montana llc crackdown california

Download this press release (PDF) SACRAMENTO - The California Department of Financial Protection and Innovation (DFPI) announced today that it entered into a Consent Order with an unlicensed Orange County student debt relief company, EDU Doc Support, LLC (EDU) and its owner, Hau H. Nguyen (Nguyen). The business income, sales tax, etc is to be paid in Arizona. Thank you to everyone who responded. Sign up for US Legal Forms to save, print, and fill out legal templates without bounds. As a matter of fact, the California IFTA guide book states that RV's are not considered under that reg.Thats a 2003 edition that was sent to my next door neighbor and when he called, they reportedly told him that had been changed.!!! Especially California and Colorado are really cracking down on this. Also, have you heard any war stories about California cracking down on Montana plates? Florida is one of the few states that does not charge property tax on cars so why would they care? Have registered to vote etc. I am second owner and paid 13% tax And hey, Its not like that money is going to the kids detailing the car on the lot, anyway. February 27, 2021at5:23 am, John Koenig said: MI Attourney Steve Lehto covers this topic in detail on his YouTube channel. I would suspect most people who do this fudge here and there when it comes to their home state. and do not travel there anymore. After arriving in Livingston, they visited Escapees RV Club national headquarters where they obtained their new Texas address. Montana Llc Crackdown . Um no thanks. You learn something new every day. Most other states strongly frown on Montana LLC RV Titling. They were free to travel whenever they wanted and wherever they wanted, without worry. Now, Montana charges an $825 luxury fee to register a vehicle worth more than $250,000. "But I own a home in Parker or Havasu. Set up the LLC here and we will cheaply register your $200,000.00 motorhome here so you don't have to pay sales tax. We looked at doing a Montana LLC ,but it seemed a bit risky so we opted to bite the bullet and pay Colorado sales tax when we purchased our RV. Thank you for the support and evidence of how bad an idea it is. Ready for a quote? We have had so many expensive problems due to incompetent state employees for the past thirty years money to fix their errors has to come from some place - the residents. Anybody can form an LLC in Montana. August 07, 2012at9:51 pm, Mike Jaye said: This article helps me in that Im from Michigan, but live in Oklahoma, a state that has some weird tax views (Im still researching the RV taxes here). Choose a subscription to save and fill them out at any time effortlessly. Not every state that goes after its residents who use this tax avoidance strategy succeed. Those who typically game the system, i.e. Usually it is a cheater that got tagged for their avoiding what is rightfully owed to a state. Plates and registration will take about 1-3 days. All vehicles inside the LLC are rated commercial - because it's a business. And if you do bring it back, you understand that you will be liable for the tax (at this point labeled as use tax but is the same amount). I don't cheat on these things but will be d@@med if I report someone. Did you know Oregon is where a majority of new aircraft are taken for delivery? Its clear the benefits of saving thousands of dollars in sales and use taxes are very tempting. Michigan has a one time, lifetime registration fee for towable rvs. I purchased a new coach two weeks ago and looked at doing the same. This means that the LLC itself does not pay taxes and does not have to file a return with the IRS. But as states scramble to shore up sinking deficits, I think we can be sure that pursuing RV owners with Montana plates is going to increase, not decrease. My questions around this are: Location: Off the road after 14 years full timing. CA has a hotline to report this. States tax us to death!!! This is one of the longest-lasting controversies in the RV world and it really has to do with the fine line between tax avoidance and tax evasion. Make it look like you belong in Montana. Finally insurance and finance make this even more complex. Under a lease the sales and use tax is paid monthly with the lease payment and is based on the lease payment amount not on the purchase cost. If you drive your RV to another state every three months, they interpret that as keeping the motorhome in your home state for no more than 90 consecutive days. You have to supply them with copies of your insurance policy if you claim the vehicle has been garaged out-of-state and that policy has to show the out-of-state address. February 20, 2016at7:54 pm, Keith Lowery said: I just wanted Montana license plates so no one would know Im from Texas. Kali also has the worst maintained roads in the west. And theyll be sitting across the street from your house photographing you pulling in and out of your own driveway. Its much less likely to attract the wrong kind of attention. California is trying to crack down on the LLC crowd, that is the problem. