We already have contract to rent. 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. 2023 MOTORSPORT NETWORK. Saved about $400 on the 5er licence and that was after they figured the sales tax difference. That's the difference. That way, your state Revenue Man cant argue that your LLC is a shell corporation used solely as a tax dodge. 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. Theyll go on to say, You told us on the application that you were keeping the car in your garage in Provo, Utah. Heres a link to said video: https://www.youtube.com/watch?v=ebDF-C7GJec. Here are the taxes alone on a new Pagani Huayra from a private seller in Arcadia, California in 2022. 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. When youre buying a high-dollar luxury car, sports car, truck, or RV, those taxes can really put a hurting on you. If the rig is owned by a corporation it is treated like a commercial truck and you have to buy fuel permits. And theyll be sitting across the street from your house photographing you pulling in and out of your own driveway. Keep your Montana-registed car your garage the same garage you tell your insurance company you keep it in. We have a MH with MT plates and are SD residents, but in most years the MH isn't even in SD for a day and when it is it is only there for a week or two. I just eliminated their main focus which was tax evasion. We want to be fulltime RVing. Even if you win, you lose. And in some cases, theyll haul you to court, and charge you with criminal conspiracy to defraud the state. Then, all your vehicles will have Texas license plates. 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. Its tough being a minority here. Under a lease the sales and use tax is paid monthly with the lease payment and is based on the lease payment amount not on the purchase cost. 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. Have registered to vote etc. 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! "Just write down the information and get it to us, we will take it from there," said California Highway Patrol Officer David Singer. 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. Next, theyll notice that the vehicle is registered to an LLC, not to an individual. 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. All which would be due California if the RV and LLC were properly set up in the first place. (log books, annual inspections, CDL, etc). 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. All this is perfectly legal in Montana. 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). For example, Louisiana slaps a 9% tax on vehicle sales. MS resident here. But this article has made sure I will not be relocating to Michigan and purchasing my RV there! for having his RV titled as an LLC in Montana! 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. Insurance Ludwig They received their Texas license plate for the Jeep. He was very dubious of the practice, so I registered the vehicle in Virgina (my home state). Scholarship Opportunity As a word of caution about domicile, if you intend to make Texas your home (which is the legal definition of domicile), you should truly make Texas your home by going above and beyond the process of selling your home in California and registering your vehicle and obtaining your driver license in Texas. Looking for information about Buying an RV? We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating . California law says that you have to register the car within 20 days of entry into California. Changing domicile to Florida using Escapees was simple when the time came to become fulltimers. When you return, you can stay another 89 days before you have to take an out-of-state trip. It is all over the trucking industry. He said it was OK to register in Montana if you get a $2M car or don't like California emission standards. Most other states strongly frown on Montana LLC RV Titling. This Montana scheme is very appealing to many. 1house has been rented for 4years the house we currently live in will be renting in 10days. For example, buy some investment property in Montana, and own them within your LLC. What is the requirement and legal. Policymakers . 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. (Sorry, Hawaii residents!). Others say inspectors cruise RV storage facilities facilities and actively look for vehicles with Montana plates. LLC. As one Montana lawyer in the LLC-creating business explained (in response to questions about the validity of the Montana plates where the owners are Texas domiciled): The best approach for a Texas resident operating a vehicle owned by a Montana LLC is to limit his/her time in Texas.. The LLC registers and plates the vehicle in Montana. (Truly, I forget).. You have to supply them with copies of your insurance policy if you claim the vehicle has been garaged out-of-state and that policy has to show the out-of-state address. October 19, 2016at3:24 am, hailey parker said: Fantastic analysis ! Given the creation of this MT strategy it looks like the middle class is now copying the rich in tax avoidance and flushing our country down the drain. Can your domicile be in Delaware: drivers license, voting, mail forwarding address, but register your RV in Montana to safe on the registration fees? Any comments ? ). Or, so they thought! He noticed the Montana license plate on the RV and the Texas plate on the Jeep. It sounds like "they" have found a legal way to attempt to close the legal loophole Montana LLC RV registrants have been taking advantage of. Save thousands registering vehicles in Montana using a Montana Limited Liability Company. Isn't IFTA federal? So its obvious the vehicle hasnt just driven in from Montana for the holidays. I am trying to research the possibility of forming an LLC in Montana and purchasing and insuring my new motorhome through a Montana LLC. The personal auto specifically excludes coverage for commercial activities/ventures. 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. An LLC, or limited liability company, is a business structure that can combine the best features of a corporation and a partnership. The state is getting theirs. 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. Forming an LLC does not create a business nor does it create a corporation. A newly retired couple, lets call them David and Dianne, did their homework before becoming full-time RVers. Posts: 173. Is this just a big hoax? Many times I stop people for speeding and see the California driver's license and the vehicle is registered in Arizona. I was also going to point out it is Limited Liability Company and not Corporation. Other wise, Texas doesnt care. Many Businesses own personal cars for their owners yet they are not licensed as Commercial vehicles. They dont pull out the green eyeshades until they receive a claim. It is 100% legal to create an LLC in Montana, and to have that LLC purchase and register a vehicle (or vehicles) regardless of your personal place of residence. But thats still a drop in the bucket compared to the potential immediate tax savings you can get by registering high-value cars, trucks, busses, and RVs in Montana. Sound familiar?? Copyright 2022 Select Insurance Group. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. There is no free lunch however. 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. An LLC can be used to operate a business. California has a big problem with California residents registering as Nevada Corporations. They didnt think they were writing a commercial policy when you bought it. Setting Up Your Domicile In Texas Part of MOTORSPORT NETWORK. We would have been quite upset if someone had us have to go thru a lot of paperwork for nothing with everything else that was going on. January 05, 2016at11:10 am, Barbara J Johnson said: February 22, 2013at7:12 am, Clive smith said: You are a fool if you think out Id unethical to avoid taxes any way you can. 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. Join the #1 RV Forum Today - It's Totally Free! 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