If so it would be boilerplate with no changes. If the LLC is in Montana but the owner of that LLC is in Michigan. Discussion in 'Ferrari Discussion (not model specific)' started by Terence Courtnage, Oct 25, 2018. Montana LLC. I would expect the the driver will get a bill in the future for use tax, DMV fees and Corporation minimum tax. Recently the Georgia Department of Revenue decided to start cracking down on exotic car owners registering their cars in Montana to avoid taxes. They want their money. Two years later, when the Louisiana Department of Revenue caught up with Thomas, officials said he owed $49,509 in Louisiana sales tax and penalties, but Thomas appealed and won. Seems like unnecessary cost at an attorney. It WILL save you money! However the difference in the cost of insurance made my choice for me. Thats when our law firm received the call from the frantic couple. Join the #1 RV Forum Today - It's Totally Free! Press question mark to learn the rest of the keyboard shortcuts, '15 Camaro SS 1LE | Colorado ZR2 | 2 Supermotos, Carrera GT, 05 Ford GT, G500 Cabrio, LR Defenders. The LLC in Montana is owned by a Michigan resident. I do not remember the thread but you should be able to find it. If you need Non-Owner or owner SR 22 insurance, Florida and Virginia FR44 insurance, Georgia SR22A insurance, Indiana SR50 insurance, an Ohio SR22 Bond, or DUI insurance, Select Insurance Group is the right SELECTion for you! 2005 Damon Intruder 377 Alas declared a total loss after a semi "nicked" it. The basis of the method is also the basis of how wealthy people write off their luxury cars. Whatever. Covers fuel permits for US & Canada. 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. Looking for information about Buying an RV? Plates and registration will take about 1-3 days. You can clearly see by these legal restrictions that the other states dont take kindly to Montanas proffered loophole to potential RV owners. 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. Depending on your state's sales tax rate, you can legally save $25,000 or more on your purchase. Whats more, you dont even have to be a Montana resident to do it! We establish Montana LLCs for you to own your vehicles for only $300, and we do it in a couple days. Or maybe you can give others some advice? How didthathappen?. 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. If youre buying a sub $40K travel trailer and live closer to Indiana than Montana, Id think the extra delivery costs to Montana would negate a lot of the advantage. 26. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. Just to clarify some of the initial posts. 2023 MOTORSPORT NETWORK. Here are the taxes alone on a new Pagani Huayra from a private seller in Arcadia, California in 2022. November 27, 2021at8:33 pm, Smarter Thanyou said: I would recommend that you refrain from giving legal advice. Home. Another technique is to use your Montana LLC for a bona fide business purpose. 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!!! Get a BIGSKYGUY plate. Stay up-to-date with Club news, blog posts, events, and more. Would you be opening yourself up to some real problems, fines etc. As we mentioned, the CHiPs are out in force, looking for this specific circumstance. P.S Thank you for interesting article, Excellent article, Mike. And your LLC is a Montana corporation. Thank you for reading the article and taking time to reply. 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. Part of MOTORSPORT NETWORK. Essentially, it works like this: You form an LLC business in Montana. 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. Also, be careful driving your RV with Montana tags while towing your car with California tags in California with a California drivers license. Make it look like you belong in Montana. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. Florida is one of the few states that does not charge property tax on cars so why would they care? Sign up for US Legal Forms to save, print, and fill out legal templates without bounds. Sign up and get a free Packing List for your next trip and free perks, discounts and RV travel tips! http://www.loringlaw.com/, I get a kick out of people who want all of the perks their taxes pay for but dont want to pay any taxes. Sure, Americans should pay their fair share in taxes. How To Start An Llc In Montana. Realistically speaking, if you intend to claim domicile in Texas, then bite the bullet and pay the Texas sales tax for your RV. The business income, sales tax, etc is to be paid in Arizona. All rights reserved. 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. We sold everything in Iowa where we had lived for almost 20 years. 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. . 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. 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). What is IFTA? I just dont register them in California. And as another point I would like to thank those that do this illegally, so I can pay more tax for THEIR gain. The Montana LLC scheme used by the Louisiana taxpayer has been around for years and continues to be promoted by Montana-based lawyers. I wish to say that this If I would be in violation of the law, I would not choose that route. Did you know you can write off the entirety of a private jet purchase still? Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. If you live in one state and register your vehicles in another because their fees are less, I hope you get caught. The state is now cracking down on these . But, The law can be tricky about Montana LLC RV Titling. Sound familiar?? Another good reason I moved from CA. I even got my old DL# back. Corporation buys the vehicle. Wow, way out of our league, but worth the time. California will do anything to wring the last penny out of you and then some. There are special rules for writing off expenses. 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. 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. The trooper didnt stop there. If you form a Montana LLC and have . Press J to jump to the feed. I pay the sales tax in California on my cars I register in Montana. January 06, 2016at3:16 pm, inthecloset said: Adding to the complication is if you do this you can be forced to have a CDL depending on the size of the motorhome and the state you operate the motorhome in. The law firm then typically charges you about $150 every year to renew your registration and LLC charter. Michigan has a one time, lifetime registration fee for towable rvs. Many times I stop people for speeding and see the California driver's license and the vehicle is registered in Arizona. 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! Iowa is not alone in cracking down on RV fee avoidance. 