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09-21-2013, 09:34 AM
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#1
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Senior Member
Join Date: Sep 2013
Location: Az
Posts: 137
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New full timer ,sales tax issue
Ok, my situation is as follows. Presently ia resident, sold primary residence, purchased diesel pusher 3 weeks ago in ok., want to remain a resident of ia for time being however am considering forming a llc in Montana, I have title but have not registered motorhome yet. My main question is this, can I form a llc myself (am not a attorney) or do I have to have attorney in Montana do this for me? I have researched ia law and feel that we can comply with thier rules, such as the 90 rule. Has anyone done this them selves or could you recommend someone to help me on this. This has been quite a learning curve for me (full timing) but I am trying. Thanks in advance. Roger
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09-21-2013, 11:44 AM
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#2
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Senior Member
Fleetwood Owners Club
Join Date: Dec 2011
Location: Willow Lakes RV & Golf Resort, FL
Posts: 3,163
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There have been many post regarding, LLC Montana residency or lack of. Please try the google search top right hand on the one page. You'll find page after page regarding this subject!
__________________
Clay & Pebble
2012 Providence 42 M. Spartan Chassis, 450 ISL
Ford Edge toad, RM All Terrane, TST TPMS, SMI Air Force One, RVM95....
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09-21-2013, 11:56 AM
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#3
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Senior Member
Solo Rvers Club iRV2 No Limits Club
Join Date: Feb 2011
Location: Yuma County, AZ
Posts: 10,869
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Roger,
Be VERY careful! Many states are denying the Montana LLC to escape paying state taxes and are suing RVers for the taxes and big penalties. I chose to become a South Dakota resident using My Home Address, Inc as my mail forwarding service. They handled all my vehicle licensing before I could get up to SD. To me, paying 3% was worth it not to have to worry about getting a subpoena at some later date.
SD also has low insurance rates due to the smaller population. And they exempt full-timers from jury duty. Have you calculated the bottom line? You might find it cheaper?
__________________
Barb (RVM18) with Morkies Lily & Bebe RIP Sena FMCA#F466348
"Homer" ‘11 Shasta Cynara, pulling "Ranger" '97 Ford Ranger toad
The Journey is Our Destination. Full-timer May 2011 - July 2021
[SIGPIC][/SIGPIC]
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09-21-2013, 11:56 AM
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#4
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Moderator Emeritus
Join Date: Jan 2000
Location: West Palm Beach, FL. USA
Posts: 27,704
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You aren't required to have an attorney do it, but that's probably by far the easiest way. There are attorneys who specialize in these LLCs and can get things done promptly while you are still stumbling through the maze.
But you said you want to retain IA residency for awhile, and that puts you in serious danger of a tax evasion charge by IA. I won't belabor you about that - it's your call - but if you and the motorhome are in IA, you are probably liable for taxes there.
__________________
Gary Brinck
Former owner of 2004 American Tradition and several other RVs
Home is West Palm Beach, FL
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09-21-2013, 11:59 AM
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#5
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Senior Member
Solo Rvers Club iRV2 No Limits Club
Join Date: Feb 2011
Location: Yuma County, AZ
Posts: 10,869
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__________________
Barb (RVM18) with Morkies Lily & Bebe RIP Sena FMCA#F466348
"Homer" ‘11 Shasta Cynara, pulling "Ranger" '97 Ford Ranger toad
The Journey is Our Destination. Full-timer May 2011 - July 2021
[SIGPIC][/SIGPIC]
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09-21-2013, 05:04 PM
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#6
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Senior Member
Newmar Owners Club
Join Date: Jul 2006
Location: Wellington, Florida
Posts: 13,599
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Hi Rog1965char,
Montana will be no problem. Iowa may be a problem. You need to thoroughly understand Iowa DMV and sales tax law. For me (and I do own LLCs) hire an attorney in Iowa and in Montana. The Iowa attorney will tell you in the first consultation visit all you want to know. My domicile is Florida. The law is simple to understand and comply with. Iowa may be different.
