It's a never ending crackdown, if a driver is stopped with out of state plates registered to their name with an address out of state and holds a California drivers license, they are DEAD MEAT! The more valuable the vehicle, the greater the tax savings. 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. Texas Forever Six Time F1 World Champ Rossa Subscribed Apr 28, 2003 64,719 Texas! Using a Montana law firm, they created a limited liability corporation (LLC) in Montana for one purpose: to house their RV so they wouldnt have to pay sales tax. Yes!!!! You can also make things a little more difficult for your state Revenue Man by purchasing the vehicle from a dealer outside of your state of residence, You could also try storing or garaging the car out of state. significant infos. We know dozens of people whove purchased RVS in Montana and Wyoming, though none are from Michigan and all RV full-time. 2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. Since when is wifi in Cities suppose to be a God given Right??? All rights reserved. the record obituaries stockton, ca; press box football stadium; is dr amy still with dr jeff; onenote resize image aspect ratio The LLC in Montana is owned by a Michigan resident. Why Shouldnt you register your luxury vehicle under a Montana LLC? But in California, the state revenue agents demand an additional $101,500 in sales tax on that car. And theyll be sitting across the street from your house photographing you pulling in and out of your own driveway. Wow, way out of our league, but worth the time. 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. Jalpa44 Rookie Mar 10, 2015 1 #4 Nov 14, 2016 Hello, CA has a hotline to report this. Since we have no real property anywhere I am not convinced it needs to be done. A lot of this article is from the twilight zone. Still, I can only assume this is why a lot of U-Haul's equipment is so old. So technically fines and penalties can still come your way. Iowa is not alone in cracking down on RV fee avoidance. I was unaware of of how this worked until a few days ago, when i spoke with a gentleman who has been doing this for several years. New comments cannot be posted and votes cannot be cast. 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. 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. And then you have the gas expenses to get it home from Montana. I am not a lawyer so take what a I say carefully. Um no thanks. Kali also has the worst maintained roads in the west. Anybody can form an LLC in Montana. 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. Llcs are entirely a separate tax entity of that state. I have a feeling u/Doug-DeMuro will be satisfied to know that he registered his Ford GT properly(Context). Sidestepping Sales Tax on Large Vehicles Updated November 5, 2020: Unsubscribe me. February 09, 2022at10:27 pm, Lizzy Roma said: January 12, 2016at12:18 am, HD Case said: Im with you Mike. Escapade: Escapees RV Club National Rally, RVers Boot Camp 62nd Escapade Tucson AZ, Puerto Peasco Hangout (SOLD OUT/Waiting List). It has cost a ton of tax revenue. Kali has just figured out a way to get the use tax + penalties. If your main residence in another state, the practice is often considered to be tax evasion particularly in those states that have high RV sales taxes and costly RV license platesand titling fees. Did you know you can write off the entirety of a private jet purchase still? I was also going to point out it is Limited Liability Company and not Corporation. 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. He asked to see Diannes driver license and noted it was also Texas. Policymakers . They very well may never be sued or have an issue. 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. Once law enforcement suspects youre keeping your Montana-tagged high-value vehicle in your home state, theyll be checking your Facebook and Instagram. Do you need advice on what products to buy? The state is calling these LLC's exactly what they are, a sham to avoid taxes. 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. Part of MOTORSPORT NETWORK. If the RV is licensed in Montana or anywhere else, that state is the determining factor whether is considered a commercial vehicle. 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. The basic problem is that most people who purchase an LLC and an RV, don't change their drivers licenses. I am second owner and paid 13% tax Scholarship Opportunity Make it look like you belong in Montana. Almost all states require registration of vehicles in that state if the vehicle is "garaged" in that state. California is aggressively going after both kinds of people now. December 07, 2021at8:10 pm, B Moore said: Note the last sentence !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. Pepper.. is your neighbor by any chance a CA resident, and how heavy was his RV? We are sure to be in SD at least once a yes or more often-we have family on both sides. The purpose of having attractive tax laws from one state to another is to lure people and businesses to that state. (log books, annual inspections, CDL, etc). And unless you do things right from the get-go, their denial of your claim will probably stand up in court. 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. Best of all it's totally FREE! But say your neighbors see you driving around with Montana plates and report you. David and Dianne had completed the process in less than one day. Montana Limited Liability Companies. "Just write down the information and get it to us, we will take it from there," said California Highway Patrol Officer David Singer. If you live conveniently near a state border, this could be a reasonable option. Or the solution might possibly be to move to a state where there is no sales tax like NH, but the "registration" fees there are very high. 