Go Back   iRV2 Forums > MOTORHOME FORUMS > Class A Motorhome Discussions
Click Here to Login
Join iRV2 Today

Mission Statement: Supporting thoughtful exchange of knowledge, values and experience among RV enthusiasts.
Reply
  This discussion is proudly sponsored by:
Please support our sponsors and let them know you heard about their products on iRV2
 
Thread Tools Search this Thread Display Modes
 
Old 08-22-2011, 05:23 PM   #1
Junior Member
 
Join Date: Jun 2011
Posts: 4
LLC montana

Is this a good idea and has any one done it.
__________________

__________________
kkaos is offline   Reply With Quote
Join the #1 RV Forum Today - It's Totally Free!

iRV2.com RV Community - Are you about to start a new improvement on your RV or need some help with some maintenance? Do you need advice on what products to buy? Or maybe you can give others some advice? No matter where you fit in you'll find that iRV2 is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. 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!

Old 08-22-2011, 05:28 PM   #2
Moderator Emeritus
 
RickO's Avatar


 
Join Date: Jan 2007
Location: Litchfield Park, Arizona
Posts: 10,530
Welcome to the forum. If you use our search feature you'll find days worth of reading material on the subject. Many here have done it and are very happy with it. I don't recall a single person posting that they had done it and regretted it. Others will point out that state and local governments are hungry for revenue and are going after those who they think use these tactics to evade paying taxes.

Best of luck to you.

Rick
__________________

__________________
Rick, Nancy, Peanut & Lola our Westie Dogs & Bailey the Sheltie.

2007 Itasca Ellipse 40FD
RickO is offline   Reply With Quote
Old 08-22-2011, 08:24 PM   #3
Junior Member
 
Join Date: Jul 2011
Posts: 22
Just did a Montana LLC with Bennett Law Office, a little pricey ($1299 with registration) but quick and easy. I know you can do it a lot cheaper but I have also heard of problems so I wanted to use a law firm. They also research your state particulars and can give you advise what to do and what not to do. I think this works best if you don't intend to base your RV in your home state, or what ever it takes to comply with your state DMV laws.
__________________
f106pilot is offline   Reply With Quote
Old 08-23-2011, 06:44 AM   #4
Community Administrator
 
Route 66's Avatar


 
Newmar Owners Club
Retired Fire Service RVer's
Spartan Chassis
Join Date: May 2000
Location: Newark, DE
Posts: 25,622
Ditto on Bennett.

Follow his advice 100%. Those who don't go by the law 100% are at risk of being fined by their state of domicile.
__________________
Adios, Dirk - '84 Real Lite Truck Camper, '86 Wilderness Cimarron TT, previously 4 years as a fulltimer in a '07 DSDP

Route 66 is offline   Reply With Quote
Old 08-23-2011, 11:58 PM   #5
Senior Member
 
Skip426's Avatar


 
Join Date: Apr 2011
Location: Powell River, B.C.
Posts: 14,972
A LLC, will not work if you are Canadian, unless you plan to leave the RV in the USA, full time.
I had heard that Bennett, had a hand in writing the Montana LLC laws, so he should know all the ins and outs.
__________________
99DSDP 3884, Freightliner, XC, CAT 3126B, 300 HP /ALLISON 3060
2000 Caravan toad, Remco & Blue Ox.
Skip426 is offline   Reply With Quote
Old 08-24-2011, 12:50 AM   #6
Senior Member
 
Mr_D's Avatar
 
Solo Rvers Club
iRV2 No Limits Club
Join Date: May 2011
Location: Vancouver, WA
Posts: 28,535
Don't try it if you're a WA resident. The state is going after tax cheats and winning in court. One couple owes at least $25,000 for back sales tax, use tax and fees. They went through a Montana attorney and followed all the rules, BUT they tried to keep their WA residence also. That's what tripped them up.
If it's legal (full timers) then go for it, but it's not legal everywhere. Just because it's legal in Montana and an attorney sets it up doesn't mean it's legal in your state of residence.
Also some insurance companies won't insure a vehicle registered to an LLC.
__________________
2009 45' Magna 630 w/Cummins ISX 650 HP/1950 Lbs Ft
Charter Good Sam Lifetime Member, FMCA, SKP
RV'ing since 1957, NRA Benefactor Life, towing '14 CR-V
Mr_D is offline   Reply With Quote
Old 08-24-2011, 10:41 AM   #7
Senior Member
 
radams's Avatar
 
Join Date: Jul 2010
Location: Omaha, NE
Posts: 398
Oh, oh! Here we go again . . .
__________________
radams is offline   Reply With Quote
Old 08-24-2011, 10:46 AM   #8
Senior Member
 
