Having a "Montana Attorney" will do you no good if that Attorney is not licensed in California and familiar with California law. The business income, sales tax, etc is to be paid in Arizona. The law firm then typically charges you about $150 every year to renew your registration and LLC charter. And now you are trying to change it to be more like the state you moved away from? Is there a loophole for those who do Montana LLC RV Titling? 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 more valuable the vehicle, the greater the tax savings. This means that the LLC itself does not pay taxes and does not have to file a return with the IRS. |Disclaimer|Privacy Policy | Terms of Service. So is this a business-use vehicle? Cute custom license plates attract attention and can get you into trouble. I pay the sales tax in California on my cars I register in Montana. Receive Escapees RV Club News straight to your inbox! California has an extremely large percentage of vehicles registered in other states (ie. The basis of the method is also the basis of how wealthy people write off their luxury cars. They didnt think they were writing a commercial policy when you bought it. #3 Feb 19, 2011 RacerX_GTO said: Any comments ? Establishing a Chain of Ownership for Your Vehicle 2. There is no free lunch however. Make it look like you belong in Montana. I pay the taxes because if my son thinks the situation is dodgy, I will go with his judgement. Setting Up Your Domicile In Texas Vehicle Registration. I looked into the LLC at one time and it sounded good. If a commercial policy is used it does not provide the broader coverage of a personal policy.. We have been full time RV for 2+ years. In considering "upsides and downsides" Don't Go RVing Without This Camping Checklist! If I would be in violation of the law, I would not choose that route. for having his RV titled as an LLC in Montana! 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. 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. Which gives them the right to deny your claim, flat-out. Again, I understand that others see this differently and have and will decide otherwise. ). Frequently Asked. Forgetting the Montana tax avoidance scheme, buying at RV is usually the second most expensive purchase you will ever make after buying a house. Those who typically game the system, i.e. Thats painting at target on your back. 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. One is a result of the way the business works, the other is tax evasion. Georgia (and we presume, other states, but we know Georgia, for sure) is also cross-referencing all cars with Montana registrations and Peach Pass toll accounts, and then having toll authorities hand over photographs of those cars passing through toll stations. It can only work with LLCs formed in Montana because Montana is the only state which imposes no sales tax on the purchase of vehicles by its residents, including resident LLCs. 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. Plates and registration will take about 1-3 days. 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. 1 permit for all of the states & provinces you operate in, not 50+ permits. If the LLC is in Montana but the owner of that LLC is in Michigan. And if you do bring it back, you understand that you will be liable for the tax (at this point labeled as use tax but is the same amount). I have a feeling u/Doug-DeMuro will be satisfied to know that he registered his Ford GT properly(Context). They left Livingston, Texas, in their Montana-licensed RV, towing their Texas-licensed Jeep. Why? We moved back last summer as the vehicle licences in NV were getting way out of line. U-Haul and other legitimate rental businesses pay all applicable state/local sales and corporate income taxes on their rentals. I am second owner and paid 13% tax Hi Steve. Kali has just figured out a way to get the use tax + penalties. the record obituaries stockton, ca; press box football stadium; is dr amy still with dr jeff; onenote resize image aspect ratio David and Dianne had completed the process in less than one day. 2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. But the land is an asset offsetting the mortgage. Whats more, you dont even have to be a Montana resident to do it! Sure you can form an LLC in Montana and register a vehicle there. 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. For about 2 years we were quite legal with having MI plates on the vehicles while we were in CA. Is this just a big hoax? After arriving in Livingston, they visited Escapees RV Club national headquarters where they obtained their new Texas address. Totally agree. All rights reserved. How To Insure a Car with a Rebuilt or Salvage Title, South Dakota Residency for Full-Time RVers. Says so in the advertisements in Trailer Life magazine, "Montana has no sales tax." That way I'll have a chance that it'll get lost. iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? , a 2005 Volvo tractor converted to carry the smart and tow the 5'er. Usually it is a cheater that got tagged for their avoiding what is rightfully owed to a state. Posts: 25,765. Taxation in this country is out of control, and people are fed up with it. Forming an LLC in Montana is simple. 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. ), 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. 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. 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.. No it isn't. Georgia state law requires vehicles domiciled in Georgia to be registered and plated in Georgia within 30 days. In most states, vehicle sales are subject to a nasty sales tax, personal property tax, or both. The trooper didnt stop there. Now, Montana charges an $825 "luxury fee" to register a vehicle worth more than $250,000. And that arguments probably a loser in court. I just eliminated their main focus which was tax evasion. You don't buy the motor home, your LLC does. 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. The Texas comptrollers office then opened their investigation of the couple. 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!!! 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. He noticed the Montana license plate on the RV and the Texas plate on the Jeep. Is used in combination when the weight of such combination exceeds 26,000 pounds or 11,793 kilograms gross vehicle or registered gross vehicle weight. Wonder why? There is only one significant pro - the savings in sales tax dollars. These people are absolutely violating state law. Another good reason I moved from CA. Policymakers . She also taught legal writing at the University of Houston Law School. In a deliberate break with their home state of California, they sold their property and bought an RV. So its obvious the vehicle hasnt just driven in from Montana for the holidays. Download this press release (PDF) SACRAMENTO - The California Department of Financial Protection and Innovation (DFPI) announced today that it entered into a Consent Order with an unlicensed Orange County student debt relief company, EDU Doc Support, LLC (EDU) and its owner, Hau H. Nguyen (Nguyen). Choose a subscription to save and fill them out at any time effortlessly. 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. That way, your state Revenue Man cant argue that your LLC is a shell corporation used solely as a tax dodge. December 07, 2021at8:10 pm, B Moore said: Note the last sentence So technically fines and penalties can still come your way. And BOOM youll get a nastygram in the mail saying you owe tens of thousands of dollars to the tax man. Scholarship Opportunity Will there be a problem with the local taxing authorities for not having paid local sales tax? I suspect you are also outing yourself with the state in terms of where the car is located and I am sure that no good deed will go unpunished. Finally insurance and finance make this even more complex. Sidestepping Sales Tax on Large Vehicles Updated November 5, 2020: and do not travel there anymore. The tax structures between the two states are very different. I recently bought used RV from Texas on November 6th. 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. if that was a used car the sales tax in theory was paid on it when titled for the first time. 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). 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. I have to laugh when I read posts like this. Home. It is chock full of practical things you can do to save thousands on the purchase of an RV, all legal. The LLC in Montana is owned by a Michigan resident. Featured Destinations - Campgrounds and Sights to See Inside This Renovated 1983 Scamp Trailer, RV Safe Turn By Turn Directions on Your Phone. If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. Forming an LLC does not create a business nor does it create a corporation. The next thing she knew, she was being pulled over by a local DPS trooper. What is the requirement and legal. Covers fuel permits for US & Canada. I would suspect that you will also see other states start to do the same thing unless there is a successful court challenge. Um no thanks. Home was where I park it. A lot of this article is from the twilight zone. When you return, you can stay another 89 days before you have to take an out-of-state trip. And theyrepissed. 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. We moved back last summer as the vehicle hasnt just driven in from Montana the! Technically fines and penalties can still come your way used RV from Texas on 6th... As an LLC in Montana dont even have to take an out-of-state trip taxes and does create! About $ 150 every year to renew your registration and LLC charter u-haul and other rental... Considering `` upsides and downsides '' do n't go RVing Without this Camping Checklist the.... 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