Montana LLC to save on sales tax

Just do it the honest way. If you can afford an RV you can afford the sales tax on it.

Pbutler97 wrote:


Sounds like it borders on tax fraud? Cross your fingers maybe?
Probably not a good question to ask on a public forum by an OP that appears to use his real name in his handle and profile lol?

Maybe something has changed, but there used to threads on this forum all the time about creating an LLC or other type of "company" and registering vehicles in different states to avoid various taxes.

Dtank wrote:

Mannon89 wrote:
We are getting ready to buy a new RV we’re wondering if any of you have experience forming a Montana LLC to avoid sales tax. We live in Texas and we understand the state of Texas is not clamping down on such restrictions whereas states like California pretty much will not allow you to do it. My question is how hard is it to do? How long did it take you to get it ready? And is it worth the expense and trouble?
Thanks for the help!

At one time LLCs were a common means to avoid sales tax.
HOWEVER - states want their revenue, and began to (legally) pursue folks who were not paying sales tax to the state where they resided.

YES - it was often litigated. Do your homework.

Honest MT law firms will tell you two things:
1. They will *not* represent you in a state other than Montana.
2. They will suggest you become a legal resident of a state with less (or no) sales tax than where you currently reside - (no LLC necessary).
Of course they will set up an LLC for you....for a fee.

When stopped by an LEO, expect to explain why your DL is from a different state than the plates on your RV. Why isn't the owner of the LLC a resident? (Good luck!).

Suggest you look into South Dakota - plan to have both your DL and RV registration from SD......and SD *does* charge sales tax.

Bottom line: There's no free lunch!

:R

~

Sounds like it borders on tax fraud? Cross your fingers maybe?
Probably not a good question to ask on a public forum by an OP that appears to use his real name in his handle and profile lol?

Triple-posted.

Mannon89 wrote:
We are getting ready to buy a new RV we’re wondering if any of you have experience forming a Montana LLC to avoid sales tax. We live in Texas and we understand the state of Texas is not clamping down on such restrictions whereas states like California pretty much will not allow you to do it. My question is how hard is it to do? How long did it take you to get it ready? And is it worth the expense and trouble?
Thanks for the help!

At one time LLCs were a common means to avoid sales tax.
HOWEVER - states want their revenue, and began to (legally) pursue folks who were not paying sales tax to the state where they resided.

YES - it was often litigated. Do your homework.

Honest MT law firms will tell you two things:
1. They will *not* represent you in a state other than Montana.
2. They will suggest you become a legal resident of a state with less (or no) sales tax than where you currently reside - (no LLC necessary).
Of course they will set up an LLC for you....for a fee.

When stopped by an LEO, expect to explain why your DL is from a different state than the plates on your RV. Why isn't the owner of the LLC a resident? (Good luck!).

Suggest you look into South Dakota - plan to have both your DL and RV registration from SD......and SD *does* charge sales tax.

Bottom line: There's no free lunch!

:R

~

https://biz.sosmt.gov/forms/business

If I were to want to do something like that to avoid such a thing, I'd start with a simple google search with something like "how to setup llc in montana"

You should get lots of results with lots of advice from there..

I'd also guess that if this were something that was a common thing to do, we'd all be doing it... :)

Anyway, good luck!

Mitch