LLC Registration

[ExtenderFE]

I am considering registering my rv with an LLC in Montana. If I read the laws of Florida correctly, I must take the coach out of the State within 45 days of registration and stay out of State for a minimum of 180 days to avoid paying sales tax on the new RV. Has anyone run into legal problems with this or know of someone who has?

[KIX]

I have used an LLC in the past and it can help you AVOID (not evade) taxes. However, state and all governments are really strapped for revenue these days and are looking very closely at LLC's. I'm not saying don't do it.......I am saying that you should make sure all the "I's" are dotted and ll the "T's" are crossed absolutely correctly. This advice is coming indirectly to you from the Florida Dept. of Revenue.

[Mike Canter]

I am going to change my MH from being registered in Georgia to an LLC in Montana because I have to pay $3000 a year Ad Valorem tax when I renew the license plate every year.

[KIX]

Originally Posted by Mike Canter

I am going to change my MH from being registered in Georgia to an LLC in Montana because I have to pay $3000 a year Ad Valorem tax when I renew the license plate every year.

I wonder why anyone would renew their license plates in Georgia at that price?

Maybe everyone should register their vehicles to a Montana LLC

[johnsonjm209]

I always thought that Florida was a good deal. They want the sales tax from you when you purchase and/or register in Fl. Big deal. Every state wants that. About 10-12 years age someone dropped a dime to the Ct. Dept of Taxation about me being registred in Fl. I had a valid Fl. address for the winter and a valid Ct. address for the summer. The Tax people in Ct. only wanted to know if I had paid a sales tax in Fl. When they got a copy of it they never bothered me again.

You don't have to own a house or property in any state to prove residence, you only have to have an address.

[W4RLR]

Originally Posted by ExtenderFE

I am considering registering my rv with an LLC in Montana. If I read the laws of Florida correctly, I must take the coach out of the State within 45 days of registration and stay out of State for a minimum of 180 days to avoid paying sales tax on the new RV. Has anyone run into legal problems with this or know of someone who has?

If you buy the RV in Florida, you will pay tax immediately unless you immediately remove the RV out of state using temporary plates and keep it out of state for six months. You will have to give the dealer a Montana address for registration purposes. You will have to pay any taxes and fees to Montana, keep Montana plates on the RV for the entire period, and as you have guessed, the RV cannot be operated on Florida highways for that period.

Miss any of those requirements, and Florida gets six percent of any value over $5000, and the state, county, and city collect varying rates of tax on the first $5000 of value.

[Mike Canter]

I am confused why you could not drive it in Florida with Montana plates. The idea of a LLC is to establish a company of your choice in Montana and register the MH to that company. There is no sales tax in Montana and if you have established the LLC before you buy the MH why are you going to pay Florida sales tax. You put temprary tags on it and send off to your lawyer in Montana to register it. What control does Florida have over it? It is all legal. In Georgia if we don't pay sales tax if we buy from a private party. If that is the case that there is no way around the Florida sales tax then I would the MH in Georgia or Texas.

[Harm]

ExtenderFE:
You do have to set up your Montana LLC first then have the dealer write the sales contract up to the LLC. You do have to keep the vehicle out of Florida for six months but then you can bring it home and you can transfer to a Florida Title then if you want with no sales tax.

[Mike Canter]

I don't know what it cost to renew a tag in Florida but it only cost $125 a year in Montana which includes the lawyer fee.

[GaryKD]

Hi ExtenderFE,
You are correct as posted in the OP. The only addition I'd add is that, after the first 6 months, the coach can not stay in the state of Florida for more than 5 months and 29 days per calendar year. Florida will check dealer service records and credit card records (like fuel purchases and camp ground records) to ensure these rules are obeyed.

These rules can change with every session of the state legislature. So check the Florida web site about every 6 months and book mark the pages with the information on this subject.

[ExtenderFE]

Wow, I really got a lot of different responses to my question. After reviewing the laws of Florida and returning to my dealer for suggestions and help, here is the outcome. Since I could not comply with the letter (or intent) of the law and since I didn't want to spend my retirement years looking over my shoulder, I decided to bite the bullet and pay the taxes. Here's where the dealer came in and helped. They checked their financing rates and managed to beat the LLC financing rates (individual vs. LLC are usually better rates) by 3/4 of one percent. I went from 5.5% to 4.74% and after adding in the taxes to the financed amount, the payment stayed exactly the same for the same number of years. I saved almost $1000 by not using the LLC (Legal Fees) and can write off the sales tax and the Fla registration fee on my 2011 taxes. The LLC would cost me $240 for renewal + tag fees each year but Fla. tags only cost about $75 each subsequent year. After all is said and done, $9000 in sales tax will actually cost me approximately $4000 after all the tax breaks and savings and each subsequent year will save me about $175 in tag fees. Also, I can now shop around for less expensive coach insurance since the coach is no longer registered with an LLC. (many companies will not insure to an out of state LLC.) Lastly, I will sleep better knowing John Law is not casting a jaundice eye on me when I'm rolling down the road with both the coach and tag tags matching.

[KIX]

Originally Posted by ExtenderFE

Wow, I really got a lot of different responses to my question. After reviewing the laws of Florida and returning to my dealer for suggestions and help, here is the outcome. Since I could not comply with the letter (or intent) of the law and since I didn't want to spend my retirement years looking over my shoulder, I decided to bite the bullet and pay the taxes. Here's where the dealer came in and helped. They checked their financing rates and managed to beat the LLC financing rates (individual vs. LLC are usually better rates) by 3/4 of one percent. I went from 5.5% to 4.74% and after adding in the taxes to the financed amount, the payment stayed exactly the same for the same number of years. I saved almost $1000 by not using the LLC (Legal Fees) and can write off the sales tax and the Fla registration fee on my 2011 taxes. The LLC would cost me $240 for renewal + tag fees each year but Fla. tags only cost about $75 each subsequent year. After all is said and done, $9000 in sales tax will actually cost me approximately $4000 after all the tax breaks and savings and each subsequent year will save me about $175 in tag fees. Also, I can now shop around for less expensive coach insurance since the coach is no longer registered with an LLC. (many companies will not insure to an out of state LLC.) Lastly, I will sleep better knowing John Law is not casting a jaundice eye on me when I'm rolling down the road with both the coach and tag tags matching.

Good research and a well-thought-out, sound decision. Hope youreally enjoy your retirement and new coach.

[RickO]

Originally Posted by KIX

Good research and a well-thought-out, sound decision. Hope youreally enjoy your retirement and new coach.

X2.... very well done. There's no one right answer for everyone and you found the one which fits you best.

Enjoy and stay safe.


Rick

[OLYLEN]

Plus now you are supporting the state you live in so the rest of the population doesn't have to pony up the short comings.

LEN