Montana LLC Registration

[Ramzfan]

Originally Posted by Mr_D

Interesting, you're advocating breaking the law on an open forum?

I'm not saying that I'm "breaking the law" by any means...what I am saying is that in order to avoid any hassles from nosy/jealous/nazi neighbors, it's a lot easier to just do what's easiest. In this case, it's kind of like "if you don't want the dog in the house, don't put his food inside where he can see it through the glass door...!"

[justaroamer]

On a recent trip to FL, while eating at a harborside establishment, there was a very nice yacht, about 165' must have taken a crew of 6 to operate it, not counting the chef. Our waiter commented that it was owned by one of our honorable Senators...it was registered and flying Cayman flags. Now isn't that just nice? Cayman Financial Review :: Ten reasons to flag your vessel in the Cayman Islands
And those here must see it their duty to complain...they (Government Officials) are allowed to do it, can't the lowly tax payer?
Every one should have the ability to take advantage of the laws, not just those in Washington.
Don't mean to start a Political thing, nor advocate anything, but...Geez....give the citizens/taxpayers a break. I rest assured that those complaining of "breaking the law" have never gone over the speed limit or "inhaled". We as taxpayers/RV'ers should unite rather than contradict
Nuf Sayd!

[UFO Pilot]

I paid my RV sales tax and I pay my registration every year as a California resident. The RV next to me at the storage lot has Montana plates and that is OK? In 5 plus years I have only seen the space empty a few times. My taxes are higher because he "cheats" the system and that is OK?

I would never turn him in but I believe if you choose to live in a State you should pay your share. California taxes are outrageous but I choose to live here for various personal reasons.

If I was a full timer I would certainly look at an LLC.

[RickO]

Originally Posted by Route 66

Gary has provided the best answer.

X3

I would be especially reluctant to try this in California. I'm a native who left there in 2009 and they are STILL trying to get me to file a California tax return every year.

Rick

[amanda_h]

From your profile, it appears that you are evidently a resident of California. As others have said, depending on how you use your RV, it may NOT be prudent to register in a Montana LLC.

Generally, it all depends on the state in which you declare your domicile (not necessarily your residence but where you declare domiclile) whether a Montana LLC will be advantageous. If one can legally stay within the parameters of your own state’s rules as to what constitutes your vehicle being required to be registered in that state, then there is nothing illegal about registering your vehicles in Montana.

As has been stated, if you are a resident of some states, you shouldn’t even consider a Montana registration. It all hinges your home state or more specifically, what state you consider your domicile. Not defining the difference between domicile and residency in this conversation, let’s just say where you have your driver’s license, receive your mail, are registered to vote, and what address you put on your Federal income tax return.

No other states other than your own state of domicile will care where your vehicles are registered. The only state that will be curious or care about your driving an RV with Montana plates and your toad licensed in your home state is …YOUR home state. No other state will really care. This is according to the Montana lawyers.

And to add, again according to the Montana lawyers, just because you have your coach (or any of your other vehicles) registered in a Montana LLC, doesn’t by default make it a commercial vehicle. There have been all kinds of rumors out there that you will be required to pay IFTA taxes and have to abide by other commercial vehicles regulations and laws. This is not true. If you use your RV strictly for pleasure, it is NOT a commercial vehicle even though it‘s registered inside a LLC. However, some RVers use their motorhomes for commercial purposes (profit-making endeavors) and that’s another story which I can’t address.

As residents of Nevada, we have successfully used a Montana LLC to register our vehicles for a number of years since we’ve been full-time. We chose Nevada as a domicile as opposed to South Dakota (or Texas) for personal reasons but many Nevada retirees use a Montana LLC to register their RVs including many retired LEOs.

If we spent the majority of our time in Nevada (or any state that we chose to call our domicile), then yes, we would register our vehicles in that state. However, we are in our “home” state less than half of the time so not only are we legally abiding by the laws of Nevada pertaining to our vehicles but we have a clear conscience that we are not evading taxes pertaining to our vehicles (we DO pay enough taxes to Nevada in other ways, however).

Again, registering you RV in Montana all depends on whether you can legally avoid the requirement of YOUR OWN STATE pertaining to what it takes to trigger vehicle registration in that state. For most, as has already been said, that means that you are going to be in other states more than you are in your “home” state. Unless you’re retired, in the military, or move around very frequently, using a Montana LLC for registering your vehicles probably isn’t for you.

