Montana LLC?

[BillJinOR]

Best advice is seek a pros advice . There are a couple attny in Montana that deal with this and offer "free" prelim info if you call them. I'm not interested so I never noted them but I'm sure Google can find them. Campfire advice is no good when real hard facts are available esp on a serious matter like doing it right to avoid serious penalties.

[Atom Ant]

Originally Posted by BillJinOR

Best advice is seek a pros advice . There are a couple attny in Montana that deal with this and offer "free" prelim info if you call them. I'm not interested so I never noted them but I'm sure Google can find them. Campfire advice is no good when real hard facts are available esp on a serious matter like doing it right to avoid serious penalties.

Also talk to a tax attorney in your own state. That was one of the biggest issues in the trials - the Montana attorneys could only tell you what is legal in Montana, and neglected to advice the LLC potentials to check their own state laws. Montana attorneys are more than willing to offer all the free preliminary advice you want, they are just trying to make a living. Some of the CO dealers would even fix you right up with a Montana att. Problem was the Dealers had find their own CO attorneys when they got indicted themselves.

[wnytaxman]

Originally Posted by Atom Ant

Also talk to a tax attorney in your own state. That was one of the biggest issues in the trials - the Montana attorneys could only tell you what is legal in Montana, and neglected to advice the LLC potentials to check their own state laws. Montana attorneys are more than willing to offer all the free preliminary advice you want, they are just trying to make a living. Some of the CO dealers would even fix you right up with a Montana att. Problem was the Dealers had find their own CO attorneys when they got indicted themselves.

One of my clients got nailed with the Montana LLC by NY State. He called his Montana law firm right away and their response was that they were not licensed to practice in NY so he was on his own.

As a side note, most tax attorneys are not going to be particularly versed in sales tax and residency law. You will need to find one that specializes in tax issues on the state level or a CPA who also specializes in that area.

[NevadaNick]

What if a person was to rent a room in Mt and didnt bother with the LLC and just had everything registered in thier name ? No different than living anywhere else. I already paid sales tax and am tired of 4k a year registration on the mh, let alone all the other registrations. House is for sale and will probably buy a summer home when it sells and travel mostly.

[wnytaxman]

Originally Posted by NevadaNick

What if a person was to rent a room in Mt and didnt bother with the LLC and just had everything registered in thier name ? No different than living anywhere else. I already paid sales tax and am tired of 4k a year registration on the mh, let alone all the other registrations. House is for sale and will probably buy a summer home when it sells and travel mostly.

It isn't just a matter of renting a room in another state. How long will you be in that state? Can you PROVE that you were in that state more than 183 days? Where is your RV garaged? From what state do you get your income? Where do you vote? Where is your driver's license from? Do you have any income in the state you are now purporting to live in?

Residency is one of the most complex tax issues out there. Remember the burden of proof is on the taxpayer in residency issues. Think about it. How can you prove you WEREN'T somewhere? I've been through a number of the residency audits and they are not fun and they are not easy.

[twogypsies]

There is big confusion here. All three old links that 'Atom Ant' gave in a previous post were regarding Colorado or Massachusetts 'residents' who owned a house in those states, worked in those states and lived in those states enough time that they were required to be residents of those states.

If you fall under those categories then yes, you had better check with a lawyer from the state you live and work and you'll find that most often, there are very strict rules you need to follow.

Most often on these LLC posts, people are talking about full-timers.... or they should be. That's a completely different issue. If you're a 'real' full-timer, you sell your house and have no ties with your previous home state. You are then free to choose whatever state you want to register your vehicles. It is perfectly legal. You need to register somewhere. Very few full-timers stay registered in their previous state for financial reasons. There are other states that are much better, not only Montana. Full-timers need to choose their state by ease of getting medical insurance they can easily travel with, income or other taxes, vehicle insurance rates, etc. Just by choosing a state doesn't require you to stay in that state.

[Atom Ant]

Originally Posted by twogypsies

There is big confusion here. All three old links that 'Atom Ant' gave in a previous post were regarding Colorado or Massachusetts 'residents' who owned a house in those states, worked in those states and lived in those states enough time that they were required to be residents of those states.

If you fall under those categories then yes, you had better check with a lawyer from the state you live and work and you'll find that most often, there are very strict rules you need to follow.