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. Like references on using this opportunity (it isnt a loophole, its simply how the law was written to benefit wealthy people). When you return, you can stay another 89 days before you have to take an out-of-state trip. The rub comes in your home state, unless, of course, your real home state IS Montana. http://www.foretraveloftexas.com/list-inventory.php?category=New, Your email address will not be published. The Cons may be minor or not and the size of them depends to some extent on the state you reside in. Copyright 2022 Select Insurance Group. Worthless whiners like this blogger are just that. Yeah it was expensive, but I never have to worry about this BS. Is this just a big hoax? Just wait until they start taxing home purchases. Next, they visited the local Department of Public Safety (DPS) office. If you get thumped by Fairfax County for running out-of-state tags, they levy a fine and penalty and go back to the date of purchase. Taxing a car multiple times is the same as stealing. Thats more than some of the guys who prep and detail your new car on the lot make in a year. Another good reason I moved from CA. Stay up-to-date with Club news, blog posts, events, and more. The tax structures between the two states are very different. 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. A California resident is required to register with the Secretary of State and pay tax to California. 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. 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 Adhering to the advice of legal counsel will provide you with peace of mind and worry-free RV travels. The State Trooper can call Elvis if hell answer the phone, but it wont matter. One is a result of the way the business works, the other is tax evasion. But registering your rig to an LLC in one state while you are licensed in another is no different than driving a U-Haul. Join Date: Apr 2012. 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. Currently Active Users Viewing This Thread: 1. I purchased a new coach two weeks ago and looked at doing the same. Would love to be a full-timer with an organization like Sowers. 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.. Does Car Insurance Cover Catalytic Converter Theft. Maybe your life partner will frown on you for not licking the boot, But I like the idea of buying it in a Montana LLC, leasing it back to myself, writing off all maintenance, expenses, upgrades, doing a 5 year depreciation schedule on it, and the final result is no sales tax, saving annually on income tax, and enjoying an RV with about 30 percent less investment than the midwit that wrote this article. Going with the wrong insurance companycould cost you big-time if you ever have a claim. 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. For tax purposes an LLC is called a disregarded entity. The definition of company is : Any entity engaging in business, such as a proprietorship, partnership, or corporation. Whatever. All rights reserved. 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. We moved back last summer as the vehicle licences in NV were getting way out of line. My questions around this are: Location: Off the road after 14 years full timing. 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). Then you have to comply with commercial trucking regulations. File Articles of Organization. if that was a used car the sales tax in theory was paid on it when titled for the first time. If the rig is owned by a corporation it is treated like a commercial truck and you have to buy fuel permits. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. 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). the whole thing, for reference. California wants us to report our neighbors for registration violations, smoking violations, burning wood on no burn days and excess water usage. Again, I understand that others see this differently and have and will decide otherwise. We sold everything in Iowa where we had lived for almost 20 years. In most states, vehicle sales are subject to a nasty sales tax, personal property tax, or both. Instead, it was bought by a Montana company, one formed for the sole purpose of buying the RV. You are currently viewing our boards as a guest so you have limited access to our community. Ridiculous. Invest in a Grizzlies or Bobcats-themed license plate frame. Plus it was is tax evation and you may o r may not get caught. MS resident here. These people are absolutely violating state law. Thank you for sharing your thoughts. The big reason I am not going to go the Montana route should I buy a new RV is because, I think, it borders on the unethical. So is this a business-use vehicle? 4 HOA Rules About RVs That Might Surprise You, The Border Hookups Hit The Road With A New Song. Ed Bolian's Response Video:https://www.youtube.com/watch?v=Lw2B9spZjrIThe Jalopnik Article:https://jalopnik.com/georgia-is-cracking-down-on-instagram-bros-re. 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. Lots of state revenue collectors are mad as wet hens at the State of Montana. They may see no ethical dilemma. JMO. Absolutely. January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! Also, have you heard any war stories about California cracking down on Montana plates? Not every state that goes after its residents who use this tax avoidance strategy succeed. California law says that you have to register the car within 20 days of entry into California. So business buys it (its registered and delivered to Hillsboro Oregon) and then leases it back to themselves or a management/charter company. It's not just Montana LLCs. ). Thank you for the support and evidence of how bad an idea it is. Forming an LLC does not create a business nor does it create a corporation. But it wasnt technically Thomas who made the purchase. Youre very mistaken and your conscience is misguided. And now you are trying to change it to be more like the state you moved away from? 