Join Date: Nov 2006
Location: Chalreston, S.C.
Posts: 288
Quote:
Originally Posted by f106pilot View Post
Just did a Montana LLC with Bennett Law Office, a little pricey ($1299 with registration) but quick and easy. I know you can do it a lot cheaper but I have also heard of problems so I wanted to use a law firm. They also research your state particulars and can give you advise what to do and what not to do. I think this works best if you don't intend to base your RV in your home state, or what ever it takes to comply with your state DMV laws.
The most important thing is that Bennett will provide you with the LLC requirements of your state. If he feels it is not going to be legal or you will get into trouble with your state he will tell you.
__________________
buck62 is offline   Reply With Quote
Old 08-28-2011, 10:17 PM   #9
Senior Member
 
Skip426's Avatar


 
Join Date: Apr 2011
Location: Powell River, B.C.
Posts: 14,972
Just an aside to the LLC question. Watch your back if you are purchasing an RV in Montana. With no cooling off period and a 2 sided sales agreement; written by the RV dealers. YOU need to get everything the salesman tells you about the unit written onto the sales agreement. Best advice carry a tape recorder and have all conversations with anyone at the dealership transcribed onto the sales agreement before you consider signing it.
__________________
99DSDP 3884, Freightliner, XC, CAT 3126B, 300 HP /ALLISON 3060
2000 Caravan toad, Remco & Blue Ox.
Skip426 is offline   Reply With Quote
Old 08-28-2011, 10:27 PM   #10
Senior Member
 
Mr_D's Avatar
 
Solo Rvers Club
iRV2 No Limits Club
Join Date: May 2011
Location: Vancouver, WA
Posts: 28,535
Quote:
Originally Posted by Skip426 View Post
Just an aside to the LLC question. Watch your back if you are purchasing an RV in Montana. With no cooling off period and a 2 sided sales agreement; written by the RV dealers. YOU need to get everything the salesman tells you about the unit written onto the sales agreement. Best advice carry a tape recorder and have all conversations with anyone at the dealership transcribed onto the sales agreement before you consider signing it.
AND, in some states it's illegal to record a conversation unless you have the other persons permission, some even require it on writing.
__________________
2009 45' Magna 630 w/Cummins ISX 650 HP/1950 Lbs Ft
Charter Good Sam Lifetime Member, FMCA, SKP
RV'ing since 1957, NRA Benefactor Life, towing '14 CR-V
Mr_D is offline   Reply With Quote
Old 10-15-2011, 07:26 PM   #11
Senior Member
 
CCFROMFL's Avatar
 
Join Date: Jul 2010
Posts: 167
We used Bennett also, all went smoothly. We live in Florida and had to move the coach out of state for 6 months to meet Florida law. We live in Central Florida and found a park in Valdosta GA, made the trip about once a month to check on everything. Even with the park rent we saved about $3,000 on sales tax by going with the Montana LLC
__________________
Chris and Carole Christian / ccfromfl@gmail.com
2011 Tiffin Phaeton / 2012 Ford Fiesta "Tow'd"
"Our Cause Was Just"
CCFROMFL is offline   Reply With Quote
Old 10-15-2011, 10:49 PM   #12
Senior Member
 
Mr_D's Avatar
 
Solo Rvers Club
iRV2 No Limits Club
Join Date: May 2011
Location: Vancouver, WA
Posts: 28,535
Quote:
Originally Posted by Skip426 View Post
Just an aside to the LLC question. Watch your back if you are purchasing an RV in Montana. With no cooling off period and a 2 sided sales agreement; written by the RV dealers. YOU need to get everything the salesman tells you about the unit written onto the sales agreement. Best advice carry a tape recorder and have all conversations with anyone at the dealership transcribed onto the sales agreement before you consider signing it.
There isn't any "cooling off" period on a new vehicle purchase anywhere according to one dealer that posts on the forum.
Recording a conversation without written permission could also be illegal.
__________________
2009 45' Magna 630 w/Cummins ISX 650 HP/1950 Lbs Ft
Charter Good Sam Lifetime Member, FMCA, SKP
RV'ing since 1957, NRA Benefactor Life, towing '14 CR-V
Mr_D is offline   Reply With Quote
Old 10-15-2011, 10:52 PM   #13
Senior Member
 
