Montana LLC question

[Shomeyankee]

Originally Posted by Gary RVRoamer

If you intend to keep the RV in your home state, chances are the Montana LLC is not going to avoid taxes there. Most states have laws covering this sort of thing, to make sure they get their pound of flesh regardless of where the vehicle is titled and registered. If you keep it in the state and drive it there, they will probably come after you for the taxes and fees sooner or later.

Gary - You are so right.............everyone should beware when creating a Montana LLC..........I thought I was going to be so smart and avoid taxes in Missouri and they found me. No idea how, but they found me. In process now of disolving Montana LLC and going through pain-staking process of re-titling in State of Missouri. Huge administrative hassle and $1000 mistake. While there may be some legal loop holes that will past muster, it's not worth it................seems people are not only jealous of those that own motor homes but get down right angry when they see Montana plates driving around the state of Missouri. EVERYONE NEEDS TO DO THEIR RESEARCH BEFORE ESTABLISHING MONTANA LLC

[swampdog2]

If you do it correct then you will be ok .first set up LLC. then get fed tax I.D. then open checking account in Mont. and pay cash for M/H then you will not own it the LLC. owns owns it and no state can dispute that.where most people get caught is the finance in their name and addresss in the state they live in and that's not legal, in fact it's fraud but there is no law against borrowing or renting a rv from a out of state co.or llc

[RickO]

Originally Posted by swampdog

If you do it correct then you will be ok .

Hi Swampdog, Are you sure that is the case in all states?

Rick

[Big Bear Local]

I liked the Idea of just moving to Montana.

[ralper]

I bought my truck in NY. I bought my 5er in KS. 8.5% sales tax in both states. I got temporary licenses on both and went to SD. I registered both and paid 3% tax once with no further bother. I saved over $5000.00 in taxes. Is it cheaper to do the MT thing. Probably but it is a thing that needs yearly attention. I can't be bothered. At the same time I obtained my SD driver's license and became an official SD resident. I am a full timer.

[KIX]

There is a difference between avoiding tax and evading tax. Avoiding tax is a good thing ....... evading tax not so much

[Romeo]

Originally Posted by Route 66

That's it in a nutshell.

Well that's that then... I am tearing up the "offer to purchase" Route 66's rig that I was just preparing.

I refuse to pay the State of Washington $13,600 in sales tax for the privilege of buying a motorhome.

Sorry 66...

[GaryKD]

Hi Romeo,

I'm not sure why anyone would avoid a purchase because of the taxes incurred by that purchase. I only know Florida. However, human nature being what it is, every state law will, most likely, have methods of avoiding or at least minimizing taxes. Remember who writes the laws. One can not go willy nilly into tax avoidance without educating himself or hiring one who is educated in these matters.

States must compete for a residents business. Unfortunately, many states do not realize this or do not care. Orchestrating any purchase to avoid uncompetitive taxes is good. Research your home state and determine how to obey the law and then make your decisions. My home state is Florida. The tax laws were written for the very wealthy who own multi million dollar boats and airplanes. Fortunately, purchasers of RVs can also take advantage of the same laws. On this topic, Florida laws are posted on their web site. If I can obey Florida law and not pay tens of thousands of dollars in tax, by golly I am the first in line.

I own LLCs. They are orchestrated to minimize tax and liability risks. My tax bills are many, many thousands of dollars each year. I'm not about to pay any more than my fair share. My fair share is determine by the laws of the state and federal governments.

Obey the law, and not one penny more.

[swampdog2]

HI Rick no i'm not sure but think about it ? if abc LLC. loans you their R/V or in fact you go and rent one from a rental place how can the state of lets say calf. make you pay sales tax on the purchase price that abc llc. paid for it.
now! i did not say they won't try but i don't think they would win in court . on the other hand if you finance it in calf. and make the payments with your check with your address on the check then you are in a heap of trouble cause thats tax fruad.also if abc leaves thar r/v parked in your state over 90 days then by law in most stares abc is suppose to register in that state.if i were to purchase a half million $ r/v i would do the LLC.But! i would do it right
1-llc
2-fed tax id for the llc
3- open bank account in llc name in Montana
4-use llc check to pay for r/v
5-insure r/v in llc name with Montana ins. agent
now! if you do it that way what state can come back on you ?

