chuck4788 wrote: This is a generality because each state is different: If you are a non-resident a state will generally allow you to have a vehicle in state for up to six months before requireing registration (and use or sale tax), if a resident the time can very from 10-30days. Just to confuse things some states consider use and not ownership, other consider ownership. Also each state has a variety of resident classes such as resident, student, military, non-working, etc; each with a different requirement and time to register vehicles. In general if you live and work in a state, or vote in and spend most of your time there, you are a resident and obligated to pay all of its taxes. The devil is in the details and legal advice from attorneys is needed, not opinions from this forum.
CA used to be 30 days even if you had a home in another state. I looked into it when I was considering getting a job in CA even though my stick house was in WA. Any vehicle in CA for over 30 days is (or was) supposed to be registerd there and you pay the taxes then.
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magicbus wrote: 3 pages and we haven't heard back from the OP. I for one am still confused as to why he would want to pay to form an LLC unless he is replacing his RV and is a resident of FL. Any vehicle titled out-of-state for at least 6 months is exempt from sales tax.
I couldn't wait to move my RV to FL - cheap registration, no state inspections, renewal over the web. The 7% sales tax would be a killer although the deduction softens the blow substantially for those in high income brackets - plus you get the loan deduction as a second home if applicable, something not available to an LLC-titled vehicle.
Normally I would say go for the LLC but with the cost to maintain it over the life of the RV I suspect it would be more cost effective to pay the sales tax and title it personally.
Dave
Not in WA, ANY RV, old, new, licensed out of state for 10 years or whatever is made to pay the use tax. And it's NOT based on the NADA or other value, the state uses a private valuation service. Naturally their valuation is higher than any of the blue/black book values. There used to be an exemption for RV's, but since they're a "luxury" item they removed it.
dav5942 wrote: It has nothing to do with be honest, its following the law and if the law allows you to have an LLC then that is that period!! Why do you think large corporations have herds of accountants-answer to minimize taxes period following the "law".!!!!
I have to totally agree on this one. Why do we spend 25 hours filling out a tax form (1040) when all we have to do is simply do a 1040EZ and claim the standard deduction?
If there is a way to legally bypass adding another $20k of sales tax to an already wasteful government, than I am 100% in favor of it. On the other hand, doing something illegal to avoid paying a lawful tax is not only a bad deal, but potentially freedom depriving.
This LLC thing does make sense and if it works for you in your state, then by all means, do it. For those that can't legally handle the restrictions, whatever they are, then you can just pay the sales tax and be happy.
Being a good citizen doesn't mean throwing your money away on taxes.
Then again, what do I know?
Good point, are the folks that own these LLC's filing federal tax returns for them each year? After all the law clearly states that it is not legal to form an LLC for the sole purpose of avoiding taxes. The LLC must conduct business to be legit. And if that's the case then you should be filing fed tax returns to pay taxes on that income. Now if you are not conducting business and not generating any income to file returns on then the LLC is clearly to avoid paying taxes and your breaking the intent of the law. It's just a matter of time so enjoy it while you can.
Sooner or later, if the sales tax man don’t get you the federal IRS man will.
turninghawk wrote: Why not do the honest thing and just pay the sales tax on it in your state of residence?
It has nothing to do with be honest, its following the law and if the law allows you to have an LLC then that is that period!! Why do you think large corporations have herds of accountants-answer to minimize taxes period following the "law".!!!!
Sounds to me like tax evasion. Sort of like draft dodgers, or illegal aliens - they also like to use their imaginations to think they can bend the laws to suit themselves.
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dav5942 wrote: It has nothing to do with be honest, its following the law and if the law allows you to have an LLC then that is that period!! Why do you think large corporations have herds of accountants-answer to minimize taxes period following the "law".!!!!
I have to totally agree on this one. Why do we spend 25 hours filling out a tax form (1040) when all we have to do is simply do a 1040EZ and claim the standard deduction?
If there is a way to legally bypass adding another $20k of sales tax to an already wasteful government, than I am 100% in favor of it. On the other hand, doing something illegal to avoid paying a lawful tax is not only a bad deal, but potentially freedom depriving.
This LLC thing does make sense and if it works for you in your state, then by all means, do it. For those that can't legally handle the restrictions, whatever they are, then you can just pay the sales tax and be happy.
Being a good citizen doesn't mean throwing your money away on taxes.
Then again, what do I know?
But there's the rub folks!!!
The law in all states is not the same. If your primary residence is in a certain state they may require you to register all vehicles in that state and pay taxes accordingly. Having an LLC in another state doesn't mean squat to them, they want your tax & registration $$ and that's the way it is.
Having lived in no less than 11 states I can remember a few of them that once I had purchased real estate or rented and started my new job I had 30 days to get a drivers license and register my vehicles.
Being a good citizen is also not always looking to findg ways to avoid your responsibilities, such as paying appropriate taxes.
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I'm sure it is stated somewhere in the 5 pages of comments regarding LLC's and taxes for motor homes but I couldn't separate it out from all the reasons why not to do it and how the state will get you. If you have residence or initate residence in Florida you just need to own the new vehicle for more than six months, then you will not have to pay sales tax. We registered our coach via LLC in Montana when we got it last year and will tagging it in Florida shortly (once Montana tags expire). No sales tax to pay - our home of record was recently changed to Florida when we sold our house and went full time. Getting a Florid Drivers license is eash also - and there are no restrictions on size of RV vs CDL as is the case in many states. To each his own - I'm sure my not paying the sales tax has a major impact when compaired to all the large corporations that pay about 1 percent tax on their billions.
dav5942 wrote: It has nothing to do with be honest, its following the law and if the law allows you to have an LLC then that is that period!! Why do you think large corporations have herds of accountants-answer to minimize taxes period following the "law".!!!!
