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Old 06-09-2021, 11:52 AM   #1
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Arrow South Dakota or Montana ?

Looking for some help from the members. I have had 2 Class A DP and getting ready to by my retirement RV. It is obviously pricey in this market.
I live in Texas where they charge 6.25% sales tax and hefty registration fees.

I would like to hear from those that have gone through the setting up of an LLC to purchase their bus and if it has worked out as expected.

If it did work out did you use one of the services ?

Which state if better ? Have you had any issues while out on the road due to your registration ?

Thanks in advance to an insights !!!!
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Old 06-09-2021, 12:08 PM   #2
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Where is your 'residency'?

Where will MH be 'garaged'?

Are you going FT?

Or just looking to avoid the TX sales tax and registration fees?

Not going FT...MH in TX
Avoiding Taxes....Texas will find out then charge you back taxes, penalties/fees and back registration fees

Good luck!
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Old 06-09-2021, 12:12 PM   #3
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If you are considering a "very expensive" motorhome to purchase, it may be worth to check out a South Dakota domicile and registering your vehicles in a Montana LLC.

South Dakota offers better "benefits" for a retirement domicile ...no income tax, etc. Montana, on the other hand, is not good for retirement purposes and isn't one of the top choices for a full-time RV domicile.

Read the bottom of THIS PAGE from one of the most prominent mail forwarding services in South Dakota pertaining to a Montana LLC.

Most likely, if you're NOT planning on buying an extremely expensive motorhome or planning on (multiple) turning over your motorhome or toads, it's best to just register your vehicles in SD and pay the sales tax on the purchase of your motorhome. The primary benefit of a Montana LLC is to save paying sales tax on vehicle purchases.

In fact, read through the entire webpage including the FAQ and Tips & Tricks section of the America's Mailbox website and it will answer a lot of your questions.

America's Mailbox

We used a Montana LLC and a Nevada domicile for over a decade and it worked well for us as we purchased several motorhomes and cars during that time ...again, the main purpose for a Montana LLc is to legally "avoid" sales taxes on vehicle purchases. Registration is not that much of a savings in MT.



eta: You will not have any issues out on the road pertaining to registration. Remember, the only state that really cares about "how" your vehicles are registered is your "home" state. It isn't a priority of an LEO in another state to worry about how your vehicles are registered unless you are a resident of that particular state. Register your vehicles correctly in the state you call your domicile and you will be good anywhere in the country.
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Old 06-09-2021, 12:35 PM   #4
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Quote:
Originally Posted by bigotex View Post
I live in Texas where they charge 6.25% sales tax and hefty registration fees.

Which state if better ? Have you had any issues while out on the road due to your registration ?
The best answer depends on your plans. If you plan to go fulltime and spend little time in TX, then you could well be ahead of the game to go the LLC route but if you will only use the new coach part of the year, with it sitting on your property in TX the remainder you will need to register and insure it in TX to be legal. The law states that an RV or other vehicle must be registered in the state where it is garaged.
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Old 06-09-2021, 12:40 PM   #5
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You can disregard some of my previous comments as I just assumed that you were planning on going full-time which may not be the case. It just sounded that way when I first read your opening post.
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Old 06-09-2021, 12:42 PM   #6
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You can disregard some of my previous comments as I just assumed that you were planning on going full-time which may not be the case. It just sounded that way when I first read your opening post.
Everything you posted was spot on.....


Question OP needs to answer/clarify is going FT NOW or just planning in future or not at all

Those factors play significantly in yeah/nea on LLC
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Old 06-09-2021, 12:57 PM   #7
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If you want to save money look for a vintage pre-DEF MH and TOAD.

Just got new tabs for the MH, TOAD, and boat for $250 near Walla Walla. No income tax in either WA or NV. Not that it matters because I pay little or income tax.

Shop in Oregon. Not because of no sale tax, but because it is closest Walmart.

Texas is one of my favorite places to save on sales tax. There is no tax for dry camping on Crystal Beach GOM. Many free campsites in TX. Lots of nice parks at $15 with hookups.