[RickO]

Originally Posted by swampdog

HI Rick no i'm not sure but think about it ? if abc LLC. loans you their R/V or in fact you go and rent one from a rental place how can the state of lets say calf. make you pay sales tax on the purchase price that abc llc. paid for it.
now! i did not say they won't try but i don't think they would win in court . on the other hand if you finance it in calf. and make the payments with your check with your address on the check then you are in a heap of trouble cause thats tax fruad.also if abc leaves thar r/v parked in your state over 90 days then by law in most stares abc is suppose to register in that state.if i were to purchase a half million $ r/v i would do the LLC.But! i would do it right
1-llc
2-fed tax id for the llc
3- open bank account in llc name in Montana
4-use llc check to pay for r/v
5-insure r/v in llc name with Montana ins. agent
now! if you do it that way what state can come back on you ?

Thanks Swampdog. I hear you. That's logical and makes perfect sense. It's not for everybody but i can certainly see the benefits.

Rick

[a k]

The dealer you bought the motorhome from turned you in. Mo state audits all sales, that's why you buy from an out of state dealer. Tell them it's based out of Montana. Do you have anyother members in you LLC? Get one from out of state and add them on.

[akadeadeye]

Originally Posted by GaryKD

Hi Romeo,

I'm not sure why anyone would avoid a purchase because of the taxes incurred by that purchase. I only know Florida. However, human nature being what it is, every state law will, most likely, have methods of avoiding or at least minimizing taxes. Remember who writes the laws. One can not go willy nilly into tax avoidance without educating himself or hiring one who is educated in these matters.

States must compete for a residents business. Unfortunately, many states do not realize this or do not care. Orchestrating any purchase to avoid uncompetitive taxes is good. Research your home state and determine how to obey the law and then make your decisions. My home state is Florida. The tax laws were written for the very wealthy who own multi million dollar boats and airplanes. Fortunately, purchasers of RVs can also take advantage of the same laws. On this topic, Florida laws are posted on their web site. If I can obey Florida law and not pay tens of thousands of dollars in tax, by golly I am the first in line.

I own LLCs. They are orchestrated to minimize tax and liability risks. My tax bills are many, many thousands of dollars each year. I'm not about to pay any more than my fair share. My fair share is determine by the laws of the state and federal governments.

Obey the law, and not one penny more.

Amen!

Don

[Romeo]

Originally Posted by GaryKD

I'm not sure why anyone would avoid a purchase because of the taxes incurred by that purchase.

HI Gary,

Well here is why I would avoid a purchase. I currently live in Washington with a 8.5% sales tax. If I buy a $250,000 motorhome the State tells me I have to come up with an additional $21,000 to be able to buy the rig. It seems like just throwing away $21K... getting nothing for it in return. I guess that's why Washington came up with term "Use Tax" and work that term in stating that if Sales Tax hasn't been paid, one will have to pay Use Tax at the same rate as State Sales Tax.

Now, if I wait until I retire (which I could do any time I so desire) and move to Oregon where I grew up, I would save the $21K since Oregon doesn't have a sales tax. I could also move 100 miles East to Montana and not pay sales tax.

In responding here, and since I brought up the retirement thing, I had to do some googleing research to support my thinking. That googleing opened up a whole new world to consider prior to retirement... such as "home basing". I am now having to consider a lot more than sales tax on a motorhome. eeeech!

I think I will just keep working and live with a single-slide-2000-Dutch Star.

[GaryKD]

Hi Romeo,

Thanks for the reply.

Life is most complicated for those of us in the middle class. The wealthy do not worry about these things as they hire people to figure it out. The poor do not worry about these things as they have no means by which they can consider the transaction. Only the middle class are the ones that must both earn their own nest eggs and then personally protect them from assaults from behind every tree, bush and building.