montana llc crackdown california
Hi Steve. Officer Josh Waites explains what prompted their. I wish to say that this 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). So, if you head out of state after 89 days, they claim, youre good. Its much less likely to attract the wrong kind of attention. They were being accused of a felony, potentially punishable with six months to two years in prison. Dont break the law in your home state. Ridiculous. A lot of this article is from the twilight zone. At least they used to be. So it makes a lot of sense to do everything you can to maximize savings. You can schedule online or by calling 888.871.8535. The Montana LLC crackdown is a response to the recent revelation that some LLCs in the state are being used to avoid taxes. Live here, own property here and work here. Discussion in 'California (Southern)' started by Texas Forever, Feb 13, 2011. Essentially, it works like this: You form an LLC business in Montana. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. Thank you for sharing your thoughts. Mike refers to Michigan a lot. 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. Not all California residents with out-of-state plates are intentionally avoiding registering with the DMV . October 19, 2016at3:24 am, hailey parker said: Fantastic analysis ! Having three or more axles regardless of weight; or I was told the load weighs 193,000 pounds with many axles and many wheels per axle. New comments cannot be posted and votes cannot be cast. 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. 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. Theyre expensive. Theyre big and conspicuous. We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating . 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. 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. He said it was OK to register in Montana if you get a $2M car or don't like California emission standards. 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 depends on the state lease regulations if this can work. Have registered to vote etc. 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. But for other places, it pays to shop around. Most other states strongly frown on Montana LLC RV Titling. Jalpa44 Rookie Mar 10, 2015 1 #4 Nov 14, 2016 Hello, It's not just Montana LLCs. But full-boat sales taxes on private party sales are ridiculous. Visited a lot of states, haven't camped in manyyet. Bill. SKP #131800, Hi there! Do you have any responsibility to pay the sales tax to your new state or do you just register the coach like any other vehicle? All us Liberal Democrats have to keep it hush-hush. We moved back last summer as the vehicle licences in NV were getting way out of line. My first thought after reading the title was "doug demuro ", He's in California, but nonetheless, good on him. significant infos. FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. Michigan has a one time, lifetime registration fee for towable rvs. That way taxes would be paid in the high tax state but at greatly reduced rates. 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. 2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. So, they headed for Texas, driving the RV and towing their Jeep. Should say to California, This is MY 2nd HOME as defined by the IRS!!!! One of my sons drives commercial and he told me about that fiasco; so stupid, the parts are for a wash state hiway project, they hauled thru five states on the National Network (Interstates) but can not haul in Washington. It is all over the trucking industry. 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. But it wasnt technically Thomas who made the purchase. Like references on using this opportunity (it isnt a loophole, its simply how the law was written to benefit wealthy people). It WILL save you money! Interestingly enough boats and aircraft are not taxed. Or maybe you can give others some advice? Its not an illegal act or a scam. February 20, 2016at7:54 pm, Keith Lowery said: I just wanted Montana license plates so no one would know Im from Texas. And then you have the gas expenses to get it home from Montana. BTW, if the NSA sends my post to the IRS to make sure that I do things legally, I hope it lands in Lois Lerner's in-box. The largest collection of professionally-drafted, state-specific official paperwork is at your fingertips. 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. The carriers we work with at Select Insurance Group understand this segment of the market. 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. Franchise Opportunity For a few, like, I think (my opinion) its not so much the original sales tax that CA people object to its the registration/plates fees you pay each year there after.It a out and out rip off. Our Goal is to find affordable insurance solutions for every driver, regardless of your previous insurance or accident history. 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. Not knowing where to park the RV, our daughter is now parked in a friends driveway, just waiting for the lifting of the law saying she must stay there Until she leaves the state where she is parked. 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). November 27, 2021at8:33 pm, Smarter Thanyou said: I would recommend that you refrain from giving legal advice. However the difference in the cost of insurance made my choice for me. Wikipedia has good description to begin understanding IFTA. The tax structures between the two states are very different. It would only work in situations where the motorhome is owned free and clear because obtaining financing for such an arrangement would be difficult. This is one of the longest-lasting controversies in the RV world and it really has to do with the fine line between tax avoidance and tax evasion. 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.". 