Montana LLC - CO, IL & OH

[truk4u]

For those of you with Montana LLC's and living in CO, IL or OH, those states have now purchased the Secretary of State data base and are going after owners that have a Montana LLC and using their home address.

Merry Christmas.......:eek:

[rmboies]

For those of you with Montana LLC's and living in CO, IL or OH, those states have now purchased the Secretary of State data base and are going after owners that have a Montana LLC and using their home address. Merry Christmas.......:eek:

Tom, do you mean using your home address for the LLC or what exactly?:confused:

[Joe Cannarozzi]

Get a P.O box in Montana and use it instead.

[Ray Davis]

I've spoken a number of times with Steve Bennett at California Coach regarding this. California is also clamping down on Montana LLC's, and from what Steve has mentioned, they are clamping down on 45 coaches being driven without proper Class B licenses.

Although it would have saved me a "ton" of money at my recent bus trade (and yearly too), I decided it's just too risky (for me) to try the LLC route.

From that I understand the state is targetting Montana licensed coaches pulling toads with CA tags. Evidently they are also targetting coaches which can be see stored outside, with Montana plates, parked long-term in CA.

I don't know, it definately seems that big-bro is watching.


Ray

[Joe Cannarozzi]

They are going to run people off and in the end will end up with less revenues, not more.

Ray, in the line right next to the folks being HARASSED for a special licence for campers will be the illegals waiting for their licenses.

[Loc]

I complained the whole time while paying the Texas state sales tax, but I wasn't comfortable doing the Montana thing. It did find it interesting that the finance company mentioned that some lenders are no longer lending to Montana LLC's. They did say that there was still a lender or two, but that a number had stopped doing that business.

[Just Plain Jeff]

IF it turns out that challenges to the Montana LLC are some kind of a coordinated effort on the part of the states to recapture lost sales tax revenues, one can expect that the Montana deal is over.

Historically, the relationships between the states with regard to residency requirements and such always has to do with the money.

There was a case a few years back where a challenge was made on an Oregon coach owner and the guy got stuck for $110K in sales taxes, penalties and all kinds of nasty stuff.

It may be that, "Pay now or Pay later," could be in the works for revenue-strapped states.

These events will bear the closest scrutiny in the coming months for those with the Montana registrations. By the way, not only are banks getting fussy about the Montana deals, but insurance companies as well as their rates are determined by an honest answer to the question, "Where will be the principal place of residence be." Fudge on that question and have a claim and that's insurance fraud.

Some POG stuff is serious.

[Ray Davis]

It did find it interesting that the finance company mentioned that some lenders are no longer lending to Montana LLC's.

That was the word I got when I financed my new coach. If I were planning on a Montana LLC, either the deal would have been off, or hampered in some way.


Joe, actually, I have no "problem" paying taxes in CA. I live here, and drive the roads, and feel it's the right thing to do. However, I certainly wish they were more reasonable in price. Right at the moment it's around $200 a month for yearly tags on a coach that I might drive 5000-7000 miles, many of them out-of-state!

Ray

[truk4u]

Deb,

Yes, some have used their home address for the Montana LLC's and that's where these 3 states are catching people. If your Montana LLC shows a Montana address, I wouldn't be concerned.

[rmboies]

Deb,

Yes, some have used their home address for the Montana LLC's and that's where these 3 states are catching people. If your Montana LLC shows a Montana address, I wouldn't be concerned.

ok, thanks Tom!

[Joe Cannarozzi]

With the HUGE tax savings by doing a Montana LLC, before purchase, one could take a small fraction of the savings and invest in some acreage there and establish residency (that alone would probably be a great investment) and then one could tell the local tax guy where to go.

Heck Ray, even not concidering the initial sales taxes, you could probably get at least a couple acres for what you would otherwise be paying for one years registration in Cal.

I think a gathering in Montana is in order. This type of leadership needs to be rewarded.

[rbeecher]

This LLC thing has the converters concerned, they feel if it goes away so will many sales.

I heard this just last week.

Richard Beecher
02 Marathon XLII 45
96 Vogue XL 40 for sale

[Just Plain Jeff]

Of course, this goes to another level of mis-understanding. A guy bought a new coach. He LIVES in Montana. Owns a mining company there, was BORN in Montana. Bought the coach to USE in Montana.

