Mannon89 wrote:
We are getting ready to buy a new RV we’re wondering if any of you have experience forming a Montana LLC to avoid sales tax. We live in Texas and we understand the state of Texas is not clamping down on such restrictions whereas states like California pretty much will not allow you to do it. My question is how hard is it to do? How long did it take you to get it ready? And is it worth the expense and trouble?
Thanks for the help!
At one time LLCs were a common means to avoid sales tax.
HOWEVER - states want their revenue, and began to (legally) pursue folks who were not paying sales tax to the state where they resided.
YES - it was often litigated. Do your homework.
Honest MT law firms will tell you two things:
1. They will *not* represent you in a state other than Montana.
2. They will suggest you become a legal resident of a state with less (or no) sales tax than where you currently reside - (no LLC necessary).
Of course they will set up an LLC for you....for a fee.
When stopped by an LEO, expect to explain why your DL is from a different state than the plates on your RV. Why isn't the owner of the LLC a resident? (Good luck!).
Suggest you look into South Dakota - plan to have both your DL and RV registration from SD......and SD *does* charge sales tax.
Bottom line: There's no free lunch!
:R
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