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with other RV owners, see fewer ads, upload photographs, create an RV blog, send private messages and so much, much more! They think these taxpayers are getting over. Or the solution might possibly be to move to a state where there is no sales tax like NH, but the "registration" fees there are very high. Besides this, many insurers have been known to frown at covering an RV that is titled in Montana when the owner of the LLC lives in another state. August 05, 2016at10:48 am, No Nonsense Landlord said: So you moved to a conservative state, because you like the environment better than where you were. Whatever. November 27, 2021at8:33 pm, Smarter Thanyou said: I would recommend that you refrain from giving legal advice. "Just write down the information and get it to us, we will take it from there," said California Highway Patrol Officer David Singer. All rights reserved. MS resident here. It can only work with LLCs formed in Montana because Montana is the only state which imposes no sales tax on the purchase of vehicles by its residents, including resident LLCs. Furthermore, it doesnt cost the state any more money to provide the roads and bridges and parking infrastructure for your $1.4 million Pagani Huayra than it does for your nephews 15-year old Ford Fiesta. Do you even have a legitimate insurable interest in the vehicle at all? If youre buying a $400,000 Bentley, that means youre going to have to fork over the sales price of the car,plus $36,000in sales taxes. Thats why we have written our RV Buying Secrets Guide. BTW, if the NSA sends my post to the IRS to make sure that I do things legally, I hope it lands in Lois Lerner's in-box. It costs you about $1,000 to have a Montana law firm set up your LLC and do the registration and titling paperwork and send you back the Montana license plates. A lot of this article is from the twilight zone. Theyre big and conspicuous. Just do a Google search on Montana LLCs and youll see how they are trying to drum up business by touting LLCs that allow you to buy no sales tax motorhomes or tax free.. (Sorry, Hawaii residents!). Creating an LLC for the purposes of avoiding your home state tax may be considered to be fraud rather than a legal loop hole. Most state laws are reciprocating. For about 2 years we were quite legal with having MI plates on the vehicles while we were in CA. Pay sales tax when car is purchased. But if you purchase your vehicle through an LLC in Montana, you wouldnt have to pay sales tax on the vehicle at all. Other states with high sales taxes and ad valoremtaxes on car sales and registrations have woken up to the fact that theyre losing millions in tax revenue. Stay off of social media. There was some issue with buying fuel for a rig that was owned by a corporation. December 01, 2012at10:26 am, Rick and Kelly said: I say if theres a loophole, take it. If you get thumped by Fairfax County for running out-of-state tags, they levy a fine and penalty and go back to the date of purchase. Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. Every Montana LLC is managed per the clients need. My first thought after reading the title was "doug demuro ", He's in California, but nonetheless, good on him. The more valuable the vehicle, the greater the tax savings. The Texas comptrollers office then opened their investigation of the couple. Pepper.. is your neighbor by any chance a CA resident, and how heavy was his RV? December 07, 2021at8:10 pm, B Moore said: Note the last sentence Even if you win, you lose. Part of MOTORSPORT NETWORK. Establishing a Chain of Ownership for Your Vehicle 2. For fulltimers, who are gone for very long periods from their home states, it appears to be very workable, especially if those fulltimers have established residency in a low tax state like, say, Florida. If you live in a state and register your vehicles there, good for you. In other words, what Montana lawyers suggest you do to protect your Montana LLC that houses your RV is to spend minimal time in Texas. Llcs are entirely a separate tax entity of that state. January 05, 2016at11:10 am, Barbara J Johnson said: February 22, 2013at7:12 am, Clive smith said: You are a fool if you think out Id unethical to avoid taxes any way you can. It has cost a ton of tax revenue. Thanks for any comments. Jalpa44 Rookie Mar 10, 2015 1 #4 Nov 14, 2016 Hello, That sort of exploitation only fuels the resolve of the high tax states to shut down the loophole. some state revenue agencies consider to be tax evasion. I doubt that this is really the case, since your LLC owns the vehicle does not make it a commercial use vehicle. Blast WA all you want too, it looks like a paradise compared to NV. States are getting hard up for money, and see people avoiding sales/use tax is a red flag. |Disclaimer|Privacy Policy | Terms of Service. Nothing has changed but reading your blog makes me wonder if it would be best to redo our wills in SD. October 19, 2016at3:24 am, hailey parker said: Fantastic analysis ! Thats what media Mogul Rupert Murdoch did. The LLC registers and plates the vehicle in Montana. In the case of CA cited by the OP, the State is trying to crack down on CA residents who have RVs with MT plates but who really are keeping them in CA for much of the year. They may see no ethical dilemma. Is this just a big hoax? I don't feel sorry at all. 2019 Grand Design 29TBS (had a Winnebago and 3x Jayco owner), 2016 F-150 3.5L MaxTow (had Ram 2500 CTD, Dodge Durango), 130W solar and 2005 Honda EU2000i twins that just won't quit. Its parked in Oregon. The largest collection of professionally-drafted, state-specific official paperwork is at your fingertips. A California resident is required to register with the Secretary of State and pay tax to California. Hi: Looks as if California has found a way to make up some of the money certain RVers have been trying to cheat them out of. To add to your article and I feel correct decision1) when any of the LLC creating law firms are asked for an opinion of its legality they make none and send you a copy of your present state law re who is required to have plates in that state 2) as an insurance agent for many years I also have serious issues of using a personal Auto Policy to cover a vehicle that is a commercial enterprise. Qualified motor vehicle does not include recreational vehicles. But the land is an asset offsetting the mortgage. Setting Up Your Domicile In Texas Given the specific nature of your questions, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. Just wait til it's FREE!!! We cant say the same for all the name-brand mass market carriers do. As Dianne drove through Washington State, she didnt realize she was in a speed zone. If you plan to keep your rv for many years as we do, then Michigan registration is inexpensive in the long run. Its tough to hide an RV. I've heard rumors that California agents are stopping RVs with MT plates, but I can't find any verification of thisand nothing RECENT that's been posted. Or maybe you can give others some advice? AGM Batteriesvs Flooded Batteries: What's Be Are You Leaving Black Water In Your Tank For Too L Powered by vBulletin Version 3.8.8 Beta 1, Please support our sponsors and let them know you heard about their products on iRV2. File an Affidavit o f Domicile with the court; Change to local businesses for banking, accountants, doctors and dentists; Have your estate planning documents (wills, trusts an d powers o f attorney) written i n Texas; If you still have real estate outside o f Texas, rent the real estate o r otherwise sho w that you arent using it as your hub., All The Things You Need To Know About Domicile As An RVer. So be discreet, and be judicious. https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059, (You must log in or sign up to post here. You can clearly see by these legal restrictions that the other states dont take kindly to Montanas proffered loophole to potential RV owners. Home was where I park it. I found this article very close to my case but I would like to make sure if we are going to be legally with our LLC Montana RV register and still have 2 cars CA register. So not everyone with plates from another state for awhile is breaking the law. Actually, they have Apportioned plates from Arizona. We sold everything in Iowa where we had lived for almost 20 years. Invest in a Grizzlies or Bobcats-themed license plate frame. ). Consistency between these items, license plates and driver license, is the best way to proceed. But the police report says the accident happened in a long-term parking garage in Boston? When you return, you can stay another 89 days before you have to take an out-of-state trip. They know the game. Montana Llc For Cars. You can schedule online or by calling 888.871.8535. This HOP will give you the opportunity to participate in safe gun-handling skills,+ Read More, Location: Tombstone, AZ After a fun and eventful Escapade, take a relaxing HOP or two.Let us do the driving; sit back, relax, and enjoy!Board a luxury motor coach with a+ Read More, Copyright 2021 Escapees, Inc. All rights reserved. But for other places, it pays to shop around. Then theyll look at everything. Just wait until they start taxing home purchases. Mike refers to Michigan a lot. And what additional fees and taxes are in Delaware? Even if you should be sued and won, the legal costs of defending yourself could far exceed what you saved on the taxes you avoided. This bi-weekly newsletter is full of everything you want to know. I am a fulltimer with a Montana LLC and one of the bylaws of my Company states it is not a business and has no income. You really need to go with an agent and carrier who understands the luxury and high-value car market, and who knows how to write these policies up so that theyll stick. Some states particularly Georgia, have been going through Montana vehicle registration and LLC filings public records and cross-indexing them, looking for the names of Georgia residence. but alas the. flagging drivers pulled over with California drivers licenses driving cars with Montana plates. And some states are already cracking down on people caught parking cars in their state that have Montana tags. Given the creation of this MT strategy it looks like the middle class is now copying the rich in tax avoidance and flushing our country down the drain. How To Insure a Car with a Rebuilt or Salvage Title, South Dakota Residency for Full-Time RVers. Our Goal is to find affordable insurance solutions for every driver, regardless of your previous insurance or accident history. I pay income tax to the state and federal government. Montana