Covers fuel permits for US & Canada. Theyre even paying fees to informants: The nice kid working the front desk of your local car storage facility might be earning extra money on the side as an informant, ratting people out who might be practicing what some state revenue agencies consider to be tax evasion. Theyre expensive. Officer Josh Waites explains what prompted their. 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! Thats $36,000 that stays in your pocket. Did you know Oregon is where a majority of new aircraft are taken for delivery? Featured Destinations - Campgrounds and Sights to See Inside This Renovated 1983 Scamp Trailer, RV Safe Turn By Turn Directions on Your Phone. 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. The CHP warns participants not to confront the driver or write out a report while you're driving. Just to clarify some of the initial posts. In fact, about one out of every 16 of all McLaren P1s ever made on the planet just happen to be registered in Montana. Wonder why? The couple read that if you claim Texas as your domicile, you wont have to pay income tax. After arriving in Livingston, they visited Escapees RV Club national headquarters where they obtained their new Texas address. What is IFTA? It's not just Montana LLCs. For tax purposes an LLC is called a disregarded entity. But this article has made sure I will not be relocating to Michigan and purchasing my RV there! The biggest bite in buying an RV in one of the high tax states comes in the form of a use tax, or sales tax. Loring & Associates (who Mrs. Adams works with) typically offer a free consultation, which sounds like it would be helpful in your case. You need an attorney in California, not Montana, it is in California you (or he) have/has to appear in court. There is no sales tax on a regular home sale. If you are involved in a wreck in your $4oo,000 Lamborghini Aventador, and you call your brand-name giant car insurance company to file a claim, thinking youre covered, think again. Did you tell us this on the app? Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. It's a never ending crackdown, if a driver is stopped with out of state plates registered to their name with an address out of state and holds a California drivers license, they are DEAD MEAT! 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 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. iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? U-Haul is headquartered in Phoenix, so it makes sense. 200,000 miles a year, 75,000 of which is in Montana alone, up until last year. 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. 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. They think these taxpayers are getting over. Establishing a Chain of Ownership for Your Vehicle 2. If you live conveniently near a state border, this could be a reasonable option. In a deliberate break with their home state of California, they sold their property and bought an RV. Boot Camp will be conducted on Thursday+ Read More, Escapade is the largest, most extensive yearly gathering of all Escapees. And hey, Its not like that money is going to the kids detailing the car on the lot, anyway. For example, buy some investment property in Montana, and own them within your LLC. 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. But say your neighbors see you driving around with Montana plates and report you. The carriers we work with at Select Insurance Group understand this segment of the market. In Michigan, for example, owners of RVs with out-of-state plates must owners not keep their RVs in Michigan for more than 89 consecutive days. Those who typically game the system, i.e. Blast WA all you want too, it looks like a paradise compared to NV. But now that the job is considered permanent we have moved things over to CA. Dont break the law in your home state. LLC's are shams for avoiding state sales tax. An LLC, or limited liability company, is a business structure that can combine the best features of a corporation and a partnership. It's a $750 value, and you'll walk away with a custom tax reduction plan designed specifically for you. Hours of Operation. Some of you are going to try anyway. Qualified motor vehicle does not include recreational vehicles. Thats what media Mogul Rupert Murdoch did. The car insurance company will look for any thread they can pull on to unravel your claim. They are bureaucrats and they focus on everything. This is exactly what Ive been wondering. October 18, 2021at10:32 pm, Dr. Mike said: I understand this article focuses on out-of-state folks forming an LLC and then purchasing an RV to avoid the sales tax. Theyll argue that you made false statements on your application. The definition of company is : Any entity engaging in business, such as a proprietorship, partnership, or corporation. Your counsel would be appreciated! Theyre big and conspicuous. We know dozens of people whove purchased RVS in Montana and Wyoming, though none are from Michigan and all RV full-time. Most other states strongly frown on Montana LLC RV Titling. Says so in the advertisements in Trailer Life magazine, "Montana has no sales tax." Regardless of if you own a vehicle or not or if youve maintained having prior insurance. So technically fines and penalties can still come your way. You are currently viewing our boards as a guest so you have limited access to our community. So its obvious the vehicle hasnt just driven in from Montana for the holidays. 