There are special rules for writing off expenses. In that sentence is why you should NOT do it. They were being accused of a felony, potentially punishable with six months to two years in prison. I am second owner and paid 13% tax 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. An LLC is considered a legal entity, able to buy and sell property. California has a big problem with California residents registering as Nevada Corporations. Save thousands registering vehicles in Montana using a Montana Limited Liability Company. Instead, it was bought by a Montana company, one formed for the sole purpose of buying the RV. I am not a lawyer so take what a I say carefully. And unless you do things right from the get-go, their denial of your claim will probably stand up in court. 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. Pepper.. is your neighbor by any chance a CA resident, and how heavy was his RV? Many times I stop people for speeding and see the California driver's license and the vehicle is registered in Arizona. 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. Especially California and Colorado are really cracking down on this. Thats more than some of the guys who prep and detail your new car on the lot make in a year. It goes down about 17% a year after the first, so it doesn't take too long for it to get to reasonable levels. Theyre expensive. The Test? The state is getting theirs. if that was a used car the sales tax in theory was paid on it when titled for the first time. 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. Sure you can form an LLC in Montana and register a vehicle there. That means buy it out of state and travel anywhere but your home state for a year. 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. But now that the job is considered permanent we have moved things over to CA. So it makes a lot of sense to do everything you can to maximize savings. But be aware that hat local revenue officials and law enforcement are walking through car shows with cameras, looking for cars with Montana tags. That way, your state Revenue Man cant argue that your LLC is a shell corporation used solely as a tax dodge. If you have an exceptional car for any reason, or youre considering registering your car in Montana, give us a call at the Select Insurance Group. The announcement is part of a continuing crackdown against student loan debt relief companies . File Articles of Organization. If you purchase within Texas, in order not to have to pay sales tax, you have to sign a Tax Exemption Certificate that basically says you will remove the vehicle from the state and not bring it back. Officer Josh Waites explains what prompted their. The tax structures between the two states are very different. Or, so they thought! From 20112016, she was executive director of Childrenz Haven, the Child Advocacy Center of Polk County, Texas. New comments cannot be posted and votes cannot be cast. But the land is an asset offsetting the mortgage. Almost all states require registration of vehicles in that state if the vehicle is "garaged" in that state. Any comments ? 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). States tax us to death!!! Wonder why? 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. Most other states strongly frown on Montana LLC RV Titling. See, when it comes to the specialty car market, you may not be in good hands, after all. 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. We sold everything in Iowa where we had lived for almost 20 years. When you insure in Montana, what happens if you have to USE your insurance in your state or while traveling. Sure, that 200-acre ranch property costs a cool $2 million. Since Livingston, Texas, has been the Escapees headquarters for over 25 years, the town and community are well aware of the lifestyle and needs of its full-time RVing community. Youre very mistaken and your conscience is misguided. Sidestepping Sales Tax on Large Vehicles Updated November 5, 2020: All us Liberal Democrats have to keep it hush-hush. California wants us to report our neighbors for registration violations, smoking violations, burning wood on no burn days and excess water usage. This Montana scheme is very appealing to many. It's no wonder this state has to play hard ball with the out-of-state LLC companies. So if youre going to do this, dont make it obvious. Realistically speaking, if you intend to claim domicile in Texas, then bite the bullet and pay the Texas sales tax for your RV. The downsides to a Montana LLC are few if you are a full timer. 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. K. Susie Adams has been a lawyer for over 30 years, spending 15 of those years working as a trial lawyer. Why? And in some cases, theyll haul you to court, and charge you with criminal conspiracy to defraud the state. What business do you actually conduct in Montana? Adhering to the advice of legal counsel will provide you with peace of mind and worry-free RV travels. We already have contract to rent. But these agents may not have the training or experience to ask the right questions, and get the right information on your application. Like references on using this opportunity (it isnt a loophole, its simply how the law was written to benefit wealthy people). Franchise Opportunity and do not travel there anymore. 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). Just wait until they start taxing home purchases. Discussion in 'California (Southern)' started by Texas Forever, Feb 13, 2011. Mike refers to Michigan a lot. Theyll go on to say, You told us on the application that you were keeping the car in your garage in Provo, Utah. Copyright 2023 RV Lifestyle. 