Community Forums

JimM68 · 02-10-2011, 09:33 PM

Quote:

Originally Posted by a k

Where do you guys come up with this?
The RV is mobile. It doesn't live in any state. If you have homes in three different states, you chose the least expensive. Why do you think you mailed most of your bills to Delaware?

I come up with this from reading the law in the state where I live. The state where the business I own is, where I earn the money that buys these toys, where my 19 and 13 year old son's go to school.

Some of us are not retired yet...
Might even still have kids at home.
Might even just have one home, and one RV... NOT THREE (must be nice...)

Much as I look forward to the day I can change my home state at will, I won't trade ten years of my life for it.

watk69 · 02-10-2011, 10:46 PM

Quote:

Originally Posted by JimM68

I come up with this from reading the law in the state where I live. The state where the business I own is, where I earn the money that buys these toys, where my 19 and 13 year old son's go to school.

Some of us are not retired yet...
Might even still have kids at home.
Might even just have one home, and one RV... NOT THREE (must be nice...)

Much as I look forward to the day I can change my home state at will, I won't trade ten years of my life for it.

Quote:

Originally Posted by a k

Where do you guys come up with this?
The RV is mobile. It doesn't live in any state. If you have homes in three different states, you chose the least expensive. Why do you think you mailed most of your bills to Delaware?

My reservation stems from the 4 pages of boilerplate warnings from the Bennett law office letter that they know the laws in their state (Montana) but but can't be liable for Arizona's laws and view of this. Many paragraphs of warnings that you may be subject to scrutiny and an audit if you have other vehicles registered within your state of residence. Its a fine line, being legal entity does not mean it cannot be challenged and life made miserable. Cops in AZ know 99 out of 100 MT plated RV's are tax avoiders, just be sure you don't have a tail light bulb out........LOL

azloafer · 02-11-2011, 12:46 AM

If the LLC is a business...wouldn't it have to show some business transactions to be legitimate? Joe

moisheh · 02-11-2011, 06:07 AM

Some interesting facts and of course some that are totally wrong. A Montana LLC is not a business. As the holder of that LLC you are specifically prohibted from operating a business with that LLC. No commercial insurance is required. Montana is very RV friendly. You will receive your annual LLC renewal via email and can pay on line. If you have a 12 year old RV the plates are cheap. About $125.00( i forget the exact rate) Those plates are permanent and the registration is a one time fee!! The poster from UK should definitely look into having his unit under an LLC.

JimM68 · 02-11-2011, 06:08 AM

Quote:

Originally Posted by azloafer

If the LLC is a business...wouldn't it have to show some business transactions to be legitimate? Joe

No, it does not have to do any business.
Any person or persons can register an LLC for any reason they choose
I don't know about filing tax returns, my LLC does do business, so a federal 1120S and whatever is required by Montana will be filed.

GaryKD · 02-11-2011, 01:15 PM

Hi moisheh,
An LLC is a business. It need not conduct business, but it is considered a business. I own LLCs. They do business and I carry business insurance. Why did what you post that an LLC is not a business?

a k · 02-11-2011, 01:26 PM

Quote:

Cops in AZ know 99 out of 100 MT plated RV's are tax avoiders, just be sure you don't have a tail light bulb out........LOL

And what would that have to do with anything? What business is it of theirs. You have insurance, registered, what would be their problem. Do they give tickets for this? I don't think so. If you have a tail light out he can give you a ticket for that. No big deal. Tell them to go down to the border and do some real police work.

moisheh · 02-11-2011, 05:00 PM

Yes there are LLC's that are businesses. However the ones that are used by RV'rs are not businesses. I would have to find my original papers but it specifically states that you cannot conduct business with this LLC. You do not file any tax returns.

SteveLevin · 02-11-2011, 05:03 PM

Quote:

Originally Posted by a k

And what would that have to do with anything? What business is it of theirs. You have insurance, registered, what would be their problem. Do they give tickets for this? I don't think so. If you have a tail light out he can give you a ticket for that. No big deal. Tell them to go down to the border and do some real police work.

The problem isn't officers looking to hassle you, it's typically whomever in the state that collects the money (in CA, for example, the Board of Equalization)

It's a very simple process, if you are issued a ticket, it goes into a computer database. A program sweeps that database looking for folks that were operating vehicles registered in other states that do NOT belong to known rental agencies.

Based on what criteria they deem appropriate (for example, an obvious criteria would be getting multiple tickets over a long timeframe driving the came out of state vehicle), that agency will opt to send you a letter reminding you of the law, audit you, etc. And revenue audits are often "guilty until proven innocent" unlike criminal proceedings.

And, to be clear, in most cases, if you get audited for something like we are talking about (being an resident of a state other than Montana, holding a driver's license in that other state, voting in that other state, etc) you will absolutely lose that audit and be liable for the taxes and additional penalties.

You need to talk not to the Montana counsel about it beforehand, but to counsel in your state of residence to understand what your legal requirements are as a resident of your state. Then you can talk to someone in Montana and have them set up an LLC and advise you on operating within Montana's laws as well.

And there *are* some cases where the LLC can be advantageous. But they generally involve scenarios where the RV is never operated in the state of your residence. (For example, if you are a California resident and keep your RV in Arizona and use it just during the winter).

Steve

a k · 02-11-2011, 05:06 PM

An LLC is a LLC. You just file with Montana that it produced no income.

On my LLC I have 4 other members that live in three different states. I'm just a member like the rest of them.Now what do I do?Who actually owns the RV?Which state do you pay?
Have I been doing this all wrong.

Please, if you have an LLC set me straight. If not, sit back and learn like I am.

I can't figure you guys that don't have one are the first to tell you how they work.

Jump back in GaryKD. The're circling the wagons

Gary RVRoamer · 02-11-2011, 05:43 PM

An LLC is a legal entity, as is a corporation or an individual human person. It could be a profit making business, or a non-profit business, or a charity or merely a holding company for some assets, which is probably what most RV-owning LLCs are. The exact definition of an LLC, and what it or cannot be, depends on the state in which it is chartered

a k · 02-11-2011, 05:56 PM

An LLC is a great estate planing tool. Just put your kids on it as members and when the old bucket drops it's theirs.

JimM68 · 02-11-2011, 09:32 PM

Quote:

Originally Posted by a k

An LLC is a great estate planing tool. Just put your kids on it as members and when the old bucket drops it's theirs.

That works too, as long as you like and trust your kids, and continue to.
It does however, close out all the options, the day you execute it.

As Gary said, an LLC is a legal entity, like a corporation or a person. What it can or cannot do is defined in it's articles of incorporation, and these can be changed at will by the members.

As it sounds like a k is doing, it's a great way to manage a time sharing situation involviong hard assets.

SteveLevin · 02-13-2011, 02:22 PM

Quote:

Originally Posted by a k

An LLC is a great estate planing tool. Just put your kids on it as members and when the old bucket drops it's theirs.

Without getting into significant details (which can vary) I would suggest that trusts are a far better and more flexible mechanism for estates -- but again, one should seek counsel in their state of residence to learn more.

Steve