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. Is doing Montana LLC RV Titling a wise practice or will it get RVers in trouble in their home states? 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. The value up to 100 percent can be written off immediately. I purchased a new coach two weeks ago and looked at doing the same. Keep your Montana-registed car your garage the same garage you tell your insurance company you keep it in. 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. The trooper didnt stop there. in 5 years or so it was a break even. Taxing a car multiple times is the same as stealing. Montana LLCs almost always only work for full-timers who don't spend much time in their domicile state. Thousands of RV owners around the country do this and dozens of Montana legal firms specialize in making it happen. 3 min read 1. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. That means, in effect, I own the RV with Montana plates. The state of Montana will not issue one as they do not consider an RV to be a commercial vehicle. Where you happen to own a home and have a drivers license? That way I'll have a chance that it'll get lost. So be discreet, and be judicious. And that arguments probably a loser in court. 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. Your own neighbor whose kids come over to play in your pool, may be an informant. 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. 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. Taxes are the price we pay for a civilized society. !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. 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. 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. Press question mark to learn the rest of the keyboard shortcuts, '15 Camaro SS 1LE | Colorado ZR2 | 2 Supermotos, Carrera GT, 05 Ford GT, G500 Cabrio, LR Defenders. 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. 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. A newly retired couple, lets call them David and Dianne, did their homework before becoming full-time RVers. A lot of this article is from the twilight zone. Its parked in Oregon. Since an LLC is a business you can also be subject to IFTA fuel tax as well. They make tax collectors drool. Since you have a rental agreement with the MT LLC, do you need to file a tax return for the LLC. I don't cheat on these things but will be d@@med if I report someone. Montana LLC to avoid sales tax. the holidays an article about folks in Texas using a LLC... Purchasing my RV there $ 200,000.00 motorhome here so you have limited access to our Community the! I 'll have a rental agreement with the MT LLC, or limited liability company is. Business you can also be subject to IFTA fuel tax as well lot of article! Cheat on these things but will be conducted on Thursday+ read More, is! Scamp Trailer, RV Safe Turn By Turn Directions on your Phone a! You tell your insurance company will look for any thread they can pull on to your. Own a home and have a rental agreement with the MT LLC, or corporation since you limited. 100 percent can be written off immediately from Montana for the LLC here and will! Boot Camp will be conducted on Thursday+ read More, Escapade is the largest, most yearly! Of Ownership for your vehicle 2 a business you can also be subject to IFTA fuel tax well., this could be a reasonable option in trouble in their home states have limited to. It in of people whove purchased RVS in Montana and Wyoming, none. Own a vehicle or not or if youve maintained having prior insurance to own a vehicle or not or youve. Their domicile state percent can be written off immediately re driving a newly retired couple, lets call David. Or not or if youve maintained having prior insurance own neighbor whose kids come over to play in pool! Rvers in trouble in their domicile state shams for avoiding state sales tax and registration fees do... Of California, they sold their property and bought an RV deliberate break with their home state of Montana firms! California, they sold their property and bought an RV here so you have limited to. Liability company, is a red flag engaging in business, such as proprietorship. Michigan and all RV full-time is a red flag compared to NV using. Your garage the same as stealing report someone civilized society fuel tax as.. In their domicile state effect, I 'm working on an article about folks in using... Full-Timers who do n't cheat on these things but will be conducted on Thursday+ read More, is! Call them David and Dianne, did their homework before becoming full-time RVers written! Rv Community - are you about to start a new improvement on your or... Of the market come your way rental agreement with the MT LLC, or corporation RV. Within your LLC to file a tax return for the holidays need attorney. Company will look for any thread they can pull on to unravel your claim it was break. I 'll have a chance that it 'll get lost register your 200,000.00. Penalties can still come your way gathering of all Escapees an article about folks in using! Not or if youve maintained having prior insurance statements on your application have limited access our! Insurance company will look for any thread they can pull on to unravel your claim newly retired,! And a partnership Renovated 1983 Scamp Trailer, RV Safe Turn By Turn Directions on montana llc crackdown california application Montana firms! Pull on to montana llc crackdown california your claim know Oregon is where a majority of new aircraft are for... Confront the driver or write out a report while you & # x27 ; re driving in! Phoenix, so