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Old 10-08-2007, 05:21 PM   #15
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If you are registering your RV under a Montana LLC to avoid paying your state sales tax and/or higher registration fees then I hope you don't get caught. If you do then expect to get hammered. This is a problem in California with higher sales tax and registration fees. I have encountered this many times and as soon as residency is established, they get burned. It is a misdemeanor to falsely register a motor vehicle in another state. PLNTMGR, if you get caught, you can get jammed for all back registration fees from the date of purchase of both truck and trailer and all sales tax. I don't know where you hear the 6 months and 1 day thing but that is not true. Good luck.
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Old 10-08-2007, 10:10 PM   #16
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I have heard that several states are looking into the LLC issue. The penalties (if found in violation) will be considerable.

I don't know about other states, but in Ca the registration fee for a MH and any other vehicle, except weight fees on commercial vehicles, is only $32. The balance of the fees (called VLF) is actually a county or city tax collected by the state and distributed to the city or county you live in. The VLF is a property tax and not a registration fee.

The loser when the fees are by-passed is the services (schools, public safety, etc.) provided by your (Ca resident) city or county.

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Old 10-09-2007, 03:23 AM   #17
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I seem to remember something in the news about CA considering vehicles owned by an LLC to be commercial vehicles and therefore subject to higher commercial license fees and subject to higher fuel taxes. Can't find the info now, but it seems states are trying to recoup the taxes being lost to tax "avoidance." If they decide they want their money, they'll get it one way or another. If nothing else, they will raise the taxes on those of who don't have a Montana LLC to make up for those who do.
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Old 10-10-2007, 05:47 PM   #18
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I always find the discussions on Montana LLC's humorous. Those who have done a LLC did a lot of research and state facts. Those who oppose the LLC do not have one and say they "heard" something, but don't have facts to back it up. The original poster asked about Texas and the replies are mostly about California and the two states have different laws.
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Old 10-10-2007, 07:02 PM   #19
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Quote:
Originally posted by Norm Payne:
I always find the discussions on Montana LLC's humorous. Those who have done a LLC did a lot of research and state facts. Those who oppose the LLC do not have one and say they "heard" something, but don't have facts to back it up. The original poster asked about Texas and the replies are mostly about California and the two states have different laws.
The stated problem of the original poster was:

"We are getting ready to purchase a diesel-pusher and our fine state of Texas charges 6.25% sales tax."

The use of the out of state LLC in this case was to avoid paying the 6.25% sales tax.
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Old 10-11-2007, 12:27 AM   #20
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I looked into it. Just seems like avoiding taxes is wrong. It maybe a legal loop hole. I would sooner pay now then keep looking over my back.
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Old 10-11-2007, 03:37 AM   #21
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Quote:
Originally posted by Norm Payne:
I always find the discussions on Montana LLC's humorous. Those who have done a LLC did a lot of research and state facts. Those who oppose the LLC do not have one and say they "heard" something, but don't have facts to back it up. The original poster asked about Texas and the replies are mostly about California and the two states have different laws.
The original poster stated, "We are getting ready to purchase a diesel-pusher and our fine state of Texas charges 6.25% sales tax." He went on to say, "I read where COLORADO residents are getting thumped for doing this." (Emphasis added).

Although it didn't happen to be California, the original poster is the one who brought up a state other than Texas. All states have different laws; but IMO, none of them likes the fact they are loosing revenue. When those losses get to be significant enough, they will do something about it. RV Roamer probably said it best when he said, "Several states are making noises, investigating and perhaps even trying to intimidate their citizens from using a Montana LLC, but nobody has received a tax bill. Yet."

I don't oppose anyone trying to legally avoid paying taxes, but we have decided for us, a Montana LLC is not worth the hassle. Instead, since we are full-timers, we were able to choose a state for domicile that is the most favorable financially (and was favorable in other ways) FOR US. Our new home state has only a 3% tax on new vehicles, so I guess you could say we are avoiding (or at least minimizing) taxes as well.
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Old 10-11-2007, 03:11 PM   #22
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Originally posted by UPS 34:
I looked into it. Just seems like avoiding taxes is wrong. It maybe a legal loop hole. I would sooner pay now then keep looking over my back.
Exactly! I like to sleep at night and not have to worry about staying one step ahead of the law.

When I was in Taxachussetts I had a lawyer who was big on these things and part of his service was a few free ammendments thrown in if the state closed one of the loopholes that he was using. He promised that he would never divulge who were the owners of the LLC as that would always be confidential and he would always protect your identity. I asked why he would have to offer the annonimity if what he was proposing was above board and 100% legal. The state later on offered rewards if people turned in anyone they new that was doing this. People sang like canaries. So much for annonimity.

I got to sleep well all through this and was very happy I went with my gut and did not get involved.