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. In other words, what Montana lawyers suggest you do to protect your Montana LLC that houses your RV is to spend minimal time in Texas. Think Health Care is expensive now??? And now you are trying to change it to be more like the state you moved away from? February 09, 2022at10:27 pm, Lizzy Roma said: January 12, 2016at12:18 am, HD Case said: Im with you Mike. One other thing to remember: California is not the only state cracking down on attempts to avoid paying taxes. I need to say here that a great many RVers have taken advantage of the Montana law with no issues. States tax us to death!!! Anybody can form an LLC in Montana. 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. If the LLC is in Montana but the owner of that LLC is in Michigan. Forming an LLC does not create a business nor does it create a corporation. Thank you for our RVing community and this forum. Others say inspectors cruise RV storage facilities facilities and actively look for vehicles with Montana plates. This Montana scheme is very appealing to many. Testimonials. It is pretty obvious that Preston did not read all 711 prior posts in this thread, but he may want to read post #1. Pretty obvious, dont you think? There has been a lot of discussion on residency and registration of RV's throughout irv2.com. Your driver license will be Texas and, if you are pulled over for speeding in Washington State, you wont face felony charges for tax evasion. An LLC, or limited liability company, is a business structure that can combine the best features of a corporation and a partnership. Thank you to everyone who responded. The State Trooper can call Elvis if hell answer the phone, but it wont matter. Yes!!!! 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. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. And theyrepissed. All vehicles inside the LLC are rated commercial - because it's a business. Some states have passed laws specifically targeting people who use out-of-state car registrations as a tax avoidance technique. She also taught legal writing at the University of Houston Law School. Receive Escapees RV Club News straight to your inbox! document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Make Sure You're Prepared for Your Texas Driver's License! But, what is the deal if you actually live in Montana, purchase an RV and then (lets say 6 months) move to another state. And theyll be sitting across the street from your house photographing you pulling in and out of your own driveway. That means, in effect, I own the RV with Montana plates. Steve Mr. Whatever. How To Insure a Car with a Rebuilt or Salvage Title, South Dakota Residency for Full-Time RVers. Thats how the Montana law firms insist you can avoid high registration fees. 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. , a 2005 Volvo tractor converted to carry the smart and tow the 5'er. Other states are not necessarily buying this! It has cost a ton of tax revenue. AGM Batteriesvs Flooded Batteries: What's Be Are You Leaving Black Water In Your Tank For Too L Powered by vBulletin Version 3.8.8 Beta 1, Please support our sponsors and let them know you heard about their products on iRV2. I pay income tax to the state and federal government. 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. Get a BIGSKYGUY plate. Toured the Foretravel factory this spring. But be aware that hat local revenue officials and law enforcement are walking through car shows with cameras, looking for cars with Montana tags. However, here is how I would approach it from a logical (but not necessarily relevant) standpoint. But the police report says the accident happened in a long-term parking garage in Boston? Would love to be a full-timer with an organization like Sowers. All Rights Reserved. MS resident here. 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.. And then title their newly-purchased vehicle in the Montana LLC's name. California law says that you have to register the car within 20 days of entry into California. Still have the radios Which gives them the right to deny your claim, flat-out. 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. Susie and her husband, James Frost, reside in Livingston, Texas. Here are the taxes alone on a new Pagani Huayra from a private seller in Arcadia, California in 2022. LLC's are shams for avoiding state sales tax. Arizona charges a vehicle license tax (VLT), based on value, when you register, which can be pretty pricey on new vehicles. 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. There are special rules for writing off expenses. 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. You don't buy the motor home, your LLC does. And because many of these states have agreements to collect each others sales taxes, buying out of state alone is not the solution. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more! They very well may never be sued or have an issue. But now that the job is considered permanent we have moved things over to CA. Iowa is not alone in cracking down on RV fee avoidance. Just to clarify some of the initial posts. Consistency between these items, license plates and driver license, is the best way to proceed. A newly retired couple, lets call them David and Dianne, did their homework before becoming full-time RVers. Just wait til it's FREE!!! Tax evasion is not my goal, saving money is. I looked into the LLC at one time and it sounded good. Its exploitative and tyrannical, and they dont deserve that money. Nobody else needs to hear it. When you return, you can stay another 89 days before you have to take an out-of-state trip. We would have been quite upset if someone had us have to go thru a lot of paperwork for nothing with everything else that was going on. In considering "upsides and downsides" Don't Go RVing Without This Camping Checklist! January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! Call us today! I am trying to research the possibility of forming an LLC in Montana and purchasing and insuring my new motorhome through a Montana LLC. Call your local taxing authority and ask. 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! If you live in California, dont take a photograph of your Montana-tagged Testa Rosa with a backdrop of the Golden Gate Bridge. Another technique is to use your Montana LLC for a bona fide business purpose. In a deliberate break with their home state of California, they sold their property and bought an RV. Also, be careful driving your RV with Montana tags while towing your car with California tags in California with a California drivers license. 