-harry

[HoleInOne]

Does anyone know someone that has been caught? If so, what was the outcome? I'm kind of a risk reward kind of guy and if the reward is worth it I'll give it a try.

[336muffin]

Yes I know someone, the friend of mine we bought our coach from. Three years back taxes with a hefty fine. They suspect it was the power meter reader that turned them in but can't prove it. They got a new person the same week. The IRS would not give any info on how they found out. We're licensed in Mt. legally and soon to domicile in SD in a few weeks. I already know that OUR Insurance will not cover OUR windshield on MH or car if registered in SD. We're keeping our MH and car in MT and SD is OK with this and so is Mt. We have a $100.oo deductible on both windshields the way it is now. We are fulltime with no house, and feel pretty safe this way. Every situation is different.....each person should do your own research with calls for your details. We read a lot of info and did our own calls to be sure.

[wa8yxm]

Originally Posted by michelb

The biggest issue is that if you are in fact a resident of another state, this is considered as tax evasion by many of them and there have been a lot of reports of them going after people with Montana plates that do not appear to actually be residents of Montana.

I have read several news articles (Newspaper or newspaper or TV station web sites) about folks who Did the Montana LLC bit... and got BIT by the tax man in their home state and I mean big time.

States starting with "C" for the most part, but several other states have looked into doing it as well (Burning the Montana LLC folks).

I recommend against being your state's test case.

[336muffin]

If you have no ties as far as land, job and so on there is nothing wrong with "moving" to another state. RV'ers are not the only ones that does this. Many Military, oil workers, long shore-men have done this for years with no penalties. That's because they don't own property and don't use SD as a way to dodge tax's.

[dajudge]

Don't do it. It may come back and bite you big time. Many states are looking for additional revenue. In Louisiana, the MVB has informed all rv dealers to notify them if someone purchas an rv and tries to register it out of state. You could be charged with tax evasion and have to pay a huge fine and all back taxes. All the Montana lawyer is telling you is that it is kegal in Montana and taking your money.

[amanda_h]

Again, for those who think this is "against the law" it's not if one is able to conform to what triggers registration IN THE STATE IN WHICH THAT PERSON RESIDES!!!

Each state has their own laws as to what triggers registration so it's not a blanket "don't do it" as certain states are easier than others to stay withing the law.

The Montana lawyers will tell you that if you reside in certain states "don't even try it."

And again, if you do not travel much, it won't work!!!! If you are a working stiff and not yet retired, you shouldn't do it. It only works if you are retired and/or get out of your state of residence frequently. It's not something you'd want to do if you are just an occasional RVer and only get out of state a few times a year. DON'T DO IT IF YOU CAN'T GET OUT OF YOUR STATE OF RESIDENCE FREQUENTLY.

It is perfectly legal if you can prove that you don't have your vehicle in the state of your residence the amount of time in which it requires that you register that vehicle in your own state. If you can abide by those parameters, whatever they may be for you state of residence, then it is NOT ILLEGAL.

We've been doing it for years and we can prove that we are not breaking the law. We move around a lot and do not spend the majority of time in the state our driver's licenses are issued or more commonly called "our state of residence" or our legal domicile.

Some who do it are not and are taking a chance of being caught by not registering their vehicle in their own state. Some, like us, are following the law and keeping records so in case we are ever approached by our state, we can prove that we are not required by law to register the vehicle in our state.

-harry and amanda

[MotorPro]

Your question was "Is it legal?" The answer is that it is legal in Montana but illegal in most other states. Years ago hot rodders were doing a similer thing in Maine. Many people I knew were doing it. I kept telling them it was trouble. But they kept telling me it was legal because a lawyer in Maine set it up. When all the other states cracked down they not only had to pay all the back taxes with interrest but also large fines. Some owed so much they had to sell their hotrods to pay them. Of course nothing was done to the lawyer who laughed all the way to the bank. Is it really worth the risk of getting caught?

[RustyJC]

The question was asked if anyone had ever been "caught" in the misuse of a Montana LLC. In response, I submit the following LINK with no further comment.

Rusty

[336muffin]