LLC in Montana TX drivers lic.?

[deank37]

I am considering registering my MH and toad with a Montana corp. Will there be a problem driving with TX drivers license? We are full timers and have a Texas address, etc. Anyone have any experience with this?

[deank37]

I am considering registering my MH and toad with a Montana corp. Will there be a problem driving with TX drivers license? We are full timers and have a Texas address, etc. Anyone have any experience with this?

[baddwalk]

It is a relatively easy process that can be handled by any number of attorneys in Montana. Here is where the problems can be though. Many states are cracking down on the Montana LLC loophole for people buying new motorhomes and trailers and trying to avoid paying their home state sales taxes. If you are stopped for any reason, you show a Texas drivers license yet the vehicles are registered in Montana. Many states will go after you for sales taxes and registration fees. California for one, will research when the vehicles were purchased and go after back fees as well. I dont like paying more in taxes as much as the next guy. If you do this and get caught, you take your chances. Many states look at this as false evidence of registration and will file criminal charges. Good luck on what ever you decide.

[cb5300]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by baddwalk:
It is a relatively easy process that can be handled by any number of attorneys in Montana. Here is where the problems can be though. Many states are cracking down on the Montana LLC loophole for people buying new motorhomes and trailers and trying to avoid paying their home state sales taxes. If you are stopped for any reason, you show a Texas drivers license yet the vehicles are registered in Montana. Many states will go after you for sales taxes and registration fees. California for one, will research when the vehicles were purchased and go after back fees as well. I dont like paying more in taxes as much as the next guy. If you do this and get caught, you take your chances. Many states look at this as false evidence of registration and will file criminal charges. Good luck on what ever you decide. </div></BLOCKQUOTE>

Where did you come up with this horse pucky??? Do you KNOW for a fact of anyone ever charged with having a LLC? I don't think any state would win out in this dog fight if push came to shove. A LLC is a contract between you and the state where you file, and every state is required to honor a contract between a state and citizen. That's one of the reasons that you can drive from state to state with out getting a new driver's license in every state that you go into.

If you have any questions about the Montana LLC I would suggest you contact an attorney (like Bennett Law Office @ 866-543-5803)and ask them any questions that you may have. This way you can get facts and not that I heard thru my first cousin's girlfriend's ex-father-in-law, who heard about it from his boss's pet groomer (you getting my drift here?)that someone that they knew of was put in jail for having a LLC.

Now if someone here has FIRST hand experence of a state taking action against them then I would like to hear about it.

[NeilV]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by cb5300:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by baddwalk:
It is a relatively easy process that can be handled by any number of attorneys in Montana. Here is where the problems can be though. Many states are cracking down on the Montana LLC loophole for people buying new motorhomes and trailers and trying to avoid paying their home state sales taxes. If you are stopped for any reason, you show a Texas drivers license yet the vehicles are registered in Montana. Many states will go after you for sales taxes and registration fees. California for one, will research when the vehicles were purchased and go after back fees as well. I dont like paying more in taxes as much as the next guy. If you do this and get caught, you take your chances. Many states look at this as false evidence of registration and will file criminal charges. Good luck on what ever you decide. </div></BLOCKQUOTE>

Where did you come up with this ....... Do you KNOW for a fact of anyone ever charged with having a LLC? I don't think any state would win out in this dog fight if push came to shove.

Now if someone here has FIRST hand experence of a state taking action against them then I would like to hear about it. </div></BLOCKQUOTE>


See:

http://www.9news.com/news/printartic...?storyid=68847

A quick search brought up others but this one has enough notes about fines some in the millions to make one think twice before geting involved.

[rebelsbeach]

Please folks..... let us remember that differences of opinion are welcome here, but let's also remember to keep our discussions on the "civil" side...

Thanks.

[sharbra]

There are those who adamantly swear that forming an LLC in Montana for the purposes of registering an rv in that state is tax evasion, illegal, etc. All of those people have a point. However, there are states that have a tax structure that is prohibitive to regular vehicle registration, let alone registering a very expensive rv. Because of pressure from neighboring states, Oregon now will not register any type of rv to a non-resident. It does not matter if you own property in Oregon, if you are not a resident and subject to Oregon income tax, etc., you may not register your rv. It appears Colorado is going the same route as those states neighboring Oregon in cracking down on the Montana LLC owned rv. In Nevada, the 2007 tax and license fees for our 2003 Beaver were in excess of $2,000.00. This for a vehicle that was present on the Nevada roadways approximately 10 to 20 days out of the year. Those rates make one look to find loopholes that they might not if the rates were reasonable. Perhaps, it would be wise for those states that are taxing rv ownership to the hilt to reassess their positions.

[Robin_M]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">See:

http://www.9news.com/news/printartic...?storyid=68847

A quick search brought up others but this one has enough notes about fines some in the millions to make one think twice before geting involved. </div></BLOCKQUOTE>While one can never take the facts in any TV news report as "absolute truth", I think that story is probably an accurate representation of the reasoning behind both sides of this issue. Interesting story. Thanks for posting the link.

You kind of have to wonder if all those Colorado residents named in the report suffered any consequences as a result of the TV story.

