LLC Montana

[Dubbo]

We are new to RVing and contemplating purchasing a large coach. We heard that forming an LLC in Montana can save sales tax. Does anyone have experience in actually doing it?

[bdickson]

This is being discussed here: http://www.irv2.com/forums/f59/montana-llc-281525.html

[barmcd]

I've only been a member of this forum a little while and this comes up again and again. This subject ought to be a sticky.

[Atom Ant]

Originally Posted by Dubbo

We are new to RVing and contemplating purchasing a large coach. We heard that forming an LLC in Montana can save sales tax. Does anyone have experience in actually doing it?

You might ask these people about their experience. I just pay my taxes.

Colorado catches RV sales tax evaders

http://www.rvbusiness.com/2010/03/ma...v-tax-evaders/

http://www.denverpost.com/2008/05/21...r-tax-evasion/

[twogypsies]

Originally Posted by Dubbo

We are new to RVing and contemplating purchasing a large coach. We heard that forming an LLC in Montana can save sales tax. Does anyone have experience in actually doing it?

If you still live in one state and/or working then it might not be for you. You need to check with your state first.

Full-timers do it because they typically have no other home and don't work. They are not tied to one state. They can register anywhere...some in Texas, some in South Dakota, some in Montana, some in other places.

[RV Vagabond]

If you get a Montana drivers license then you should be fine. Spend a month in a Montana RV park soon after buying the RV and transfer your license while there. They will want to see your rent receipt.

[wnytaxman]

Originally Posted by RV Vagabond

If you get a Montana drivers license then you should be fine. Spend a month in a Montana RV park soon after buying the RV and transfer your license while there. They will want to see your rent receipt.

OUCH!!!! It isn't that easy by any stretch of the imagination. Are you still going to be a "resident" of a given state? In other words, are you going to full-time in your RV? If you are going to be full timing then your path to the Montana LLC will be easier than it is for those who are not full timing.

As has been stated here many, many times, find out the residency laws of your current state. See if you can comply with those residency laws and document your compliance. If you can do both then you may want to go for it. Be aware that you have the burden of proof that you are NOT a resident of your current state. Proving that can be time consuming and expensive.

Is it legal to use the Montana LLC? The answer is yes, but.... Complying with the residency laws of your state is key. Failure to do so can result in you paying not only the tax, but also a hefty penalty and interest. States need money and a perceived tax cheat is an ideal candidate. The state gets their money and they can make an example out of someone who thought they could "beat the system."