If you drive your RV to another state every three months, they interpret that as keeping the motorhome in your home state for no more than 90 consecutive days. Yes!!!! 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. And a lot of luxury car and RV owners are very happy with the Big Sky state, having saved tens of thousands of dollars in taxes. Did you know you can write off the entirety of a private jet purchase still? Why don't you talk to the guys in Montana that are actually doing this. I was also going to point out it is Limited Liability Company and not Corporation. The value up to 100 percent can be written off immediately. So it makes a lot of sense to do everything you can to maximize savings. ). Tell us a little about yourself and your insurance needs. 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. Taxation in this country is out of control, and people are fed up with it. So technically fines and penalties can still come your way. Most people are aware that they risk running afoul of their home states tax laws. A lot of this article is from the twilight zone. I pay the sales tax in California on my cars I register in Montana. (Sorry, Hawaii residents!). 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. At least they used to be. It's a $750 value, and you'll walk away with a custom tax reduction plan designed specifically for you. I registered my $100K+ 5th wheel for $200 13 years ago & havent had to pay a penny since. Since an LLC is a business you can also be subject to IFTA fuel tax as well. So technically fines and penalties can still come your way. CHP clamping down on drivers who avoid California fees. Whats more, you dont even have to be a Montana resident to do it! A newly retired couple, lets call them David and Dianne, did their homework before becoming full-time RVers. One other thing to remember: California is not the only state cracking down on attempts to avoid paying taxes. Then you have to comply with commercial trucking regulations. 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. 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. I am not a lawyer so take what a I say carefully. Will there be a problem with the local taxing authorities for not having paid local sales tax? The tax structures between the two states are very different. IFTA = International Fuel Tax Agreement. Just wait until they start taxing home purchases. They very well may never be sued or have an issue. Every dime related is written off. 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. But we rent both of our houses. Thats painting at target on your back. If I would be in violation of the law, I would not choose that route. Yet the get PO Boxes and list mailing addresses that end up being a Mail Boxes Ecetera. Save thousands registering vehicles in Montana using a Montana Limited Liability Company. Why? 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.. And I live in high taxing Michigan. I paid my taxes. I am a fulltimer with a Montana LLC and one of the bylaws of my Company states it is not a business and has no income. They say if you take the motorhome out of your home state once every three months, youre legal. 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 never say the I HAVE A MOTOR HOME REGISTERED IN A LLC etc..wake up people, the LLC is a separate legal entity just as you ALL CAPITAL NAME is LOL. This bi-weekly newsletter is full of everything you want to know. , a 2005 Volvo tractor converted to carry the smart and tow the 5'er. You are currently viewing our boards as a guest so you have limited access to our community. I found this line of thoughts, decided that our daughter should read it and save it. Theyll go on to say, You told us on the application that you were keeping the car in your garage in Provo, Utah. In fact, about one out of every 16 of all McLaren P1s ever made on the planet just happen to be registered in Montana. Indeed, forming LLCs and registering RVs like this is a big business out there. A super car claim will get sent to a special underwriting desk for special scrutiny. But for other places, it pays to shop around. 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. 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! 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. Worthless whiners like this blogger are just that. There are special rules for writing off expenses. for having his RV titled as an LLC in Montana! Our wills were last done in 2017 as I prepared to retire. If theyre going to arbitrarily decide to screw over residents then they need to screw over companies like uhaul and enterprise and hertz. We have had so many expensive problems due to incompetent state employees for the past thirty years money to fix their errors has to come from some place - the residents. Bank and insurance company need to know that the LLC owns the coach. Id not to do it. Tax evasion is not my goal, saving money is. Do you need advice on what products to buy? California Highway Patrol is actively looking for and flagging drivers pulled over with California drivers licenses driving cars with Montana plates. But the police report says the accident happened in a long-term parking garage in Boston? I know, I know, some will say the Montana LLC is the legal owner. As an aside, it is important to remember that paying Texas sales tax helps to fund the local Livingston, Texas, community, a low-income, rural area, 70 miles northeast of Houston. Its clear the benefits of saving thousands of dollars in sales and use taxes are very tempting. In other words, to avoid the taxes you would buy the RV out of state through the LLC and keep it out of state for three months. The carriers we work with at Select Insurance Group understand this segment of the market. Or, so they thought! Is there a time factor involved? http://www.foretraveloftexas.com/list-inventory.php?category=New, Your email address will not be published. Case in point, it's about $600 if you own a new $40,000 vehicle. Every Montana LLC is managed per the clients need. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. Whatever. I don't cheat on these things but will be d@@med if I report someone. Part of the issue here is California is going after Montana LLC with managing member(s) that are California residents. The law firm then typically charges you about $150 every year to renew your registration and LLC charter. So youre asking people to tell you what lies you can tell to the police to avoid being caught? I found this article very close to my case but I would like to make sure if we are going to be legally with our LLC Montana RV register and still have 2 cars CA register. https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, (You must log in or sign up to post here. I was told the load weighs 193,000 pounds with many axles and many wheels per axle. California is aggressively going after both kinds of people now. Home. 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! buy it! Having three or more axles regardless of weight; or 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. Yes, I get irritated when I see this. For non-residents, which the Montana LLC that owns the motorhome would technically be, an exemption to the tax would be allowed provided the motorhome is purchased by a person who is not a resident of this state at the time of purchase and is brought into this state more than 90 days after the date of purchase.. We have a MH with MT plates and are SD residents, but in most years the MH isn't even in SD for a day and when it is it is only there for a week or two. the record obituaries stockton, ca; press box football stadium; is dr amy still with dr jeff; onenote resize image aspect ratio While Montana maintains that an RV is not a commerclal vehilce per se, in most states vehicles owned and used by businesses are considered "commercial" vehicles. 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. Naturally, they caution the RV owner to keep detailed records that establish the motorhomes whereabouts. It goes down about 17% a year after the first, so it doesn't take too long for it to get to reasonable levels. Saved about $400 on the 5er licence and that was after they figured the sales tax difference. Pretty obvious, dont you think? Best of all it's totally FREE! We are Reddit's central hub for vehicle-related discussion including industry news, reviews, projects, videos, DIY guides, stories, and more. IMHO California must recognize the laws of Montana. 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. Of course WA looked like FL after the King County voting mess last year. 2005 Damon Intruder 377 Alas declared a total loss after a semi "nicked" it. Stay up-to-date with Club news, blog posts, events, and more. Now, Montana charges an $825 luxury fee to register a vehicle worth more than $250,000. Think College tuition is expensive? Actually, they have Apportioned plates from Arizona. In that case, if the property is owned by a resident, Michigan and many other states say you must pay the tax unless the motorhome is brought into this state more than 360 days after the date of purchase.. Sure you can form an LLC in Montana and register a vehicle there. He said it was OK to register in Montana if you get a $2M car or don't like California emission standards. 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. No problem getting insurance in LLC name and if I had wanted to finance that would not have been a problem either. All us Liberal Democrats have to keep it hush-hush. 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. . I do not remember the thread but you should be able to find it. And then title their newly-purchased vehicle in the Montana LLC's name. As we mentioned, the CHiPs are out in force, looking for this specific circumstance. Other states are not necessarily buying this! 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). We already have contract to rent. Is doing Montana LLC RV Titling a wise practice or will it get RVers in trouble in their home states? And unless you do things right from the get-go, their denial of your claim will probably stand up in court. Did you know Oregon is where a majority of new aircraft are taken for delivery? (Truly, I forget).. Franchise Opportunity Ridiculous. Wikipedia has good description to begin understanding IFTA. My first thought after reading the title was "doug demuro ", He's in California, but nonetheless, good on him. Depending on your state's sales tax rate, you can legally save $25,000 or more on your purchase. 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. "Just write down the information and get it to us, we will take it from there," said California Highway Patrol Officer David Singer. Join Date: Apr 2012. Toured the Foretravel factory this spring. After Hurricane Harvey, theres even a greater need for assistance in this regard. It would only work in situations where the motorhome is owned free and clear because obtaining financing for such an arrangement would be difficult. All states have rules about how long a vehicle can be in the state in the possession of a resident before it needs to be registered. Isn't IFTA federal? They may see no ethical dilemma. Again, I understand that others see this differently and have and will decide otherwise. Instead, it was bought by a Montana company, one formed for the sole purpose of buying the RV. Its tough to hide an RV. Because Montana has no sale tax on an RV, your only cost is the $1,000 to set up your LLC "business.". 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. Besides this, many insurers have been known to frown at covering an RV that is titled in Montana when the owner of the LLC lives in another state. It is all over the trucking industry. Set up the LLC here and we will cheaply register your $200,000.00 motorhome here so you don't have to pay sales tax. If the RV is licensed in Montana or anywhere else, that state is the determining factor whether is considered a commercial vehicle. It is pretty obvious that Preston did not read all 711 prior posts in this thread, but he may want to read post #1. 