rgatijnet1 wrote:
msmith1199 wrote:
hipower wrote:
Say we have a company which is a LLC, Sub S or a C corporation with an operational headquarters in Montana. Are we to assume they cannot hire an employee residing in another state and provide them with a company vehicle registered to the corporation, plated in the corporations home state and based in the employees home state? If that is true then the tax auditors and enforcement people have a real problem on their hands and it far exceeds any small number of motorhome owners, because that happens every day in every state. Similar things happen with commercial trucking companies and vehicle registration, driver residence and licensing, etc.
That's one of those apples and oranges comparisons. You can't compare "recreational" vehicles, with "commercial" vehicles. Two different animals and two different sets of laws. So no, you can't make that assumption.
And that is the problem with most naysayers....they can't imagine that an RV could be called a business vehicle and they can't imagine taking a vacation in a commercial vehicle. Of course, they can't explain how RV rental companies do it either.
The problem is, and where most people get caught, is with financing. Most banks will not finance an RV to a new LLC with no history of income, etc. Consequently the RV is registered, and the loan is in the owners name, and the owner has some BS LLC attached to it. He gets stopped in another state and his driver's license is in one state, and the RV, in his name also, because of financing, is in a different state. That is obviously tax evasion and is punishable by law. That is why expert tax advice is needed to do things right.
I don't think there is anybody on here who can't understand how an RV can be used in a legitimate business. Security companies use them, construction companies, etc. Even the RV itself can be the business as a rental. But again, that is not what the thread is about. The majority of the people using these Montana LLC's are not using the RV in a legitimate business. It's a made up business all for the purpose of avoiding taxes. That's is why they are an issue.
