Montana LLC

Passin Thru wrote:
Render unto Caesar! Then you will be able to sleep at night and not pucker up everytime you passs a cop or a roadblock. IF you are a resident of FL and liscense in MT it is considered illegal by the state of FL and they are looking into it. Heard not long ago about them doing it on I4. Get caught in AZ and you'll probably never get out of jail.
Check this out also. You are just biting off trouble all around by trying to beat the system. They are going to check where your domicile is and track you down.
http://www.fmca.com/index.php/motorhoming/motor-coach-news/319-llcs-may-require-trip-permit-or-ifta-license
OH! Then you'll have to have a NY HUT.

Just so no one else wastes the time to follow your link, this is a 7 year old article that flamed about something that never came to pass.

If you don't want to have a MT LLC that's fine with me, but don't spread misinformation to others. Most of the nay-sayers here don't realize that it is totally legal to have vehicles registered to you in multiple states, only one of which is your domicile. Rich people do it all the time. Don't you remember Mitt Romney talking about the multiple Cadillacs his wife has at their different homes?

It's no big deal to have an SD license and a vehicle with MT plates. We went to Canada this year with a MH with MT plates pulling our toad with SD plates and our SD licenses. Had all our appropriate paperwork and didn't have the slightest problem going or coming back.

Render unto Caesar! Then you will be able to sleep at night and not pucker up everytime you passs a cop or a roadblock. IF you are a resident of FL and liscense in MT it is considered illegal by the state of FL and they are looking into it. Heard not long ago about them doing it on I4. Get caught in AZ and you'll probably never get out of jail.
Check this out also. You are just biting off trouble all around by trying to beat the system. They are going to check where your domicile is and track you down.
http://www.fmca.com/index.php/motorhoming/motor-coach-news/319-llcs-may-require-trip-permit-or-ifta-license
OH! Then you'll have to have a NY HUT.

What the heck, I might as well say it again, then somebody can complain about THAT:
KNOW the laws in YOUR state!
COMPLY with the laws in YOUR state!
DOCUMENT everything you do to comply with the laws in YOUR state!
And, you will do NOTHING illegal, and will have NO TROUBLE!!
It really IS just that simple!

We used Action Services of Missoula MT. That specifically answers the OP's question.

Anyone who wants to become a "better citizen" by paying my taxes for me can send me a PM.:B

Well, DANG! I did not know I was one of the "wealthy".
I take the home mortgage deduction every year.
I deduct the interest paid on the motorhome loan.
I deduct the value of the items I donate to various charities here in town.
I deduct the amounts I donate to NPR, PBS, and others.
I do NOT deduct medical expenses, there is never enough.
I do NOT deduct work expenses, there is never enough.
I file the State return in the most advantageous manner, to maximize the refund.
I file the Federal return, using every possible deduction and loophole I can legally take, to minimize the amount I have to pay.
I am seriously considering filing for a refund for the gas taxes I pay for off-highway fuel. OK, it is only about 30 gallons per year. At about 46 cents a gallon, that is surely enough for beer and pretzels!
Wealthy? No, just solidly middle class.
When we lived in Wyoming, we did a LOT of shopping here in Billings to save the sales taxes. It was only 140 miles one way, no big deal. No, I did not stop at the Port Of Entry in Franny and pay the tax on our purchases (besides, it was usually closed when we went home)!!
If one can reduce their tax burden LEGALLY, IMO it is foolish to not do it!

EDIT: It is NOT illegal in any state to own a Limited Liability Company. Not even in California.
Again:
KNOW the laws in YOUR state.
COMPLY with the laws.
DOCUMENT your compliance.
If you do those things, you can NOT get in trouble!

We don't write the tax laws….I for one am an advocate of a "flat tax" or a "fair tax". I tell my accountant every year that I want every advantage available to me via the tax code. Translation take me as close to the line without crossing it! I'm a business owner….I pay taxes A LOT OF THEM. Between income tax, property tax, gas tax, fica, futa, social security, sales tax, property tax, special assessments, ect…. I pay very very close to 50% of my total income to taxes. I don't mind because I have been blessed in my life. BUT, I feel NO GUILT, in taking each and every advantage available to avoid taxes BASED ON THE LAW!

