Montana LLC for saving sales tax

[kkurni]

I live and my dealer in Seattle, WA.
Build date 9/20

Does anyone try this - http://www.mymontanallc.com/
setting up Montana LLC to save sales tax?

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[doink]

Good luck if you go this route.

A lot of states have been cracking down on fraudulently registering vehicles for purpose of tax avoidance.

Further. With the South Dakota vs Wayfair ruling, states are even more on the hunt for taxes owed to them.

edit: another thought. Insurance could perhaps be tricky. Since LLC owns and you technically drive a company car, explaining that to the insurance company may be dicey. Particularly if the company has no other purpose than owning a car.

Also. This is not financial advice. Good luck with whatever you do.

 

[Monster1926]

Does anyone try this - http://www.mymontanallc.com/
setting up Montana LLC to save sales tax?

I’ve thought about it just to save the excise tax I pay yearly. Personally I’d rather not open the head aches it might cause. The state wants their money just like the mafia.

 

[kkurni]

Thank you for the advice.

Ok then, will forget about it.

 

[DREWR13]

I know in Georgia they are coming down hard on people doing it. Obviously not everyone gets caught but the ones that do it definitely costs them more than the original taxes owed.

 

[GoTigersGoBronco]

I seriously considered this. I will say, the higher insurance costs will likely erode any savings.

 

[doink]

I know in Georgia they are coming down hard on people doing it. Obviously not everyone gets caught but the ones that do it definitely costs them more than the original taxes owed.

Exactly. Speaking from what I’ve seen in Georgia too. You may not be caught. But if you do. Juice isn’t worth the squeeze.

 

[AKBronc49]

No sales tax here state or city, I'm good!

 

[Dubby]

Yep, Tennessee Department of Revenue has been hitting some people for MT LLCs on the criminal tax fraud side. I would really avoid doing it.

 

[TripleB]

There’s a reason exotics and motorhomes have Montana plates. Huge savings for those guys.

 

[Haystack]

Would be nice but I can't do the time at the moment..

 

[lakesinai]

Thank you for the advice.

Ok then, will forget about it.

Good decision.

 

[Happytown]

There’s a reason exotics and motorhomes have Montana plates. Huge savings for those guys.

I live in Louisiana, just bought a 19 year old used motorhome from a couple in Gloster Mississippi. They had done the Montana LLC thing way back when they originally bought the RV, saved themselves around 10k in taxes. They also had bought all subsequent personal vehicles over the years using the LLC, avoiding sales taxes. When I called to check about registering the RV in Louisiana, the notary threw up a big red flag, saying I would end up having to pay those original back taxes (yeah 10k on a 30k used RV). But there was a workaround. I had to get a notarized bill of sale in Mississippi first, then bring that bill of sale to La. notary and then they could register it. All in all wasn't a big deal, but yeah it does throw a wrinkle in things and they are well aware of what is going on.

 

[Daktari]

I'd love to not pay $5k in sales tax, but I'd never risk rotting in jail for that little money, simply not worth the risk. Just a question of time until you get caught IMO. And then it will cost way more than those measly $5k. No thanks.

 

[Happytown]

Also wanted to add, there are yearly fees with maintaining the LLC in Montana, like around $100 a year. If you let the LLC expire, I would assume you could no longer renew your Montana registration and would be forced to register in your home state at that point. I agree with what you already stated, not worth the trouble. It's not fraud though, its using laws as they are written just like any big corporation does, offshoring accounts and all that. Its legal, but some states are aware and are closing the loophole in one way or another. In my case, they made it difficult to transfer ownership.

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