Of course, he got the most grief in registration recently than anyone else.

Go figure.

Lew?

[Jon Wehrenberg]

Having witnessed how hard up states with a spending habit (can anyone say New York?) relentlessly chase every dime, it is only a question of time before the Montana thing is over. I have said this before and been criticized, but despite everybodies' protestations the Montana LLC is simply a paper device to EVADE taxes. If the LLC had a business purpose any owner could thumb his nose at any state that tried to collect sales taxes.

Anybody can set up a business anywhere he chooses. If that business has a reason to own a coach and can prove it is a legitimate business you have not ony a means to AVOID paying a sales tax on the coach since Montana does not collect sales taxes, but it is probable if the business purpose generates revenues and the coach is used to generate those revenues that you can take the depreciation on the coach for tax purposes. That is like paying 50 or 60% of the price of the coach. What a deal.

If an owner insists on going the Montana LLC route, despite the risks, then the best way to do so would be to stay under everybody's radar. Use a Montana mailing address, register the toad in Montana, get a Montana driver license, and don't park the coach where it is visible regularly in another state.

[jonnie]

Having witnessed how hard up states with a spending habit (can anyone say New York?) relentlessly chase every dime, it is only a question of time before the Montana thing is over. I have said this before and been criticized, but despite everybodies' protestations the Montana LLC is simply a paper device to EVADE taxes. If the LLC had a business purpose any owner could thumb his nose at any state that tried to collect sales taxes.

Anybody can set up a business anywhere he chooses. If that business has a reason to own a coach and can prove it is a legitimate business you have not ony a means to AVOID paying a sales tax on the coach since Montana does not collect sales taxes, but it is probable if the business purpose generates revenues and the coach is used to generate those revenues that you can take the depreciation on the coach for tax purposes. That is like paying 50 or 60% of the price of the coach. What a deal.

If an owner insists on going the Montana LLC route, despite the risks, then the best way to do so would be to stay under everybody's radar. Use a Montana mailing address, register the toad in Montana, get a Montana driver license, and don't park the coach where it is visible regularly in another state.

Jon,

Even if you owned the business, if the coach is not for resale as your primary business or you have a dealers license you still have to pay sales tax at least in Ohio. Also remember that if you depreciate the coach as a business expense you have to capture the profits and pay a capital gains tax when you sell the coach.

I have a Montana address, my coach is stored inside in my garage and my trailer has a Montana plate and yes I agree with you that the Montana LLC will come to an end. However, I believe it is tax avoidance not evasion, but it would probably cost more to depend that position than to pay the taxes and fine.

[Jon Wehrenberg]

I'm not suggesting the buying and selling of a coach. I'm suggesting a business in which the use of the coach is justified, such as consulting, sales, seminars, etc. Anything that can reasonably explain the use of a coach. I used our first coach to do about 20 seminars a year for our major customer, plus I used it to transport me and the entire booth display for trade shows for our company's line of campground equipment. We were on the road a lot for purely business purposes, but we still got to see and enjoy a lot of the country while tending to business.

I paid the NY sales tax, and the TN sales tax on the current one, but I was able to charge off travel expenses and depreciate the coach.

If you are going to try to cheat the taxman you need a very good reason because as state budgets increase they will come after every opportunity to grab taxes, and if they can prove your tax avoidance was in fact evasion then there are penalites involved.

[jello_jeep]

Big AMEN on that Joe!!!



I think a gathering in Montana is in order. This type of leadership needs to be rewarded.

[Toy Box]

You couldn't have said it better, Jon. We have seen many customers get caught trying to use a tax scam, I mean a tax loophole to purchase a large boat without paying the sales tax. I have seen many of them use an offshore angle to avoid the 6% Fla. tax and then a year or so later, they get caught and wind up paying the 6 plus 6 or 12% tax and penalty. It's just part of the purchase price. None of us like to pay any taxes, especially those that penalize our hard work. And who can enjoy seeing our "tax dollars at waste" like the current sewer project here in Lauderdale? We simply decided to pay the tax now and not look over our shoulder. Probably not what some fancy lawyer or finance man would do, but hey, the same folks tried to get me to refinance some property with a sub-prime loan!!!!!