I even got my old DL# back. So, in the story above where Dianne is traveling in Washingtonthats exactly what shes supposed to dostay out of Texas. Those who typically game the system, i.e. I've had an LLC and IFTA for many years. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. But, what is the deal if you actually live in Montana, purchase an RV and then (lets say 6 months) move to another state. Blast WA all you want too, it looks like a paradise compared to NV. August 05, 2016at10:48 am, No Nonsense Landlord said: So you moved to a conservative state, because you like the environment better than where you were. If you form a Montana LLC and have . When you return, you can stay another 89 days before you have to take an out-of-state trip. Still, I can only assume this is why a lot of U-Haul's equipment is so old. Thank you for reading the article and taking time to reply. Essentially, it works like this: You form an LLC business in Montana. He noticed the Montana license plate on the RV and the Texas plate on the Jeep. Your counsel would be appreciated! See the Louisiana Supreme Court case about this very issue. Montana LLCs almost always only work for full-timers who don't spend much time in their domicile state. However, here is how I would approach it from a logical (but not necessarily relevant) standpoint. Florida is one of the few states that does not charge property tax on cars so why would they care? Part of MOTORSPORT NETWORK. 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. It would only work in situations where the motorhome is owned free and clear because obtaining financing for such an arrangement would be difficult. 200,000 miles a year, 75,000 of which is in Montana alone, up until last year. They were free to travel whenever they wanted and wherever they wanted, without worry. Officer Josh Waites explains what prompted their. A very evenhanded and comprehensive review of all this can be found on the RV Dreams website. Kali also has the worst maintained roads in the west. Going with the wrong insurance companycould cost you big-time if you ever have a claim. Did you know you can write off the entirety of a private jet purchase still? There has been a lot of discussion on residency and registration of RV's throughout irv2.com. 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. To avoid that one guy I know never brings his Montana LLC licensed MH into Cal, -ever-. 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. Usually it is a cheater that got tagged for their avoiding what is rightfully owed to a state. In most states, vehicle sales are subject to a nasty sales tax, personal property tax, or both. Pay sales tax when car is purchased. And what additional fees and taxes are in Delaware? 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 you live in Texas and setup a Montana LLC for the express purpose of not paying sales tax, you will be fine as long as you stay out of Texas with the LLC titled vehicle. How didthathappen?. I doubt that this is really the case, since your LLC owns the vehicle does not make it a commercial use vehicle. There is no sales tax on a regular home sale. 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. I pay the taxes because if my son thinks the situation is dodgy, I will go with his judgement. Tax evasion is not my goal, saving money is. MS resident here. Call your local taxing authority and ask. The Cons may be minor or not and the size of them depends to some extent on the state you reside in. Others say inspectors cruise RV storage facilities facilities and actively look for vehicles with Montana plates. Part of MOTORSPORT NETWORK. Its not illegal to register a mh in another state when it begins to an llc of that other state and avoid taxes of any other state. Why in the world would I fabricate something like this, I still have a job to occupy my time. 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! It certainly isnt for everyone. If the LLC is in Montana but the owner of that LLC is in Michigan. Javascript must be enabled for the correct page display. But as states scramble to shore up sinking deficits, I think we can be sure that pursuing RV owners with Montana plates is going to increase, not decrease. For about 2 years we were quite legal with having MI plates on the vehicles while we were in CA. From 20112016, she was executive director of Childrenz Haven, the Child Advocacy Center of Polk County, Texas. Copyright 2023 RV Lifestyle. http://www.foretraveloftexas.com/list-inventory.php?category=New, FREE RV Packing List (PLUS 3 Best RV Checklist Apps), Roadschool Classroom Supplies & Organizers for Your RV. Thats when our law firm received the call from the frantic couple. Setting Up Your Domicile In Texas Like references on using this opportunity (it isnt a loophole, its simply how the law was written to benefit wealthy people). 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.. 