Also, the home mortgage deduction MAY be available to everyone but look at the statistics of home ownership in the last 6 years…it is down considerably so yes, I believe that the home mortgage deduction is a benefit for the wealthier people in our society. If you want to clean up this mess get rid of ALL tax deductions and charge a flat or fair tax with a threshold so those not making much money don't pay ANY taxes. If a society is to work everyone at some point and time has to have skin in the game and help push the wagon…….the real problem is that entitlements have put more than half the people in the wagon and those of us pushing are getting damn tired…..LOL

Whenever the discussion comes to the Montana LLC there are always those that say that it is immoral or unethical and those that say it is legal and, therefore, totally within the realm of morality and ethics. We have used the argument that most all of us will use the law to our benefit and we take those deductions that the law allows us. I know of no one who sends in their income taxes with an extra $100 or so to help cover the cost of parks or roads or education or whatever else you may desire yet many are criticized for using something that is legal to reduce their own tax burden.

When I bought my rig I looked at the laws of NY and said that I can't comply so I didn't do it. If I had felt that I could comply and that I could prove my compliance then I might have gone that route. Would that be immoral? I don't think that it would be because I have complied with the laws of my state. There is nothing that forces anyone to use the Montana LLC just like there is nothing that forces anyone to drive 75 in a 65.

What is your comfort level? Are you comfortable using this method? Perhaps one of the most important considerations is if you are challenged how much are you willing to spend to justify your position? I have one residency audit going on right now that is in its third year. The audits are so ludicrous that the state is saying that any day my client doesn't have a charge on his credit card from his home state of Florida is a day he was a NY resident. Residency audits are tough and the burden of proof is on the taxpayer so it can be a situation where you are right but proving it can be costly. Is that worth the risk? All of these are personal decisions and it's up to the individual to decide.

So many get all wrapped up into the fact that it is legal, because many states are just catching up to the loop hole, not seen. Fine. OK. So it is legal to avoid taxes and a Montana LLC may be a mechanism to do that. And many promote not paying one more penny in taxes than necessary. Got it. Now look at yourself as a part of a community.

Now there is another side of that penny. It is called tax burden redistribution. Communities, city, county, state and fed, all rely on taxes as income to support community needs/projects. What is that balance and how big the government is. I for one like small government but even with small government, we rely on the governoing agencies to maintain our community assets, like parks and roads. Now let's also assume that everyone buys everything through a Montana LLC (why should it be limited to RV. Seems that local storeds would be out of business and the roads would not get repaired. Yeah. I know that that is over kill for this scenario.

I'll get back on target. Where does the state get revenue it lost through this Montana LLC that was set up solely for the purpose of avoiding that tax. Why they up MY property or sales tax and in some states income tax. That means that the $12000 (more or less) sales tax burden that you avoided gets passed to all. Seems fair to me. I don't mind paying for what you avoided.

Now, those that look down on those that report possible "tax avoiders" might think that turning you in is fair. After all, you started it by avoidng your taxes, though legally, and passing on a tax increase to us.

I suggest that, like others have stated, if you do not like your tax structure, find a different place to live. Maybe an island unto yourself so you won't have a governing body and communal needs.

In economics, there is more than the tax the was not paid. There is how the government needs to get the needed funds.

Just because you can, does not mean you should.

I know for me personally due to particulars about residency, time in state, etc, this wouldn't work for me. For some maybe. But there is a fine line between leveraging a tax benefit the way it's designed ( I would call it a loophole that seems to be getting more narrow) and those that use a MT LLC to evade taxes by illegal means. Let's face it the goal is the same. For some it makes sense and can be done legally and others not. Some try to do it illegally and get caught, some don't. No one is arguing it's legality if you follow the laws in your own state, but let's be honest, it's avoiding the taxes that are often rightfully due. Legal in some cases? Yes. I think the intent would be for full timers. I really doubt the intent of such a setup is to avoid paying taxes in your true home state. That is where the moral argument comes into play. Might be legal, but if you truly live in one state and claim to live in another by registering a MH in a state you don't really live in, it's lying. Might be legal by virtue of this loophole, but it's lying all the same. Didn't buy it there, you don't do business there, you don't live there, yet you register your MH there. Why?, if for no other reason than to evade taxes in the state in which you truly live in. Similar scenarios used to be popular for Cayman and Swiss accounts too. They caught on and they are catching on to this. I feel as I am sure many others do, that if I really live in a particular state, that I should register my vehicles there.

And comparing to a mortgage or interest deduction that applies to literally everyone is apples to oranges. You don't need to lie about where you live to do that.

ROYBUCK wrote:
Use a little common sense, I guess you are the type that needs it spelled out to them, If you are a resident of that state and park your MH at Home, or any storage facility. And the MH is registered in another state you will pay VA taxes if caught. Roy

Lighten up Roy, we are just having a little fun. I think we all knew what you meant.