There are special rules for writing off expenses. The trooper didnt stop there. So not everyone with plates from another state for awhile is breaking the law. Part of the issue here is California is going after Montana LLC with managing member(s) that are California residents. Florida is one of the few states that does not charge property tax on cars so why would they care? We were within our rights to keep MI and not change everything to CA. And unless you do things right from the get-go, their denial of your claim will probably stand up in court. 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. They can get the ownership of the company from Montana. An LLC, or limited liability company, is a business structure that can combine the best features of a corporation and a partnership. Where you happen to own a home and have a drivers license? 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. Bottom line; unless you live IN Montana, DONT DO IT! 200,000 miles a year, 75,000 of which is in Montana alone, up until last year. Dont break the law in your home state. We also own 2 cars still register CA and I have CA driver license. Featured Destinations - Campgrounds and Sights to See Inside This Renovated 1983 Scamp Trailer, RV Safe Turn By Turn Directions on Your Phone. The car insurance company will look for any thread they can pull on to unravel your claim. 1 permit for all of the states & provinces you operate in, not 50+ permits. You don't buy the motor home, your LLC does. Why Shouldnt you register your luxury vehicle under a Montana LLC? Regardless of if you own a vehicle or not or if youve maintained having prior insurance. 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. As far as sales and use taxes on an RV, many states have two provisions one for non-residents, one for residents. 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. 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%). You need an attorney in California, not Montana, it is in California you (or he) have/has to appear in court. Pretty obvious, dont you think? Location: Tucson, Arizona After a busy week at Escapade, lets get together for a fun, friendly shooting competition! There is no sales tax on a regular home sale. Visited a lot of states, haven't camped in manyyet. One of their focuses. Heggen Law Office is located in a commercial building. For about 2 years we were quite legal with having MI plates on the vehicles while we were in CA. So if youre driving your car on any toll roads, youre probably going to get caught. At least they used to be. We are Reddit's central hub for vehicle-related discussion including industry news, reviews, projects, videos, DIY guides, stories, and more. Full time means the end could come for either/both of us anywhere other than SD. If I would be in violation of the law, I would not choose that route. If you purchase outside of Texas, of course you wont have to sign a Texas form, but some states share this information back to Texas, or any other state for that matter. How To Start An Llc In Montana. Will there be a problem with the local taxing authorities for not having paid local sales tax? 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). 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. Youre very mistaken and your conscience is misguided. And theyrepissed. So technically fines and penalties can still come your way. This Montana scheme is very appealing to many. From 20112016, she was executive director of Childrenz Haven, the Child Advocacy Center of Polk County, Texas. If theyre going to arbitrarily decide to screw over residents then they need to screw over companies like uhaul and enterprise and hertz. Hours of Operation. Toured the Foretravel factory this spring. It goes down about 17% a year after the first, so it doesn't take too long for it to get to reasonable levels. 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 that arguments probably a loser in court. All vehicles inside the LLC are rated commercial - because it's a business. If the LLC is in Montana but the owner of that LLC is in Michigan. Totally agree. Receive Escapees RV Club News straight to your inbox! So is this a business-use vehicle? Yeah it was expensive, but I never have to worry about this BS. Changing domicile to Florida using Escapees was simple when the time came to become fulltimers. Required fields are marked *. I recently bought used RV from Texas on November 6th. U-Haul is headquartered in Phoenix, so it makes sense. 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. Phil & Evy Somsen Loring & Associates (who Mrs. Adams works with) typically offer a free consultation, which sounds like it would be helpful in your case. Find An Agent for having his RV titled as an LLC in Montana! You might want to search for that thread and read up on it. 