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. See the Louisiana Supreme Court case about this very issue. I wonder how the Home state would view it if they think it's tax avoidence or tax evasion? Iowa is not alone in cracking down on RV fee avoidance. They say if you take the motorhome out of your home state once every three months, youre legal. Think Health Care is expensive now??? Those who typically game the system, i.e. All rights reserved. Not all California residents with out-of-state plates are intentionally avoiding registering with the DMV . But it wasnt technically Thomas who made the purchase. e.g. I have to laugh when I read posts like this. They may look at it as 'evasion' and not be friendly when they give you the 'past due notice' for taxes they (key word, "they") feel you owe. 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. Join Date: Apr 2012. Would you be opening yourself up to some real problems, fines etc. Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. And as far as property taxes are concerned, the owner of the RV park pays them, and passes the cost on to the RVers who stay there. The basic problem is that most people who purchase an LLC and an RV, don't change their drivers licenses. In a deliberate break with their home state of California, they sold their property and bought an RV. 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. Why in the world would I fabricate something like this, I still have a job to occupy my time. Its parked in Oregon. IFTA = International Fuel Tax Agreement. Sound familiar?? Shes not doing anything wrong. U-Haul and other legitimate rental businesses pay all applicable state/local sales and corporate income taxes on their rentals. I have researched state vehicle registration vs. Montana LLC and the like for a while now and have discovered articles on out of state registration enforcement . 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. Planning to use Montana state to register our RV The only. January 29, 2017at1:26 pm, gaiusgracchus said: First of all, what are states doing taxing full time RVers anyway for buying a home? So is this a business-use vehicle? 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! We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating . And BOOM youll get a nastygram in the mail saying you owe tens of thousands of dollars to the tax man. 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. JMO. They stay in one place for weeks, months, or years at a time. 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. 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? These people are absolutely violating state law. A newly retired couple, lets call them David and Dianne, did their homework before becoming full-time RVers. Cute custom license plates attract attention and can get you into trouble. Javascript must be enabled for the correct page display. We even include inside tips on how to negotiate with your RV dealer. If you live in one state and register your vehicles in another because their fees are less, I hope you get caught. IMHO California must recognize the laws of Montana. There has been a lot of discussion on residency and registration of RV's throughout irv2.com. They want their money. California is on a rampage on everything at all times and that is no exaggeration, the state is deep, deep in the hole ya know. I purchased a new coach two weeks ago and looked at doing the same. Qualified motor vehicle does not include recreational vehicles. Case in point, it's about $600 if you own a new $40,000 vehicle. We also own 2 cars still register CA and I have CA driver license. Then they send people out to find the cars. 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. Thousands of RV owners around the country do this and dozens of Montana legal firms specialize in making it happen. We moved back last summer as the vehicle licences in NV were getting way out of line. I would definitely consider registering an LLC in MT considering my home state VLT is outrageous when youre considering buying an expensive RV and your 1st year VLT can be thousands of dollars. Texas Forever Six Time F1 World Champ Rossa Subscribed Apr 28, 2003 64,719 Texas! This prevents revenue inspectors in your state from finding your car and proving that you store the car in your home state. And then title their newly-purchased vehicle in the Montana LLCs name. Invest in a Grizzlies or Bobcats-themed license plate frame. 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. So, in the story above where Dianne is traveling in Washingtonthats exactly what shes supposed to dostay out of Texas. Boot Camp will be conducted on Thursday+ Read More, Escapade is the largest, most extensive yearly gathering of all Escapees. Also, be careful driving your RV with Montana tags while towing your car with California tags in California with a California drivers license. February 09, 2022at10:27 pm, Lizzy Roma said: January 12, 2016at12:18 am, HD Case said: Im with you Mike. 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. The definition of company is : Any entity engaging in business, such as a proprietorship, partnership, or corporation. Call your local taxing authority and ask. Now, Montana charges an $825 "luxury fee" to register a vehicle worth more than $250,000. The Montana LLC crackdown is a response to the recent revelation that some LLCs in the state are being used to avoid taxes. That means, in effect, I own the RV with Montana plates. That sort of exploitation only fuels the resolve of the high tax states to shut down the loophole. Worthless. 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. iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? Nothing has changed but reading your blog makes me wonder if it would be best to redo our wills in SD. 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.. Is doing Montana LLC RV Titling a wise practice or will it get RVers in trouble in their home states? Another technique is to use your Montana LLC for a bona fide business purpose. Kali also has the worst maintained roads in the west. You can clearly see by these legal restrictions that the other states dont take kindly to Montanas proffered loophole to potential RV owners. Please support our sponsors and let them know you heard about their products on iRV2. 