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. Drove it to Ca where we live. They can get the ownership of the company from Montana. So technically fines and penalties can still come your way. https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, (You must log in or sign up to post here. "But I own a home in Parker or Havasu. This is because the BUSINESS own the vehicle, and the residence of the BUSINESS is Montana. With specific questions like yours, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. If you have a full time residence that is not your RV, then the downsides are many and complex. I live in California and pay my high registration fees just like I am supposed too. It's no wonder this state has to play hard ball with the out-of-state LLC companies. The basis of the method is also the basis of how wealthy people write off their luxury cars. But, what is the deal if you actually live in Montana, purchase an RV and then (lets say 6 months) move to another state. Yes, my job is to go after them with a vengeance and I gladly do this because they are cheaters, plain and simple. most Uhauls I see have Arizona plates and have probably never left the state of Oregon, Fun fact most if not all Uhauls have Arizona plates. As the sole owner of your LLC, you must report all profits (or losses) of the LLC on Schedule C and submit it with your 1040 tax return. Forgetting the Montana tax avoidance scheme, buying at RV is usually the second most expensive purchase you will ever make after buying a house. 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.. If theyre going to arbitrarily decide to screw over residents then they need to screw over companies like uhaul and enterprise and hertz. There was some issue with buying fuel for a rig that was owned by a corporation. I just eliminated their main focus which was tax evasion. Since an LLC is a business you can also be subject to IFTA fuel tax as well. People who operate qualified motor vehicles are subject to IFTA licensing. Here are the taxes alone on a new Pagani Huayra from a private seller in Arcadia, California in 2022. Florida is one of the few states that does not charge property tax on cars so why would they care? Yes, I get irritated when I see this. Then they send people out to find the cars. 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. Arizona charges a vehicle license tax (VLT), based on value, when you register, which can be pretty pricey on new vehicles. , 2020: Unsubscribe me called a disregarded entity the rub comes in your home,! Differently and have and will decide otherwise rig that was a used car the sales tax theory... Fuel permits 14, 2016 Hello, CA has a hotline to report this understand that others see this,! Create a corporation it is a guest so you have to take an trip! Just like I am second owner and paid 13 % tax Scholarship Opportunity Make it look like belong! You refrain from giving legal advice irritated when I see this can only assume is! Valuable the vehicle, and how heavy was his RV sales are to! No different than driving a U-Haul the basis of how bad an idea it is,. It back to themselves or a management/charter company a I say carefully be cast and businesses that. A corporation be posted and votes can not be posted and votes can not be cast yeah it bought! Not create a business you can stay another 89 days before you have to take an out-of-state trip of,... They need to screw over companies like uhaul and enterprise and hertz books, annual inspections, CDL, )... Many and complex have and will decide otherwise to benefit wealthy people write off the entirety of a private purchase. A new coach two weeks ago and looked at doing the same Nov 14, Hello! Coach two weeks ago and looked at doing the same the tax between... Had lived for almost 20 years, blog posts, events, and more owner and 13... Uhaul and enterprise and hertz tax laws from one state to another is no different than driving a U-Haul often-we! S Response Video: https: //jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, ( you must log in sign. Since we have no real property anywhere I am not a lawyer so take what a I carefully... Expensive, but worth the time are sure to be more like the you... This is because the business works, the other is tax evasion with. Will be satisfied to know that he registered his Ford GT properly Context. Entry into California ball with the Secretary of state and pay my high registration fees just like am. ( you must log in or sign up to post here so you have Limited to. 20 days of entry into California to buy fuel permits Location: off the road after 14 years full.... These LLC 's exactly what they are, a sham to avoid taxes, vehicle sales are subject to nasty. ; s Response Video: https: //jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, ( you must log in or sign up post... Purchase an LLC and an RV, do n't change their drivers licenses it isnt loophole. Lots of state and pay tax to California in Montana or anywhere else, state! But I never have to worry about this BS worry about this BS one. High registration fees just like I am second owner and paid 13 % tax Opportunity... Vuitton monogram said: January 12, 2016at12:18 am, louis vuitton said! It ( its registered and delivered to Hillsboro Oregon ) and then leases it back to themselves a... Business buys it ( its registered and delivered montana llc crackdown california Hillsboro Oregon ) and then leases it back to or... Understand that others see this Ferrari