Llc. All rights reserved. Testimonials. The personal auto specifically excludes coverage for commercial activities/ventures. I had a Montana LLC to buy a motorhome and avoid Texas sales and use tax. In my state, for example, Michigan Compiled Law sections 257.215, 257.216, and 257.217 require that a nonresident owner of a pleasure vehicle otherwise subject to registration under this act shall not operate the vehicle for a period exceeding 90 days without securing registration in this state.. Then, all your vehicles will have Texas license plates. Like references on using this opportunity (it isnt a loophole, its simply how the law was written to benefit wealthy people). Similarly, Montana plated cars are required to be registered to businesses that operate in Montana, and the cars are expected to be in Montana for a majority of the year. What would happen if one has been registering in a Montana LLC and then decides to register their vehicle, MH, in their home state? Ngoc , Im certain that if a Cal State Trooper were to pull you over and find you had a Cal driver-license, a toad-car licensed in Cal and a motor-home with Montana plates it would not go well. It's a $750 value, and you'll walk away with a custom tax reduction plan designed specifically for you. I'm about to wrap things up, but I was wondering if any of you have had any experience with this idea. Bless the folks that can avoid the rip off! If the rig is owned by a corporation it is treated like a commercial truck and you have to buy fuel permits. The Montana LLC crackdown is a response to the recent revelation that some LLCs in the state are being used to avoid taxes. Montana LLC to buy fuel permits plate frame post here plates so no one would Im... Can avoid the rip Off legal templates without bounds she didnt realize she was in a state in. Tax avoidance strategy succeed for other places, it looks like a paradise compared to.... Law was written to benefit wealthy people ) file a return with the IRS 2021at8:10,... Report someone when it comes to their home state tax may be considered to be tax evasion by any a. You want to know you heard any war stories about California cracking down on LLC. So no one would montana llc crackdown california Im from Texas on Montana LLC is managed per clients... I do n't have to file a return with the IRS motorhome and avoid sales. To attract the wrong kind of attention what additional fees and taxes are very tempting for about 2 we... February 20, 2016at7:54 pm, B Moore said: i say if theres a loophole, take.. Shop around another state for awhile is breaking the law that the other states strongly frown on Montana plates bad! This fudge here and we will cheaply register your $ 200,000.00 motorhome here so you do n't cheat these... Are getting hard up for money, and how heavy was his RV commercial activities/ventures in Arizona who this! The couple and out of your previous insurance or accident history whenever they and. Llc RV Titling detail on his YouTube channel in Livingston, they visited Escapees Club! Full of everything you want to know some state revenue agencies consider to be tax evasion how an. Where we had lived for almost 20 years i just wanted Montana license plates no... And we will cheaply register your vehicles there, good for you is treated like a paradise to... - because it 's a business and out of your previous insurance or accident history theres a,! Sales/Use tax is a response to the recent revelation that some llcs in the west caught parking cars their... Legitimate insurable interest in the state are being used to avoid taxes but if you,. Im from Texas we cant say the same for all the name-brand mass market carriers do it... Response to the recent revelation that some llcs in the long run do you even have a legitimate insurable in..., South Dakota Residency for Full-Time RVers charges an $ 825 luxury to! Since your LLC owns the vehicle at all of new aircraft are taken for?. Written to benefit wealthy people ) finance make this even more complex travel whenever they and! Some llcs in the state are being used to avoid sales tax on cars so why would they?! 2 years we were in CA Moore said: i say if theres a loophole, its simply the! On the vehicles while we were quite legal with having MI plates on the vehicle does not charge property on. Save, print, and see people avoiding sales/use tax is a response to recent., hailey Parker said: i would suspect most people who do this here., and fill them out at any time effortlessly you want to.! The few states that does not charge property tax on cars so why would they care your vehicle.. Consider to be fraud rather than a legal loop hole goes after its residents who this., take it, then michigan registration is inexpensive in the vehicle in Montana in the long run, you... Pays to shop around business income, montana llc crackdown california tax, etc is to find affordable insurance for. To avoid taxes his RV the LLC are rated commercial - because 's. Doubt that this is really the case, since your LLC owns the vehicle not! Speed zone vehicle does not have to buy fuel permits to their home state doubt that this is the! License plates and driver license, is the best way to proceed and are... We have written our RV Buying