Scottiemon, no that is not what LD is saying. What they are saying is that I as a resident of VA would not be able to register my rig in Montana through them. If I lived in Montana or South Dakota, they would to let me register it in the state that I live in. They will not help someone evade personal property and or sales taxes by registering out of state. They are trying to protect themselves from the possibility of legal action by a state that charges someone who bought an RV from them with tax evasion (which has happened) and then comes after them. I think their policy is a sensible one.
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08 Holiday Rambler Vacationer 38PLT Workhorse UFO GAS Pusher Chassis
06 Saturn Vue toad, SMI Breaking sys,Blue Ox tow bar. Myspace site and blog
Gramps and family Drive a UFO.com
getinoutofmissouri, We got out of the "show me state" almost 2 years ago. We are fulltimers and looked into the Montana LLC's and a bunch of other options. After much thought just licensed the MoHo in Missouri, it is where are car is licensed also, paid the taxes, joined Escapees and hit the road. I have been told by several Law Enforcement Officers while on the road that they look for and frequently pull over MoHo's where the toad and the rig have different plates. All I can tell you is it just seemed like one big hassle just to save some taxes. JMHO as always! Safe Travels. Kevin & Alexis
Kevin & Alexis... Now gainfully employed fulltimers!
The best way to be sure you're within the law is to contact an attorney and verify you can comply with the way these LLC things work. Some states are easier than others.
2007 Mountain Aire 4528
2006 CRV SE
Based in Memphis area
We have our coach registered to a Montana LLC and live in Calif. No problems. Follow the rules for your state. Our toad is registered in Calif. because we use it here separate from our coach.
-Gramps- wrote: Be very careful. The finance manager at Lazy Days told me yesterday that they will no longer sell for cash or finance an rv to anyone who wants to register with a Montana LLC at the time of sale. According to a company memo a person recently was sent to prison for using a Montana LLC to evade taxes. The same policy applies to registering in South Dakota as well.
Just goes to show you that the LD people don't know what they are talking about.
A Montana LLC is an entity which will buy your rig and you lease it from them. If you are not a fulltimer and live in another state and allow that rig to sit in the driveway with out-of-state plates on it, you are going to have some issues. As far as I know, no one has yet gone to prison for tax evasion, but there was a court case recently and one of the people who was involved posted on Escapees and told exactly what fines, etc., they had to pay. There were several people involved in that case. Here is that link:Lawsuit involving LLC's.
A full timer who establishes residency in South Dakota and licenses their vehicles there, pays their sales tax, registers to vote, has their insurance through SD, etc., is NOT in the same category. SD does not set up LLC's like Montana does for the sole purpose of purchasing and licensing vehicles. I am a legal resident of SD, just as you are the state in which you live. Those who set up Montana LLC's for licensing RV's are normally not residents of Montana.
I am NOT saying that is wrong, etc. I am just trying to correct some wrong information.
So what LD is saying is that they will not sell to someone from SD? That suits me fine because I wouldn't buy anything from LD anyway. Truth is, they can sell to anyone they want to and don't have to sell to anyone they don't want to. Their choice. My choice is to not buy from them.
Dale
Dale,
You are correct, this is fiction and hearsay. Nobody goes to prison for registering a coach properly in Montana, South Dakota, or Oregon......I know, because I've done it, several times now!
I registered my last coach in South Dakota, because I saved tons of license and sales tax registration money. If I would have registered it in Montana, I could have saved even more money, thousands, in fact. Oregon would have been even less for me.
Getting any information from a salesman at an RV dealership or some guy that "heard something in Virginia," is just.....foolhardy, to say the least!
I got an address in South Dakota for a period on just over one year, to enjoy the tax savings of South Dakota vs. any other state that I have registered my new coaches in.
At the time Montana had a flat rate of $450.00 for my diesel-coach......a great savings over perhaps any state but Oregon.
Forming a legitimate LLC in any state in the Union is totally legal. I don't know where people think that LLCs are illegal! Oh well, I saved a bundle, and so can anyone that make a few inquiries.
Good Luck!
I have a sweet tender nature, however I enjoy sharing my thoughts and opinions.
Fulltiming RVer & homeowner.
urmine351 wrote: I'm not sure I understand the thinking of "it already has Montana tags". The tags are issued to a person or business. The vehicle registration will show who the tag is issued to.
Ah this is where the states very greatly! In CA the plates belong to the vehicle not the owner/driver. When you sell a vehicle in CA the plates stay with it unless they are vanity plates or disabled. Then you have to do the paperwork to transfer the plate to the new vehicle or surrender them to the DMV.
Ray, Cheryl, Cory & of course Miss Molly the four-legged child
Skid Row Joe wrote: Forming a legitimate LLC in any state in the Union is totally legal. I don't know where people think that LLCs are illegal!
There is the key a legitimate LLC and make sure you follow all the rules for your LLC. By the way I believe CA does classify them as a corporation with corporation rules. But no matter make sure you abide by the rules of the state that issues the LLC. Notice how many large corporations are incorporated in Delaware but their corp "home" is in NY, CA, or CO.
Incorporating was real popular for a while with individuals that had large land or rental holdings or other business interests that they wanted to isolate themselves personally from liability beyond the companies resources. IRS had some really sticky rules that many individuals either didn't bother to learn about or chose to ignore. IRS declared them a sole proprietorship marginal on tax evasion and then stuck it to them on taxes and opened them up personally on lawsuits that had been filed against the corp.
I used a LLC for my busines and the IRS does not have a category for LLCs, they requires a LLC to declare which entity it wants to file as; partnership, sole proprietor, or corporation. LLCs, just like individuals, are not required to file unless they have income.
These discussions about LLCs often miss the point: LLC are legal entities enabled by state legislation, and violating the tax codes of your home state is a personal decision that in some cases can be criminal. IMO the bottom line is if you live and work in a state you are probably a resident of that state. Each state has laws and rules about how long a vehicle is allowed to be in state before registration and taxes are due, it varies state to state and by the status of the owner(s)e.g.; residents, non-residents, students, military, etc.
This is a complex issue and as others have posted legal advice is recommended.
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