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Vegasdan · 09-09-2010, 07:36 AM

Quote:

Originally Posted by radams

Every once in a while I read where someone gets busted for the Montana LLC or the out of state tags, but the stories are sparse. I've never read where someone got pulled over while driving down the road solely based on their tags. I'm curious as to how often it actually happens?

There are a couple of ways to evaluate risk. The first is what are the odds that it will happen? The second is what is the cost if it does? Once you determine that you can decide if the risk outweighs the benefit.

I think the Montana LLC makes more sense because residency is not necessary. Residency is a separate issue. Many companies incorporate in states where the tax climate is more favorable and they use the laws to their advantage. If it's okay for them why is it wrong for us?

Maybe the reason you don't read about many would be people don't write about it, but if it has happened to some that have written about it you can bet it has happened to more. LLCs are made for companies because they do business in that state. If you set up a LLC without a business purpose other than saving taxes an individual will draw attention to themselves in their home states by running an out of state plate. I'd rather avoid the possibility of having this happen.

radams · 09-09-2010, 09:38 AM

Quote:

Originally Posted by Vegasdan

Maybe the reason you don't read about many would be people don't write about it, but if it has happened to some that have written about it you can bet it has happened to more. LLCs are made for companies because they do business in that state. If you set up a LLC without a business purpose other than saving taxes an individual will draw attention to themselves in their home states by running an out of state plate. I'd rather avoid the possibility of having this happen.

Or . . . maybe the reason I don't read about many is because there aren't many. I have yet to read about anyone being pulled over by law enforcement solely because they had Montana plates and/or different states tags on their RV and toad. I've trolled all through IRV2 looking for a single instance and can't find one. I'd be willing to wager that it hasn't happened because it's not illegal as far as the state and local police are concerned.

I do understand where the resident states' revenue department would be interested but to my knowledge they are not pulling people over on the highways. It sounds to me like the risk lies within the state that you reside in and no where else. Once again though, there are only a couple examples of that on IRV2 or anywhere else.

I'm thinking out loud here folks, and am not advocating anything, so don't anybody go ballistic. I'm just trying to get a grip on the pros and cons.

buck62 · 09-09-2010, 09:57 AM

Before you set up a Montana LLC give john Bennett Law Office a call. John will send you information relative to your state and advise you if an LLC will work for your circumstance. In my state of SC we have very high property tax on vehicles, you may pay $4000 a year on a new upper end model like a Allegro Bus. In SC you see a lot of Montana plates but the state requires that the assett be out of the state 180 days a year. If you do a lot of travelling over the year this is easily done, if you only use it for weekends and yearly vacations an LLC would not work.

radams · 09-09-2010, 10:06 AM

Thanks for the feedback Route 66 and buck62. That's the sort of information that I was looking for.

Downsizer · 09-10-2010, 06:54 PM

I didn't mean to imply you'd be pulled over driving with Montana tags. When I said knocking on your door, I meant at your stick & brick house with the RV in the driveway! I know for a fact they are doing that in Massachusetts.... all theses states are desperate for revenue $$$$!!!!!. Look at the numbers.... a new fancy RV at $400,000 times a minimum of 6% Sales Tax is $24,000 TAX REVENUE.......
They have revenue agents riding nice neighborhoods looking for RV's with Montana tags on them, parked in driveways...... if your home is there and your RV is Montana, they won't care what kind of LLC you have.... they want the $$$$$

swampdog2 · 09-21-2010, 12:55 PM

I don't think it would be against the law to use a m/h from Montana to visit in let's say Alabama or Texas or any other state at this time , of course that may "CHANGE" in the future . Who knows it may become against the law to own or use anything after the " CHANGE"

RickO · 09-21-2010, 07:28 PM

Quote:

Originally Posted by swampdog

I don't think it would be against the law to use a m/h from Montana to visit in let's say Alabama or Texas or any other state at this time , of course that may "CHANGE" in the future . Who knows it may become against the law to own or use anything after the " CHANGE"

I think I agree with you. Never has and hopefully never will be. It could be an issue if somebody has a coach with Montana plates pulling a toad with Colorado plates through Colorado however.

Rick

dxbear · 09-21-2010, 10:16 PM

I don't know what it costs in taxes to own an RV in florida, even I am a full timer here? I guess I better egt my butt down to the DMV and find out.. you guys are scaring me...

I went into RV'ing to avoid all the high costs of home ownership but the costs are starting to add up and approach the Stick and brick costs.... This for another post..

LindaH · 09-22-2010, 11:08 AM

Quote:

Originally Posted by Downsizer

I didn't mean to imply you'd be pulled over driving with Montana tags. When I said knocking on your door, I meant at your stick & brick house with the RV in the driveway! I know for a fact they are doing that in Massachusetts....

And they are doing it...or did so just recently...in Colorado.

We're not talking about fulltimers, though, who don't spend any great amount of time in any one state. These states are going after people who actually live in the state and have tried to evade paying their domicle state's sales tax and registration fees, by setting up a Montana LLC.