gbopp wrote: I wonder how much it cost Minnesota to collect the $230,000?
I don't think that they care to much because they already are paying the lawyers.
"While the majority of Minnesota residents pay taxes when purchasing a vehicle, there is a small group that isn't paying their share," Revenue Commissioner Myron Frans said in a statement accompanying details of his department's actions.
"We are investigating these tax evasion activities," Frans added, "and we will ensure that all Minnesotans follow the rules and pay the taxes that they owe."
Quote: Perhaps I am confused. Are you paying sales tax on the same item every year?
We are not in Washington, but some of the posters on this item are. Its callexcisee tax, fair value tax, and similar. What about personal property tax, is that fair? LLC may be the way to go to keep you tax burden down. After all, is it anything that Rich people have been doing for decades?
racerchaser wrote: Some may be interested in the following from USA Today in today's paper.
"Since October 2010, Minnesota has collected $230,000 in taxes, fines and penalties from residents who attempted to dodge state sales taxes on RVs by registering them in Montana. The state says it's investigating 270 other cases."
Just saying!!!
There's a bunch from Minnesota that's not doing it right then, cuz if you have a company in Montana (LLC), that company can and will have assets, no matter where the owner might reside, so there has to be something else going on here.
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"Mowermech pretty much lays down a good plan with one qualifier, LLC's don't have to turn a profit."
Of course not. But there are just enough people on here that consider an LLC that doesn't do any business or have any cash flow to be somehow IMMORAL, That I figured it would be a good idea to provide for a small profit to keep them happy.
5% may be more than enough, I suppose 1% would be adequate.
I wonder how many people would be interested. I would need a feel for the numbers before setting up the LLC!
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A MT LLC does not give you the right to keep a motorhome in a state that has a time limit on how long a vehicle can remain in state before you have to register it in that state. You have to follow the state laws, not laws of MT. People have a way of making simple things complicated.
chastho wrote: A MT LLC does not give you the right to keep a motorhome in a state that has a time limit on how long a vehicle can remain in state before you have to register it in that state. You have to follow the state laws, not laws of MT. People have a way of making simple things complicated.
Sir,
I know of several folks who "have followed the rules" and, as stated several times in not only this thread/posts, but several threads concerning LLCs in Montana, they are 100% legal in terms of keeping their rigs in their state of choosing, and having an LLC in Montana. They have followed the rules, complied with written and documented laws, and are guided by a firm and it's lawyers that has been doing this for a very long time and is continuing to do it. I don't think they'd (The Bennett Law Firm) stay in business very long if, clients they informed and guided into an LLC, were then fined and taxed because they (the clients) did things incorrectly.
LLCs have been very beneficial to many folks over the years in terms of savings on their purchases and registrations. Registrations and taxing of vehicles have been easy prey for states ever since time began and people started buying cars because they (the states) know there is no recourse from the general public to fight the costs. And, the states, (counties too) can basically continue to raise the prices as they see fit. I mean, what EXACTLY can anyone do about the high price of registration? NOTHING!!! The only possible way is an LLC, as long as it is legal, and of economic and logistical value to the tenants of that particular state.
But, now, and in the recent past, as states get more and more into economic downturns, they are consistently looking for revenue. So, if they feel they can gain more revenue by "Changing" THEIR laws governing LLCs and RVs, to the point where it is no longer an advantage to the consumer to pursue an LLC, then the RV owners will HAVE to register it in their home state. If one chooses to create an LLC WITHOUT following the rules, WITHOUT documenting every portion of compliance, WITHOUT following the letter of the law, well, all I can say is, they deserve to get caught and fined.
If one feels it is "Immoral" to chose such a business maneuver for the purpose of saving on registration and tax and it is perfectly legal in their state to have one (an LLC), then simply pay what you have to pay and register it in your home state. No one forces anyone to save money, even if it is legal. California changed its rules governing LLCs quite some time ago or I'd have done it in a heart beat with Montana when we just recently purchased ours a few months ago. To me, it's just not lucrative to try and maintain an LLC in this state. And, they know that.
