Community Forums

bob drake · 08-24-2011, 06:44 PM

i have seen on the internet that you can register your motor home in montana under an llc and avoid taxes has anyone had experience in doing this & know of the legal side of things?

Mr_D · 08-24-2011, 06:56 PM

Might or might not be legal in your state even if it's legal in Montana. Usually the ones that can do it are living in their motorhome and traveling full time.
I know that if you have a home in WA and try a MT LLC they will come after you and collect the tax, fines and anything else they can add. I have a copy of a judgment obtained from just such a case.
If you decide to try it be sure the attorney will pay to defend you and pay any judgments against you and see what they say!

**NLOVNIT** · 08-24-2011, 07:16 PM

HERE and HERE are a couple of past threads about Montana LLC's.

If you do a search using the words Montana LLC you'll find quite a few more.

Lori-

Kurmudgeon · 08-24-2011, 11:21 PM

Simple solution = move to Montana.

wnytaxman · 08-26-2011, 07:49 PM

If you want to use a Montana LLC, you need to do some homework. The first thing is to find out what the law is in your state. Then you need to ask yourself whether or not you can meet those requirements. The next step is to be sure you can document the fact that you complied with the law. The last question is whether or not you are willing to spend the time and money to defend your use of the Montana LLC if you are challenged on its use.

State governments are very hard up for the cash now and they will go to all kinds of extremes to get the cash. Even though you may be right, it may cost you considerable time and money to defend your decision.

Wayneey · 08-28-2011, 12:24 PM

About a year ago several folks in Denver, CO, were successfully prosecuted for avoiding taxes via a Montana LLC. Seems their neighbors turned them in to who the local authorities are for that issue. Penalties were paying the back taxes, fines, and if I remember correctly, some community service.

Wayne

R1Kirby · 08-28-2011, 06:56 PM

We're fulltimers and travel the country. We've use Alternative Resorces in Sioux Falls South Dakota. We have for three years and have never had a problem. Google them and they will send you information explaining everything you need to know.

SteveLevin · 08-28-2011, 07:32 PM

The biggest thing you want to look for in all the information is how successful residents pursued by their (non-Montana) state of residence have been at defending themselves from back fees, penalties, etc. It's fairly scarce (if it exists at all).

Steve

JimM68 · 08-28-2011, 07:37 PM

It's important to research the laws of the state(s) you live in.

As an example, here in Illinois, any motor vehicle that is kept in the state more than 30 consecutive days, must be titled and licensed in Illinois.
An out of state fuel reciept once a month seems to satisfy that just fine, though really, there is no reason a Montana LLC cannot title and license it's RV in Illinois.

There can be a few different issues, potential pitfalls, and avenues for saving money.

Illinois for example, has a very low annual registration fee, but a fairly high sales tax.

Other states may have high or very high annual reghistration fees. I've heard of some that charge totally onerous personal property taxes on RV's.

I've heard of some going after snowbird RV'ers who spend perhaps 6 months per year in a state that is not thier legal residence.

But none of this has anything to do with a Montana LLC.
Anyone can form a Montana LLC. go to thier secratary of states website, business services, download the form and send it in. They do not require residence. They do require an LLC to have a "registered agent" who must reside in Montana. Several companies provide that service for a fee. I have a friend who lives in Billings, he does it for a couple pizza's and a little beer.

The LLC is a legal entity, and it can own property (including real estate) anywhere.

The "where" is the key here. You have to research the laws of the other states involved. The simple example of real estate, it would just plain not matter. The state where the real estate exists would have dibs. Rules, property tax, the works.

It gets tricky with property that is "mobile" and that can be used to advantage.

Mekanic · 08-28-2011, 08:30 PM

Title it in ohio, once you have paid the sales tax. (one sales taxes are paid in another state ythetransfer fees is less than 20 If I recall correctly) plates for a RV are $49.50 and no personal property taxes.

wnytaxman · 08-30-2011, 03:00 PM

Bob, you need to make sure you know the law and comply. One of my clients traded for a new motorhome in Florida using a Montana LLC. NY found out about the purchase and started to take action against him. He claims that he did, in fact, comply with NY's requirements. He can not prove that he complied because he didn't document his compliance. Bottom line was a bill for $28,000 for tax, penalty, and interest. If you use the Montana LLC, make sure you comply with your state's laws and that you can prove you complied.

zzzs · 08-30-2011, 04:04 PM

Bob

I have a Montana LLC and registered a motorhome with the LLC. It cost about $1300 to set up the LLC and registration you can also register your toad as well. I used Bennett law group in Missoula Montana you can google them they are straight shooters.
I live in California and this state is real tough with residents doing this but if you follow the rules to the letter your OK.
When you buy the motorhome it cannot be delivered in California most dealers know this and have an agent sell the vehicle somewhere out of state, the sales invoice must be made out to your LLC.
For California, since 2010 the motorhome cannot be in the state for a period of more than 30 days in any calendar year and if it is in the state it can only be there for verifiable repairs.
Previous years had different more liberal laws regarding LLC owned motorhomes.
Something you will not want to do is tow a california registered toad with a Montana license motorhome, CHP will pull you over to verify your status.
The legal protection to do this uses the Interstate Commerce Rules which allows corporations in one state to conduct commerce in other states.