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Old 10-28-2011, 08:15 PM   #15
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Rusty... You are soooo right!!!! The states are all searching for revenue and I've also read on here where a MH Owner got NO HELP from his Montana LLC Attorney when the revenue guys took him to task!!!
If fulltiming and have no "state" to claim.. check out South Dakota and Alternative Resources.... they are awesome and SD loves RV'ers!!!!
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Old 10-28-2011, 08:37 PM   #16
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it is perfectly legal for a Limited Liability Corp to own property, including vehicles, homes, airplanes, RV's, and just about anything else.

Anyone can form an LLC anywhere, as long as they comply with the rules of that state.

Most states have rules that say if a vehicle is kept there, it needs to be registered and licensed there.

There is no way I would ever pay a $3500 annual rape for license plates. No way. Some chances are worth it.
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Old 10-29-2011, 08:29 AM   #17
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Rusty as a I said there are a few valid stories and I am not denying that one one but so many more are just urban legends. I disagree with Mass and if I had the money and time I would fight them. What is the difference with having a LLC in Montana than some of these other loopholes that other people use to get out of paying taxes. It is interesting that Mass decided to go after that loophole and not others. I don't live in Mass, and I wouldn't live in Mass. Great place to visit.
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Old 10-29-2011, 02:08 PM   #18
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There's a lot of ins and out to this and you really need proper legal advice before you can cost yourself a lot of money. I'm not a lawyer but have a lot of experience with legal domicile/residency. While many of us wish we were free agents with no fixed address, it just doesn't work that way. We're all legal residents of a particular state based on a number of factors. For example, if you own a house that could be considered your primary residence, you're generally a legal resident where that house is located. If you're full timing and own no primary residence, your legal domicile is probably where you pay taxes, are licensed, where your vehicles are garaged (even when they're not there), register to vote, have a bank acct, library card, etc. What you definitely don't want to do is have a driver's license from one state, vehicle registration in another state, and pay taxes in yet a third state.

These and other things can be used by a taxing authority (state, county, city, etc.) to try to force you to pay their taxes, and believe me, in this economy they will work hard to find every penny you owe them. I looked into Montana LLCs years ago and determined, based on my knowledge, it wasn't worth the risk to get one because my MJ would have been garaged at my home most of the time at that point in my life. Even now, about getting ready to get on the road as a full-timer, I have not figured out a way to divorce myself of my permanent residence and a Montana LLC would be rather risky IMHO.

Tax avoidance is generally considered legal until a jurisdiction rules otherwise and you get caught. That appears to be exactly what is happening with Mass. v. the Montana LLC. Mass. is desperate for revenue and now appears willing to go after people more aggressively. Tax evasion is generally illegal from the getgo. There is a significant difference, but again, the relatively small amount of upfront cost for proper legal counsel could pale in comparison to what you might be hit with after the fact.
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Old 10-29-2011, 05:16 PM   #19
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I think you are mixing up State of Legal Residence and the State that you have the LLC registerd in. TRhey are two different things. You can have a company in another state other than the State of your legal residence. You are mixing apples and oranges.
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Old 10-29-2011, 05:36 PM   #20
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The main reason that people use an LLC formed in Montana is for sales tax avoidance but there are some cases where you can save significant money in registration fees as well. The catch is that to do this your RV must remain out of the state of your domicile most of the time in order to be legal. The simple fact is that laws say that vehicles are to be registered in the state where they are kept, which may not be the state where you reside or are licensed to drive. An excellent example is when one has two homes and they keep a vehicle to drive at each place and then fly or drive a different vehicle between the two locations. In such case, each vehicle should be registered int he location where it spends the most time.

The LLC usually only works well for one who is a fulltimer because his RV is never stored and it never stays in one location for more than a month or two. Each state has laws about how long a vehicle can be in that state before it must be registered in the state so where you are makes a big difference.

You can get sound advice and not pay a thing for it from the Bennett Law Office, in Missoula, MT. They will tell you if your situation will not be legal and if it is workable, they also do the setup for them at a reasonable price. We have several friends who have used their services for several years.
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Old 10-29-2011, 08:20 PM   #21
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I think you are mixing up State of Legal Residence and the State that you have the LLC registerd in. TRhey are two different things. You can have a company in another state other than the State of your legal residence. You are mixing apples and oranges.
Hi Gunner Mike,

It's not clear from your post that you were commenting on my post. Regardless, no, I'm not mixing apples and oranges. There is no question that you can create an LLC in any state, or even internationally in countries allowing LLCs. The issue here as I understood the original post and subsequent responses, is the suggestion to create an LLC in a state other than your legal residence for the sole purpose of avoiding taxes or other excessive expenses in your state of legal residence. And yes, I understand that many corporations spend millions of dollars in lawyer fees to save many more millions. It's probably legal tax avoidance, too, but it usually stinks IMHO.

