Just don't forget LLC stands for limited Liability COMPANY. Not corporation.
What else is forgotten is that laws/regulations change. In many states where it was legal to reside and have a vehicle registered out of state (by LLC or any other method) they have changed their laws/regulations.
Best if you do have one to do an update on what your state requirements are NOW.
N6JRA wrote: This subject always gets people to spout off inaccurate information. Here are the basics...
1) A LLC is a "Legal Person" and as such where YOU reside is IRRELEVANT, where the CORPORATION resides is what matters.
2) If the Montana LLC owns the RV, it is REQUIRED to register the vehicle in MONTANA (Remember, LLC is a "person" the "person" is a resident of Montana.)
3) Now for he hard part, this may get you passed sales tax (becaus you didn't buy the RV, the LLC did and the LLC is held to Montana tax laws) HOWEVER the LLC may get a tax bill from the county it is GARAGED, regardless of where the vehicle is registered.
4) You, or the owners of the LLC will have to comply with the corporate requirements of Montana to make sure the LLC stays "in good standing". Not dificult but it is often overlooked.
5) REMDINTR YOU DONT OWN THE RV... The LLC does ... The LLC could even rent the RV to you for x a month then it is legally a rental, regardless of what a podunk sherrif says.
Corporations are protected by the Constitution, what gets people in trouble is not following the simple rules (Like telling the California Highway Patrol it is YOUR RV when legally, it is NOT and handing them a CA drivers license)
LLC is not a "person". Were that the case it would render LLC's useless. LLC's can exercise tax advantages people often can't. but LLC's cannot vote, register for selective service or anything else a "person" can. You may be the only agent for an LLC, but you are the person, the LLC is not. LLC's are defined as:
"a hybrid business entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on how many owners there are). An LLC, although a business entity, is a type of unincorporated association and is not a corporation."
All that said, there is absolutely no law against an LLC owning property in another state. One of my LLC's owns rental properties in other states. Perfectly legal. My problem with this whole thing is people doing it for the wrong reasons. If your sole purpose is to dodge sales tax and not function as a business in any other sense then it's wrong. May not be illegal and unfortunately there are no laws against morality. But if you ask me, it's a lot of risky hoops to jump through just to avoid sales tax and if the few percentage points are enough to make you do this sort of thing to allow MH ownership, perhaps you can't afford it. There are reasons why it's being investigated.
Let's do this:
I will form a Montana LLC. I'll call it "Mowermech Holdings, LLC".
My holding company will purchase an RV for you from my favorite dealer.
It will be registered to two entities:
Mowermech Holdings, LLC will be the primary owner, and YOU will be the secondary owner. (That way I can't sell it without your signature, and you can't sell it without my signature).
The Holding Company will lease your coach to you for a nominal fee, just enough to cover annual registration costs and LLC fees, plus 5% (after all, we MUST make a profit, to be classed as a "legitimate business entity"). You, of course, will have to maintain full coverage insurance at all times, at your expense.
That should cover all the legal and moral issues quite nicely!
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OK, You made the money you use to buy the MH, you paid taxes on that money when you made, and when you purchased the MH, maybe. Why should you be required to keep paying for something that has already been paid for at least once?
I see comments like, "maybe you can't afford it", or "you paid $100,000+ for a RV, and complain about having to pay a camping fee". Didn't you pay the large amount of money to be completely self-contained, so you could stop paying thru the nose for things? Is it really a moral issue? Or are some people tired of being legally robbed?
If you drive a Montana LLC registered M/H in california and use a California DL you will have your rig seized and you will be fined.Thats a fact cause it almost happened this fall to a friend of mine except he was snart enough to have a ca and a mt DL
wildmanbaker wrote: OK, You made the money you use to buy the MH, you paid taxes on that money when you made, and when you purchased the MH, maybe. Why should you be required to keep paying for something that has already been paid for at least once?
I see comments like, "maybe you can't afford it", or "you paid $100,000+ for a RV, and complain about having to pay a camping fee". Didn't you pay the large amount of money to be completely self-contained, so you could stop paying thru the nose for things? Is it really a moral issue? Or are some people tired of being legally robbed?
That's kind of a hollow argument. You pay sales tax on literally everything you buy. LLC's are companies. And companies exist to operate a business. Unfortunately a lot of companies exist to evade taxes although something that the Fed is looking hard at bringing to a halt. I think it's rather silly that some folks want to argue about it like we are being robbed. You buy a motorhome and are being robbed on the taxes. Really? You feel the same about your car, your house, or any other goods? All you do is shift the onus to the next taxpayer who has to pay more because you dodged it. Because I assure you, budgets don't go down because you registered your MH in a different state. I grow tired of paying other people's share because they lied about something to avoid paying theirs. If you don't like tax laws vote for representatives that suit your desire. But to me lying about where you live under the guise of a "business" is wrong. Like I said, there is a reason it's being investigated. You can yell and scream about being oppressed, repressed, and taking advantage of the "law" loophole to stick it to the man. Unfortunately the man you are sticking it to is your neighbor.
I have owned a Montana CORPORATION for over 30 years. I live in Montana and own property in Montana. I purchased my coach in Oregon where there was no sales tax and neither does Montana so that's not an issue. I asked my accountant about selling the coach to the corporation so I, as a person, would be protected under the corporate veil, and he said it would change my total tax obligation and advised against it. My insurance agent also advised against as it would increase my premiums substantially. So, that said, you should move here and bring lots of money, we need more green. I have to wonder if anyone else has been faced with increased insurance premiums or a higher tax obligation with their Montana LLC or if the person who formed the LLC has faced any different tax obligations.
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Well, several points have been made and a few misconceptions advanced as well.
True, LLC is a Company, not a Corporation... actually it's a hybrid as previously discussed. The idea that only a person can vote etc is a falicy. We aren't talking reality, we're talking LEGAL DEFINITIONS. As such, if the LLC purchased a motor vehicle, it is REQUIRED to register that motor vehicle in the resident state of the LLC, PERIOD. Every other "Yea but whats really going on here is..." argument or even discussion is not relevant. If you live in Texas, and the Montana LLC purchased the MH, or ownes the MH, you can NOT register that MH in Texas any more than I as an individul living in California can.
Mowermech pretty much lays down a good plan with one qualifier, LLC's don't have to turn a profit. Nonetheless, his plan isn't a bad one. The insurance should be in the LLC's name, just be sure to tell the insurance company where the MH is GARAGED or they could worm out of a claim.
Is it legal tax avoidance? Sure. Key word, LEGAL. Just GET A LAWYER and DO IT RIGHT an you simply CAN NOT have any problems.
Effy, are you reading something into what was said? I said keep paying over and over for the same thing. I paid taxes on the money I earned, and on the MH when I bough it. Why should anyone be required to keep paying the same tax over and over again? Maybe you do, feel free to pick up anyones tax tab. Washington State has the 3rd highest tax rate in the nation. We the people got rid of having to pay the "stupid" tax years ago, but the people to be have found some ways around the law, to charge us more.
wildmanbaker wrote: Effy, are you reading something into what was said? I said keep paying over and over for the same thing. I paid taxes on the money I earned, and on the MH when I bough it. Why should anyone be required to keep paying the same tax over and over again? Maybe you do, feel free to pick up anyones tax tab. Washington State has the 3rd highest tax rate in the nation. We the people got rid of having to pay the "stupid" tax years ago, but the people to be have found some ways around the law, to charge us more.
Perhaps I am confused. Are you paying sales tax on the same item every year?
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