Montana LLC pros/cons

[wnytaxman]

Originally Posted by Dale & Mark Bruss

Company/Corporation doesn't change state vehicle registration requirements.

Actually it does change it. A corporation is strictly a business or non-profit entity while an LLC is an asset protection entity. That situation and interpretation will vary by state. Now that being said, I should clarify. Some states, such as NY and FL and I'm sure there are others, use the caveat that if the vehicle is owned by ANY entity that is also owned by residents of that state and the vehicle is used within the state then that vehicle is subject to that state's sales and use tax. The registration is a separate issue. Where most people get nipped is on the sales and use tax rules.

[Dale & Mark Bruss]

Isn't that what I said? The states care about "garage" status for registration.

[wnytaxman]

There is a big difference between registration and sales and use tax laws. I can be legal with a Montana registration in a state like NY but be afoul of the sales and use tax laws. Being in violation of the registration laws will get me a fine but being in violation of the sales and use tax laws can even garner a felony conviction which is rare, but is allowed under the law.

This is where the big problem with the Montana LLC's comes into play for non-full timers. Perhaps one can be legal on a basis of registration but be illegal on the basis of the sales tax laws.

[MTSam]

BINGO!!

Originally Posted by Dutch Star Don

There is also a moral issue.....you pay local and State taxes for service such as fire (rescue) and police service. When you try to circumvent those taxes, you cheat yourself and everyone else in your community. Typically, the guy that tries, will be the first to complain that there were cut backs in fire service. Heck, the service cut back could be the very thing that costs you your life when you need a paramedic in a timely manner.

[wnytaxman]

Originally Posted by Dutch Star Don

This topic comes up every month or so. It's really pretty easy to describe it's use. If you're a full timer you can use the LLC for registering and tax issues regarding your coach. If you're not a full timer, you're state is not going to allow you to use an LLC. I know several people will come up with a dozen cockamamie stories why it will work, but basically, it's illegal in every State. Basic law.....if your coach is housed in your State for the majority of the year, you must pay taxes in that State.

There is also a moral issue.....you pay local and State taxes for service such as fire (rescue) and police service. When you try to circumvent those taxes, you cheat yourself and everyone else in your community. Typically, the guy that tries, will be the first to complain that there were cut backs in fire service. Heck, the service cut back could be the very thing that costs you your life when you need a paramedic in a timely manner.

I understand the moral issue, but if you take it a step further, what about passing through a state and never spending any money there? For example, we go through the 47 miles of Pennsylvania that I-90 traverses. I don't stop to fuel up in PA because it's really expensive now. So I have used the highways of PA and if I have an issue, I will use the emergency services of the Commonwealth, but I have paid nothing. So morally, should I stop in every state I pass through to fuel up to pay my "fair" share of the local tax burden?

If someone is in compliance with the law then they are not robbing anyone of any tax dollars. If they are not in compliance then they are taking the chance that they will get caught and pay the fines, interest, and the appropriate taxes which will enrich their state even more.

The OP had an issue with the registration fees and wanted to know if there was a legal way to circumvent that cost. General consensus is that there isn't a legal way to do so.

[WeekendRVers]

From Florida Sales and Use Tax on Motor Vehicles

However, the partial exemption is allowed for corporations or partnerships when the motor vehicle is removed from Florida within 45 days after purchase and remains outside Florida for a minimum of 180 days, regardless of the residency of the owners or stockholders of the corporation or partnership.

[wnytaxman]

Originally Posted by WeekendRVers

From Florida Sales and Use Tax on Motor Vehicles

However, the partial exemption is allowed for corporations or partnerships when the motor vehicle is removed from Florida within 45 days after purchase and remains outside Florida for a minimum of 180 days, regardless of the residency of the owners or stockholders of the corporation or partnership.

Florida does have a very unique way of avoiding the sales tax. I know of no other state that allows that type of exemption. There may be one but I would be surprised. California has a unique opt out also regarding time out of the state. I wish NY had something similar as our sales tax rate is 8.75% here in Erie County. That buys a heck of a lot of diesel fuel!

[WeekendRVers]

Originally Posted by wnytaxman

Florida does have a very unique way of avoiding the sales tax. I know of no other state that allows that type of exemption. There may be one but I would be surprised. California has a unique opt out also regarding time out of the state. I wish NY had something similar as our sales tax rate is 8.75% here in Erie County. That buys a heck of a lot of diesel fuel!

That and plus NY State Income tax = a heck of a lot of diesel! Time to move to Florida or Texas.

[wnytaxman]

Originally Posted by WeekendRVers

That and plus NY State Income tax = a heck of a lot of diesel! Time to move to Florida or Texas.

Not for a little while yet Joe. Still working and my clients might be a bit upset having to go to Florida or Texas for their tax appointments....but then on second thought, maybe they'd enjoy it!


Ed

[awol50]

If you never set foot in your real state of residence you might get away with it.
But probably not legal.
I squeeze a dime pretty hard. And I won't do it. Not worth it. Bite the bullet and stay legal.

[Murf2u]

A friend of my fathers found an interesting way around high VAT and use taxes on his spendy high end motorhome, he registered it in Canada!

It costs him about US$100 a year for tags and his insurance is about US$200 a year more, but there's no other costs.

[jimbo2013]

Montana LLC are the only way to go, worked great

[WeekendRVers]

Originally Posted by wnytaxman

Not for a little while yet Joe. Still working and my clients might be a bit upset having to go to Florida or Texas for their tax appointments....but then on second thought, maybe they'd enjoy it!


Ed

It would be a write off Ed

[wnytaxman]

Originally Posted by WeekendRVers

It would be a write off Ed