Montana LLC Re-Visited

Foodsman wrote:
Allow me to play the devils advocate here...

First of all the gentleman in question was not bragging or boasting he was just saying from one business man to another what worked for him. He came across as an engaging, friendly guy trying to help someone thinking about the full-time life!

I know that Florida, South Dakota and Texas are good for full-timers and the question is why? The answer is because of lower and better tax laws and they are “full-Timer” friendly states. So what these three states offer are more desirable than some of the more unfriendly tax states like California, Illinois and New York just to mention a few. As for Federal implications there is non, this is all based on each given state.

Now we have the state of Montana where you can get an LLC in a no tax state. A state where you can register a car, truck, RV etc with no tax implication and it is, at least at this posting 100% legal. And what he told me about Florida is also true, if you purchased a vehicle out of state and bring it into Florida 6 months later, you do not pay Florida tax on that vehicle regardless if you purchased it from a tax or no tax state.

I personally would not go with an LLC because of my bank and insurance company. So why should there be personal and/or moral outrage from a process that is just as legal as someone choosing South Dakota, Texas or Florida as their full-timer home?

Ok, thats the opinion of the “devils advocate” so bring on the loathing and gnashing of teeth! :)

Oh and "Willald" I find you a man of great wisdom, maybe thats because I sneak over the line for gas myself!!! :) :) You devil you...

Harry

I appreciate what you are saying. But the fact is that obtaining an LLC to register a vehicle in a state you don't live for the purpose of a busines you don't really operate, while may be legal is lying. You don't really do any business, I mean what's the purpose of the LLC in this case? it's sole purpose is a tax shelter. And that is the counter point. I own 2 small business and I take advatange of whatever tax breaks I can. But I run a legitimate business and the LLC is in the state I reside and do business. Again I know this is not mandatory. The breaks offered to me are designed for the intent in helping me run that business and thereby promote local econmic growth and health. Frankly anything else to me is questionable. LLC's are designed for business puposes. It's a company. On articles of organization it asks for the purpose of the business. So what do you put there if the truth is really "so I don't have to pay taxes in the state I live in" ? I get it, mowermech and everyone else. I never said it was illegal. It's a loophole for sure. But at the end of the day it's misleading and untruthful. You don't live in MT and you don't really operate a business. Again before I get verbally pummeled, I get it, neither is a requirement and if you do it legally it's a right. Does not make it any less scrupulous. I am surprised this gap is not closed by now. But you can still run shoddy home zoos in some states too despite animal abuse and maulings. Legal?, sure. Right? no. As mowemech and others have said, you can do it. It can be legal. I don't agree with it and apparently neither does the goverments (State federal) hence the scrutiny.