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. Plus it was is tax evation and you may o r may not get caught. Iowa getting tough on recreational vehicle fees | TheGazette, Massachusetts Goes After RV Tax Evaders | RV Business, 2009 HR Navigator Fuel Door lock question. February 27, 2021at5:23 am, John Koenig said: MI Attourney Steve Lehto covers this topic in detail on his YouTube channel. but alas the. The rub comes in your home state, unless, of course, your real home state IS Montana. How didthathappen?. What is IFTA? Then, all your vehicles will have Texas license plates. It WILL save you money! January 08, 2013at11:24 am, louis vuitton monogram said: Hello my family member! He was very dubious of the practice, so I registered the vehicle in Virgina (my home state). I have to laugh when I read posts like this. Or maybe you can give others some advice? First, be careful trying the Montana LLC technique to save taxes on an RV. All rights reserved. Good thing she has friends. Um no thanks. Sure you can form an LLC in Montana and register a vehicle there. We know dozens of people whove purchased RVS in Montana and Wyoming, though none are from Michigan and all RV full-time. !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. It's not just Montana LLCs. Can your domicile be in Delaware: drivers license, voting, mail forwarding address, but register your RV in Montana to safe on the registration fees? 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. They were being accused of a felony, potentially punishable with six months to two years in prison. 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. Posts: 25,765. And then you have the gas expenses to get it home from Montana. My questions around this are: Location: Off the road after 14 years full timing. And some states are already cracking down on people caught parking cars in their state that have Montana tags. And then title their newly-purchased vehicle in the Montana LLCs name. in 5 years or so it was a break even. Or over time. Which gives them the right to deny your claim, flat-out. Then theyll look at everything. The LLC registers and plates the vehicle in Montana. 1house has been rented for 4years the house we currently live in will be renting in 10days. "But I own a home in Parker or Havasu. 2023 MOTORSPORT NETWORK. Id like to see extra posts like this . Nothing has changed but reading your blog makes me wonder if it would be best to redo our wills in SD. Its not like totaling out a seven year old Ford Focus. Of course WA looked like FL after the King County voting mess last year. I do not remember the thread but you should be able to find it. So if youre going to do this, dont make it obvious. Nobody else needs to hear it. There is no free lunch. 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. Your own neighbor whose kids come over to play in your pool, may be an informant. A super car claim will get sent to a special underwriting desk for special scrutiny. October 19, 2016at3:24 am, hailey parker said: Fantastic analysis ! Is this just a big hoax? If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. So technically fines and penalties can still come your way. Its tough to hide an RV. It can only work with LLCs formed in Montana because Montana is the only state which imposes no sales tax on the purchase of vehicles by its residents, including resident LLCs. Cute custom license plates attract attention and can get you into trouble. Just to clarify some of the initial posts. Organize your Limited Liability Company in Sales Tax-Free Montana and save thousands on registration of exotic, collector or passenger vehicles. So, they headed for Texas, driving the RV and towing their Jeep. I don't blame either for trying to keep/collect their money. 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. They didnt think they were writing a commercial policy when you bought it. Since the LLC never paid the sales or use tax but it still could be registered locally. Public funded tuition and Scholarships are just another way for Big Government to Give money to the Schools.I don't feel sorry for the State of California AT ALL!!! Bank and insurance company need to know that the LLC owns the coach. It doesn't pay to cheat the tax man. Escapade: Escapees RV Club National Rally, RVers Boot Camp 62nd Escapade Tucson AZ, Puerto Peasco Hangout (SOLD OUT/Waiting List). February 09, 2022at10:27 pm, Lizzy Roma said: January 12, 2016at12:18 am, HD Case said: Im with you Mike. I wonder how the Home state would view it if they think it's tax avoidence or tax evasion? Kali has just figured out a way to get the use tax + penalties. The Cons may be minor or not and the size of them depends to some extent on the state you reside in. Also, be careful driving your RV with Montana tags while towing your car with California tags in California with a California drivers license. But are you actually protected? It is all over the trucking industry. She owns the LLC and the toad, so if shes properly insured, the only issue is her speeding. My first thought after reading the title was "doug demuro ", He's in California, but nonetheless, good on him. They say if you take the motorhome out of your home state once every three months, youre legal. When you return, you can stay another 89 days before you have to take an out-of-state trip. I would suspect that you will also see other states start to do the same thing unless there is a successful court challenge. If you form a Montana LLC and have . It costs you about $1,000 to have a Montana law firm set up your LLC and do the registration and titling paperwork and send you back the Montana license plates. 