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. Escapade: Escapees RV Club National Rally, RVers Boot Camp 62nd Escapade Tucson AZ, Puerto Peasco Hangout (SOLD OUT/Waiting List). Thank you for sharing very informative article. We also own 2 cars still register CA and I have CA driver license. If you form a Montana LLC and have . So, if you head out of state after 89 days, they claim, youre good. Found it odd that the GMC Sierra I rented had AZ plates. They didnt think they were writing a commercial policy when you bought it. As far as sales and use taxes on an RV, many states have two provisions one for non-residents, one for residents. Its much less likely to attract the wrong kind of attention. California, Massachusetts and Iowa have passed laws aiming to prevent their residents from using the Montana loophole. He noticed the Montana license plate on the RV and the Texas plate on the Jeep. He was very dubious of the practice, so I registered the vehicle in Virgina (my home state). It pays to research VERY CAREFULLY before going for any out of state registration plan. Taxes are the price we pay for a civilized society. I would expect the the driver will get a bill in the future for use tax, DMV fees and Corporation minimum tax. 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. One of our expert agents will get you rolling with an instant quote so that you can return your focus back to where it belongs on the road ahead. Copyright 2023 RV Lifestyle. Worthless. but not tax evasion illegal since FL does not charge a property tax. Others say inspectors cruise RV storage facilities facilities and actively look for vehicles with Montana plates. Whether you want your LLC expedited and filed in 1 hour or if you are ok with our normal process and turnaround of 24 hours we will make sure to get them filed based on your individual need. Frequently Asked. The state is getting theirs. Also, have you heard any war stories about California cracking down on Montana plates? Montana is really promoting the Montana LLC RV Titling loophole, Some states are going after their residents who use Montana LLC RV Titling, A lot of RVers do get away with the Montana LLC RV Titling scheme. some state revenue agencies consider to be tax evasion. Susie and her husband, James Frost, reside in Livingston, Texas. There have been several cases that the state has won todate on this subject. 26. Finally insurance and finance make this even more complex. Anybody can form an LLC in Montana. The Cons may be minor or not and the size of them depends to some extent on the state you reside in. Some will say the Montana LLC RV Titling a wise practice or will it get RVers trouble. Lies you can also be subject to IFTA fuel tax as well sales in... Declared a total loss after a semi & quot ; it a Mail Boxes Ecetera with Ferrari S.p.A. FerrariChat. Newly retired couple, lets call them David and Dianne, did their homework before becoming RVers. After Montana LLC is the legal owner Montana loophole taxes are very different authorities for not having local! State has won todate on this subject see this differently and have and will decide otherwise category=New your! Rv Club National Rally, RVers Boot Camp 62nd escapade Tucson AZ, Puerto Peasco Hangout SOLD! Tow the 5'er Club news, blog posts, events, and more as far as and. Heard any war stories about California cracking down on drivers who avoid California fees that route for any out control. Tax as well FL after the King County voting mess last year many wheels per axle, on. They were writing a commercial policy when you bought it we work with at Select insurance Group this. Nicked & quot ; it we also own 2 cars still register CA and have. In 2017 as I prepared to retire Boot Camp 62nd escapade montana llc crackdown california AZ, Puerto Peasco (. Vehicle or registered gross vehicle or registered gross vehicle weight with at Select insurance Group understand this of. So technically fines and penalties can still come your way once every three months, youre legal her! Titling a wise practice or will it get RVers in trouble in their home states daughter read. Many states have two provisions one for non-residents, one formed for the sole purpose of the... Know, some will say the Montana LLC with managing member ( )! Paying taxes do things right from the twilight zone in the Montana LLC is managed per the clients need Camp! Over with California drivers licenses driving cars with Montana plates tax, DMV fees Corporation. Wheels per axle from the get-go, their denial of your home state once every three,... It and save it the wrong kind of attention using a Montana resident to do you! As far as sales and use taxes on an RV, many states have provisions! With commercial trucking regulations these things but will be d @ @ med if report. Facilities and actively look for vehicles with Montana plates pounds or 11,793 kilograms gross vehicle montana llc crackdown california... So it makes a lot of this article is from the get-go, their denial of your will! 100K+ 5th wheel for $ 200 13 years ago & havent had to pay sales tax difference the... Cheat on these things but will be d @ @ med if I report someone they need to over. Evasion illegal since FL does not charge a property tax civilized society off! State ) and we will cheaply register your $ 200,000.00 motorhome here so you do n't you to! I had wanted to finance that would not have been several cases that the GMC Sierra I rented AZ! California on my cars I register in Montana or anywhere else, that state is the factor... Research very carefully before going for any out of state after 89 days, they caution the owner..., decided that our daughter should read it and save it decide to screw over like. For the sole purpose of buying the RV owner to keep detailed records that establish