Community Forums

OSUdsdp4304 · 11-14-2021, 10:51 AM

Curious on your experiences in registering your motorhome in Montana while residing in another state. We live in Oklahoma.
1. Did you take title of motorhome in the Montana LLC name at the dealer?
2. Did you use a Montana lawyer or other service to set up the LLC and maintain the LLC presence in Montana?
3. Your other personal advice on considering the Montana LLC option.

twogypsies · 11-14-2021, 11:10 AM

You might want to read over past posts on this subject:

https://www.google.com/search?q=mont...earch=irv2.com

Solo_RV_Guy · 11-14-2021, 11:33 AM

Quote:

Originally Posted by OSUdsdp4304

Curious on your experiences in registering your motorhome in Montana while residing in another state. We live in Oklahoma.
1. Did you take title of motorhome in the Montana LLC name at the dealer?
2. Did you use a Montana lawyer or other service to set up the LLC and maintain the LLC presence in Montana?
3. Your other personal advice on considering the Montana LLC option.

First, follow the search link twogypsies provided...

Second... if the vehicle is "principally garaged" in Oklahoma, Okla will want their tax and registration money and *could* pursue charges if the OTC felt there was tax evasion. Whether or not you'd get caught is the gamble.

That said, if you're full-timing and the RV doesn't spend the statutorily required number of days (60? 90?) in Okla to require registration, you're all good.

The friction comes when folks want the tax advantage of the Montana LLC while keeping it in one spot for an extended period. There have been reports of various other state's tax authorities specifically targeting high value vehicles with Montana plates for proof they are not being tax-sheltered illegally.

I take it you're subject to the 3.5% sales tax from Stillwater?

UTTransplant · 11-16-2021, 07:26 AM

Just remember tax avoidance is legal, tax evasion is a crime. If you have a legal domicile in Oklahoma, there are an awful lot of things that can move the “avoidance to “evasion.” Best talk to an OK tax specialist before deciding. If you do it wrong, OK will come after you for the tax you would have paid plus penalties.

Country Road · 11-17-2021, 06:57 AM

Quote:

Originally Posted by OSUdsdp4304

Curious on your experiences in registering your motorhome in Montana while residing in another state. We live in Oklahoma.
1. Did you take title of motorhome in the Montana LLC name at the dealer?
2. Did you use a Montana lawyer or other service to set up the LLC and maintain the LLC presence in Montana?
3. Your other personal advice on considering the Montana LLC option.

I think this Montana LLC is interesting, but for me, I don’t like surprises. When that letter shows up in the mail from your home state DMV, that wouldn’t be good. If you can’t afford the tax, that’s another reason that you probably shouldn’t venture into owning an RV. Of course, that’s just my opinion.

Cat320 · 11-18-2021, 05:58 PM

My state comes down hard on RVers who tag their coaches out of state to avoid the outrageous state, county and city taxes.

RV Vagabond · 11-20-2021, 09:02 PM

I have bought 2 new vehicles from dealers in other states and registered them in my Montana LLC plus transferred license on another vehicle to Montana. The dealer gave me a temporary cardboard license plate and a certificate of purchase or whatever it is called plus the invoice. You send the certificate to the Montana vehicle registration office or a service company to get it registered and then they mail you your license plate. The dealer does not charge sales tax or registration fees, as that is your responsibility to get it done directly with Montana. No lawyer was used even for establishing the LLC - paperwork you need to file is easy to do yourself, although you do need to research what is needed.

IND2SLC · 11-20-2021, 10:03 PM

Isn't always insurance-friendly is what I learned.

MtCamper · 11-21-2021, 05:02 AM

I bought my fifth wheel in Washington State. They sent the title paperwork to the DMV in the county I planned to register it in. No sales tax. I went to the DMV and paid @$250 for permanent license plates. No more fees or tax as long as i own it. Same thing applies to any motor vehicle over 10 years old. I've found Montana to be quite tax friendly. Of course we are very careful whom we send to the legislature as to how they want to spend our money. Property taxes can be fairly high depending on the county and city in which you own property. BTW, I'm a lifelong Mt resident. Using an LLC to avoid paying the tax where you live is cheating. Plain and simple. You voted for the people that passed the tax and spend laws. You need to live with the mess you helped create.

becks · 11-21-2021, 07:54 AM

So how about those folks who don't live in any one place, own no property other than their MH and just travel?

UTTransplant · 11-22-2021, 12:44 PM

Quote:

Originally Posted by becks

So how about those folks who don't live in any one place, own no property other than their MH and just travel?

This is the situation where the Montana LLC makes sense, at least as if you also domicile in Montana. Otherwise your domicile state may consider it tax evasion.

Hurricane-TX · 11-22-2021, 12:59 PM

I hate paying excessive taxes as much as the next person but to me if a person lives in a state with 'fair' taxes, then I say pay them. If you live in one state and like the tax advantages of another state, I say move to the other state. To not pay your due in the state you reside in is doing a disservice to your neighbors that do pay. I would also suggest that if you are not paying your share to the state you reside in you should not have the right to vote in that state.

Solo_RV_Guy · 11-22-2021, 05:22 PM

Since we're veering a bit... it kind of comes down to "you have to be from somewhere", but do you, really? Legally, yeah, kinda and yes. After 9/11 our electeds passed laws requiring physical addresses for bank and investment accounts and other services, perceived as 'helping the war on terrorism.' So one has to have a physical address (and for some things a mail service address is sufficient, for other things, not).

If one full times in their RV, owns no real estate, home is where you park your house at, but you still need a 'domicile' address. All the laws and regulations of that place become yours to follow, for benefit and otherwise.

The primary reason folks use a Montana LLC is Montana's lack of sales tax on RVs. Buying a 6-figure RV while living in a high sales tax jurisdiction can make this look very attractive. Whether or not it constitutes a tax evasion crime depends on the tax jurisdiction being side-stepped and how/where/when the RV is stored/used and the owner's domicile (see above).

IOW, one size does not fit all. Each prospective buyer needs to have an honest and independent legal review (meaning - pay a lawyer & accountant, don't rely on laymen from the internet) in the buyers state of residence (or domicile) about the implications of undertaking registering and insuring the RV in Montana.

jrs · 11-27-2021, 10:27 AM

Quote:

Originally Posted by becks

So how about those folks who don't live in any one place, own no property other than their MH and just travel?

It was a great option for us (we full time). Also registered the toad which we already owned to the LLC so both plates matched. Been in many states mentioned including CA, IL, IN and NY without any issues. Also a CA border Agent entered our rig when we went from AZ to CA and been followed by the police on occasion also.
Florida is a great state to domicile in because after the rig is 6 months plus 1 day old, you can register it w/o paying any sales tax. We switched to FL this past April.
Had zero problems getting insurance.
Don't need a lawyer and we went with the $49 Dollar Montana Registered Agent who were great to work with in setting it up.
Also met other LLC full timers who also had a positive experience.