Go ask my friend who thought he was ok. Not so much. The LLC in Montana is owned by a Michigan resident. Hi Steve. They dont pull out the green eyeshades until they receive a claim. As far as sales and use taxes on an RV, many states have two provisions one for non-residents, one for residents. (Sorry, Hawaii residents!). 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). Yeah it was expensive, but I never have to worry about this BS. Obviously, this is grey hat stuff. 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. Two years later, when the Louisiana Department of Revenue caught up with Thomas, officials said he owed $49,509 in Louisiana sales tax and penalties, but Thomas appealed and won. Uhaul is a legitimate business. How To Insure a Car with a Rebuilt or Salvage Title, South Dakota Residency for Full-Time RVers. "But I own a home in Parker or Havasu. The business income, sales tax, etc is to be paid in Arizona. With that address, proof of vehicle insurance and an inspection of the towed Jeep, they headed to the county tax assessor-collector to register their vehicles. 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. Covers fuel permits for US & Canada. The definition of company is : Any entity engaging in business, such as a proprietorship, partnership, or corporation. Pay sales tax when car is purchased. 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. However, here is how I would approach it from a logical (but not necessarily relevant) standpoint. http://www.the-signal.com/archives/14087/, (You must log in or sign up to post here. 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). 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. Of course WA looked like FL after the King County voting mess last year. Ready for a quote? Just to clarify some of the initial posts. Your counsel would be appreciated! The taxes also provide funds necessary to keep Texas roads in good repair. After arriving in Livingston, they visited Escapees RV Club national headquarters where they obtained their new Texas address. ). Put yourself in the Trooper/Officer's shoes for a moment: You are assigned to a CA checkpoint, you see a high-dollar RV roll up, you see the Montana plates, the driver hands you a CA license and a registration for a Montana business entity. Anybody can form an LLC in Montana. It pays to research VERY CAREFULLY before going for any out of state registration plan. There is no sales tax on a regular home sale. 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? 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! document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Make Sure You're Prepared for Your Texas Driver's License! This prevents revenue inspectors in your state from finding your car and proving that you store the car in your home state. Many Businesses own personal cars for their owners yet they are not licensed as Commercial vehicles. That's $36,000 that stays in your pocket. My first thought after reading the title was "doug demuro ", He's in California, but nonetheless, good on him. I purchased a new coach two weeks ago and looked at doing the same. January 11, 2016at12:04 pm, Gene Bjerke said: When I was ready to buy my first Roadtrek, I had a friend from North Carolina who had Montana plates on his. The LLC registers and plates the vehicle in Montana. Why Shouldnt you register your luxury vehicle under a Montana LLC? For fulltimers, who are gone for very long periods from their home states, it appears to be very workable, especially if those fulltimers have established residency in a low tax state like, say, Florida. Nevertheless, lots of higher-end car and RV owners have assessed the legal and enforcement landscape, and believe the tax savings to be worth the risk: Go to luxury or sports car shows outside of Montana, or any RV park well away from Montana, and chances are good youll see a lot of Montana plates. If the LLC is in Montana but the owner of that LLC is in Michigan. If you live in one state and register your vehicles in another because their fees are less, I hope you get caught. Should say to California, This is MY 2nd HOME as defined by the IRS!!!! My neighbor was stopped at an AG station on I-15 south going into CA and fined a total of $150. I have to laugh when I read posts like this. Qualified motor vehicle does not include recreational vehicles. Is doing Montana LLC RV Titling a wise practice or will it get RVers in trouble in their home states? 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. I registered my $100K+ 5th wheel for $200 13 years ago & havent had to pay a penny since. So technically fines and penalties can still come your way. How long have I been telling folks the Montana LLC is a bad idea? I travel with a motor coach and jeep both owned and registered by the same Montana LLC, my drivers license is from a state other than Montana, I have a rental agreement from the Montana LLC for the motor home and the jeep. How much actual risk there is involved with thatwho knows. The Montana LLC is the owner. The couple read that if you claim Texas as your domicile, you wont have to pay income tax. 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. Your email address will not be published. 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.. Sign up and get a free Packing List for your next trip and free perks, discounts and RV travel tips! 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). But, what is the deal if you actually live in Montana, purchase an RV and then (lets say 6 months) move to another state. Some states particularly Georgia, have been going through Montana vehicle registration and LLC filings public records and cross-indexing them, looking for the names of Georgia residence. They brought along their Texas vehicle registration, proof of insurance, their unexpired California driver licenses and other proof of required identification. Posts: 173. in 5 years or so it was a break even. 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. The state is calling these LLC's exactly what they are, a sham to avoid taxes. Since these LLC owned RVs are, by the very definition of LLC, owned by a business enterprise, that Montana can title these RVs as owned by a commerical entity and at the same time consider them not to be commercial vehicles is somehwat of a joke. 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. Montana Llc Crackdown . Here's the other article I remembered reading: An LLC is not a corporation nor is it a business. When did any state achieve authority over another for teaching a titled and registered vehicleof that state. 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. ). 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. 4 HOA Rules About RVs That Might Surprise You, The Border Hookups Hit The Road With A New Song. some state revenue agencies consider to be tax evasion. A lot of this article is from the twilight zone. We establish Montana LLCs for you to own your vehicles for only $300, and we do it in a couple days. Its tough to hide an RV. Thats why we have written our RV Buying Secrets Guide. (Truly, I forget).. Drove it to Ca where we live. If the rig is owned by a corporation it is treated like a commercial truck and you have to buy fuel permits. Live here, own property here and work here. Thats what media Mogul Rupert Murdoch did. I've had an LLC and IFTA for many years. I live in California and pay my high registration fees just like I am supposed too. Consistency between these items, license plates and driver license, is the best way to proceed. 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. but alas the. 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. 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. US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. Essentially, it works like this: You form an LLC business in Montana. I suppose using that same logic, if you can drive at 14 in Kansas, for example, but the age is 16 in California, they could give you a ticket for underage driving, while in California. Changing domicile to Florida using Escapees was simple when the time came to become fulltimers. Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. A Montana LLC is considered a Montana resident and, like any other resident of Montana, won't pay a sales tax on any purchase. David and Dianne had completed the process in less than one day. 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. Thats how the Montana law firms insist you can avoid high registration fees. Every Montana LLC is managed per the clients need. And some states are already cracking down on people caught parking cars in their state that have Montana tags. Then, all your vehicles will have Texas license plates. Thats $36,000 that stays in your pocket. 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. Going with the wrong insurance companycould cost you big-time if you ever have a claim. Can your domicile be in Delaware: drivers license, voting, mail forwarding address, but register your RV in Montana to safe on the registration fees? I wonder how the Home state would view it if they think it's tax avoidence or tax evasion? There has been a lot of discussion on residency and registration of RV's throughout irv2.com. I had a Montana LLC to buy a motorhome and avoid Texas sales and use tax. As we mentioned, the CHiPs are out in force, looking for this specific circumstance. Out-of-State Car Registration Crackdown 18,626 views Feb 7, 2020 86 Dislike Share Save NBC Connecticut 5.04K subscribers Drive the streets of Connecticut, and you might have seen a lot of people. Drivers who want to use the Montana LLC technique should be very careful when insuring these cars. It is all over the trucking industry. Still, I can only assume this is why a lot of U-Haul's equipment is so old. If so it would be boilerplate with no changes. A super car claim will get sent to a special underwriting desk for special scrutiny. 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