Montana LLC Re-Visited
Hi guys, I recently spoke to someone who became a full timer and the conversation was interesting. He told me that he sold his home in New York and set up a Montana LLC. He then purchased a new MH...
Forum Discussion
wnytaxman wrote:
Thanks Effy that we are on the same page. From a bank perspective they usually will not have any issues with an LLC owning something like an RV if there is a personal guarantee attached to it. You are correct that some banks just don't understand the concept of the LLC, even though they've been around for about 25 years, and they do not like to lend to an LLC.
Is using a Montana LLC a tax dodge? That seems to be the telling question. The answer is, it depends. If someone is complying with the laws of their resident state and they can prove their compliance, then my response would be no, it is not a tax dodge, but simply complying with the laws of the resident state. If, however, there is not compliance with the laws of the resident state, then yes, it is a tax dodge. If someone gets caught using the Montana LLC illegally they will pay the tax and penalties and interest. Yes, one of my clients got caught with his Montana LLC and he paid the price. And no I did not tell him to use the Montana LLC. I advised him just the opposite.
Obviously the reasons behind most who title their coach in Montana with an LLC are doing so with the purpose of invading taxes, but still if they indeed own this LLC Co. and the coach belongs to this company, how can it be illegal, no matter where the coach travels to or even if the company owners live in another state? I don't think it's a requirement for a company's owner to be a resident of the state where the company itself is located, but I don't profess to know it all, either.