I have no problem living on social security. Run out of time enjoying life before money.

There are many beautiful places that are not expensive. The expensive places are often overcrowded. NYC, DC, and California for example. I go those places to visit beautiful children.
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Old 06-09-2021, 01:02 PM   #8
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We plan ongoing full-time and not owning TX property

Thanks for all the info.
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Old 06-09-2021, 01:22 PM   #9
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Thanks for all the info.
Thanks for coming back and clarifying. Yes, if you don't plan on having any physical ties to TX ...real estate-wise, I'd recommend looking at South Dakota. Even though Texas is on of the more popular domiciles for full-timing (another no income tax state), as you have mentioned, it does have rather high vehicle registration and relatively high sales taxes.

If you wanted to keep your Texas domicile, you could still look into setting up a Montana LLC but as in any other state when using a Montana LLC, you will want to be certain that you spend very minimal time in Texas.

Again, the primary purpose for using a Montana LLC is to legally "avoid" sales taxes on the purchases of your vehicles. If you're not purchasing an expensive motorhome or plan to turn over your motorhome (if you want to have a brand new Provost-based diesel pusher every 3 years or so) or plan to buy brand new toads every two or three years, a Montana LLC may not be of that much benefit.

And again, using a Montana LLC, it is a MUST to spend very little time in the state you call your domicile.

So if you are planning on purchasing a "moderately -priced" RV and toad and plan to keep them for a long time, it most likely will not worth using a Montana LLC. Just bite the bullet and pay the sales tax in the state you call your domicile and enjoy your travels.

Traditionally, the most popular states for full-time RV domicile have been SD, TX, FL, and NV ...again, all no -income tax states. However, not all no -income tax states are good for full-time domicile. Washington state, for example, is not a good state for retirement, or full-time RVers and definitely not one where you would want to use a Montana LLC despite the fact of it being a no -income tax state.
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Old 06-10-2021, 05:46 PM   #10
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You also need to consider health insurance laws and costs in any given state. Also liability and comprehensive insurance on your motorhome
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Old 06-12-2021, 01:55 PM   #11
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We're full timers and domiciled in Florida. Set up a LLC for both the RV and Toad with $49 Montana Registered Agent in Kalispell, MT (who are great to work with). This past April we were back in Crestview, FL and switched our LLC and registered it in Fl (which you can do in 6 months and 1 day w/o paying any taxes). Our mailing service is though MyRVmail.com (also good to work with).
Since our purchase in Sept 2019, we've been in CA, OH, IN, NY, IL and many other states w/o any issues.
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Old 06-13-2021, 09:00 AM   #12
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LLC

I like that idea. Thanks!
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Old 06-13-2021, 05:01 PM   #13
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If you want to save money look for a vintage pre-DEF MH and TOAD.

Just got new tabs for the MH, TOAD, and boat for $250 near Walla Walla. No income tax in either WA or NV. Not that it matters because I pay little or income tax.

Shop in Oregon. Not because of no sale tax, but because it is closest Walmart.

Texas is one of my favorite places to save on sales tax. There is no tax for dry camping on Crystal Beach GOM. Many free campsites in TX. Lots of nice parks at $15 with hookups.

I have no problem living on social security. Run out of time enjoying life before money.

There are many beautiful places that are not expensive. The expensive places are often overcrowded. NYC, DC, and California for example. I go those places to visit beautiful children.
Really, we live in Kennewick and just renewed for our toad and MH, and was more than what you just said.
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Old 06-14-2021, 09:16 PM   #14
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Really, we live in Kennewick and just renewed for our toad and MH, and was more than what you just said.
I think you are paying for a new bridge. In the Seattle area it is rapid transit.

Friends in Richland with the sailboat next to mine were gripping about the levy on their boat tabs for the new bridge.

There is also a use tax on motor vehicles. Since my MH and TOAD are exempt because they are 'vintage'.

My experience living different places is that high taxes does not buy good goverment. However, good goverment often provides services at a lower cost.
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