LLC for tax benefits

[cfyanes]

Does anyone have any experience setting up an LLC (limited liability Corp) to reduce sales tax on MH purchase? There is a company in Montana who will set you up in a day or so, for less than $300. I've heard an LLC buying a MH could limit the number of lenders for financing?
Thanks

[4Knights]

Search the forum, many opinions based on where they live and those laws.
Montana LLC's, a Heads Up

[buck62]

You do not say which state you live in. Some states have cracked down on what they consider tax evasion LLC's. You need to talk to someone that specializes in LLC formation like Bennett Law Firm in Montana that will Email you the requirements for your state and tell you if they would recommend forming an LLC in your state. Where I live you must be out of state 180 days a year and maintain records to prove it, like gas and campground receipts. Bennett will be more expensive but they have been doing this for years. Does the $300 include the yearly LLC maintenance like alerting you before your plate expires, getting and sending you the plate and registration?

[wa8yxm]

I second Buck's cautionary post.. I know California and Colordo have done it, I read a while back where Michigan, and several other states were looking into it.

The tax man is ... Kind of nasty, if he feels you are cheating him, he's going to show you just HOW nasty. The following is a 100% true story:

State treasury agents arrived at a business friday evening, right at the close of business for most offices.. This was a service station and towing company.. They impounded all the owner's "Rolling stock" (Tow Trucks) padlocked the station and locked the impound yards.

On Monday: He was able to prove he'd paid every cent he owed,, The Tresury had mis-credited the payments and thus it was THEIR mistake, not his. The money had been paid, they simply put it in the wrong file.

So on monday they took the padlocks off.

He still had to pay the impound lot that towed in his tow trucks, And he lost the weekend's business.. What did treasury do? Did they compensate him? (NO) did they even say "Opps, I'm sorry" No, they did not even do that.. They simply removed the padlock from the door and went home.

I know this man.. Brought him dinner once. (As it turned out) Actually I owed him a thank you so I visited Honey Baked Ham and bought him one. He got home and found He was making dinner that evening, (Ham sandwiches)

[BattleMidway]

Check this out:

http://www.myfoxtwincities.com/dpp/news/investigative/investigators-traveling-to-avoid-taxes-nov-15-2011

[Downsizer]

Check out our website in the "Legal" section..... several articles to consider.

http://www.rv-insight.com

[Bee950]

When I bought my MH a month ago, I was told that financing for an LLC registered MH would be next to impossible. I own a company and it is an LLC in Texas. I bought it under my name since its easier and the business is going to pay for it anyway....

[rkbuggy]

Be carefull. I live in Alabama with a Montana LLC. Alabama Dept of Reveue came after me for sales tax on a motorhome but I did not purchase mine under the LLC so was OK.

[ottffss]

Start Googling. Bazillions of words already spewed on this heavily re-hashed topic. Many right here on IRV2.

Montana LLC's go far beyond being an "RV religious" topic. There are numerous "concerns" that YOU need to understand and accept.

There are over 2 million Google links to "montana llc rv".

[jzick]

If you are full time, domiciled in the right state, and spend the right amount of time traveling away from a home base, a Montana LLC could be a legal, ethical, and prudent thing to do to reduce taxes and fees required. If you are just trying to sneak one past local and state tax authorities to evade taxes, they have evidently caught up with this scheme and are catching a lot of folks. Our previous mh was under an LLC. We are not eligible now and pay all taxes and fees required. Only a competent lawyer in your domicile state can give you the right advice about requirements for your situation. Good luck.

[docj]

Quote:

Originally Posted by jzick If you are full time, domiciled in the right state, and spend the right amount of time traveling away from a home base, a Montana LLC could be a legal, ethical, and prudent thing to do to reduce taxes and fees required.

jzick says it right--the Montana LLC concept really only makes sense for full-timers who don't spend much time in the state in which they are domiciled. If you have a sticks & bricks and actually spend any significant amount of time there with the RV then you will probably violate that state's laws. I'm no expert but I think full-timers who are "winter Texans" or Florida snowbirds and use Montana LLC's could be skirting the edge those states' laws depending on how long they roost there in the winter. Last winter in FL the state was cracking down on any out-of-state RV they knew was in-state for more than 180 days. Times are tough and states need revenue!

[Mr_D]

WA was among the first to start cracking down on Limited Liability Companies (they are not "corporations" even though they are incorporated). Here's the IRS definition of a LLC.
Here's a redacted copy on one such case. It takes a while to download as it's 23.35 MB.

[wa8yxm]

I will add to the cautionary chorus.

Many have gone the LLC route,, and quite a few have found the benefit was all to the tax man as they were assed fines, peanalities, interest, and taxes.

And.. I will tell you one more thing.

If (I won't be doning this) but IF, I were to foreward your post to your home state's tax man.. I'd get paid when you got fined.

[DonRedWolf]

Quote:

Originally Posted by cfyanes Does anyone have any experience setting up an LLC (limited liability Corp) to reduce sales tax on MH purchase? There is a company in Montana who will set you up in a day or so, for less than $300. I've heard an LLC buying a MH could limit the number of lenders for financing? Thanks

For a good general answer, take a look at:
Should I Register my Vehicle in Montana? - mail forwarding - Americas-Mailbox