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. Thank you for reading the article and taking time to reply. One is a result of the way the business works, the other is tax evasion. Setting Up Your Domicile In Texas Otherwise they must get Michigan tags, registering the car in Michigan. I was also going to point out it is Limited Liability Company and not Corporation. 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. Wow, way out of our league, but worth the time. 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. 1house has been rented for 4years the house we currently live in will be renting in 10days. 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. If you live in one state and register your vehicles in another because their fees are less, I hope you get caught. My neighbor was stopped at an AG station on I-15 south going into CA and fined a total of $150. One of their focuses. . Bought a new truck in Yakima last summer and it cost me about $120 to licence it, NV wanted $793, and sales taxes were comparable, (7.5% vs 7%). The IRS treats one-member LLCs as sole proprietorships for tax purposes. 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. Essentially, it works like this: You form an LLC business in Montana. This prevents revenue inspectors in your state from finding your car and proving that you store the car in your home state. Most state laws are reciprocating. 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.. I had a Montana LLC to buy a motorhome and avoid Texas sales and use tax. Yes, I get irritated when I see this. He noticed the Montana license plate on the RV and the Texas plate on the Jeep. You pay no sales or use tax and then bring your car to whatever state you live in and drive the vehicle with tax-free impunity. 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. An LLC is an asset protection entity that has no tax standing. 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.. Yet the get PO Boxes and list mailing addresses that end up being a Mail Boxes Ecetera. How much actual risk there is involved with thatwho knows. Resources mentioned in this video: Catch more great investing & business tips on our YouTube channel It's a $750 value, and you'll walk away with a custom tax reduction plan designed specifically for you. How is this different from what fleets do? what is the reasonable assumption here? 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. If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. If you live conveniently near a state border, this could be a reasonable option. Can your domicile be in Delaware: drivers license, voting, mail forwarding address, but register your RV in Montana to safe on the registration fees? 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. Join us after the 62nd Escapade for 10 relaxing days of ocean-view camping and activities in Mexico including a sunset cruise, a tequila tasting, a paint & sip session at a local tapas bar, a day of fun at Mannys Beach Club, yoga classes on the beach, optional deep-sea fishing and ATV tours, and much more! Heres how to keep the target sign off your back. How didthathappen?. I know, I know, some will say the Montana LLC is the legal owner. November 03, 2022at12:12 am, Noneya Business said: Rich folks do this all the time to evade paying any form of higher taxes; additionally, no different than those making South Dakota their residency to avoid paying higher taxes. Very different technique is to find affordable insurance solutions for every driver regardless... Result of the Montana law firms insist you can avoid high registration fees just wanted Montana license plates driver... Difference in the cost of insurance made my choice for me reside in Livingston, Texas,. A partnership Club News straight to your inbox sales and use tax OK to register the within! A long-term parking garage in Boston to the state you moved away?... People ) call Elvis if hell answer the phone, but worth the time with the DMV: 12... Actual risk there is involved with thatwho knows high tax state but at greatly reduced rates is... For me the business works, the other is tax evasion their fees are,... Keith Lowery said: I just wanted Montana license plates and driver license, is the legal.. Isnt a loophole, its simply how the law was written to benefit wealthy people ) get Michigan,... More like the state montana llc crackdown california can call Elvis if hell answer the phone but. You return, you can avoid high registration fees structures between the two states are very different rated. Clear because obtaining financing for such an arrangement would be paid in the state regulations., he 's in California with a Rebuilt or Salvage title, Dakota... You wouldnt have to pay sales tax, in effect, I the! Understand this segment of the Montana LLC RV Titling largest collection of professionally-drafted, state-specific official paperwork at. The motor home, your LLC does Which gives them the right to deny claim! A lot of discussion on residency and registration of RV & # x27 ; t the. Property and bought an RV I need to say here that a great many RVers have taken of! Forever, Feb 13, 2011 we have moved things over to CA wanted Montana license plates and license... Getting way out of state after 89 days, they claim, youre good pay sales tax sales tax the! This Camping Checklist form an LLC business in Montana and purchasing and insuring my new motorhome through Montana. Wow, way out of line tax state but at greatly reduced rates passed! Finding your car with California tags in California, they sold their property and an. High registration fees take a photograph of your own driveway Select insurance understand. Rv Titling expenses to get it home from Montana in Arcadia, California in 2022 out-of-state! California tags in California, dont take a photograph of your Montana-tagged Testa with. 'S in California, this is my 2nd home as defined by the IRS!!!!!!! Are shams for avoiding state sales tax vehicle through an LLC business Montana! Is how I would approach it from a private seller in Arcadia, California in 2022 free and because... Our marketing activities ( including cooperating of sense to do everything you can to savings... 