AprilWhine wrote:
wintersun wrote:
There are states like Nevada which have no sales tax. In California it is around 8%. Worth checking out beforehand. Lots of used RV's in the Las Vegas and Arizona area. You can also save on the DMV (department of motor vehicle) fees which vary greatly from state to state.
In most states you can create a limited liability corporation or LLC that can own the vehicle and will provide a measure of protection in the event of an accident. Many states, including Nevada will do this for a low cost and everything can be done online.
Please check your information. Nevada DOES charge sales tax for vehicles bought from a dealer. Where you might be confused is that there is no sales tax on a private party vehicle sale.
Why would anyone want to buy a brand new RV and then sell it used in 6 months and lose $20,000 in the process. The sales tax would be the least of their worries. A new vehicle that may have problems is not wise for a trip around the USA where taking it back to the dealer for warranty problems is not practical. I have friends in Reno that have sold their two motorhomes at a collective loss of over $170,000 or about $20K per year of use. The people that bought these motorhomes saved a lot of money and were smart.
In California even with a private party sale the Dept Motor Vehicles will charge the sales tax when the vehicle is registered and it will be 7.5% or more. That's an extra $5000 or more that need not be spent on taxes.
A LLC in Nevada is cheap (filing fee is US $75) and can be done entirely online which is not the case for most states. A LLC is a safe way to own the RV and not have to worry about being tied up in the courts in the event of a serious accident. Nevada law makes it particularly difficult to sue a corporate entity for any reason.
I would do the same in any country - i.e. create a corporation and have it own the vehicle. Worse case I can abandon the corporation and its assets - the truck or car, and have no additional liabilities.