Mr_D's Avatar
 
Solo Rvers Club
iRV2 No Limits Club
Join Date: May 2011
Location: Vancouver, WA
Posts: 28,535
Here's something else to consider:

Legislative Updates
Requirements For LLC-Registered Motorhomes
Is your diesel-powered motorhome registered as an LLC, or limited liability company? If so, you might be required to possess an International Fuel Tax Agreement license or a fuel trip permit when traveling out-of-state.

The International Fuel Tax Agreement (IFTA) is an agreement among jurisdictions in the United States and Canada for the uniform collection and distribution of fuel tax revenues.

According to the International Fuel Tax Association (IFTA Inc.), which oversees IFTA compliance, an IFTA license or a fuel trip permit is required for diesel-powered vehicles that:

weigh more than 26,000 pounds, or 11,797 kilograms;
have three or more axles, regardless of weight; or
have a combined weight (with towed vehicle) greater than 26,000 pounds, or11,797 kilograms.
The IFTA exempts motorhomes used by private individuals exclusively for recreation. However ...

LLCs Not Excluded. LLC-registered motorhomes that qualify under the weight or axle requirements are not exempt from the license/permit requirement — even if owners furnish poof that the LLC was not formed to transact business.

“To determine whether or not a motorhome is a qualified motor vehicle and subject to the tax collected under the International Fuel Tax Agreement, the member jurisdictions will look at how the motorhome is being used,” said Lonette Turner, executive director of IFTA Inc.

“If it is being used in a business endeavor of any kind, it is subject to the fuel use taxes collected under the IFTA, regardless of whether an individual or a company registers the vehicle. Because an LLC is a limited liability company, the term alone indicates that it is a business. This may cause jurisdiction enforcement officers to look more closely at the vehicle.”

About The IFTA. The 48 contiguous U.S. states and 10 Canadian provinces are members of IFTA. Jurisdictions set their own tax rates, and are only required to notify other base jurisdictions of the proper tax rates to collect.

An IFTA license allows the holder to file one tax return for travel in all IFTA jurisdictions. A fuel trip permit allows out-of-state registered vehicles to travel in a state for a limited time without obtaining a license for fuel tax purposes.

Fuel trip permit fees and IFTA license fees, as well as fines and penalties, vary across jurisdictions.

Qualified vehicles driven solely in one state are not required to have an interstate fuel permit or an IFTA license. (A few jurisdictions may require intrastate reporting or licensing for qualified vehicles. Check with individual jurisdictions for more information.)

License Or Permit? IFTA Inc. doesn’t make suggestions regarding licensing, Ms. Turner said. “It usually comes down to a business decision for the operator of the vehicle, whether it is more cost-effective to license or to simply purchase trip permits.”

If you usually operate your vehicle in one jurisdiction only, but make occasional trips outside that jurisdiction, you may wish to consider purchasing trip permits for that occasional travel.

If you plan to travel out-of-state before receiving your IFTA license, you must purchase fuel trip permits for each jurisdiction in which you travel. Permitting services typically can be contacted from any major truck stop.

To obtain an IFTA license, contact the jurisdiction where you are based; that is, where your motorhome is registered. You must complete a form specific to your base jurisdiction. If you qualify, you will receive an IFTA license, two decals, and information about IFTA compliance and record-keeping.

The International Fuel Tax Association Inc.’s Web site, IFTA, Inc., contains a Links page that lists the Web sites of every IFTA base jurisdiction. From the One Stop Shop page, you can select contact information for any IFTA member state or province.

“My best advice,” Ms. Turner said, “is to contact each state you’re going to, or that you’re from, and just make sure to get information ahead of time.”

About LLCs

A limited liability company is a business structure that limits the owner’s personal liability for the debts and actions of the LLC. At the same time, it simplifies the taxation of income by passing profits or losses on to individuals.

Owners of an LLC are called members. Members may include individuals, corporations, other LLCs, and foreign entities. Most states also permit “single member” LLCs, those having only one owner.

All 50 U.S. states allow the formation of LLCs. Applicants must file articles of organization with the Secretary of State and pay the required fees.