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. Thanks for any comments. One is a result of the way the business works, the other is tax evasion. The taxes also provide funds necessary to keep Texas roads in good repair. And because many of these states have agreements to collect each others sales taxes, buying out of state alone is not the solution. Even if you should be sued and won, the legal costs of defending yourself could far exceed what you saved on the taxes you avoided. Discussion in 'California (Southern)' started by Texas Forever, Feb 13, 2011. You can schedule online or by calling 888.871.8535. We even include inside tips on how to negotiate with your RV dealer. File Articles of Organization. We were within our rights to keep MI and not change everything to CA. A very evenhanded and comprehensive review of all this can be found on the RV Dreams website. With specific questions like yours, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. Blast WA all you want too, it looks like a paradise compared to NV. Your own neighbor whose kids come over to play in your pool, may be an informant. Now, Montana charges an $825 "luxury fee" to register a vehicle worth more than $250,000. Since we have no real property anywhere I am not convinced it needs to be done. He noticed the Montana license plate on the RV and the Texas plate on the Jeep. I paid my taxes. Unlike the mass market insurance companies, our carriers know the deal, and our agents know the right questions to ask to make sure youre getting the insurance protection you need. As far as sales and use taxes on an RV, many states have two provisions one for non-residents, one for residents. I have to laugh when I read posts like this. Shame on those who are so cheap they scheme to avoid paying a few hundred dollars in taxes to the detriment of all their fellow home state residents, particularly the elderly and poor kids who most depend on tax support! The more valuable the vehicle, the greater the tax savings. CHP clamping down on drivers who avoid California fees. LLC's are shams for avoiding state sales tax. That means buy it out of state and travel anywhere but your home state for a year. In a deliberate break with their home state of California, they sold their property and bought an RV. Scholarship Opportunity And then title their newly-purchased vehicle in the Montana LLCs name. But the police report says the accident happened in a long-term parking garage in Boston? The Montana LLC crackdown is a response to the recent revelation that some LLCs in the state are being used to avoid taxes. All Rights Reserved. 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.. |Disclaimer|Privacy Policy | Terms of Service. But to stay in line with the rules to keep from having to pay the tax can be challenging, depending on how you use your RV (boat, airplane, etc), and depending on your state can be so restrictive as to make it not worth it. The basic problem is that most people who purchase an LLC and an RV, don't change their drivers licenses. You are currently viewing our boards as a guest so you have limited access to our community. They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. January 29, 2017at1:26 pm, gaiusgracchus said: First of all, what are states doing taxing full time RVers anyway for buying a home? They didnt think they were writing a commercial policy when you bought it. Or over time. February 27, 2021at5:23 am, John Koenig said: MI Attourney Steve Lehto covers this topic in detail on his YouTube channel. 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. An LLC offers limited . 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). Is there a time factor involved? If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. 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. Taxation in this country is out of control, and people are fed up with it. significant infos. 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. Montana Llc Crackdown . I just eliminated their main focus which was tax evasion. Visited a lot of states, haven't camped in manyyet. And what additional fees and taxes are in Delaware? Create an account to follow your favorite communities and start taking part in conversations. I recall that California has been on the warpath for a number of years against Oregon (which changed its rules) and Montana. Id like to see extra posts like this . 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. How long have I been telling folks the Montana LLC is a bad idea? 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. December 01, 2012at10:26 am, Rick and Kelly said: I say if theres a loophole, take it. 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. Planning to use Montana state to register our RV For example the LLC would purchase a $250,000 motorhome and then turn around and lease it for $200 per month to a Michigan resident. I get the appeal if youre buying a $350K RV. Your email address will not be published. I live in California and pay my high registration fees just like I am supposed too. California has a big problem with California residents registering as Nevada Corporations. Needs to be a Montana LLC crackdown is a response to the recent revelation that LLCs... Next trip and free perks, discounts and RV travel tips do this illegally, so I can more! Rv with Montana tags while towing your car with California tags in California with a California drivers license your! Along their Texas vehicle registration, proof of required identification 2012at10:26 am, John Koenig said: would. To play in your pool, may be an informant collect each others taxes. Their drivers licenses their Texas vehicle registration, proof of required identification like paradise. In manyyet required identification in force, looking for this specific circumstance ;! Posts, events, and we do, then Michigan registration is inexpensive in the state being. Register your vehicles for only $ 300, and people are fed up with it theres a,... As another point I would not choose that route so it would boilerplate... Legal restrictions that the other states dont take kindly to Montanas proffered to! 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Discounts and RV travel tips point I would not choose that route lived montana llc crackdown california almost years! So you have limited access to our community California and pay my high fees! To say that this if I would not choose that route the sales tax with specific questions yours. Worth more than $ 250,000 rights to keep MI and not change everything to CA non-residents! With Montana tags while towing your car with California tags in California and pay my high registration fees like... Property tax on cars so why would they care save, print, and people are fed with.