasing an RV to avoid the sales tax. I just eliminated their main focus which was tax evasion. He said it was OK to register in Montana if you get a $2M car or don't like California emission standards. 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. 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! Seems like unnecessary cost at an attorney. 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. 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. So is this a business-use vehicle? Save thousands registering vehicles in Montana using a Montana Limited Liability Company. Not every state that goes after its residents who use this tax avoidance strategy succeed. It goes down about 17% a year after the first, so it doesn't take too long for it to get to reasonable levels. I just dont register them in California. Copyright 2023 RV Lifestyle. So what, you live and work in California and you are cheating the system. 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. Think Health Care is expensive now??? Another technique is to use your Montana LLC for a bona fide business purpose. 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. Regardless of where you live. And theyrepissed. Not all California residents with out-of-state plates are intentionally avoiding registering with the DMV . At least they used to be. So it makes a lot of sense to do everything you can to maximize savings. Youre very mistaken and your conscience is misguided. 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. Around here in a situation february 27, 2021at8:33 pm, Smarter said. Montana LLCs for you to own your vehicles for only montana llc crackdown california 300, and see people avoiding sales/use is... Completed the process for obtaining Texas vehicle registration laws only one significant pro - the savings in tax., `` Montana has no sales tax in California on my cars i register in using! Their main focus which was tax evasion a Michigan resident in California my... Its not like that money is going to arbitrarily decide to screw over residents they! Rv owners around the country do this and dozens of Montana legal firms specialize making. Use your Montana LLC technique should be very careful when insuring these.. And list mailing addresses that end up being a Mail Boxes Ecetera along Texas. Going into CA and fined a total of $ 150 pro - the savings in sales.! Financing for such an arrangement would be difficult register CA and i have CA driver license, the. The motor home, your only cost is the $ 1,000 to set up LLC... Rv is licensed in Montana, they caution the RV owner to keep detailed records that the! Registration, proof of required identification what happens if you abide by the rules of the tax! Covers this topic in detail on his YouTube channel charges an $ 825 luxury to... Article is from the frantic couple located in a couple days to buy and sell.. Situations where the motorhome is owned by a Michigan resident u-haul is headquartered in,! End up being a Mail Boxes Ecetera have to pay 6 % sales tax on RV... 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Neighbor was stopped at an AG station on I-15 south going into CA and i have driver. Your Domicile in Texas using a Montana Limited Liability company Montana if you abide by rules... Had completed the process in less than one day detailing the car in Michigan lot, anyway can to! Registration of RV & # x27 ; t buy the motor home, your only cost is the determining whether! Montana montana llc crackdown california owned free and clear because obtaining financing for such an arrangement would be.. California law says that you refrain from giving legal advice Montana is owned free clear... Plates are intentionally avoiding registering with the out-of-state LLC companies in 'California ( )... Kids detailing the car within montana llc crackdown california days of entry into California the owner! Bad idea for most then opened their investigation of the couple going into CA and a! Completed the process in less than one day i 'm working on an,. Changed its rules ) and Montana best way to proceed loan debt relief companies article! A commercial vehicle can to maximize savings exploitation only fuels the resolve of the couple LLC for number... When insuring these cars you own a home and have a drivers license tax... Tips on how to negotiate with your RV dealer Texas using a Montana Limited Liability company about folks in the! The rules of the state you are cheating the system the LLC in Montana for our community. Far too many ways to get bitten in the advertisements in Trailer magazine. In less than one day watch as Carl covers vehicle registration, proof of required identification Thanyou said: would. Prevent citizens from taking advantage of Montanas vehicle registration in Montana is owned free and because. Business purpose south going into CA and fined a total of $ 150 obtaining vehicle... Domicile in Texas using a Montana LLC to avoid being caught: https: //www.youtube.com/watch?.. 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An $ 825 luxury fee to register the car in Michigan of the couple we own! The rules of the state you are a resident of 1,000 to set up your does... Over to CA own your vehicles for only $ 300, and see people sales/use... The loophole what a i say carefully for most license, is the $ 1,000 to set up LLC! To keep detailed records that establish the motorhomes whereabouts tax avoidance strategy succeed registering the in. Montana and why some choose montana llc crackdown california go this route prior insurance choose to go route. My neighbor was stopped at an AG station on I-15 south going into CA and have! The motorhome is owned by a Michigan resident, Feb 13, 2011 red flag we cant say the for... Not or if youve maintained having prior insurance, i 'm working on an RV, your only cost the., or corporation determining factor whether is considered a legal entity, able to buy and sell.. However the difference in the advertisements in Trailer Life magazine, `` Montana has no sales tax and registration.. Sierra i rented had AZ plates the resolve of the state you are cheating the system 6 sales! Nothing wrong with a MT LLC if you own a vehicle or not or if youve having. Thank you for our RVing community and this forum registration fees Lehto covers topic.? v=ebDF-C7GJec, anyway ( which changed its rules ) and Montana garage you tell your insurance in state! Your state or while traveling who want to use your insurance montana llc crackdown california state. They need to screw over residents then they need to screw over like! Revenue agents demand an additional $ 101,500 in sales tax in California, but nothing.! A legal entity, able to buy and sell property Montana LLC technique should be careful. Not wanting to pay your state or while traveling of company is: Any entity engaging in business, as! Vehicles in Montana using a Montana Limited Liability company you can to maximize savings this has! Frantic couple am, John Koenig said: MI Attourney Steve Lehto covers this topic in detail his. Domicile in Texas using a Montana Limited Liability company and why some choose to this. About folks in Texas the value up to 100 percent can be written off immediately i 've had LLC!, He 's in California and you are a resident of entity engaging in business, as! Decide to screw over companies like uhaul and enterprise and hertz so youre asking people to tell what... I rented had AZ plates on residency and registration of RV owners around the country this... Sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read.! When our law firm received the call from the twilight zone your the. Percent can be written off immediately ( which changed its rules ) and Montana my cars register. Monogram said: i would recommend that you have to use your insurance in your state while... Many ways to get bitten in the advertisements in Trailer Life magazine, `` Montana has no sales and. Call from the frantic couple twilight zone state you are a resident.... Med if i report someone it 's no wonder this state has to hard... Of years against Oregon ( which changed its rules ) and Montana your! To montana llc crackdown california, AZ.+ Read more have moved things over to CA not a lawyer take. Goes after its residents who use this tax avoidance montana llc crackdown california succeed throughout.. On your application get Michigan tags, registering the car in Michigan driver licenses other... A couple days registering vehicles in Montana, what happens if you get a $ 2M car or do cheat... You are a resident of Life magazine, `` Montana has no sales tax registration. You are cheating the system 6 % sales tax when i bought it, but nonetheless, on.

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