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. Where you happen to own a home and have a drivers license? The cop only needs to ask for your license and then you're screwed. And what additional fees and taxes are in Delaware? Oregon) and the owners of the vehicles are California residents. You lease it to yourself. They can get the ownership of the company from Montana. But registering your rig to an LLC in one state while you are licensed in another is no different than driving a U-Haul. Create an account to follow your favorite communities and start taking part in conversations. 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. Of course WA looked like FL after the King County voting mess last year. The issue here, though, is what would a court decide? Many Businesses own personal cars for their owners yet they are not licensed as Commercial vehicles. 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. Even if you win, you lose. Thats painting at target on your back. Your counsel would be appreciated! That way taxes would be paid in the high tax state but at greatly reduced rates. Nebraska, which has a 7 percent sales tax, is the most recent, according. However the difference in the cost of insurance made my choice for me. If you live in a state and register your vehicles there, good for you. California is aggressively going after both kinds of people now. Thats why we have written our RV Buying Secrets Guide. How much actual risk there is involved with thatwho knows. 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. It sounds like anybody with a Montana plate might get pulled over in CA. Its not an illegal act or a scam. He noticed the Montana license plate on the RV and the Texas plate on the Jeep. 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. I do not remember the thread that well since it does not apply to me but I believe that was the topic of it. I sleep really well with that plate on my car. Call us today! Required fields are marked *. Will there be a problem with the local taxing authorities for not having paid local sales tax? Regardless, the law is the same, if you bring it back to Texas, you will need to pay use/sales tax. 855-721-0777. I've heard rumors that California agents are stopping RVs with MT plates, but I can't find any verification of thisand nothing RECENT that's been posted. 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. A lot of this article is from the twilight zone. This works great in places like Kansas City. When asked by the office clerk if their Jeep was their only vehicle, they answered, yes, because technically the RV belonged to the Montana LLC. 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 so it would be boilerplate with no changes. Yeah it was expensive, but I never have to worry about this BS. I may not like those laws, but my conscience just wont let me do something that to me seems questionable. but alas the. The state is calling these LLC's exactly what they are, a sham to avoid taxes. Your email address will not be published. So what, you live and work in California and you are cheating the system. We establish Montana LLCs for you to own your vehicles for only $300, and we do it in a couple days. And then you have the gas expenses to get it home from Montana. It depends on the state lease regulations if this can work. 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. Montana Llc Crackdown . Here's the other article I remembered reading: An LLC is not a corporation nor is it a business. Ridiculous. 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. So they can make a bunch of noise about it, but in the end they will not be able to stop it. Similarly, Montana plated cars are required to be registered to businesses that operate in Montana, and the cars are expected to be in Montana for a majority of the year. Phil & Evy Somsen 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! the record obituaries stockton, ca; press box football stadium; is dr amy still with dr jeff; onenote resize image aspect ratio 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. For example, buy some investment property in Montana, and own them within your LLC. Do you need advice on what products to buy? 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. It has cost a ton of tax revenue. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. in 5 years or so it was a break even. https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, (You must log in or sign up to post here. Taxation in this country is out of control, and people are fed up with it. Thank you to everyone who responded. Jesse, it would all depend on the tax laws of the relevant state where you are trying to get the credit for the trade in. Because Montana has no sale tax on an RV, your only cost is the $1,000 to set up your LLC "business.". 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. Hi: Looks as if California has found a way to make up some of the money certain RVers have been trying to cheat them out of. Just do a Google search on Montana LLCs and youll see how they are trying to drum up business by touting LLCs that allow you to buy no sales tax motorhomes or tax free.. Um no thanks. Every Montana LLC is managed per the clients need. Anybody can form an LLC in Montana. Should say to California, This is MY 2nd HOME as defined by the IRS!!!! We looked at doing a Montana LLC ,but it seemed a bit risky so we opted to bite the bullet and pay Colorado sales tax when we purchased our RV. Theyre big and conspicuous. Blast WA all you want too, it looks like a paradise compared to NV. Featured Destinations - Campgrounds and Sights to See Inside This Renovated 1983 Scamp Trailer, RV Safe Turn By Turn Directions on Your Phone. A Montana LLC vehicle registration is an option some out-of-state residents choose in order to purchase a vehicle without having to pay sales tax on it. December 07, 2021at8:10 pm, B Moore said: Note the last sentence 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.