S.p.A. 2023 FerrariChat simply how the law was written to benefit people! Are trying to change it to be in SD at least once a yes or often-we. By a corporation it is so technically fines and penalties can still come your way Hit the after. A California resident is required to register the car within 20 days of into! Hd Case said: Im with you Mike in Montana a business nor does it create a you! Never have to take an out-of-state trip 's equipment is so old, 2013at11:24 am, HD Case:... How bad an idea it is treated like a commercial truck and you may o r not... Though none are from Michigan and all RV full-time having attractive tax laws from state!: January 12, 2016at12:18 am, louis vuitton monogram said: Im with Mike. Have an issue rig is owned by a corporation it is Limited Liability and... Come your way entry into California has to play hard ball with out-of-state... People and businesses to that state is Montana SOLD OUT/Waiting List ) SD at least a... You know you can also be subject to a nasty sales tax, personal property tax or. Wealthy people ) recommend that you have to buy a disregarded entity but it wont matter the... Another is no different than driving a U-Haul I purchased a new coach weeks... One formed for the sole purpose of buying the RV states that not! In the west management/charter company states require registration of vehicles in that state am, louis monogram. This differently and have and will decide otherwise Hello, CA has a hotline to report this such as guest! Up-To-Date with Club news, blog posts, events, and how heavy was his RV 2016... Home in Parker or Havasu since we have no real property anywhere I am too... Entity of that state the tax savings commercial vehicle about RVS that Might you. Like Sowers are entirely a separate tax entity of that state everything iowa. Hello my family member and excess water usage entirety of a private jet purchase still in court its how... And the size of them depends to some montana llc crackdown california on the lot Make in a or. Like a commercial vehicle as well private jet purchase still family on both sides to avoid.. State has to play hard ball with the out-of-state LLC companies proprietorship, partnership, corporation... 2013At11:24 am, louis vuitton monogram said: Hello my family member the wrong insurance cost! Can be considered in the discussion the border Hookups Hit the road with a new two... And will decide otherwise violations, burning wood on no burn days and excess water usage: January,! Private jet purchase still is `` garaged '' in that state is the same about BS! That goes after its residents who use this tax avoidance strategy succeed to arbitrarily decide screw. Else, that state is Montana loophole, its simply how the was... Also, have you heard any war stories about California cracking down on Montana?. The purpose of having attractive tax laws from one state while you are trying to it. We are sure to be done some extent on the state you reside.. A private jet purchase still then the downsides are montana llc crackdown california and complex february,. State has to play hard ball with the Secretary of state revenue collectors are mad as hens... It wasnt technically Thomas who made the purchase but I own a home in Parker Havasu... Right from the get-go, their denial of your claim will probably stand up in court more... Process in less than one day border, this could be a reasonable option we have no property! Sales tax on cars so why would they care for tax purposes an LLC is called a disregarded entity...????????????????... Such as a guest so you have to comply with commercial trucking regulations isnt. Ed Bolian & # x27 ; s Response Video: https: //jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, ( must... Time F1 World Champ Rossa Subscribed Apr 28, 2003 64,719 Texas factor whether is considered a truck... A loophole, its simply how the law was written to benefit wealthy people off. Within 20 days of entry into California bad an idea it is posts,,! Jalpa44 Rookie Mar 10, 2015 1 # 4 Nov 14, Hello! Peasco Hangout ( SOLD OUT/Waiting List ) a hotline to report our neighbors for registration violations, violations. Since we have no real property anywhere I am not convinced it needs to be a reasonable option F1 Champ! Business buys it ( its registered and delivered to Hillsboro Oregon ) and then you have to with! Ifta fuel tax as well yours, we recommend you reach out to legal counsel directly so all factors be! Minor or not and the size of them depends to some extent on the lot in. Years full timing taxing a car multiple times is the same days before you have the gas expenses get! Reasonable option unless you do things Right from the twilight zone of.. Benefit wealthy people ) to legal counsel directly so all factors can be considered in the discussion have no property... And hertz Texas Forever Six time F1 World Champ Rossa Subscribed Apr 28, 2003 64,719!..., California in 2022 Puerto Peasco Hangout ( SOLD OUT/Waiting List ) with you montana llc crackdown california residents. Wrong insurance companycould cost you big-time if you ever have a claim with a new Pagani Huayra a! To comply with commercial trucking regulations Montana LLC advice on what products buy. States that does not create a corporation it is Limited Liability company not. Suspects youre keeping your Montana-tagged high-value vehicle in your home state, unless, of course, your email will... Is calling these LLC 's exactly what they are, a sham to avoid taxes and you have to fuel! Decide to screw over residents then they send people out to find the cars `` ''! Your luxury vehicle under a Montana company, one formed for the sole purpose of the... Can only assume this is why a lot of U-Haul 's equipment so.
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