Originally Posted by wnytaxman
To all that believe that the use of a Montana LLC is tax evasion, you really need to think about what you are saying. Let me give you an example. Do you deduct the interest on your rig as a interest on a second home? If you do, don't you think it's tax evasion? Of course you don't because the law allows you to take that deduction and there is no question in your mind or that of your accountant that the deduction is legal.
It's a similar situation with a Montana LLC. Let's say, for example that the law in Florida is that a vehicle is a Florida domiciled vehicle if it is present in the state for 31 consecutive days. Every 29 days you take that rig and drive into Georgia and fill up with fuel and drive back. Do you think that is tax evasion? In case you don't know, it isn't tax evasion any more than taking the deduction for RV interest as a second home is tax evasion. You are only doing what the law allows.
Would I consider using a Montana LLC? I might, but I would make darn sure that I was able to comply with the laws of NYS and that I can document that compliance. It isn't rocket science nor is it a question of morality. If one is doing what the law allows and you don't like it then maybe you should be looking at getting the law changed rather than judging those who use the law to their advantage.
Thanks so much for the insight from the perspective of ACTUAL KNOWLEDGE! In threads like this, I generally wait for you to chime in as your advice is generally right on the money (no pun intended) and ACCURATE!
I researched the Montana LLC to see if it would work for me. I elected to NOT use it because I didn't feel that I would be complying with the laws of the state I currently reside it (KY), but I agree that there are situations where it IS LEGAL, and IS WARRANTED. Mine just wasn't one of them.
For those of you who question the "morality" of licensing in another state even though it is perfectly legal in some instances I ask this:
Have you ever purchased a product on line because it was cheaper, and because you could AVOID PAYING SALES TAX?
And if you did, did you report that on your state income tax (if you have a state income tax) where is asks you to list purchases made out of state which you DID NOT pay sales tax on? If you live in a state that asks that, and you did not report those purchases and did not pay the required by law sales tax on those purchases, than you are, by definition, a TAX CHEAT!
Bottom line: If it is legal, and is legal for your circumstances, than DO IT! Those who do not AGREE with the law, are free to try and CHANGE the law as mentioned before, but don't judge those who are in compliance with the law just by accusing them of not paying their "fair share" . . . .yeah, don't get me started on THAT one . . . .
I posted the rather lengthy post on the reply from Bennett Law Firm because I hoped it would allow the OP to make an informed decision as to whether the Montana LLC would work in HIS SPECIFIC case, not because I thought it would work in everyone's case. Life is too short to be getting wrapped up on the small stuff . . . . and almost ALL of it is "small stuff" when you get right down to it.