As earlier stated, this topic has been coming around quite regularly through the years. It is really up to each to do what he sees fit. To me RVing is a hobby and lifestyle, something to enjoy. I don't like paying taxes, but it is what it is. I would prefer paying the tax than worrying about complications in some states today or down the road. No woory about which driver's license to pull out or look over my shoulder today and forever.
I certainly understand why people do seek out a Montana LLC, and good on you, but it may not be for everybody.
Scottiemom wrote: It's not just the LLC's Minnesota is going after. We have friends who full time and are former residents of Minnesota. They have been notified they are being investigated and the state is attempting to collect fees and penalties from them to the tune of $56,000. They sold their home there and have no ties of their own to the state anymore but Minnesota says they have not proven they "left" the state.
They were back last summer to put his elderly mother in a nursing home. Apparently their rig was spotted at a campground with SD plates and so they were investigated. When it was discovered they had once lived in Minnesota, they were targeted. This nightmare is not yet resolved for them.
Personally I don't see how the state has anything on them. But they have had to hire an attorney.
Dale
Sounds like the Gestapo is alive and well in MN. Are there no real criminals there to pursue, or do they need money that bad in order to pursue them and I'm guessing the latter.
This bunch would go crazy in FL with out of state plates, people coming and going, along with owning a couple of houses here and elsewhere. They have enough problems, just trying to figure out if residency is being claimed in more than one state or which house they are claiming for a homestead.
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jetboater454 wrote: Just wondering with all the talk of the time limits of being in a state with out of state plates on the vehicle,how does that work for the rental car companies? I've seen just about every state plate in some rental yards.I don't think they pay property taxes on the out of state plated cars.
There are specific laws for rental agencies to operate where there assets are constantly migratory. Not the same as an LLC.
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In reference to the MN couple with the registration issues. It is very easy to overlook your final, partial state income tax return. When we left CA I made sure that BOE was informed that our 2009 tax return was our final. It was also a partial year tax return which also lets them know you are gone. If the state has any other questions you show them your next years federal return as proof that you are no longer a resident. A little fore thought can eliminate most issues.
Randy
jetboater454 wrote: Just wondering with all the talk of the time limits of being in a state with out of state plates on the vehicle,how does that work for the rental car companies? I've seen just about every state plate in some rental yards.I don't think they pay property taxes on the out of state plated cars.
Rental companies have legitmate businesses located within the states where they register their cars. However, I'm going to guess there are some rules restricting them too. Most rental cars you see in California have California plates. I would think if they could get away with it they would find the cheapest state to register cars and register all their cars in that state. Since they don't do that, it's clear they have some rules they have to follow, but since cars can go from state to state and make one way trips they have to have some leeway too.
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Scottiemom wrote: It's not just the LLC's Minnesota is going after. We have friends who full time and are former residents of Minnesota. They have been notified they are being investigated and the state is attempting to collect fees and penalties from them to the tune of $56,000. They sold their home there and have no ties of their own to the state anymore but Minnesota says they have not proven they "left" the state.
They were back last summer to put his elderly mother in a nursing home. Apparently their rig was spotted at a campground with SD plates and so they were investigated. When it was discovered they had once lived in Minnesota, they were targeted. This nightmare is not yet resolved for them.
Personally I don't see how the state has anything on them. But they have had to hire an attorney.
Dale
What driver's licenses do they hold? If Minnesota, then I can see a potential problem. If they obtained SD driver's licenses when they registered their coach, then they shouldn't have a problem proving that, and I wouldn't think they would need an attorney to do so.
I do know they have SD drivers' licenses, car and rig tags, insurance, etc. I also would not think they have a problem, but the state of MN disagrees and they are currently in the middle of trying to prove they are SD residents.
Dale
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randallb wrote: In reference to the MN couple with the registration issues. It is very easy to overlook your final, partial state income tax return. When we left CA I made sure that BOE was informed that our 2009 tax return was our final. It was also a partial year tax return which also lets them know you are gone. If the state has any other questions you show them your next years federal return as proof that you are no longer a resident. A little fore thought can eliminate most issues.
Randy
I can't speak about the tax return because I don't know. I do know they sold their home, changed their bank, severed all ties to MN. In fact, the wife is a SD native and her family is there.
When we left Indiana, we filed the final tax return.
Scottiemom wrote: It's not just the LLC's Minnesota is going after. We have friends who full time and are former residents of Minnesota. They have been notified they are being investigated and the state is attempting to collect fees and penalties from them to the tune of $56,000. They sold their home there and have no ties of their own to the state anymore but Minnesota says they have not proven they "left" the state.
They were back last summer to put his elderly mother in a nursing home. Apparently their rig was spotted at a campground with SD plates and so they were investigated. When it was discovered they had once lived in Minnesota, they were targeted. This nightmare is not yet resolved for them.
Personally I don't see how the state has anything on them. But they have had to hire an attorney.
Dale
What driver's licenses do they hold? If Minnesota, then I can see a potential problem. If they obtained SD driver's licenses when they registered their coach, then they shouldn't have a problem proving that, and I wouldn't think they would need an attorney to do so.
Most of the info and advise offered in this thread is incorrect and wrong. As with anything in life, some things are used improperly, that does not make them wrong. There are many reasons for setting up an LLC besides taxes. Not everyone needs an LLC, but in certain situations it may be beneficial. If you set up an LLC for the sole purpose of avoiding taxes, you may have a problem. Used properly and if you comply with all the legal requirments, THEY ARE 100% LEGAL. People please stop all the misinfomation and incorrect spectulation...
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