Originally Posted by Mr_D
Even if you can legally go with an LLC you may still run into tax problems as you would be required to file and pay IFTA fuel taxes as a business
Here's the FMCA story on it:
Of all the posts in this thread, the most disturbing is the last one on page one by Mr. D. It suggests that any motorhome that meets the weight requirements that is in an LLC is probably subject to the IFTA requirements, even if it is used exclusively for recreation. To give you an idea of how far flung that statement can be, imagine having to get a use permit to travel out of your own state. How about filing fuel tax reports in every state you traverse? Do you now need a CDL? How about stopping at weight stations?
We often will use LLC's as an asset protection tool even if there is no commercial use for the LLC. For example, we may put a lake cottage into an LLC to protect the owners from potential lawsuits. Does this automatically change the cottage to a business? The interpretation that all LLC's are businesses is downright scary for us. The tax definition of an LLC is that it is a disregarded entity or a tax nothing. Apparently other agencies do not share that definition.