Quote Originally Posted by Jon Wehrenberg View Post
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.