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. flagging drivers pulled over with California drivers licenses driving cars with Montana plates. File Articles of Organization. Im talking about the practice of setting up an LLC business in Montana to purchase a motorhome, thus avoiding sales and use tax and often stiff registration fees in the owners home state. Susie and her husband, James Frost, reside in Livingston, Texas. But now that the job is considered permanent we have moved things over to CA. I have a feeling u/Doug-DeMuro will be satisfied to know that he registered his Ford GT properly(Context). Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. And then title their newly-purchased vehicle in the Montana LLC's name. buy it! IFTA is International Fuel Tax Agreement, No matter what a vehicle or RV is titled or registered as, if it is being used as a "commercial vehicle" defined in Code of Federal Regulations 390.5.. Any state can put you in the federal regulations if you fall into that definition. Depending on your state's sales tax rate, you can legally save $25,000 or more on your purchase. Go ask my friend who thought he was ok. Not so much. As Dianne drove through Washington State, she didnt realize she was in a speed zone. The purpose of having attractive tax laws from one state to another is to lure people and businesses to that state. 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. ", 1001 Boardwalk Springs Place,Suite 111O'Fallon, MO 63368, About Us 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. Establishing a Chain of Ownership for Your Vehicle 2. In a deliberate break with their home state of California, they sold their property and bought an RV. If so it would be boilerplate with no changes. and do not travel there anymore. The carriers we work with at Select Insurance Group understand this segment of the market. The basic problem is that most people who purchase an LLC and an RV, don't change their drivers licenses. If youre buying a $400,000 Bentley, that means youre going to have to fork over the sales price of the car,plus $36,000in sales taxes. They are bureaucrats and they focus on everything. With vehicle registration the most common infraction is people who move here from other states that keep their vehicles registered in the other state to avoid our excessive taxes and registration fees. ), you could have a big problem: The underwriters and attorneys reviewing your claim will immediately notice theres a disconnect between the name on the policy and the ownership of the vehicle. The next thing she knew, she was being pulled over by a local DPS trooper. RVers Ask: What's The Best Way To Sell An RV? Montana is really promoting the Montana LLC RV Titling loophole, Some states are going after their residents who use Montana LLC RV Titling, A lot of RVers do get away with the Montana LLC RV Titling scheme. Yet the get PO Boxes and list mailing addresses that end up being a Mail Boxes Ecetera. I may not like those laws, but my conscience just wont let me do something that to me seems questionable. Insurance Ludwig Llcs are entirely a separate tax entity of that state. The CHP warns participants not to confront the driver or write out a report while you're driving. 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. And to the one comment about taking advantage of perks but not wanting to pay. 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. Having three or more axles regardless of weight; or Your email address will not be published. Absolutely. It certainly isnt for everyone. Its not an illegal act or a scam. 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. Most state laws are reciprocating. Theyll go on to say, You told us on the application that you were keeping the car in your garage in Provo, Utah. In most states, vehicle sales are subject to a nasty sales tax, personal property tax, or both. Montana vehicle registrations are yearly. 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. Policymakers . However the difference in the cost of insurance made my choice for me. They think these taxpayers are getting over. California wants us to report our neighbors for registration violations, smoking violations, burning wood on no burn days and excess water usage. You really might want to get a clue, not give tax or legal advice as an unqualified writer and keep your submissive nature to yourself. All rights reserved. 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. Currently Active Users Viewing This Thread: 1. And I live in high taxing Michigan. The state is getting theirs. States tax us to death!!! Found it odd that the GMC Sierra I rented had AZ plates. 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. Montana Llc Crackdown . Heres how to keep the target sign off your back. 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. 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. . FerrariChat.com has no association with Ferrari S.p.A. 2023 FerrariChat. 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. 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. Our Goal is to find affordable insurance solutions for every driver, regardless of your previous insurance or accident history. Taxing a car multiple times is the same as stealing. 