Under certain circumstances, particularly if one is full-timing and has no real estate elsewhere, by all means establish domicile in a state with the least expense. The more ties you have to that state, as I indicated in my earlier post, the better. Then when the tax man comes a-callin' you're probably covered. But, if you have a Montana LLC for your RV that's parked in your driveway in Mass. more than six months a year, cumulative, you will probably have a hard time convincing Mass. that you have a legitimate LLC.
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Old 11-01-2011, 12:34 PM   #22
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Here is where I really need help. I will be moving back to the USA next year, I have no property or auto or anything at all in any state. My legal state now is NC as I did live there. Now I want to buy a new rig for full time living and can have any state I want, so which one is best when I have no other issues to worry about? I may go with a new truck and 5th wheel, and want to know if I must do the inspection every year, and how much will tags cost each year ect.
Thanks
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Old 11-01-2011, 12:45 PM   #23
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Here is where I really need help. I will be moving back to the USA next year, I have no property or auto or anything at all in any state. My legal state now is NC as I did live there. Now I want to buy a new rig for full time living and can have any state I want, so which one is best when I have no other issues to worry about? I may go with a new truck and 5th wheel, and want to know if I must do the inspection every year, and how much will tags cost each year ect.
Thanks
WA tags on MH's are about $140 a year and cars about $65 BUT we have to pay a little under 10% sales/use tax on motor vehicles when we register them.
WA is also one of those states that is going after people with illegal LLC's. Just because it's legal to form an LLC in another state doesn't make it legal in your home state. If a full timer with no property owned then it's probably OK to do an LLC.
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Old 11-01-2011, 03:26 PM   #24
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Here is where I really need help. I will be moving back to the USA next year, I have no property or auto or anything at all in any state. My legal state now is NC as I did live there. Now I want to buy a new rig for full time living and can have any state I want, so which one is best when I have no other issues to worry about? I may go with a new truck and 5th wheel, and want to know if I must do the inspection every year, and how much will tags cost each year ect.
Thanks
SD,TX, and FL are the most popular. My SD tags (total for both coach and car) are about $180 per year. No income tax, 3% sales tax on RVs purchased if you are a resident.
We use Alternative Resources for our mail forwarding service. They offer a number of services to help full timers.
This is their site HERE
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Old 11-01-2011, 05:32 PM   #25
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Mr_D having a LLC in Montana is NOT illegal as you stated.

Ralphie, I do not live in Mass so their laws do not apply to me. Why would anyone admit to having a LLC so you can get out of paying tax? You can have an LLC for a real company and you don't have to make money with that company. I have a legit business and I have to go from racetrack to racetrack and I use the MH for that so it belongs to my company.
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Old 11-01-2011, 07:55 PM   #26
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Mr_D, a Limited Liability Corp registered in Montana is in fact legal in all 50 states. Federal Law and all that.

Ralphie, you are making some good points, but you are also guilty of confusing the CORPORATION with the individual who owns it. A corporation is a separate entity, separate from it's ownership.

Kirk, you got to read the fine print. The law in most states seems to be written to address people moving permanently to that state, and read such that "once a vehicle has been kept in the state for 30 days..."
Of course, if one drives the vehicle out of the state on the 29th day, and buys a tank of fuel and gets and keeps a reciept... well according to most of these laws, they have to start counting again...

Good legal counsel is always recommended of course.
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Old 11-01-2011, 07:58 PM   #27
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Luckyme, you gotta look at the whole package to pick a state as your "domicile." Sales tax and vehicle registration is just a part. What is the state tax rate? Is social security taxable? Exempted to a limit?
Escapees and AARP both have this info, as well as other sites.
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Old 11-01-2011, 08:01 PM   #28
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Mr_D having a LLC in Montana is NOT illegal as you stated.

Ralphie, I do not live in Mass so their laws do not apply to me. Why would anyone admit to having a LLC so you can get out of paying tax? You can have an LLC for a real company and you don't have to make money with that company. I have a legit business and I have to go from racetrack to racetrack and I use the MH for that so it belongs to my company.
Sorry, you again are wrong. I NEVER said having an LLC in Montana is illegal. What I said was that it may be illegal in your state of residence. There is a difference.
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