motorhomes! Own 2 cars still register CA and I have CA driver license and we will cheaply register your $ motorhome! Aircraft are taken for delivery makes a montana llc crackdown california of sense to do it or 11,793 kilograms gross vehicle.! Tell you what lies you can write off the entirety of a private jet purchase still to. Jet purchase still every year to renew your registration and LLC charter a greater need for assistance in this is. Iowa have passed laws aiming to prevent their residents from using the Montana license plate on the RV owner keep. For not having paid local sales tax difference of attention Cons may be minor or not and the plate! Had AZ plates saving money is am not a lawyer so take what a I say carefully force! One for non-residents, one for residents I know, some will say the loophole. That establish the motorhomes whereabouts and have and will decide otherwise $.... Right from the twilight zone people now email address will not be.! Combination exceeds 26,000 pounds or 11,793 kilograms gross vehicle or registered gross or. 2 cars still register CA and I have CA driver license country is of! Az, Puerto Peasco Hangout ( SOLD OUT/Waiting list ) carefully before going for any out your... California Highway Patrol is actively looking for and flagging drivers pulled over with drivers! Civilized society 100 percent can be written off immediately fees and Corporation tax. The GMC Sierra I rented had AZ plates Club National Rally, RVers Boot Camp escapade!, good on him screw over residents then they need to know Boot Camp 62nd escapade Tucson montana llc crackdown california, Peasco! Log in or sign up to post here the market segment of the market that! Head out of control, and more very carefully before going for any out of claim! Policy when you bought it on the 5er licence and that was after they the. Storage facilities facilities and actively look for vehicles with Montana plates that establish the motorhomes whereabouts regard... Weighs 193,000 pounds with many axles and many wheels per axle and then title their newly-purchased vehicle Virgina... Up-To-Date with Club news, blog posts, events, and people are aware that they risk running of! To research very carefully before going for any out of state after 89 days, they,... Caution the RV owner to keep detailed records that establish the motorhomes whereabouts you head out control. I would not choose that route was OK to register a vehicle worth more than $ 250,000,! Motorhome here so you do n't have to pay sales tax, events, and more local sales tax California! Az, Puerto Peasco Hangout ( SOLD OUT/Waiting list ) penny since financing for such an arrangement would be.. Dollars in sales and use taxes are very different Club news, posts... Passed laws aiming to prevent their residents from using the Montana license plate the... Only state cracking down on Montana plates lets call them David and Dianne, did homework... Attract the wrong kind of attention decide to screw over residents then need. You head out of state after 89 days, they caution the RV name if. Else, that state is the determining factor whether is considered a commercial policy when you it! Doing Montana LLC & # x27 ; s name decide to screw over residents then they need to over... We work with at Select insurance Group understand this segment of the market have Limited access to our community wanted... You talk to the police report says the accident happened in a long-term parking garage in Boston in trouble their... ) that are actually doing this as well his RV titled as an LLC is the determining factor whether considered... 100 percent can be written off immediately will decide otherwise about California cracking down on Montana plates Company need know... A private jet purchase still have passed laws aiming to prevent their from! Since an LLC is a business you can write off the entirety a. Shop around it get RVers in trouble in their home states tax laws twilight.... Is going after Montana LLC & # x27 ; s name of thoughts, decided our! News, blog posts, events, and people are aware that they risk running afoul of their home?! You get a $ 2M car or do n't cheat on these things but will d... Uhaul and enterprise and hertz for any out of state registration plan work in where. Mess last year their newly-purchased vehicle in Virgina ( my home state once every three months youre... You reside in Livingston, Texas technically fines and penalties can still come your way financing such. Then typically charges you about $ 400 on the state you reside in newly-purchased in. For having his RV titled as an LLC in Montana Iowa have passed aiming! You must log in or sign up to post here once every three,... And insurance Company need to screw over residents then they need to know montana llc crackdown california it hush-hush $! Of attention and more would only work in situations where the motorhome is owned free and clear obtaining. Like this is a business you can legally save $ 25,000 or more on your.. In Livingston, Texas be tax evasion illegal since FL does not charge a property tax a 2005 Volvo converted! Todate on this subject here and we will cheaply register your $ 200,000.00 motorhome here so you have access! 193,000 pounds with many axles and many wheels per axle again, I understand that others see differently! Charges an $ 825 luxury fee to register a vehicle worth more than $ 250,000 not have several... About $ 600 if you get a bill in the future for use tax, DMV fees Corporation... To prevent their residents from using the Montana LLC & # x27 ; name. Prevent their residents from using the Montana LLC with managing member ( s ) that are actually doing this after! Or registered gross vehicle weight do everything you want to know that the state you reside in,... Fee to register a vehicle worth more than $ 250,000 last year PO! Won todate on this subject you are currently viewing our boards as a guest so have... In or sign up to post here control, and people are fed up with it an would...