Each state has different rules regarding LLC formation. For more information, check your state’s requirements and federal tax regulations.

California and the IFTA

IFTA talk began to circulate in the motorhoming community after an FMCA member reported that California was enforcing the IFTA permit requirement for vehicles entering the state. On Internet forums opinions began to circulate, including whether inspection stations were checking motorhome registrations for LLC ownership.

The California State Board of Equalization (BOE) administers the diesel fuel tax program and the state’s participation in the IFTA. Several inquiries to the BOE produced the same response: Qualified diesel-powered motorhomes registered as an LLC will be considered a business. They must possess a permit or IFTA license, or risk a $100 fine.

Business Endeavor? FMCA member Allan Griefer of Las Vegas, Nevada, heard about the IFTA rumors. He contacted the BOE in California to verify that the IFTA applies to LLC-registered motorhomes even if they do not transact business.

Mr. Griefer received a written reply from Margaret Shedd, legislative council for the BOE.

“Such an (LLC) ownership of the motor coach is considered a business endeavor,” Ms. Shedd wrote. “The individuals that make up the LLC are business partners with limited liability when the motor coach is used by one of the other members of the LLC.”

In her response letter, Ms. Shedd said the BOE will examine the ownership of a qualified motorhome only if visual evidence indicates the vehicle is being used in connection with a business endeavor.

Visual evidence includes business logos displayed on a motorhome or towed vehicle. In such cases, Ms. Shedd said, the board will examine the registration and the specifics of the case to decide whether the vehicle should be registered under the IFTA. "Staff will not examine the registration of a motor coach that does not have visible signs of business endeavors."

Obtaining A Permit, License. In California a fuel trip permit costs $30 and is valid for four days of travel in the state. The permit also allows California-registered vehicles to re-enter California after traveling out-of-state if they are unlicensed for fuel tax purposes. The permit must be obtained prior to entering or re-entering the state.

To order a permit, send $30 (check or money order) for each permit to the Motor Carrier Section, State Board of Equalization, 450 N. St., MIC: 65, P.O. Box 942879, Sacramento, CA 94279-0065.

For a listing of locations that sell California fuel trip permits, visit the BOE Web site, California State Board of Equalization.

To apply for an IFTA license valid for travel in all IFTA member jurisdictions, California residents may call the State Board of Equalization at (800) 400-7115 or (916) 322-9669.

Getting A Refund. In California, if a motorhome owner is assessed a penalty for not possessing valid IFTA credentials or a fuel trip permit, the person may seek relief of the penalty by following the directions on the back of the assessment. If relief is granted, the penalty will be refunded.

A Request for Relief from Penalty form is available on the BOE Web site, California State Board of Equalization, under “Forms & Publications” as a fill-in form.

Lonette Turner, executive director of the International Fuel Tax Association, said each IFTA jurisdiction has the right to handle administrative remedies, such as penalty relief, according to its own laws. "Only if they don't have such a law would IFTA appeal provisions apply," she said.
__________________
2009 45' Magna 630 w/Cummins ISX 650 HP/1950 Lbs Ft
Charter Good Sam Lifetime Member, FMCA, SKP
RV'ing since 1957, NRA Benefactor Life, towing '14 CR-V
Mr_D is offline   Reply With Quote
Old 11-16-2011, 08:40 AM   #14
Junior Member
 
Join Date: Nov 2011
Posts: 4
Check out this report about Montana LLCs by MN residents and let me know if you still think it is a good idea

http://www.myfoxtwincities.com/dpp/news/investigative/investigators-traveling-to-avoid-taxes-nov-15-2011
__________________

__________________
BattleMidway is offline   Reply With Quote
Reply



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Licensing vehicle and trailer under a Montana LLC banderson55 5th Wheel Discussion 33 04-18-2011 02:20 AM
Montana LLC question jbowlby iRV2.com General Discussion 69 02-15-2011 05:22 PM
Montana LLC, worth the trouble? roboniko MH-General Discussions & Problems 24 08-01-2010 07:45 AM
Montana MH Licensing/RV LLC???? Ragman Class A Motorhome Discussions 43 03-13-2008 06:00 PM
Montana LLC /NKK Ecker Newmar Owner's Forum 17 08-09-2007 10:02 AM

» Virginia Campgrounds

Reviews provided by


Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -6. The time now is 01:41 AM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.