Most often on these LLC posts, people are talking about full-timers.... or they should be. That's a completely different issue. If you're a 'real' full-timer, you sell your house and have no ties with your previous home state. You are then free to choose whatever state you want to register your vehicles. It is perfectly legal. You need to register somewhere. Very few full-timers stay registered in their previous state for financial reasons. There are other states that are much better, not only Montana. Full-timers need to choose their state by ease of getting medical insurance they can easily travel with, income or other taxes, vehicle insurance rates, etc. Just by choosing a state doesn't require you to stay in that state.

Yes, those articles were about people that used the Montana LLC to avoid paying taxes to the state they resided in. Oregon was in there too, but the article is no longer on the web.

Full time doesn't necessarily mean you get to chose as you wish. Technically you are supposed to register and pay taxes in the state you reside in the most. Many nomad workers in CO with SD and Montana plates thought they were off the hook - and they weren't. Be prepared to show receipts for where you have been throughout the year if you get challenged. Some of those people with SD plates had never been to SD in their lifetime.

[wnytaxman]

A full timer does have to be one without a permanent residence, which is generally a real property address. Most states consider you to be a resident if you earn income in that state, reside in that state more than 183 days, or have some other connection to that state that would imply residency.

I believe that those that have South Dakota plates are required to physically be in SD to obtain their driver's license, but others who utilize the SD residency for their full timing can answer this much better than I can.

As to being a work camper, one would just simply file a non-resident tax return in that state. Not a big deal and not one that would suddenly create a sales tax issue on their motor home unless they purchased it while living in the state they are now working in.

[NevadaNick]

If i own a house in a certain state and dont spend much time there but rather spend my time in another state renting, which one is my domicile ? I can live anywhere i choose and still do my job.

[wnytaxman]

Originally Posted by NevadaNick

If i own a house in a certain state and dont spend much time there but rather spend my time in another state renting, which one is my domicile ? I can live anywhere i choose and still do my job.

Generally most states use the 183 day rule. That is, if you spend 183 days in a particular state, then that is your residence. There are exceptions to that rule such as you show intent to never leave your prior state by maintaining a residence in your former state or applying for a resident fishing or hunting license in your former state. I have even seen someone get nailed for back income taxes when they applied for a resident parking permit in their former home state.

If you can earn your income in any state, then you would become a resident of any state in which you spend at least 183 days. If you don't stay in one state for at least 183 days then the next test would be driver's license, voting registration, and even social, professional, or religious organizations to which you may belong. The tests are pretty comprehensive but the reality is that even full timers are a "resident" of one of the 50 states.

[HarleyOutlaw]

Originally Posted by wnytaxman

A full timer does have to be one without a permanent residence, which is generally a real property address. Most states consider you to be a resident if you earn income in that state, reside in that state more than 183 days, or have some other connection to that state that would imply residency.

I believe that those that have South Dakota plates are required to physically be in SD to obtain their driver's license, but others who utilize the SD residency for their full timing can answer this much better than I can.

As to being a work camper, one would just simply file a non-resident tax return in that state. Not a big deal and not one that would suddenly create a sales tax issue on their motor home unless they purchased it while living in the state they are now working in.

In order to obtain a SD drivers license you have to be physically in the state for 24 hours and show a hotel receipt or camp ground receipt to prove that. The DMV will issue a SD drivers license with your SD address on it. We just did this last year and it was simple to do. We then registered all of our vehicles in SD as well as registered to vote. We recently voted via absentee ballot.

[blang]

Originally Posted by NevadaNick

If i own a house in a certain state and dont spend much time there but rather spend my time in another state renting, which one is my domicile ? I can live anywhere i choose and still do my job.

Your domicile is where your driver's license and insurances are based.

[RMD3819]

Originally Posted by rjsupersonic

I have had a Montana LLC for 5 years without any issues. I would not go the LLC route if you live in Washington State or Colorado. We use South Dakota for our mailing/legal address, but we travel fulltime no problem if it is done correctly.

Do you have any idea on RV insurance costs between these two states-SD and MT?

I am thinking about doing the same as you.

[Mrfoto]

Ok, but what about personal property taxes if you claim Montana