I'm about to wrap things up, but I was wondering if any of you have had any experience with this idea. Should say to California, This is MY 2nd HOME as defined by the IRS!!!! Featured Destinations - Campgrounds and Sights to See Inside This Renovated 1983 Scamp Trailer, RV Safe Turn By Turn Directions on Your Phone. Testimonials. This means that the LLC itself does not pay taxes and does not have to file a return with the IRS. One of their focuses. 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. If you live conveniently near a state border, this could be a reasonable option. California is trying to crack down on the LLC crowd, that is the problem. California is aggressively going after both kinds of people now. 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. Using a Montana law firm, they created a limited liability corporation (LLC) in Montana for one purpose: to "house" their RV so they wouldn't have to pay sales tax. Save thousands registering vehicles in Montana using a Montana Limited Liability Company. How much actual risk there is involved with thatwho knows. 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). Arizona charges a vehicle license tax (VLT), based on value, when you register, which can be pretty pricey on new vehicles. So its obvious the vehicle hasnt just driven in from Montana for the holidays. Hi Steve. Location: Tucson, Arizona After a busy week at Escapade, lets get together for a fun, friendly shooting competition! 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. I have to laugh when I read posts like this. Montana Llc For Cars. Montana LLC. Since an LLC is a business you can also be subject to IFTA fuel tax as well. As Dianne drove through Washington State, she didnt realize she was in a speed zone. All rights reserved. And as far as property taxes are concerned, the owner of the RV park pays them, and passes the cost on to the RVers who stay there. 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. U-Haul and other legitimate rental businesses pay all applicable state/local sales and corporate income taxes on their rentals. But we rent both of our houses. Sure, that 200-acre ranch property costs a cool $2 million. The announcement is part of a continuing crackdown against student loan debt relief companies . And because many of these states have agreements to collect each others sales taxes, buying out of state alone is not the solution. Best of all it's totally FREE! I dont criticize them for their decision. 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. So not everyone with plates from another state for awhile is breaking the law. Broad Form SR 22 Insurance for Liability Coverage, High Risk Auto Insurance to Lower Your Insurance Cost, Montana LLCs and Car Registration: Everything You Need to Know, High Net Worth Car Insurance Auto Insurance Tips for Wealthy and HNW Drivers, Insurance for Exotic Cars, Sports Cars, High-Performance Cars, Collectibles, and Antiques, Commercial Car Insurance Tips for Business Owners, Dont Commit Insurance Fraud: Tell the Truth About Where You Store Your Car, Car Insurance For College Students: What Parents and Students Need to Know. They know the game. Corporation buys the vehicle. Ready for a quote? 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. Again, I understand that others see this differently and have and will decide otherwise. A Montana LLC vehicle registration is an option some out-of-state residents choose in order to purchase a vehicle without having to pay sales tax on it. If I would be in violation of the law, I would not choose that route. 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. But are you actually protected? Or over time. the record obituaries stockton, ca; press box football stadium; is dr amy still with dr jeff; onenote resize image aspect ratio The state is now cracking down on these . Just do a Google search on Montana LLCs and youll see how they are trying to drum up business by touting LLCs that allow you to buy no sales tax motorhomes or tax free.. My neighbor was stopped at an AG station on I-15 south going into CA and fined a total of $150. Most state laws are reciprocating. Wikipedia has good description to begin understanding IFTA. But now that the job is considered permanent we have moved things over to CA. All rights reserved. In fact, since you plan to travel extensively throughout the country, to firmly establish Texas as your home, you need to follow what I call the Ten Commandments of Domicile (in this order): The reason the Washington DPS officer suspected a problem was because of the discrepancy between Texas plates, Texas driver licenses and that Montana plate on the RV. !The state of CA considers this RV a commercial vehicle and must have a IFTA sticker,thats a fuel tax stamp, thats is obtained in the state you are registered in. I recently bought used RV from Texas on November 6th. When did any state achieve authority over another for teaching a titled and registered vehicleof that state. Boot Camp will be conducted on Thursday+ Read More, Escapade is the largest, most extensive yearly gathering of all Escapees. 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). It sounds like anybody with a Montana plate might get pulled over in CA. But the land is an asset offsetting the mortgage. We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating . Copyright 2023 RV Lifestyle. Usually it is a cheater that got tagged for their avoiding what is rightfully owed to a state. The personal auto specifically excludes coverage for commercial activities/ventures. So technically fines and penalties can still come your way. My first thought after reading the title was "doug demuro ", He's in California, but nonetheless, good on him. Its parked in Oregon. As a word of caution about domicile, if you intend to make Texas your home (which is the legal definition of domicile), you should truly make Texas your home by going above and beyond the process of selling your home in California and registering your vehicle and obtaining your driver license in Texas. 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. We moved back last summer as the vehicle licences in NV were getting way out of line. So while forming an LLC in Montana and using it to buy a vehicle is perfectly legal in Montana, doing it to avoid paying sales tax in your own personal state of residence may not be. Still have the radios I found this line of thoughts, decided that our daughter should read it and save it. Visited a lot of states, haven't camped in manyyet. LLC. The value up to 100 percent can be written off immediately. If theyre going to arbitrarily decide to screw over residents then they need to screw over companies like uhaul and enterprise and hertz. It doesn't pay to cheat the tax man. 2023 MOTORSPORT NETWORK. Most other states strongly frown on Montana LLC RV Titling. So be discreet, and be judicious. 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!!! There is absolutely nothing wrong with a MT LLC if you abide by the rules of the state you are a resident of. Ngoc , Im certain that if a Cal State Trooper were to pull you over and find you had a Cal driver-license, a toad-car licensed in Cal and a motor-home with Montana plates it would not go well. 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. November 27, 2021at8:33 pm, Smarter Thanyou said: I would recommend that you refrain from giving legal advice. http://www.the-signal.com/archives/14087/, (You must log in or sign up to post here. 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. The couple read that if you claim Texas as your domicile, you wont have to pay income tax. Join the #1 RV Forum Today - It's Totally Free! Absolutely. How long have I been telling folks the Montana LLC is a bad idea? February 09, 2022at10:27 pm, Lizzy Roma said: January 12, 2016at12:18 am, HD Case said: Im with you Mike. Our wills were last done in 2017 as I prepared to retire. A lot of this article is from the twilight zone. 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. The state is calling these LLC's exactly what they are, a sham to avoid taxes. 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! 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. Find An Agent Your email address will not be published. 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. They may see no ethical dilemma. Um no thanks. You have to supply them with copies of your insurance policy if you claim the vehicle has been garaged out-of-state and that policy has to show the out-of-state address. Why Shouldnt you register your luxury vehicle under a Montana LLC? There is no sales tax on a regular home sale. 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