I have to totally agree on this one. Why do we spend 25 hours filling out a tax form (1040) when all we have to do is simply do a 1040EZ and claim the standard deduction?
If there is a way to legally bypass adding another $20k of sales tax to an already wasteful government, than I am 100% in favor of it. On the other hand, doing something illegal to avoid paying a lawful tax is not only a bad deal, but potentially freedom depriving.
This LLC thing does make sense and if it works for you in your state, then by all means, do it. For those that can't legally handle the restrictions, whatever they are, then you can just pay the sales tax and be happy.
Being a good citizen doesn't mean throwing your money away on taxes.
Then again, what do I know?
But there's the rub folks!!!
The law in all states is not the same. If your primary residence is in a certain state they may require you to register all vehicles in that state and pay taxes accordingly. Having an LLC in another state doesn't mean squat to them, they want your tax & registration $$ and that's the way it is.
Having lived in no less than 11 states I can remember a few of them that once I had purchased real estate or rented and started my new job I had 30 days to get a drivers license and register my vehicles.
Being a good citizen is also not always looking to findg ways to avoid your responsibilities, such as paying appropriate taxes.
I do not believe that the bold above is exactly correct. The part about the state wanting the money is probably very correct. The part that I find a bit ambiguous is the part about a state not caring about an LLC in another state. The reason I find it ambigguous is that I believe all states would honor a company's interests of any type, which were set up to truly provide a product or service. On the other hand, I don't blame states for cracking down on those that set up dummy LLC, outside the state to avoid a local tax burden.
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dav5942 wrote: It has nothing to do with be honest, its following the law and if the law allows you to have an LLC then that is that period!! Why do you think large corporations have herds of accountants-answer to minimize taxes period following the "law".!!!!
I have to totally agree on this one. Why do we spend 25 hours filling out a tax form (1040) when all we have to do is simply do a 1040EZ and claim the standard deduction?
If there is a way to legally bypass adding another $20k of sales tax to an already wasteful government, than I am 100% in favor of it. On the other hand, doing something illegal to avoid paying a lawful tax is not only a bad deal, but potentially freedom depriving.
This LLC thing does make sense and if it works for you in your state, then by all means, do it. For those that can't legally handle the restrictions, whatever they are, then you can just pay the sales tax and be happy.
Being a good citizen doesn't mean throwing your money away on taxes.
Then again, what do I know?
But there's the rub folks!!!
The law in all states is not the same. If your primary residence is in a certain state they may require you to register all vehicles in that state and pay taxes accordingly. Having an LLC in another state doesn't mean squat to them, they want your tax & registration $$ and that's the way it is.
Having lived in no less than 11 states I can remember a few of them that once I had purchased real estate or rented and started my new job I had 30 days to get a drivers license and register my vehicles.
Being a good citizen is also not always looking to findg ways to avoid your responsibilities, such as paying appropriate taxes.
I do not believe that the bold above is exactly correct. The part about the state wanting the money is probably very correct. The part that I find a bit ambiguous is the part about a state not caring about an LLC in another state. The reason I find it ambigguous is that I believe all states would honor a company's interests of any type, which were set up to truly provide a product or service. On the other hand, I don't blame states for cracking down on those that set up dummy LLC, outside the state to avoid a local tax burden.
Actually the statement is a true one.
Our company is a full blown corporation. The corporation owns a number of LLC’s. We have service vehicles owned and leased by both the parent cooperation and the LLC’s which are permanently stations in many states. Each of these states has limits as to how long these vehicles can remain in the state before requiring them to be registered there. Each of those service vehicles is registered and tagged in the state where it is stationed, NOT the state where the corp. or the LLC is registered. Do you think we do this because it is more convenient or less expensive for us? No, we do it because that’s the law! And yes, we have our own gaggle of lawyers.
The reason rental car and truck companies can do it is because the vehicles are moved from state to state on a frequent basis and are not assigned to one location. But is you go and lease a truck on a long term basis and that truck is to be stationed in another state for a longer period of time see where you will have to register it.
The laws are in place for this house of cards to be taken down. It’s just a matter of when or if the states decide it’s worth the time and trouble to pursue it on an individual, vehicle by vehicle basis.
I don’t see why someone trying to avoid sales tax would need to form an LLC anyway. Why not just set up a dummy address/residency in the state you wish to register it and register it personally? That way the question of if the vehicle is a commercial or non-commercial and the Fed tax filing isn’t an issue. Not to mention, in the event I was caught I would rather defend that position than the shield LLC position.
I looked into a montana LLC when purchasing my coach from Bennett. They sent me a very thorough summary for my state. I won't lie, I wanted to do it to avoid the state sales tax and the ridiculous license fees here in Michigan. I ran into 2 problems.....
1. Insurance for an LLC registered vehicle.
2. Restrictions the state of Michigan put on it.
If caught, and that is the real question, you will still owe the sales tax along with penalties and any attorneys fees you would incur. It is LEGAL to do this but if you follow the guidelines set by most states you will simply see you can not comply therefore exposing you to a bigger bill than the sales tax. If I full time your darn right I would do it but the fact is the motorhome and I sit in the wonderful state of michigan for 9 months of the year and according to michigan law I must register the vehicle here.
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