__________________
Gary
2005 Newmar KSDP 3910 + GMC ENVOY XUV 37K lbs Moving Down The Road
The Avatar Is Many Times Around The USA
Nobody Knows Your Coach Like Somebody Who Owns One Just Like Yours
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09-21-2013, 05:17 PM
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#7
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Senior Member
Thor Owners Club Ford Super Duty Owner
Join Date: Apr 2012
Location: Wherever the rig is parked
Posts: 8,092
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Quote:
Originally Posted by okmunky
Roger,
Be VERY careful! Many states are denying the Montana LLC to escape paying state taxes and are suing RVers for the taxes and big penalties. I chose to become a South Dakota resident using My Home Address, Inc as my mail forwarding service. They handled all my vehicle licensing before I could get up to SD. To me, paying 3% was worth it not to have to worry about getting a subpoena at some later date.
SD also has low insurance rates due to the smaller population. And they exempt full-timers from jury duty. Have you calculated the bottom line? You might find it cheaper?
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Exactly what we did. Americas Mailbox handled our vehicle registrations remotely, then we flew in to Sioux Falls for one night and got our SD Driver Licenses.Yes, we had to pay 3% tax on the vehicles, but absolutely worth it for peace of mind. There is no way we would consider going the Montana LLC route, way too many pitfalls and uncertainties.
__________________
Bruce Dickson 2013 Thor Challenger 37GT, 5 Star Tune, Safe-T-Plus Steering Control with Air Trim, Roadmaster front and rear Sway Bars, SuperSteer rear Track Bar, Crossfires, 2018 Honda CRV . Full timers since Jan 2012.
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09-21-2013, 05:46 PM
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#8
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Senior Member
Join Date: Mar 2012
Posts: 194
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A lot of Full time RVers, as posted above domicile either in South Dakota, Florida, or Texas. Just have to choose which is right for you.
Best of luck.
Scott
__________________
Scott Stielow IC1(SW) USN Retired
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09-21-2013, 05:52 PM
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#9
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Senior Member
Entegra Owners Club
Join Date: Sep 2012
Posts: 6,695
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Quote:
Originally Posted by Scotty14
A lot of Full time RVers, as posted above domicile either in South Dakota, Florida, or Texas. Just have to choose which is right for you.
Best of luck.
Scott
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And SD has the lowest sales tax..3%, and honors the sales tax if you paid it in another state. tags run from about $75 for a 5 year old MC, to $150 for a new pickup and $475 for a coach as you see below. Every year, but no other personal property tax or state income tax. A good choice.
__________________
Dave and Beth
2015 Cornerstone 45J
2020 Ford F-150 Lariat
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09-21-2013, 06:53 PM
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#10
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Senior Member
Join Date: Apr 2010
Location: Western NY
Posts: 3,809
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Quote:
Originally Posted by Rog1965char
Ok, my situation is as follows. Presently ia resident, sold primary residence, purchased diesel pusher 3 weeks ago in ok., want to remain a resident of ia for time being however am considering forming a llc in Montana, I have title but have not registered motorhome yet. My main question is this, can I form a llc myself (am not a attorney) or do I have to have attorney in Montana do this for me? I have researched ia law and feel that we can comply with thier rules, such as the 90 rule. Has anyone done this them selves or could you recommend someone to help me on this. This has been quite a learning curve for me (full timing) but I am trying. Thanks in advance. Roger
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Roger,
It sounds like you have done a lot of your homework ahead of time. Make sure that you document your compliance with the Iowa rules. Failure to document your compliance can blow the whole thing, so be aware.
We have had clients ask us to either incorporate them or form LLC's for them. We are CPA's, not attorneys. As I tell my clients, saving $1,500 could cost you thousands. If your LLC formation is flawed in any fashion, it could be disallowed and this could be a very expensive problem.
There are a number of attorneys who specialize in the Montana LLC for RVers. Be aware that many will tell you your state's laws but will not represent you if, to paraphrase the old expression, the fertilizer hits the ventilator. It does sound like you have a good handle on your state's DMV laws, but again make sure you document compliance.
Ed
__________________
2018.5 Entegra Aspire 44R-Sold, 2019 Chevy Blazer-Sold. 2022 Genesis GV-80.
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