Licensing vehicle and trailer under a Montana LLC

[banderson55]

Hello Everyone............Hoping I can get some input on a Montana LLC. We have already purchased our tow vehicle ( GMC 3500 HD Disel Dually ). Still looking for a 5th wheel which my last post asking about a good 5th wheel for fulltiming, everyone who replied back was very helpful. I came across on the internet about a company named Deer Creek Corporate Sevices : Montana LLC Vehicle Registration - FAQ : Deer Creek Corporate Services
They say your can get a LLC and put your vehicle and trailer under it, which avoids paying sales tax and license fees in your state (AZ) which are really high. But you still maintain your driver license of your state. The fee they charge is very reasonable and they do all the leg work with the DMV and have your plates sent to you. Is this business legit and can this be done? Every bit helps on saving money on a yearly basics, when we are going to be on a retiremnet income. Thanks for any input on the topic.

[a k]

You would be better off to search the issue here on the forum. It always opens a can of worms.

[azloafer]

Quote:

Originally Posted by banderson55 Hello Everyone............Hoping I can get some input on a Montana LLC. We have already purchased our tow vehicle ( GMC 3500 HD Disel Dually ). Still looking for a 5th wheel which my last post asking about a good 5th wheel for fulltiming, everyone who replied back was very helpful. I came across on the internet about a company named Deer Creek Corporate Sevices : Montana LLC Vehicle Registration - FAQ : Deer Creek Corporate Services They say your can get a LLC and put your vehicle and trailer under it, which avoids paying sales tax and license fees in your state (AZ) which are really high. But you still maintain your driver license of your state. The fee they charge is very reasonable and they do all the leg work with the DMV and have your plates sent to you. Is this business legit and can this be done? Every bit helps on saving money on a yearly basics, when we are going to be on a retiremnet income. Thanks for any input on the topic.

I have read about this, but if it were the panacea that they claim you would see Montana plates all over the place...but you don't. That's just my way of looking at it. I'm sure you will get lots of opinions with this question!

[Ray,IN]

Be very careful here, do you homework diligently. Many states now investigate this tactic to avoid taxes in the home state. CO is just one that prosecutes infractions. It's my understanding that MT lawyers do not offer advice on other state's laws concerning MT LLC's, you are on your own.

[RVThere]

I set up a Montana LLC before my last MH purchase in 2008 with a plan to avoid sales tax. My accountant, who will push to avoid EVERY tax possible and is not afraid to go toe-to-toe with the IRS, was STRONGLY against the Montana LLC concept and we backed away from using it for the purchase. It also turned out that we would have paid a higher interest rate with the LLC so there would be no net savings if we kept the MH for 5 years.

[wingnut60]

check out the information available at www.escapees.com there is a lot of personal experience to learn from there.
Joe

[LargCarPilot]

Welcome Arlo & Becky,

IMHO there is no better way to go than with a Montana Corp. We are residents of Fountain Hill, Az. and formed our corporation about 1 year ago on advice of friends in Las Vegas. We have nothing but good things to say about the service and rates of the attorney we used in Missoula. We have a Colorado Corp. due to business entities, but chose to go with Montana for the sales tax benefit...as in none. I have heard horror stories about Colorado going after the RV's, but Az. has not bothered anyone that I am aware of. I will include the link for the attorney that we used.

HeggenLawOffice.com

Norm & Charmain
Fountain Hills, Az.

[a k]

I have mine in storage in Mo and I'll bet 1/3 has Montana plates. In fact, the three Essex's here all have Montana plates.

[banderson55]

Thanks for all the input on this topic......I am still searching the internet on this still. Aslo purchased a book on where to make your home base, seems to be a bit helpful

[Dr4Film]

I was told this by one person who looked into establishing a Montana LLC for his new coach but when he went to look for insurance for the coach, he told me that most insurance companies were not affordable because it would be considered a commercial vehicle licensed through a Montana LLC. That was 10 years ago and he lives in PA now so I am not sure if the insurance companies are still doing that today. My vehicles are registered in Alaska and next May, I will also have an Alaskan drivers license. Both of my sons live there so I am using one of their addresses for my domicile/residence. The vehicle registration there is $100 for 2 years and oh by the way, no sales tax.

Dr4Film ----- Richard.

[cleverlemur]

Insurance is a non-issue with Montana LLCs. The real issue with creating Montana LLCs are your state's sales and use tax statutes. The best solution I know of for part-timers is to store your RV in Montana, or wherever your LLC is located, when you're not on the road.

[dajudge]

I would advise against a Montana LLC. Ask the lawyer who sets it up if he will defend you in court if your home state prosecutes you for tax evasion. The states are always looking for more income and it is worse when the economy is bad. Louisiana has instructed all licensed RV dealers to report any RV sold that is registered under an out of state LLC.

[two-niner]

To the OP; You've already paid the sales tax on the GMC diesel. It's too late for help on that vehicle.
You may want to check on South Dakota residency. There are people on this forum that may give you who to contact there, if you so desire.
The Montana LLC is scary to many people. The LLC is a legitimate tax avoidance (not evasion) tactic. Your state law may or may not allow this.
A New York Times article stated there were more RV's registered in Montana than people living there. Just saying........

Kerry

[cleverlemur]

Quote:

Originally Posted by dajudge I would advise against a Montana LLC. Ask the lawyer who sets it up if he will defend you in court if your home state prosecutes you for tax evasion.

There's nothing illegal or immoral about tax avoidance. Using an LLC to manage movable property for either tax avoidance or regulatory relief is a strategy that dates back to the early days of the Panamanian ship registries. It's a common strategy for private jet ownership.

The issue isn't the Montana LLC per se; it's compliance with your state's sales and use tax statutes. If you are concerned about running afoul of the law, don't park an RV with Montana plates in your driveway in Florida when you're not on the road. Domicile it in the same state as your LLC, document this fact, and obtain that state's driver's license.

There's a larger legal argument to be made under the commerce clause of the constitution that levying sales and use taxes against out-of-state vehicles is an appropriation of Congress' enumerated power to regulate interstate commerce, but that's a battle beyond the means of most of us.