Montana, LLC

[mountainheart]

I'm researching this Forum for education and have come across some interesting post on using an LLC in Montana to avoid or minimize taxes. I am certainly not opposed to paying my fair share of taxes for road use, rest areas, etc., but if people are doing it and saving major dollars legally, I would like to know more.

Thank you in advance for your reply.

Tom Adams
Mountainheart

[Fratto]

Its my understanding that this varies from State to State. We talked to our attorney here in Texas and decided that it was not worth the risk.

[Gil_J]

A business asset can certainly be registered in the state the business is located in. The risk is these aren't legitimate business assets used primarily in the state or states the business is registered in.

I have a client from years ago that did what I thought was ingenious. He bought a $3M+ yacht in FL where it was docked. The sales tax rate was 7%. To defer almost all of the tax obligation he established a yacht leasing business and bought the yacht for his leasing fleet of one. Sales tax was due only on the leases. His business legitimately leased it to him every time it went out. This also got around the operational requirements for a corporate yacht over 20 meters.

[mountainheart]

Thanks Mark, speaking with an attorney sounds like a great idea.

[mountainheart]

Thanks Gil, that was an incredible way to be legit.

[Fratto]

A lot of people have a higher risk tolerance than I do. If you can afford a 3M+ yacht, you likely have the necessary staff or contacts to keep up with corporate books, taxes, annual meeting notes, trying to show a profit, etc. etc. to make this look legitimate ... and you might take the chance.

Me? I am not going to mess with the tax man. Most probably never have a problem. But these things can get you in trouble sometimes when you least expect it. My doctor friends all know colleagues that have played this game and lost big.

[Chuck 48]

Try calling Action Services LLC. They are experts and will set you up. 800-481-0013 ask for Nancy

Chuck 48