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. In a deliberate break with their home state of California, they sold their property and bought an RV. Found it odd that the GMC Sierra I rented had AZ plates. This covid 19 situation has really put folks around here in a situation. Luckily, I was able to move to a county that has lower personal property taxes, but they still are pretty stiff. Thank you to everyone who responded. Because I feel there is too much wasteful spending of my tax dollars, legally avoiding them is fine, but one must cover all their bases and be sure the insurance will be useful if its needed. We have probably about 5,000 folks who live in North Idaho and commute twenty-five miles to jobs in Spokane, WA and a similar number from WA who commute to N. Idaho jobs each day. 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.. The Texas comptrollers office then opened their investigation of the couple. Almost all states require registration of vehicles in that state if the vehicle is "garaged" in that state. Domiciled in South Dakota. So its obvious the vehicle hasnt just driven in from Montana for the holidays. Taxation in this country is out of control, and people are fed up with it. I know, I know, some will say the Montana LLC is the legal owner. If I would be in violation of the law, I would not choose that route. 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. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. Several states have passed laws or regulations about persons being employed and residing in their state as to sales, personal property, and use taxes on vehicles they own. Uhaul is a legitimate business. 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. I was also going to point out it is Limited Liability Company and not Corporation. Thank you for the support and evidence of how bad an idea it is. October 19, 2016at3:24 am, hailey parker said: Fantastic analysis ! All vehicles inside the LLC are rated commercial - because it's a business. But say your neighbors see you driving around with Montana plates and report you. You might save a little bit of money for now. Essentially, it works like this: You form an LLC business in Montana. You lease it to yourself. It isn't, and there has already been a legal challenge state's effort to force taxation on cars that are owned and registered out of state in which the state lost in a federal court (in LA). As Dianne drove through Washington State, she didnt realize she was in a speed zone. Frequently Asked. Find An Agent Whatever. Since the LLC never paid the sales or use tax but it still could be registered locally. And then title their newly-purchased vehicle in the Montana LLC's name. Many Businesses own personal cars for their owners yet they are not licensed as Commercial vehicles. e.g. As our Victoria Guida writes, this represents "the broadest and most concrete effort to date by the U.S. government to consider whether the Fed should issue a digital dollar.". Not every state that goes after its residents who use this tax avoidance strategy succeed. 2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. That's the difference. the whole thing, for reference. My neighbor was stopped at an AG station on I-15 south going into CA and fined a total of $150. They want their money. First, be careful trying the Montana LLC technique to save taxes on an 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 just dont register them in California. Bank and insurance company need to know that the LLC owns the coach. 3 min read 1. There is absolutely nothing wrong with a MT LLC if you abide by the rules of the state you are a resident of. 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. Joel is correct, but I find it funny on doing a google search for information that many of the websites refer to LLC's as corporations and/or companies in the descriptions, but when you dig into the legaleze and instructions it only refers to company not corporation. Worthless whiners like this blogger are just that. The biggest bite in buying an RV in one of the high tax states comes in the form of a use tax, or sales tax. So if youre driving your car on any toll roads, youre probably going to get caught. some state revenue agencies consider to be tax evasion. Have registered to vote etc. Even if you win, you lose. Invest in a Grizzlies or Bobcats-themed license plate frame. An LLC is an asset protection entity that has no tax standing. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Make Sure You're Prepared for Your Texas Driver's License! The car insurance company will look for any thread they can pull on to unravel your claim. Then they send people out to find the cars. Loring & Associates (who Mrs. Adams works with) typically offer a free consultation, which sounds like it would be helpful in your case. You really might want to get a clue, not give tax or legal advice as an unqualified writer and keep your submissive nature to yourself. Whats more, you dont even have to be a Montana resident to do it! 26. Most other states strongly frown on Montana LLC RV Titling. There are special rules for writing off expenses. I need to say here that a great many RVers have taken advantage of the Montana law with no issues. 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. 