Scholarship Opportunity No it isn't. Georgia state law requires vehicles domiciled in Georgia to be registered and plated in Georgia within 30 days. Or over time. 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. Resources mentioned in this video: Catch more great investing & business tips on our YouTube channel Another good reason I moved from CA. Youre very mistaken and your conscience is misguided. Pay sales tax when car is purchased. 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. CHP clamping down on drivers who avoid California fees. 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. The state of Montana will not issue one as they do not consider an RV to be a commercial vehicle. I was also going to point out it is Limited Liability Company and not Corporation. How didthathappen?. Using a Montana law firm, they created a limited liability corporation (LLC) in Montana for one purpose: to "house" their RV so they wouldn't have to pay sales tax. Its much less likely to attract the wrong kind of attention. It depends on the state lease regulations if this can work. In fact, about one out of every 16 of all McLaren P1s ever made on the planet just happen to be registered in Montana. some state revenue agencies consider to be tax evasion. 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. Since these LLC owned RVs are, by the very definition of LLC, owned by a business enterprise, that Montana can title these RVs as owned by a commerical entity and at the same time consider them not to be commercial vehicles is somehwat of a joke. 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! Like references on using this opportunity (it isnt a loophole, its simply how the law was written to benefit wealthy people). I dont criticize them for their decision. Nothing has changed but reading your blog makes me wonder if it would be best to redo our wills in SD. Going with the wrong insurance companycould cost you big-time if you ever have a claim. 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. Shes not doing anything wrong. Loring & Associates (who Mrs. Adams works with) typically offer a free consultation, which sounds like it would be helpful in your case. Stick to things useful, helpful, and informative. I was told the load weighs 193,000 pounds with many axles and many wheels per axle. Your own neighbor whose kids come over to play in your pool, may be an informant. buy it! Required fields are marked *. And if you do bring it back, you understand that you will be liable for the tax (at this point labeled as use tax but is the same amount). Especially California and Colorado are really cracking down on this. The state is calling these LLC's exactly what they are, a sham to avoid taxes. Live here, own property here and work here. Nobody else needs to hear it. I looked into the LLC at one time and it sounded good. So youre asking people to tell you what lies you can tell to the police to avoid being caught? I do not remember the thread but you should be able to find it. 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.. The basic problem is that most people who purchase an LLC and an RV, don't change their drivers licenses. Thank you for sharing your thoughts. Michigan has a one time, lifetime registration fee for towable rvs. Giving more money to already inefficient people doesnt make them (government) suddenly more efficient. Montana vehicle registrations are yearly. Thank you for the support and evidence of how bad an idea it is. 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. P.S Thank you for interesting article, Excellent article, Mike. Blog They received their Texas license plate for the Jeep. Not all California residents with out-of-state plates are intentionally avoiding registering with the DMV . ), 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. Its clear the benefits of saving thousands of dollars in sales and use taxes are very tempting. Bill. Several states have passed laws or regulations about persons being employed and residing in their state as to sales, personal property, and use taxes on vehicles they own. Or maybe you can give others some advice? I have a feeling u/Doug-DeMuro will be satisfied to know that he registered his Ford GT properly(Context). So if youre driving your car on any toll roads, youre probably going to get caught. California law says that you have to register the car within 20 days of entry into California. Thom was on a contract job that started off at 6 months then had 3 months added then a month well you get the idea. the record obituaries stockton, ca; press box football stadium; is dr amy still with dr jeff; onenote resize image aspect ratio 2023 MOTORSPORT NETWORK. We cant say the same for all the name-brand mass market carriers do. The law firm then typically charges you about $150 every year to renew your registration and LLC charter. flagging drivers pulled over with California drivers licenses driving cars with Montana plates. A super car claim will get sent to a special underwriting desk for special scrutiny. She also taught legal writing at the University of Houston Law School. Dont break the law in your home state. The couple read that if you claim Texas as your domicile, you wont have to pay income tax. I live in California and pay my high registration fees just like I am supposed too. Part of MOTORSPORT NETWORK. But to stay in line with the rules to keep from having to pay the tax can be challenging, depending on how you use your RV (boat, airplane, etc), and depending on your state can be so restrictive as to make it not worth it. They were being accused of a felony, potentially punishable with six months to two years in prison. If youre buying a sub $40K travel trailer and live closer to Indiana than Montana, Id think the extra delivery costs to Montana would negate a lot of the advantage. A qualified motor vehicle is a motor vehicle used, designed or maintained for transportation of people or property and: Having two axles and a gross vehicle weight or registered gross vehicle weight exceeding 26,000 pounds or 11,793 kilograms; or If you form a Montana LLC and have . 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. We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating . Its not like totaling out a seven year old Ford Focus. They were free to travel whenever they wanted and wherever they wanted, without worry. An LLC is an asset protection entity that has no tax standing. But we rent both of our houses. Organize your Limited Liability Company in Sales Tax-Free Montana and save thousands on registration of exotic, collector or passenger vehicles. Another technique is to use your Montana LLC for a bona fide business purpose. However, here is how I would approach it from a logical (but not necessarily relevant) standpoint. That way I'll have a chance that it'll get lost. (Truly, I forget).. The Cons may be minor or not and the size of them depends to some extent on the state you reside in. Here's the other article I remembered reading: An LLC is not a corporation nor is it a business. New comments cannot be posted and votes cannot be cast. http://www.the-signal.com/archives/14087/, (You must log in or sign up to post here. The hassle of always looking over my shoulder just isnt worth the tax savings. 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. This prevents revenue inspectors in your state from finding your car and proving that you store the car in your home state. I sleep really well with that plate on my car. My first thought after reading the title was "doug demuro ", He's in California, but nonetheless, good on him. Again, I understand that others see this differently and have and will decide otherwise. Wonder why? Taxes are the price we pay for a civilized society. Yes, your strip mall agent or call center drone will be happy to add your luxury car or RV to your policy and not ask any questions. And I live in high taxing Michigan. 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. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Make Sure You're Prepared for Your Texas Driver's License! 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. Next, theyll notice that the vehicle is registered to an LLC, not to an individual. We sold everything in Iowa where we had lived for almost 20 years. When you return, you can stay another 89 days before you have to take an out-of-state trip. 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. US Legal Forms is a trustworthy resource of over 85k professional and up-to-date legal documents collected by states and use cases. Our Goal is to find affordable insurance solutions for every driver, regardless of your previous insurance or accident history. Nonetheless, good on him a Corporation nor is it a business insurance or accident history Montana plates way..., its simply how the law firm then typically charges you about $ every. Going with the wrong kind of attention for almost 20 years chp clamping on! 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When you return, you can stay another 89 days before you to!
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