[RustyJC]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by deank37:
I am considering registering my MH and toad with a Montana corp. Will there be a problem driving with TX drivers license? </div></BLOCKQUOTE>
Totally ignoring the legality or morality of Montana LLCs since I've never investigated or been involved with them, I'll just make this comment based on personal experience. When we lived in Ohio (22 years), we would come back to Texas to visit relatives. My limited experience with Texas LEOs in those cases when I was driving my dad's vehicle is that a driver's license from a different state than the vehicle's license plates can lead to some extended roadside conversations with the Texas Highway Patrol.

Maybe TwoBit, DonW5IT or some other LEOs will drop by and comment.

Rusty

[NeilV]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Robin_M:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">See:

http://www.9news.com/news/printartic...?storyid=68847

A quick search brought up others but this one has enough notes about fines some in the millions to make one think twice before geting involved. </div></BLOCKQUOTE>While one can never take the facts in any TV news report as "absolute truth", I think that story is probably an accurate representation of the reasoning behind both sides of this issue. Interesting story. Thanks for posting the link.

You kind of have to wonder if all those Colorado residents named in the report suffered any consequences as a result of the TV story. </div></BLOCKQUOTE>

When I was living in Massachusetts I looked into forming an out of state LLC for the house and all my motor vehicles and the attourney was quite up front about the situation. The house was not a problem but state was cracking down on the motor vehicle part of this (even in the mid eighties) and published an amnesty period and then a rewards program. If you did not come clean by the end of the amnesty period you were fair game for anyone who felt like turning you in for living in the state and owning a vehicle with an out of state registration plate. People were getting turned in and the attourney promised that his clients were safe as he would not ever reveal who the owners of the LLC's were and would always maintain them up to date and one step ahead of law enforcement. He even maintained someone out of state who would be listed as part owner of the LLC to lend legitimacy to the thing in the event that we got turned in and and investigated.

The news stories with the offers of amnesty had little effect but the news stories about the rewards got a good deal of people turned in.

Anyway, I did not get involved, kept clear of the thing and finally moved out of state.

Moving forward, due to my own personal experience in setting up this LLC and then backing out without forming it I would not consider setting one up to try and limit my tax liability as the chances of being viewed as a tax evader are too great. Even if you never have to pay a fine, just to be perceived as such would be a stigma I would not want attached to my name and reputation.

[Texas Bubba]

Strange that no one including the politicians complain about all of the corporations that do this every day. And I'm sure they avoid millions of dollars not thousands. LLC are legal in every state in the union. However, when one state starts losing dollars to another, it is a problem. Colorada as well as every other state allow LLC's. It is not tax evasion, it is tax avoidance which last time I checked is still legal both at the state and federal level.
Driving a vehicle registered to an LLC in one state while using a drivers license from another is no different that driving a rental car with two different plates and license. If you are authorized by the LLC to drive their vehicle and it is insured it is legal.
Colorado stated in the news article that they have not pursued this since 2002. Seems they are not to concerned??

[Chappie]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by cb5300:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by baddwalk:
It is a relatively easy process that can be handled by any number of attorneys in Montana. Here is where the problems can be though. Many states are cracking down on the Montana LLC loophole for people buying new motorhomes and trailers and trying to avoid paying their home state sales taxes. If you are stopped for any reason, you show a Texas drivers license yet the vehicles are registered in Montana. Many states will go after you for sales taxes and registration fees. California for one, will research when the vehicles were purchased and go after back fees as well. I dont like paying more in taxes as much as the next guy. If you do this and get caught, you take your chances. Many states look at this as false evidence of registration and will file criminal charges. Good luck on what ever you decide. </div></BLOCKQUOTE>

Where did you come up with this horse pucky??? Do you KNOW for a fact of anyone ever charged with having a LLC? I don't think any state would win out in this dog fight if push came to shove. A LLC is a contract between you and the state where you file, and every state is required to honor a contract between a state and citizen. That's one of the reasons that you can drive from state to state with out getting a new driver's license in every state that you go into.

If you have any questions about the Montana LLC I would suggest you contact an attorney (like Bennett Law Office @ 866-543-5803)and ask them any questions that you may have. This way you can get facts and not that I heard thru my first cousin's girlfriend's ex-father-in-law, who heard about it from his boss's pet groomer (you getting my drift here?)that someone that they knew of was put in jail for having a LLC.

Now if someone here has FIRST hand experence of a state taking action against them then I would like to hear about it. </div></BLOCKQUOTE>Yes we are one of those 122 Colorado "Tax Cheats" that Colorado is pursuing. We have a home in Colorado, so the State says even though the RV is not domiciled in Colorado we owe them tax and must register our RV here. There has been no court case as everyone pays up due to the cost of fighting the State. The State can afford the attorneys fees, after all we are all paying the costs of those attorneys from the atty general office. We did eveything legally and do not use the RV in Colorado. Thats why we bought an RV-to travel elsewhere. We would consider moving, sell our home here, but the prices are depressed and as seniors on a fixed income we cannot afford to move. Just be aware that Colorado is RV "Unfriendly".