Question Montana LLC Registration

[ARD]

Thanks for all the input. Just so you know ... the chances of me acquiring the LLC is slim to none. My post was simply to get opinions and information.

It is interesting to me however ..... in all the "what if's" and "its illegal" I have not found anyone who has been charged and/or prosecuted by the Federal and/or State governments. If that were the case Im positive the practice would end immediately. Is it worth taking the chance, probably not but there are a lot of people who are.

It really depends on your situation with regards to the legality of buying with a Montana, LLC. I hired a law firm in Montana to do my LLC and I was able to legally buy my coach with the LLC as I was going fulltime. BTW, FMCA has a rather good article on Montana, LLC's ...tax evasion vs. tax avoidance. I was in the process of selling my house and closed on the purchase of my coach after the closing on my house. I reviewed the relevant statutes of Colorado (where I sold my house), and Florida (where I was going to set up my domicile) in order to stay within the statue parameters. It was well worth purchasing it with the LLC. I saved a lot of taxes and though the expenses in MT increased, it was negligible compared to what I would have paid in Colorado. I waited 6 months before bringing my coach into FL and I reregistered the coach and car in FL.

In Colorado, they are aggressively pursuing and prosecuting people who buy expensive automobiles and rv's under a Montana, LLC when they own a home and are domiciled in CO. I believe many states are doing the same. So if you fall in the fulltime category, don't own a house and are knowledgable about the relevant statutes of the states involved, it can be done. Otherwise, quite frankly it isn't worth the risk in my opinion.

 

[skychs]

ARD ... great point of view. Thanks. Tax evasion vs Tax avoidance is a great way to describe it. I can see the difference when it comes to selling everything and going full time vs part time. For me personally ... I think I will always want a physical home to go to. Selling everything still scares me a lot. What happens if you have to give up a coach for an extended period of time? Where do you go? Family, friends, hotels? Maybe down the road (after retirement) with more experience RV'ing it will be different.

 

[Joe Hogan]

The State law provides for Sales and Use tax. Didn't notice any discussion of USE tax which is the state's way of legally taxing your asset even though you purchased the asset out of state. If you use the asset, RV, in the state of residency, as is evidenced by your residency, you owe the tax.
The Sales and Use Tax department of most states are very aggressive. This is why you pay sales tax on some Amazon packages now, even though they are shipped from out of state. BTW, you own sales and use tax on those purchases that are shipped to you at home, even if the shipper, Amazon, might not collect it.
For instance, I paid sales tax on the Dolly we purchased even though we purchased it from a Texas Dealer and took delivery in Georgia. We still paid Florida Sales tax when we registered it. If we had paid sales tax to another state for that Dolly purchase, we would get a credit for that sales tax amount.

 

[Jabber Jaw]

I keep hearing about this Montana LLC registration. I have also noticed more and more Montana license plates on motorhomes here in Virginia. Does anyone have any advice on establishing a Montana LLC? Pro or Con? I have always been told ... if it sounds too good to be true, it is. To explain what Im referring to I have attached the LLC website Im looking at.

Welcome to $49 MONTANA REGISTERED AGENT

Montana Registered Agent service for just $49 a year. Full service registered agents ready to handle your LLC, corporation and vehicle registration needs.

www.49dollarmontanaregisteredagent.com

Thanks
Chuck

Chuck,
I live quite close to you, Rockville Va., & have been doing some research of my own.
A little background; ordered a 2020 Newmar Canyon Star & picked it up at Newmar last October. Registered it in Va, as the titling tax was 4.3% And as you know Henrico & Hanover both have a pretty healthy "personal property tax"!
Being retired, I looked into states with better tax situations. And I'm sure not everyone has the same situation.
But for us, relocating to Florida is going to save us substantial amounts of money on an annual basis. The big things being NO STATE INCOME TAX, & NO PERSONAL PROPERTY TAXES. A lesser real estate tax rate, & no tax on "groceries" makes a difference. For those & a couple of personal reasons, we are having a new home built in St. Augustine Florida.
Regards your RV......you must have had your NEW RV registered for a time period of 8 months or more to not incur the Florida 6% tax rate, when changing registration to Florida. Florida does have a "homestead exemption" law which I believe serves to somewhat reduce real estate tax liability.
Florida will have rates about 5-10% higher on vehicle insurance, & about the same for homeowners insurance. Gas/fuel prices will be about 5-15 cents a gallon higher, but this depends on locality.
Someone that currently lives in Florida may be able to provide more information; positive or negative.

I hope this information has given a different perspective; but after my "Montana" research & knowing someone that was "snared" so to speak; Montana would not be something I would consider!

Best of luck, enjoy your Newmar!