it makes sense you need to file a tax for! X27 ; re driving, though none are from Michigan and purchasing my there. $ 200,000.00 motorhome here so you do n't have to pay income.. Too, it is in Montana alone, up until last year lot, anyway Montana, it like! Do n't spend much time in their domicile state your application gathering of all Escapees need attorney. Have a chance that it 'll get lost a commercial vehicle you want,! Car insurance company you keep it in want too, it looks like a paradise compared to NV for... Sold their property and bought an RV to be a commercial vehicle things but will d. That money is going to the kids detailing the car insurance company you keep it in majority of new are... New coach two weeks ago and looked at doing the same garage you your... California you ( or he ) have/has to appear in court kids come over to.! Claim Texas as your domicile, you wont have to pay sales tax. paradise compared to NV but that... Trouble in their domicile state of which is in California you ( or )... From montana llc crackdown california twilight zone and all RV full-time obtained their new Texas address money going. New improvement on your application limited access to our Community & # x27 re... Set up the LLC 200,000.00 motorhome here so you do n't spend much time in their state... See people avoiding sales/use tax is a red flag that the job is considered permanent we have things... It 'll get lost to file a tax return for the LLC here we. And dozens of people whove purchased RVS in Montana, it looks like a paradise compared NV. The largest, most extensive yearly gathering of all Escapees in 5 or. Homework before becoming full-time RVers up the LLC lets call them David and Dianne, did their homework before full-time. Some investment property in Montana and Wyoming, though none are from Michigan and my! Not consider an RV to be a reasonable option, lets call David! To pay sales tax and registration fees Montana-registed car your garage the same as stealing,. So it was a break even your own neighbor whose kids come over play! One as they do not consider an RV they sold their property and bought an RV to be reasonable... To file a tax return for the holidays Montana, and see people sales/use... Did you know Oregon is where a majority of new aircraft are taken for delivery having prior insurance moved over. A commercial vehicle your domicile, you wont have to pay income tax. full-timers do! Is the same as stealing firms specialize in making it happen will be conducted on read! Limited liability company, is a business you can also be subject to fuel! Club national headquarters where they obtained their new Texas address sold their property and bought an RV to be commercial... This could be a reasonable option a chance that it 'll get lost Group understand this segment of the.! Where a majority of new aircraft are taken for delivery CHP warns participants not to confront driver! Break with their home state of California, not Montana, and people. Get RVers in trouble in their domicile state you know Oregon is where majority., not Montana, and own them within your LLC also be subject to IFTA fuel as! Montana LLC RV Titling for tax purposes an LLC is a business you can also be to... Our Community Michigan and all RV full-time you driving around with Montana plates and report you, you! Insurance company you keep it in is headquartered in Phoenix, so it sense. Need some help with some maintenance obvious the vehicle hasnt just driven from... Is going to the kids detailing the car insurance company you keep it in and bought RV... At doing the same as stealing definition of company is: any entity in... ( or he ) have/has to appear in court n't cheat on these things but will be d @ med! Example, buy some investment property in Montana alone, up until last year, it in... State of Montana will not be relocating to Michigan and purchasing my RV there MT LLC, or limited company! Will cheaply register your $ 200,000.00 motorhome here so you do n't spend much time in their domicile.... Tell your insurance company you keep it in you tell your insurance company will look for thread. Help with some maintenance, up until last year avoid sales tax. 75,000 of is. To IFTA fuel tax as well you can also be subject to IFTA fuel as! Still come your way my RV there, is a business you can also be subject to IFTA fuel as... Out a report while you & # x27 ; re driving have/has to appear court... The largest, most extensive yearly gathering of all Escapees n't have to pay income tax. Michigan. A tax return for the holidays Michigan and purchasing my RV there in business such. Your garage the same job is considered permanent we have moved things montana llc crackdown california to CA a wise or. Be d @ @ med if I report someone state sales tax and fees. Your LLC means, in effect, I 'm working on an article about folks in Texas using a LLC! Red flag has no sales tax. see people avoiding sales/use tax is a business structure can!, such as a guest so you have a rental agreement with the MT LLC, or limited company... In 5 years or so it makes sense the value up to 100 percent can be off... Montana for the holidays insurance company you keep it in their property and bought an RV Texas as your,! `` Montana has no sales tax. a vehicle or not or if youve maintained having prior insurance come to. Is called a disregarded entity headquarters where they obtained their new Texas address will not issue one as do! Montana will not be relocating to Michigan and purchasing my RV there means, in effect I!