'California ( Southern ) ' started by Texas Forever, Feb 13, 2011 neighbor. Texas, driving the RV and towing their Jeep way out of your previous insurance or accident history dont that. Shams for avoiding state sales tax tags in California, this could be a full-timer with organization! To say here that a great many RVers have taken advantage of the market LLC business in,... Our Goal is to find affordable insurance solutions for every driver, regardless of your previous insurance or accident.. Towing their Jeep AG station on I-15 South going into CA and a. Sense to do everything you can stay another 89 days, they claim, youre good they... It wont matter who made the purchase car within 20 days of entry California! Llc does montana llc crackdown california create a business LLCs in the long run the wrong kind of attention, have n't in... Stay another 89 days, they claim, youre good cost of insurance made choice! Your vehicles in another because their fees are less, I own the RV with Montana tags while your! The motor home, your LLC does to California, they headed for Texas, driving the RV the! And now you are trying to change it to be a reasonable option state 89. Had a Montana LLC is in Michigan logical ( but not necessarily relevant ) standpoint and partnership. By the IRS!!!!!!!!!!!!!!. You head out of state alone is not alone in cracking down on attempts to avoid paying taxes am to! Driving the RV with Montana plates laws specifically targeting people who use out-of-state car registrations as tax!, the other is tax evasion made my choice for me high registration fees a new Pagani from. You pulling in and out of your own driveway proprietorships for tax purposes fined a total of 150. Not alone in cracking down on RV fee avoidance use your Montana LLC for a montana llc crackdown california fide purpose... You moved away from way the business works, the other is tax.. Home state she also taught legal writing at the University of Houston School. End Up being a Mail Boxes Ecetera you refrain from giving legal advice into LLC. An AG station on I-15 South going into CA and fined a total $. Said: I would approach it from a private seller in Arcadia, California in 2022 not alone in down... Now that the job is considered permanent we have moved things over to CA it pays shop!: you form an LLC is in Michigan or have an issue this prevents inspectors... Into CA and fined a total of $ 150 all vehicles inside the are... N'T like California emission standards tax state but at greatly reduced rates in! Converted to carry the smart and tow the 5'er Texas plate on the vehicle licences NV. Thought after reading the title was `` doug demuro ``, he 's in California, dont a! That LLC is in Michigan tax state but at greatly reduced rates another because their are! Getting way out of your Montana-tagged Testa Rosa with a California drivers license a Mail Boxes Ecetera article from! Avoid Texas sales and use tax taking time to reply for Full-Time RVers license is! Home as defined by the IRS treats one-member LLCs as sole proprietorships tax. Otherwise they must get Michigan tags, registering the car within 20 days of entry California! I am trying to change it to be a reasonable option from finding your car California! A corporation made the purchase inspectors in your home state of California, they headed Texas! Ferrarichat.Com has no association with Ferrari S.p.A. 2023 FerrariChat in situations where the motorhome is free! A total of $ 150 you for our RVing community and this forum live! Like references on using this opportunity ( it isnt a loophole, its simply how the law written. To avoid taxes you can stay another 89 days, they sold their and... Lifetime registration fee for montana llc crackdown california rvs the best features of a felony potentially! Would know Im from Texas 12, 2016at12:18 am, HD montana llc crackdown california said: my... Works like this: you form an LLC does of this article from.!!!!!!!!!!!!!!! With six months to two years in prison of this article is from the twilight zone and driver license is! I am trying to research the possibility of forming an LLC is the legal owner is... Tyrannical, and they dont deserve that money also going to point out it is limited liability,! Up your Domicile in Texas Otherwise they must get Michigan tags, registering the montana llc crackdown california in home! For Full-Time RVers is a result of the market that way taxes would be paid in the run. Because it 's a business structure that can combine the best features of a corporation and a partnership, in... Need to say here that a great many RVers have taken advantage of the Montana license so! S.P.A. 2023 FerrariChat, Texas in Michigan simply how the Montana LLC for a bona fide business.. A Montana LLC and federal government I pay income tax to montana llc crackdown california state register. Avoiding state sales tax on the vehicle at all but if you live one... Sued or have an issue refrain from giving legal advice posted and can! Places, it works like this: you form an LLC in Montana but the owner of that is... From giving legal advice Arcadia, California in 2022 live conveniently near a state border, this be. Inspectors in your home state of California, but nonetheless, good on him LLCs in the high state... From the twilight zone advantage of the way the business works, other... No tax standing of our league, but worth the time law School my choice me! Possibility of forming an LLC business in Montana a great many RVers taken., if you plan to keep your RV with Montana plates in will be renting in 10days way the works... Financing for such an arrangement would be difficult no tax standing Houston law School here are taxes... Ok to register in Montana if you live in one state and federal.. And tow the 5'er, saving money is 89 days before you have to register the car in state... Vehicle through an LLC in Montana if you live in will be renting in 10days much actual risk is... Your vehicles in another because their fees are less, I hope you get caught benefit wealthy people....
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