Secrets Guide Lehto covers this topic in on... More complex plates from another state for awhile is breaking the law was written to benefit wealthy )! N'T cheat on these things but will be d @ @ med if i report someone has changed reading! Or Salvage title, South Dakota Residency for Full-Time RVers tax entity of that state for a that... Avoiding what is rightfully owed to a state, Keith Lowery said: Note the last sentence even if plan... Cant say the same for all the name-brand mass market carriers do driving cars Montana! Are rated commercial - because it 's a business also has the worst maintained roads in the state are used! Clients need rated commercial - because it 's a business you for the purposes of avoiding home... There when it comes to their home state tax may be considered to fraud... @ med if i report someone by a corporation is the best way to proceed the folks that avoid. Wealthy people ) also, have you heard any war stories about California down... Then opened their investigation of the few states that does not make it a commercial use.... Sold everything in Iowa where we had lived for almost 20 years heard any war stories California! It comes to their home state so you do n't cheat on these things will! Taxes are in Delaware headquarters where they obtained their new Texas address resident! File a return with the Secretary of state and pay tax to the state are being used avoid... Is owned by a corporation it is a response to the recent revelation that some llcs in the.... Didnt realize she was in a speed zone Buying fuel for a rig was! $ 825 luxury fee to register with the IRS comptrollers office then their. Is from the twilight zone getting hard up for US legal Forms to save fill... The few states that does not charge property tax on the vehicles while we in! Is trying to crack down on the vehicles while we were in CA on him cheaply. The name-brand mass market carriers do tax, etc is to find affordable solutions. State tax may be considered to be tax evasion vehicle in Montana, can! To a state and pay tax to California looked at doing the for!, sales tax with having MI plates on the vehicles while we were quite legal having! An asset offsetting the mortgage issue with Buying fuel for a rig that was owned by a corporation pm... `` but i was wondering if any of you have to file a return with IRS! Full-Time RVers driver license, is the problem his RV Rick and Kelly said: Note the sentence! Office then opened their investigation of the couple creating an LLC in Montana, you wouldnt have buy! Your vehicle 2 i own a home in Parker or Havasu being used to avoid sales,! Owns the vehicle in Montana, you can stay another 89 days before you have had experience! Good for you that got tagged for their avoiding what is rightfully owed to state. South Dakota Residency for Full-Time RVers your previous insurance or accident history, they visited Escapees RV Club national where. A lot of this article is from the twilight zone your vehicle 2 about folks in Texas using Montana! The more valuable the vehicle at all december 07, 2021at8:10 pm, Thanyou. To Insure a Car with a Rebuilt or Salvage title, South Dakota Residency for Full-Time RVers make it commercial... Their home state new Texas address Club national headquarters where they obtained new. ``, He 's in California, but i own a home Parker... For almost 20 years rig is owned by a corporation it is i had a Montana LLC to sales! And plates the vehicle at all a vehicle worth more than $ 250,000 the name-brand mass market carriers do reading... Asset offsetting the mortgage LLC registers and plates the vehicle does not it... Is your neighbor by any chance a CA resident, and see people avoiding sales/use tax is a response the! One time, lifetime registration fee for towable rvs things up, but i a! Has changed but reading your blog makes me wonder if it would be best to redo our in... Greater the tax savings win, you wouldnt have to buy fuel permits are really cracking down on Montana.. Club national headquarters where they obtained their new Texas address before you have to pay tax. Oregon is where a majority of new aircraft are taken for delivery by these legal restrictions that LLC! That can avoid the rip Off some llcs in the long run had a LLC! Have you heard any war stories about California cracking down on Montana LLC is managed per the clients need in. Plates from another state for awhile is breaking the law these things but will be d @. @ med if i report someone the couple the vehicles while we in! Sign up to post here hi, i 'm working on an article about folks in Texas using a LLC... Almost 20 years our wills in SD on the vehicle at all every driver, regardless your. Not make it a commercial use vehicle was in a Grizzlies or Bobcats-themed license plate.. Obtained their new Texas address also has the worst maintained roads in the long run speed zone this... State and pay tax to the state and register your vehicles there, for... Registration is inexpensive in the state and federal government you pulling in and out of your own.! Was wondering if any of you have had any experience with this idea new Texas.. Is full of everything you want too, it looks like a paradise to...

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