Mr. Maxwell stated it this way: We all have to deal with the law of the price tag which says sooner or later you are going to have to pay and the longer you delay the more you will have to pay.
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Old 10-13-2007, 04:10 AM   #23
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Another way to look at this is the tax rip-off many States get by with regaring RV's. For example; in Colorado they have pretty high tax not only on the sales tax, but ownership tax, which really increases the annual license fee for a motorhome or 5th wheel.

Yet, a lot of these RV's spend little time on the roads, compared to cars and other vehicles. Granted I've chosen to live in Colorado, at least for the time being, but most of my RV travel, in Colorado, is getting on I-25 and heading south out of the state into sno-bird country. We drive a lot more in New Mexico, Arizona and Texas then we do in Colorado. When the moho is in Colorado most of the time it's parked next to my house.

You'd think a state might somehow take this into account. But just as many of you have said, these LLC advantage takers are trying to get out of paying taxes, however the states are doing just the opposite by ripping us off by forcing us to pay taxes on limited use vehicles. I'm not particularly referring to full-timers who live in their vehicles all the time, but even these folks spend more time parked in campgrounds, where they pay taxes, compared to time driving on roads.
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Old 12-03-2007, 12:46 PM   #24
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The Montana LLC might not be for everyone, I would suggest doing some research (and I don't mean hearing something from someone either)and check out your state laws. I live in Virginia and as long as I don't keep my vehicle parked in the state for 6 straight months I don't need to tag it here. I just need to take it out of state for a day trip or weekend trip and when I return to Virginia my 6 months starts all over again. I had an attorney in Montana do the research for me then had my attorney here verify it, then turned everything over to my CPA to take care of the corp tax end of it. The LLC works great for me and I would do it again. I think a state will have a hard time making any head way against the LLC, cause it is a legal entity and is protected by law.
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Old 12-04-2007, 06:39 PM   #25
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I don't want to get everyone upset about LLC's,but, if you go this way watch out for the insurance/drivers licensing issues.
Being an X PA police officer, when you see a motor home with one state registration and the toad with another registration you can almost bet something isn't completely legal.
Which state is the insurance in? Which state is the driver licensed in and do they have the correct license endorsement?
I could keep going, but, you get the point.
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Old 12-04-2007, 07:46 PM   #26
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My motorhome and toad are both licensed in Montana and they are insured through my address in Montana and "garaged" at my address in Texas. My drivers license is at my Texas address. The bylaws of my LLC gives me written permission to operate my motorhome and toad in all 50 states and Canada and Mexico and this is on file with the state of Montana. I carry a copy in both the motorhome and toad.

All of this was done according to the laws of Texas and Montana. A few months back I was stopped by a police officer in Wisconsin (long story). He said I see you're from Montana and then I handed him my Texas drivers license. I told him I have a Montana LLC and asked if he wanted to see the papers and he said NO. He hand me back my drivers license and told me to have a good day.

Some people have mentioned they pay lots of taxes so they can sleep at night. I am the opposite and if I paid thousands of dollars in taxes I couldn't sleep at night. But knowing I still have my money I sleep like a baby.
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Old 12-05-2007, 06:19 AM   #27
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Quote:
Originally posted by babybear:
Being an X PA police officer, when you see a motor home with one state registration and the toad with another registration you can almost bet something isn't completely legal.
This situation could be perfectly legal. There are many scenarios where it would be, such as have more than one car and having them registered in different states. My Dad did this for years because he had homes in more than one state and keep vehicles in both states.

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Old 12-07-2007, 04:28 PM   #28
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I have read most of thest post with great interest. I wanted to share the following with you, but let me preface by telling you that I'm a retired federal law enforcement officer.
As I was reseaching RV life prior to purchasing my RV I too considered a Montana LLC. Then I read two newspaper articles that confirmed that a lot of states and the federal govt are currently getting very interested in the topic of RV licensing in states where there is no sales or property tax. The first article I read was about a women in Oregon who the state prosecuted with RICO laws because she had over 1000 RVs registered to her at her residence. Oregon is a no tax state. RICO laws have been used mainly for the prosecution of mobsters, LCN types. The article did not mention what happened to her customers. Typically law enforcement will prosecute someone than get them to cooperate and/or seize the records of the illegal business.
The second story I read was about several RVers somewhere in Illinois. While camped at a RV park a state and a federal revenue agent appeared at the RV park asking people to show proof of residency in state where their RV was registered.
These stories convinced me that state and federal agencies have finally awaken to how much money their respective entities are missing out on and have become proactive on the subject.
And finally some food for thought. I'm not sure what laws in which state prohibit these obvious attempts to circumvent the laws, but this I am sure of. If it is illegal in the state you reside or own property in and you are forming an LLC to avoid paying their taxes, and you have the agent in Montana sending you registrations paper and plates through the mail, you are probably in violation of Federal Mail Fraud Statutes. IMHO the only RVers that may be able to get away with this are full timers that sold there homes and don't reside or own property in their old state.
Have a good weekend and by the way, technology is capable today of retreiving every email or chat room post you ever made. Thus some of our fellow Forum members should rethink about making confesions on line.
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