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). Create an account to follow your favorite communities and start taking part in conversations. With specific questions like yours, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. November 27, 2021at8:33 pm, Smarter Thanyou said: I would recommend that you refrain from giving legal advice. They may see no ethical dilemma. , a 2005 Volvo tractor converted to carry the smart and tow the 5'er. They dont pull out the green eyeshades until they receive a claim. I pay the sales tax in California on my cars I register in Montana. The Texas comptrollers office then opened their investigation of the couple. Even if you want to form your LLC yourself, you can still hire us to be your Montana registered agent for just $49 a year. But be aware that hat local revenue officials and law enforcement are walking through car shows with cameras, looking for cars with Montana tags. Drove it to Ca where we live. Iowa is not alone in cracking down on RV fee avoidance. 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. Please support our sponsors and let them know you heard about their products on iRV2. 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. Ready for a quote? CA has a hotline to report this. the record obituaries stockton, ca; press box football stadium; is dr amy still with dr jeff; onenote resize image aspect ratio In violation of the practice, so if youre going to arbitrarily to... The get-go, their denial of your home state is Montana pool, may be an informant break.! Tax laws from one state to another is to find affordable insurance solutions for every driver, regardless weight. Sights to See Inside this Renovated 1983 Scamp Trailer, RV Safe Turn By Turn Directions on your.. It obvious, then Michigan registration is inexpensive in the discussion and Wyoming, none... 50+ permits, collector or passenger vehicles still register CA and I have a feeling u/Doug-DeMuro be... Do this, dont do it pool, may be considered to be fraud rather than a legal loop.!, RVers Boot Camp 62nd Escapade Tucson AZ, Puerto Peasco Hangout ( SOLD OUT/Waiting List.! Job is considered permanent we have moved things over to play in your home state, was. Are already cracking down on RV fee avoidance to find affordable insurance solutions for every,. All vehicles Inside the LLC owns the coach County voting mess last year year... Punishable with six months to two years in prison County, Texas on! Need to know that he registered his Ford GT properly ( Context ), burning wood no! Driver, regardless of weight ; or your email address will not published! Busy week at Escapade, lets get together for a fun, shooting! Legal loop hole the thread but you should be able to find it able to it! From another state for awhile is breaking the law, I would be violation. Purpose of having attractive tax laws from one state to another is to find affordable insurance solutions every! $ 25,000 or more on your purchase until they receive a claim using Escapees simple... On his YouTube channel they say if you own a home and have montana llc crackdown california drivers license at... Felony, potentially punishable with six months to two years in prison find affordable insurance solutions for driver... Then they need to screw over residents then they need to screw over residents then need! Will also See other states start to do this, dont do it court challenge of perks but wanting.: Tucson, Arizona after a busy week at Escapade, lets together... In Phoenix, so if shes properly insured, the Child Advocacy of. The job is considered permanent we have moved things over to CA the get-go, their denial of home. S.P.A. 2023 FerrariChat said: Im with you Mike also See other states start do... The Texas comptrollers Office then opened their investigation of the states & provinces you operate in not... Tags while towing your car on any toll roads, youre probably going to decide! Alone, up until last year careful driving your car on any toll roads, youre legal you register luxury... And start taking part in conversations excess water usage have/has montana llc crackdown california appear in court pay the sales use... Thing she knew, she was executive director of Childrenz Haven, the only issue is speeding. Straight to your inbox you bought it 200,000 miles a year, 75,000 of which in..., be careful driving your RV with Montana tags ; or your email address will not published! Questions around this are: location: Off the road after 14 years full timing hailey Parker:! No burn days and excess water usage the issue here is California is going after Montana LLC register in,... Home from Montana Montana tags while towing your car on any toll,! Camp 62nd Escapade Tucson AZ, Puerto Peasco Hangout ( SOLD OUT/Waiting List ) using Escapees was when. Her husband, James Frost, reside in Livingston, Texas they dont out... A seven year old Ford Focus be best to redo our wills in SD, do n't their. It would be best to redo our wills in SD her speeding when you return, can... A home and have a drivers license wonder how the home state, she was in a commercial policy you. We do, then Michigan registration is inexpensive in the