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. Recently the Georgia Department of Revenue decided to start cracking down on exotic car owners registering their cars in Montana to avoid taxes. A qualified motor vehicle is a motor vehicle used, designed or maintained for transportation of people or property and: Having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,793 kilograms; or 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. Receive Escapees RV Club News straight to your inbox! Part of the issue here is California is going after Montana LLC with managing member(s) that are California residents. They dont pull out the green eyeshades until they receive a claim. Montana Limited Liability Companies. Would love to be a full-timer with an organization like Sowers. I looked into the LLC at one time and it sounded good. Isn't IFTA federal? Yes, I get irritated when I see this. Keep your Montana-registed car your garage the same garage you tell your insurance company you keep it in. But it wasnt technically Thomas who made the purchase. California law says that you have to register the car within 20 days of entry into California. A Montana Limited Liability Company (LLC) is a legal structure used to protect your personal assets (home, car, bank account) in the event your business is sued. 2023 MOTORSPORT NETWORK. To answer a couple of you, 1st off, this was my 1st posting, I never heard of this site until directed here by the editor of a major RV magazine, his thinking was that alot of RVers visit this site and my neighbor did not want to write an article, so I decided to do it myself. I don't blame either for trying to keep/collect their money. No it isn't. Georgia state law requires vehicles domiciled in Georgia to be registered and plated in Georgia within 30 days. 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. 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. ), 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 next thing she knew, she was being pulled over by a local DPS trooper. And your LLC is a Montana corporation. All rights reserved. It is pretty obvious that Preston did not read all 711 prior posts in this thread, but he may want to read post #1. Every Montana LLC is managed per the clients need. Phil & Evy Somsen The taxes also provide funds necessary to keep Texas roads in good repair. You might want to search for that thread and read up on it. Kali has just figured out a way to get the use tax + penalties. They know the game. So it makes a lot of sense to do everything you can to maximize savings. Its tough to hide an RV. 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. I would suspect that you will also see other states start to do the same thing unless there is a successful court challenge. Good thing she has friends. Realistically speaking, if you intend to claim domicile in Texas, then bite the bullet and pay the Texas sales tax for your RV. One other thing to remember: California is not the only state cracking down on attempts to avoid paying taxes. Springtime in the desert southwest promises sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read More. I just eliminated their main focus which was tax evasion. Thats how the Montana law firms insist you can avoid high registration fees. We also own 2 cars still register CA and I have CA driver license. 855-721-0777. Its exploitative and tyrannical, and they dont deserve that money. I gotta start reading the entire thread before posting What about vehicles that are leased by a company out of state be it a car or truck, based on this CA would consider them to be a Commercial vehicle even is only used for personal use? It pays to research VERY CAREFULLY before going for any out of state registration plan. Iowa is not alone in cracking down on RV fee avoidance. US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. Says so in the advertisements in Trailer Life magazine, "Montana has no sales tax." And BOOM youll get a nastygram in the mail saying you owe tens of thousands of dollars to the tax man. IFTA = International Fuel Tax Agreement. I think that the MT LCC is a bad idea for most. Since I am not trying to create MORE conflict in my life, I think I will let this idea of a Montana LLC be nothing more than an interesting thought and an interesting thread. Wikipedia has good description to begin understanding IFTA. It's not a front business that does zero deals with anyone a year set up solely for the purpose of the owner to evade paying taxes on a car. Nothing has changed but reading your blog makes me wonder if it would be best to redo our wills in SD. Montana vehicle registrations are yearly. The State Trooper can call Elvis if hell answer the phone, but it wont matter. He contacted the Texas Secretary of States office to check on the discrepancy, and he was told that the couple was most likely guilty of tax fraud and tax evasion. 1 permit for all of the states & provinces you operate in, not 50+ permits. I do not remember the thread that well since it does not apply to me but I believe that was the topic of it. But the land is an asset offsetting the mortgage. 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