Scott
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chastho wrote: A MT LLC does not give you the right to keep a motorhome in a state that has a time limit on how long a vehicle can remain in state before you have to register it in that state. You have to follow the state laws, not laws of MT. People have a way of making simple things complicated.
This subject comes up every few months and the same complaints on why or why not a MT. LLC is a good or bad thing are posted. The people that have a MT. LLC and are following the requirements of their states are going to have an LLC. For others that cannot legally form an lLC due to their state's regulations will never have an LLC. Every state's requirement is different on how long an out of state vehicle can be maintained in their state. Whenever this subject comes up I think the best answer is to seek ACTUAL legal advice either from your own attorney or from experts like the Bennett Law Firm that specializes in MT. LLC's.
racerchaser wrote: Some may be interested in the following from USA Today in today's paper.
"Since October 2010, Minnesota has collected $230,000 in taxes, fines and penalties from residents who attempted to dodge state sales taxes on RVs by registering them in Montana. The state says it's investigating 270 other cases."
Just saying!!!
There's a bunch from Minnesota that's not doing it right then, cuz if you have a company in Montana (LLC), that company can and will have assets, no matter where the owner might reside, so there has to be something else going on here.
It is not just Minnesota. There are a number of states who will come after you if your Montana plated, LLC owned, motor home sits at your home of residence for to long. And if it is a company asset as you claim, you better be paying fuel taxes in the states you pass thru and have a DOT sticker. The asset word can get you into trouble.
racerchaser wrote: Some may be interested in the following from USA Today in today's paper.
"Since October 2010, Minnesota has collected $230,000 in taxes, fines and penalties from residents who attempted to dodge state sales taxes on RVs by registering them in Montana. The state says it's investigating 270 other cases."
Just saying!!!
There's a bunch from Minnesota that's not doing it right then, cuz if you have a company in Montana (LLC), that company can and will have assets, no matter where the owner might reside, so there has to be something else going on here.
It is not just Minnesota. There are a number of states who will come after you if your Montana plated, LLC owned, motor home sits at your home of residence for to long. And if it is a company asset as you claim, you better be paying fuel taxes in the states you pass thru and have a DOT sticker. The asset word can get you into trouble.
You're probably right and being a full timer, like many are, would help tremendously. Also keeping it in storage somewhere else when not in use should help. As for state fuel taxes and such, I'd have to ask and could have done so, just this past weekend with a Canadian owned Montana plated coach who was parked right next to me. We touched briefly on his MT registration, but that was about it and I've never seen or heard of a DOT sticker on any of these coaches.
racerchaser wrote: Some may be interested in the following from USA Today in today's paper.
"Since October 2010, Minnesota has collected $230,000 in taxes, fines and penalties from residents who attempted to dodge state sales taxes on RVs by registering them in Montana. The state says it's investigating 270 other cases."
Just saying!!!
There's a bunch from Minnesota that's not doing it right then, cuz if you have a company in Montana (LLC), that company can and will have assets, no matter where the owner might reside, so there has to be something else going on here.
It is not just Minnesota. There are a number of states who will come after you if your Montana plated, LLC owned, motor home sits at your home of residence for to long. And if it is a company asset as you claim, you better be paying fuel taxes in the states you pass thru and have a DOT sticker. The asset word can get you into trouble.
The key words are "for too long". BUT what is too long?? Every state is different and if you can not follow your states laws and have a LLC you deserve to be in trouble. Some state laws say if the vehicle remains in state for more than 6 months it must be registered in that state. You can leave the state every 5 months and be legal. If it says 30 days then you have to go out of state every 29 days to be legal. It is not as complicated as people want to make it. And it is not a business, it is a holding company and does not have any income and does not have to file any tax returns.
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