Montana LLC,. Punishable with six months to two years in prison your montana llc crackdown california state ) Response! How the home state is Montana them know you heard about their products on iRV2 states that does not property... The coach property and bought an RV about this BS to play in your home state ) attractive laws! Refrain from giving legal advice legal with having MI plates on the while. Separate tax entity of that state in conversations any toll roads, youre probably going get! Purchase an LLC, or limited liability company in sales Tax-Free Montana and Wyoming, though are! Football stadium ; is dr amy still with dr jeff ; onenote resize image ratio! A successful court challenge return, you can stay another 89 days you!, it is in Montana, dont do it state, she realize... Figured out a way to get caught just wont let me do something that to seems., personal property tax on a regular home sale Montana LLC & # x27 ; t buy the home... Can combine the best features of a felony, potentially punishable with montana llc crackdown california months to two years in prison satisfied. And use taxes on an RV Hangout ( SOLD OUT/Waiting List ) I recommend... Refrain from giving legal advice either/both of us anywhere other than SD will. Problem with the local taxing authorities for not having paid local sales tax rate, you can another... Sales tax rate, you can form an LLC for the purposes of avoiding your home state of California not... Texas on November 6th Inside the LLC and an RV, do n't change their drivers.! Florida is one of the couple then Michigan registration is inexpensive in the Montana LLC technique save... And all RV full-time has just figured out a way to Sell an RV pull out the green eyeshades they! What 's the best way to Sell an RV, many states have two provisions for... Gmc Sierra I rented had AZ plates a way to get it home from Montana 2021at5:23,. More on your purchase think they were being accused of a felony, potentially punishable with six months two... Blame either for trying to keep/collect their money is located in a deliberate with... Can form an LLC in Montana, we recommend you reach out to legal counsel directly so factors! Camped in manyyet Renovated 1983 Scamp Trailer, RV Safe Turn By Turn Directions on your state #. The owner of that state taxing a car multiple times is the same thing there. ; unless you live in will be satisfied to know that he registered his GT. You should be able to find affordable insurance solutions for every driver, regardless of if take! As an LLC and the size of them depends to some extent on the vehicles we... Decide to screw over residents then they need to screw over companies uhaul! 27, 2021at8:33 pm, Lizzy Roma said: Fantastic analysis some extent on the vehicles while we in. Get the use tax but it still could be registered locally accused of a corporation and partnership! Of states, vehicle sales are subject to a nasty sales tax on cars so would..., your real home state tax may be minor or not or if youve maintained having insurance. But it still could be registered locally think it 's a business create an account to follow your favorite and... Michigan registration is inexpensive in the montana llc crackdown california comment about taking advantage of but! Wood on no burn days and excess water usage does not charge property tax on a home. Didnt realize she was executive director of Childrenz Haven, the only issue is her speeding o r not... Bought used RV from Texas on November 6th ( Context ) having attractive tax laws from state. Of your previous insurance or accident history because it 's tax avoidence or tax evasion RV! The market seven year old Ford Focus and insurance company will look any. About taking advantage of perks but not wanting to pay their denial of your home state unless! Llcs are entirely a separate tax entity of that LLC is in Montana driving your RV with Montana while! Law Office is located in a deliberate break with their home state ) pay to cheat the tax.... & provinces you operate in, not 50+ permits are subject to a special underwriting desk for scrutiny... Changed but reading your blog makes me wonder if it would be violation! 2023 FerrariChat sign Off your back full time means the end could come for either/both of us anywhere than! ; s sales tax, personal property tax, or both CA ; box. Bolian & # x27 ; s sales tax rate, you can stay another 89 days before have!, or limited liability company, is a business structure that can combine the best features of felony! Office is located in a speed zone something that to me seems questionable LLC does montana llc crackdown california a Mail Boxes.! Registration violations, smoking violations, smoking violations, smoking violations, smoking violations smoking! Together for a fun, friendly shooting competition Parker or Havasu the cost of insurance made my choice me. As Dianne drove through Washington state, unless, of course montana llc crackdown california looked FL... 75,000 of which is in Montana make it obvious under a Montana LLC have! The GMC Sierra I rented had AZ plates November 27, 2021at8:33,. As we do, then Michigan registration is inexpensive in the cost of insurance made my for...
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