Montana LLC Registration

[Lincolnier]

Anybody heard of registering your MH in Montana regardless where you reside? Apparently there's a way to register under a Montana law which reduces both sales taxes and registration fees in your state. It's done through a Montana attorney who sets up an LLC (whatever that is) for a one time fee of $1200. It has to be renewed each year for a fee of $120/yr. Additionally, you can then buy all parts and accessories through this LLC avoiding sales taxes. Is this legit?? Are there any REAL savings ho this scheme aftr adding up the one time fee of $1200 and the annual fee of $120?

[CJGJR]

First we heard of it

[danes-on-tour]

An LLC is a "Limited Liability Company".

Call these guy's. Bennett Law office in Montana. I am sure they can fill you in about what to do and what not to do. They are one company who sets up LLC's for RV owners.

I am pretty sure it matters at lot where you are a resident. F.x. living in California while owning/driving a Montana registered RV could land you in trouble and with a hefty bill/fine.

We use Bennett Law office ourselves, but we don't reside in the US, so for us this is not a problem.

As for spares to your RV, we normally buy them on-line, and we only pay sales tax if the goods are shipped from the same state where you want your stuff delivered.

[336muffin]

You can do this but be VERY careful and do a lot of research. Paper trails can get you in serious trouble. I know some RV dealers that will not go along with this upon purchase fearing trouble down the line. Also some Insurance company's will not do this. Be sure the financing lender, insurance and so on is OK with this. Some states is definitely not agreeable with losing their tax money to another state. If you are working and paying tax's in your state and wishing to own something in another state........well you can see the prob. Your situation is different from others. It CAN be legal in some situations.

[jzick]

If you will search this forum for Montana LLC you will get enough reading material to keep you occupied a long time. It is possible, if you are full time or can avoid visiting your domicile state enough to be required to register/pay taxes on your vehicle. We had one several years ago that we used to reduce our tax burden, but our situation changed and it was no longer legal for us to do so. Be aware that most states are looking for residents trying to do this illegally and there have been several well publicized instances where people have been punished with huge fines. Do your research, and it works for you legally it can be a viable option. Good luck.

[michelb]

There's tons of discussion on this.

Just to clarify, it's not the really the parts and accessories that are tax free, it's the actual motorhome as Montana does not have tax on vehicle registrations. The savings can be huge (i.e. Registering a new $300k mh in Los Angeles, CA will cost you $27000 in tax plus $1951 in license fee. I believe registering a new $300k mh in Montana, will cost you a few hundred in license fee)

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.

There can also be some issues for licensing and registration in that this is now a corporate owned vehicle and I believe some states consider that a commercial vehicle so you need proper registration (e.g. USDOT#, etc) but I really don't know much about this.

[336muffin]

One of the problems is storing your MH in your driveway or a storage facility with out of state tags, the other is Montana tags on MH with another state tag on your toad. IF you are involved in a accident...you will have two insurance company's with a problem paying. We are fulltime with no house or jobs and have done this legally. Many people in the Military use this service in SD as a domicile state since some doesn't have a home and live on base all over the world. YOU must do your research that applies to your situation. In our case this was a five year plan, not something we heard over a campfire(just saying).

[GaryKD]

Hi Lincolnier,
The state you have declared as your domicile may be the problem. I know California, Colorado and Missouri are aggressively looking for residents who have expensive toys (boats, airplanes, motor coaches) registered in another state. The states look for the tag on the unit in your yard or storage facilities. They also review the service records at dealerships.

I have LLCs. I do not advocate for or against this tactic. If done correctly it is within the law. It does require a thorough understanding of state law in the state where you have declared your domicile. After that, it is a personal decision. Consider seeing your accountant and attorney for advice.

[Route 66]

Gary has provided the best answer.

Originally Posted by GaryKD

Hi Lincolnier,
The state you have declared as your domicile may be the problem. I know California, Colorado and Missouri are aggressively looking for residents who have expensive toys (boats, airplanes, motor coaches) registered in another state. The states look for the tag on the unit in your yard or storage facilities. They also review the service records at dealerships.

I have LLCs. I do not advocate for or against this tactic. If done correctly it is within the law. It does require a thorough understanding of state law in the state where you have declared your domicile. After that, it is a personal decision. Consider seeing your accountant and attorney for advice.

[Tony Lee]

We are in the same boat as Danes-on-tour. No state of domicile so no problem with owning an LLC that owns a motorhome. In fact it is one of the few ways we can legally own and run a vehicle in the US.

No significant taxes, permanent license tags with no annual renewal, and no annual inspections are big advantages for us.

[vito.a]

Great info here:
Montana RV and Vehicle Registration - No Sales Tax | Heggen Law Office | Legal services including Montana vehicle registration

[Ramzfan]

I currently register my Motorhome and my towcar in Montana under an LLC. Part of the trick is to have both coach and toad registered in the same state. The other part of the trick is to remove your plates if your vehicle is stored where it can be seen in a storage yard, RV park or even your own yard. Especially in California where they're encouraging neighbors to report neighbors, Nazi style...!

[Mr_D]

Originally Posted by GaryKD

Hi Lincolnier,
The state you have declared as your domicile may be the problem. I know California, Colorado and Missouri are aggressively looking for residents who have expensive toys (boats, airplanes, motor coaches) registered in another state. The states look for the tag on the unit in your yard or storage facilities. They also review the service records at dealerships.

Add Washington state to you list of those going after tax cheats!

[Mr_D]

Originally Posted by Ramzfan

I currently register my Motorhome and my towcar in Montana under an LLC. Part of the trick is to have both coach and toad registered in the same state. The other part of the trick is to remove your plates if your vehicle is stored where it can be seen in a storage yard, RV park or even your own yard. Especially in California where they're encouraging neighbors to report neighbors, Nazi style...!

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