Registering and plating RV in another state

[daryl989mich]

You lost me...? My original concern was plating my motorhome in Florida but living in Michigan with Mich drivers license. .....Is your plate and dr license in the same state. Florida says if is ok with them.....but what Mich can do if stopped is a good question. My friend has a LLC out of Montana, and has a Mi dr. License. What can they do to him if stopped. Nothing I would guess.

[Mr_D]

Originally Posted by daryl989mich

You lost me...? My original concern was plating my motorhome in Florida but living in Michigan with Mich drivers license. .....Is your plate and dr license in the same state. Florida says if is ok with them.....but what Mich can do if stopped is a good question. My friend has a LLC out of Montana, and has a Mi dr. License. What can they do to him if stopped. Nothing I would guess.

It won't be the State Patrol that comes after your friend, it will the State of MI looking for their back taxes, fees, interest and fines. It won't be pretty for your friend.

[VAParrothead]

This isn't directly related to the registration of an RV, but rather insurance for it.

What you’re suggesting is a close cousin to insurance rate evasion. This type of fraud occurs when people register for car insurance in one state, but live and operate their vehicles in another. Insurance companies base the pricing of your policy, in part, on where your vehicle is "principally garaged." Meaning, where it spends most of its time. (In North Carolina, “principally garaged” means the vehicle is garaged for six or more months of the year in North Carolina on property which is owned, leased or otherwise lawfully occupied by the vehicle owner. Other states have similar requirements.)

Referring to your example, that's *not* an address where you can receive mail (unless, of course, you actually live there most of the time). I’d suggest consulting your insurance agent and disclose the state of your primary residence, where you have a second home and the state where the vehicle is principally garaged. Simply be honest about where the RV spends most of its time.

I write about insurance for a living, and I can almost guarantee that if you intentionally misstate the address where your vehicle is "principally garaged," you'll find that your insurer can, and will, cancel your policy retroactively for making a fraudulent statement on the insurance application if they find out. And if there's an accident? *That’s* when they can take a really close look at where your car is “principally garaged.” If they find fraud, they're going to be on solid legal grounds when they deny your claim – and any claims from injured third parties – on the same basis. Meaning, of course, *you* would be paying all those bills.

[LJowdy]

It's been said and said again that the Insurance Co can't "not" pay a claim but, they can cancel you immediately after. Holds true if you drive a coach over 40' and your state requires a Non Commercial Class B. They will pay the claim but probably cancel your policy afterwords.

So back to the issue of "living" in one state and having the coach registered in another. I'll repeat myself. It's against the law and even with a LLC it's against the law. All they have to prove is that your permanent address is in their state. In California and many other states, if you have a vacation home and claim that as your residence and register and insure the coach in that state but keep the coach in CA and you actually live in CA, they will sniff you out and hit you for back registration, penalties and interest.

I have a friend who did just that against my advice. Cost him over $10,000 once CA got done with him.

It's just not a wise thing to do.

[TXTiger]

If your RV is in an LLC you do not own it, the LLC is the registered owner. You would title the vehicle in the state that the LLC is registered in and you would have to have insurance in that state. An LLC is a legal entity and can be in another state other than where you live. Your drivers liscense is in your name not the LLC and would be in the state of your domicile. You can have more than one residence but only one domicile.

[LJowdy]

Think again (If you're in CA) They want their money and have successfully proven that a LLC is a ploy to "rob" them of their money which is ironic because they've robbed every fund withing the state (road tax, gasoline tax, off road fee's, etc etc) CA politicians need your money.

You may want to read this article dealing with LLC's

https://thegarage.jalopnik.com/the-p...cam-1711216059

[wnytaxman]

This subject comes up a lot and tends to generate about as much accuracy as a televised political debate.

First off, most people do not really understand what an LLC is. It is an unincorporated entity which has limited liability. It is not necessarily a business and is really an asset protection entity. For federal tax purposes it is stated as a diregraded entity, or a tax nothing. If I’m self-employed and I file a schedule C I would still file a Schedule C after becoming an LLC. The only difference would be the letters “LLC” after my name.

Is the use of a Montana LLC illegal? The answer to that is that it depends. For you to know if it is legal you need to know the residency, licensing, and sales tax laws of your state. Here in NY it can be done legally as long as I never bring the rig into NY. Needless to say, that is more than just an inconvenience. Some states like South Dakota appear to be much more lenient on going after the Montana LLC’s that own RV’s. It should be noted that Montana has also added a new fee of $825 per year for a period of ten years on any vehicle registered in a Montana LLC with an MSRP of more than $300,000.

The bottom line is that the Montana LLC can be used, but you really have to know what the law is in your state. Some folks use them illegally and never have an issue. Others get nailed very early on. One of my clients falls into that last category. It’s expensive if you get caught. Even if you do it legally you may have to defend your usage of the Montana LLC which can also be costly. In tax matters the burden of proof is on the taxpayer, not on the state.

[OCM]

When I got my MH, I put my sister, who lives in GA on the title as co-owner, licensed and insured it on my sisters policy, listed me as "Other Insured", Paid the sales tax, and plated it in GA. I live in Colo., but travel back East several times a year, most of the time with my sister, BIL, daughters, grand kids along for the ride. So far has worked for me, saving close to $1000.00 annually. Plus if anything happens to me Sis gets the MH no problem.

[daryl989mich]

I started this post with the purpose of finding a legal way to lower my annual costs of operating our motorhome. I will always take the high road of honesty.....but when I find a ethical and moral way to save money I will take it. Looking over one's shoulder in fear of being caught for doing something questionable is very costly in so many ways.

[goingtoenjoy]

Originally Posted by wnytaxman

This subject comes up a lot and tends to generate about as much accuracy as a televised political debate.

First off, most people do not really understand what an LLC is. It is an unincorporated entity which has limited liability. It is not necessarily a business and is really an asset protection entity. For federal tax purposes it is stated as a diregraded entity, or a tax nothing. If I’m self-employed and I file a schedule C I would still file a Schedule C after becoming an LLC. The only difference would be the letters “LLC” after my name.

Is the use of a Montana LLC illegal? The answer to that is that it depends. For you to know if it is legal you need to know the residency, licensing, and sales tax laws of your state. Here in NY it can be done legally as long as I never bring the rig into NY. Needless to say, that is more than just an inconvenience. Some states like South Dakota appear to be much more lenient on going after the Montana LLC’s that own RV’s. It should be noted that Montana has also added a new fee of $825 per year for a period of ten years on any vehicle registered in a Montana LLC with an MSRP of more than $300,000.

The bottom line is that the Montana LLC can be used, but you really have to know what the law is in your state. Some folks use them illegally and never have an issue. Others get nailed very early on. One of my clients falls into that last category. It’s expensive if you get caught. Even if you do it legally you may have to defend your usage of the Montana LLC which can also be costly. In tax matters the burden of proof is on the taxpayer, not on the state.

NY is such a PITA . Can not wait until my change of address.

[wnytaxman]

Originally Posted by goingtoenjoy

NY is such a PITA . Can not wait until my change of address.

Yep, it sure is! Imagine what a Pain it would be if you had to deal with NYS Taxation and Finance on a regular basis!