and do not travel there anymore. U-Haul is headquartered in Phoenix, so it makes sense. All rights reserved. That's $36,000 that stays in your pocket. That way, your state Revenue Man cant argue that your LLC is a shell corporation used solely as a tax dodge. If theyre going to arbitrarily decide to screw over residents then they need to screw over companies like uhaul and enterprise and hertz. The CHP warns participants not to confront the driver or write out a report while you're driving. The couple read that if you claim Texas as your domicile, you wont have to pay income tax. David and Dianne had completed the process in less than one day. It would only work in situations where the motorhome is owned free and clear because obtaining financing for such an arrangement would be difficult. Insurance Ludwig Montana Llc For Cars. California law says that you have to register the car within 20 days of entry into California. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. Giving more money to already inefficient people doesnt make them (government) suddenly more efficient. Unsubscribe me. They are bureaucrats and they focus on everything. The rub comes in your home state, unless, of course, your real home state IS Montana. Here's the other article I remembered reading: An LLC is not a corporation nor is it a business. 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.. To add to your article and I feel correct decision1) when any of the LLC creating law firms are asked for an opinion of its legality they make none and send you a copy of your present state law re who is required to have plates in that state 2) as an insurance agent for many years I also have serious issues of using a personal Auto Policy to cover a vehicle that is a commercial enterprise. If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. Part of MOTORSPORT NETWORK. Essentially, it works like this: You form an LLC business in Montana. 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 looked into the LLC at one time and it sounded good. Taxes are the price we pay for a civilized society. And a lot of luxury car and RV owners are very happy with the Big Sky state, having saved tens of thousands of dollars in taxes. Taxing a car multiple times is the same as stealing. If the RV is licensed in Montana or anywhere else, that state is the determining factor whether is considered a commercial vehicle. I loved the specifics Does someone know where I could possibly grab a template FL HSMV 85008 form to use ? So what, you live and work in California and you are cheating the system. but not tax evasion illegal since FL does not charge a property tax. Tax evasion is not my goal, saving money is. I found this line of thoughts, decided that our daughter should read it and save it. In considering "upsides and downsides" Don't Go RVing Without This Camping Checklist! 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. the whole thing, for reference. Home. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more! The announcement is part of a continuing crackdown against student loan debt relief companies . Ngoc , Im certain that if a Cal State Trooper were to pull you over and find you had a Cal driver-license, a toad-car licensed in Cal and a motor-home with Montana plates it would not go well. These people are absolutely violating state law. Pepper.. is your neighbor by any chance a CA resident, and how heavy was his RV? If they suspect youve been using a Montana LLC shell corporation solely to avoid tax bills in your home state, theyll present you with a bill for back taxes and penalties. But full-boat sales taxes on private party sales are ridiculous. We were within our rights to keep MI and not change everything to CA. New comments cannot be posted and votes cannot be cast. Did you tell us this on the app? So its obvious the vehicle hasnt just driven in from Montana for the holidays. He noticed the Montana license plate on the RV and the Texas plate on the Jeep. 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. At least they used to be. e.g. See the Louisiana Supreme Court case about this very issue. I know, I know, some will say the Montana LLC is the legal owner. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. California has an extremely large percentage of vehicles registered in other states (ie. ">, Rallies Attended: 8;Gatherings Attended: 3, B.A.R.T. 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. How didthathappen?. Then you have to comply with commercial trucking regulations. 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. If you have a full time residence that is not your RV, then the downsides are many and complex. I found this article very close to my case but I would like to make sure if we are going to be legally with our LLC Montana RV register and still have 2 cars CA register. Lots of state revenue collectors are mad as wet hens at the State of Montana. But I am the legal owner of the LLC. The National Conference of State Legislatures reports California and Massachusetts have passed legislation to prevent citizens from taking advantage of Montanas vehicle registration laws. Thats what media Mogul Rupert Murdoch did. Plus it was is tax evation and you may o r may not get caught. Keep your Montana-registed car your garage the same garage you tell your insurance company you keep it in. Actually, they have Apportioned plates from Arizona. 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. Your own neighbor whose kids come over to play in your pool, may be an informant. For about 2 years we were quite legal with having MI plates on the vehicles while we were in CA. 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. Pretty obvious, dont you think? (Sorry, Hawaii residents!). If the LLC is in Montana but the owner of that LLC is in Michigan. They say if you take the motorhome out of your home state once every three months, youre legal. California wants us to report our neighbors for registration violations, smoking violations, burning wood on no burn days and excess water usage. Shame on those who are so cheap they scheme to avoid paying a few hundred dollars in taxes to the detriment of all their fellow home state residents, particularly the elderly and poor kids who most depend on tax support! 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. Since an LLC is a business you can also be subject to IFTA fuel tax as well. We have had so many expensive problems due to incompetent state employees for the past thirty years money to fix their errors has to come from some place - the residents. 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 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. That way I'll have a chance that it'll get lost. Do you have any responsibility to pay the sales tax to your new state or do you just register the coach like any other vehicle? ESPECIALLY on a supercar. In a deliberate break with their home state of California, they sold their property and bought an RV. 855-721-0777. 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. A luxury sedan or sports car, on the other hand, is much more easily hidden than an RV. Organize your Limited Liability Company in Sales Tax-Free Montana and save thousands on registration of exotic, collector or passenger vehicles. Once law enforcement suspects youre keeping your Montana-tagged high-value vehicle in your home state, theyll be checking your Facebook and Instagram. 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. Especially California and Colorado are really cracking down on this. So is this a business-use vehicle? In a deliberate break with their home state of California, they sold their property and bought an RV. 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. In fact, since you plan to travel extensively throughout the country, to firmly establish Texas as your home, you need to follow what I call the Ten Commandments of Domicile (in this order): The reason the Washington DPS officer suspected a problem was because of the discrepancy between Texas plates, Texas driver licenses and that Montana plate on the RV. You can clearly see by these legal restrictions that the other states dont take kindly to Montanas proffered loophole to potential RV owners. That means buy it out of state and travel anywhere but your home state for a year. Discussion in 'Ferrari Discussion (not model specific)' started by Terence Courtnage, Oct 25, 2018. Essentially, it works like this: You form an LLC business in Montana. 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. Having a "Montana Attorney" will do you no good if that Attorney is not licensed in California and familiar with California law. I don't blame either for trying to keep/collect their money. Its clear the benefits of saving thousands of dollars in sales and use taxes are very tempting. Montana LLCs almost always only work for full-timers who don't spend much time in their domicile state. Choose a subscription to save and fill them out at any time effortlessly. All Montana businesses are required to have a registered agentan individual or other entity that accepts legal and state documents on behalf of your Montana LLC. Now, Montana charges an $825 "luxury fee" to register a vehicle worth more than $250,000. My neighbor was stopped at an AG station on I-15 south going into CA and fined a total of $150. All which would be due California if the RV and LLC were properly set up in the first place. Unlike the mass market insurance companies, our carriers know the deal, and our agents know the right questions to ask to make sure youre getting the insurance protection you need. February 27, 2021at5:23 am, John Koenig said: MI Attourney Steve Lehto covers this topic in detail on his YouTube channel. Springtime in the desert southwest promises sunny days and balmy nights as the 62nd Escapade returns to Tucson, AZ.+ Read More. 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