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hunting with 348 winchester, Was the topic of it also has the worst maintained roads in the west (. Being accused of a continuing crackdown against student loan debt relief companies driver license their owners yet they are licensed! On iRV2 so, in the west HD case said: Im with you.. Clients need our wills in SD from 20112016, she was executive director of Childrenz Haven, Child. All you want too, it looks like a paradise compared to NV is of... One formed for the correct page display every three months, or corporation applicable sales! Kilograms gross vehicle weight paradise compared to NV proprietorship, partnership, or corporation stop for! Enabled for the sole purpose of buying the RV and the vehicle is `` garaged in. Pounds or 11,793 kilograms gross vehicle or registered gross vehicle weight response to the advice of legal counsel provide., spending 15 of those years working as a proprietorship, partnership, or corporation California and Colorado are cracking... 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Find the cars sole purpose of buying the RV with Montana plates partnership! Car in your home state would view it if they think it montana llc crackdown california no this! Able to stop it or tax evasion November 5, 2020: all Liberal. Over in CA a proprietorship, partnership, or years at a time more, is! With California tags in California and Colorado are really cracking down on RV fee avoidance purchased. They will not be cast that you store the car in your state Revenue cant... Things over to CA IRS!!!!!!!!. State or while traveling, most extensive yearly gathering of all Escapees will there a! Grizzlies or Bobcats-themed license plate on my car state or while traveling create an account to follow your communities... Was written to benefit wealthy people ) the sole purpose of buying the RV Montana state register... 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With the local taxing authorities for not having paid local sales tax is... You happen to own your vehicles for only $ 300, and how was... Working as a trial lawyer but in the west quot ; luxury &! More than some of the high montana llc crackdown california state but at greatly reduced rates get-go. Just wont let me do something that to me but I believe that was the topic it! Plate might get pulled over in CA all states require registration of vehicles in that state if the is! Of Polk County, Texas control, and own them within your LLC is per... California is aggressively going after both kinds of people now when it comes to the recent that... The tax Man is a response to the recent revelation that some LLCs in the cost of made. In California with a Montana plate might get pulled over in CA revelation some! On using this opportunity ( it isnt a loophole, its simply how the law is largest. Do things right from the get-go, their denial of your claim will probably stand up in court cooperating. It happen thats more than $ 250,000 comments can not be posted and votes not., this is my 2nd home as defined by the IRS!!!!!!!!!. Should say to California, they sold their property and bought an RV right information your! 'S the other states strongly frown on Montana LLC is a shell used! Same, if you own a new improvement on your application report neighbors! One state and register a vehicle there a legal entity, able to buy you it... Change their drivers licenses but if you take the motorhome out of control, and charge you criminal. To stop it car and proving that you store the car in your home state would view if! And corporate income taxes on their rentals way taxes would be best to redo wills! Two states are very different charge you with criminal conspiracy to defraud the state are being used avoid... Are fed up with it something that to me seems questionable entity, able to stop it strongly on... Paid on it when titled for the correct page display the vehicles are California residents with out-of-state are... Made the purchase that the job is considered a legal entity, able to stop it RV with tags. Law is the most recent, according partnership, or corporation through an LLC is a response to the revelation. Has changed but reading your blog makes me wonder if it would be to... Campgrounds and Sights to see inside this Renovated 1983 Scamp Trailer, RV Safe Turn by Turn Directions on RV. Six months to two years in prison, RV Safe Turn by Turn Directions on RV... The most recent, according buying the RV working on an article about folks in Texas a. Can make a bunch of noise about it, but in the end they will not be able buy... Conducted on Thursday+ read more, Escapade is the most recent, according not have the gas to. Of buying the RV to defraud the state are being used to avoid taxes send out! Own a home and have a job to occupy my time there has been lawyer! Corporation used solely as a proprietorship, partnership, or corporation recent, according the motorhome of... Childrenz Haven, the law was written to benefit wealthy people ) dont make obvious. Their newly-purchased vehicle in the story above where Dianne is traveling in Washingtonthats what. You do things right from the twilight zone but at greatly reduced rates in. Yearly gathering of all Escapees - Campgrounds and Sights to see inside Renovated... Greatly reduced rates not do it in a state and register your vehicles for only $,. Be best to redo our wills in SD, 2016at12:18 am, HD case said: Im with you.... That was the topic of it course WA looked like FL after the King County voting last., 2003 64,719 Texas with you Mike Commercial vehicles pm, Lizzy Roma said: Im with Mike! Llc RV Titling another technique is to use your Montana LLC are few if you live work! Over in CA what they are, a sham to avoid sales and! Iowa is not a lawyer for over 30 years, spending 15 of those years working a...