The Cost of Ownership

[Denny]

Details, details, details. That's why we hire attorneys, accountants, business advisers, etc. If we knew everything we would not need them. Its been nearly ten years ago when I formed my LLC and I was told then that I would not have to file tax returns and have not done so. To date I have not been questioned.

I believe the reason was because the LLC was not conducting business. I have other LLCs in Ohio and yes, I do have to file and pay state and federal taxes but these LLCs are conducting business. There is also the protection of a corporation from personal liabilities that would not be available if the bus was registered in an individual name.

My concern was if Adam's LLC starts conducting business and has a set of books then it may become necessary to file tax returns since the original reasons for establishing the LLC has changed.

If any other questions contact my Montana attorney, John Bennett, and he will give you the real reasons.

[Jon Wehrenberg]

I'm not an attorney, I did not sleep in a Holiday Inn Express last night, and I know diddly squat about the law and accounting.

But I do know an LLC is a business enterprise. It does not have to be active, it does not have to generate and income or a loss, but it does have to file a tax return. If an LLC was formed solely to EVADE (avoid is a legal way of not paying taxes and an LLC formed solely to avoid taxes is close if not actual evasion) taxes is a very risk proposition.

If an LLC is formed to provide a means of renting a bus that is a business enterprise and will require tax returns, and that allows depreciation and the claiming of expenses to offset income.

[JIM KELLER]

I suspect this group has at least one attorney in the membership and I hope they will participate in this Thread.

[Sid Tuls]

Just a note if you have one of these bs LLC in Montana make sure you have it for your tow car as well!! They are ticketing here in Calif. I speak of experince they got me big time!! Plus they honestly have bounty-hunters in R.V. parks to turn you in to the Highway Patrol. Beware of Pismo Coast Village.







Sid & Judy Tuls
2007 Thompson

[Ray Davis]

Sid,

I've long been expecting this to happen in CA. There's been other recent reports of huge fines in other states.

If it's not inappropriate to ask, what were the consequences?

Ray

[truk4u]

Wrong Jon Boy, no business transaction in an LLC, no tax return. If there is business transactions, it flows to the owner just like a Sub S and requires a tax return. I have multiple LLC's and the ones with no business transactions have never had a tax return filed in Georgia or elsewhere.

Jim - We had one pretend Attorney, hope we don't get any others....

[MangoMike]

Jon,

The law firm I use in Montana has informed me the same thing of no reporting requirements as long as the LLC doesn't produce any income. I'm sure there is more, and I'll try to find the explanation from him.

Mike

[Sid Tuls]

Highway Patrol informed me that if I have my residence in Ca. & have a Ca drivers license the bus needs to be license in Ca. So if I didn't do it they would shut down all are cattle trucks. So I had no choice. They told me that Calif. is going after the Montana Law Firm. Don't blame for this state moving all cattle operations to West Texas!!!! At lest they welcome AG. I'am sorry if I sound negative but Calif. thinks BEEF & Milk come from Costco. So the bottom line I paid the tax.





Sid & Judy Tuls

2007 Thompson

[Ray Davis]

Sid,

Sorry to hear about that. Sure sounds like CA is starting to enforce this stuff, along with some other states.

Personally, I was afraid to try the Montana LLC with my two coaches. Others will certainly disagree, but I felt wrong trying to not pay any taxes by doing that, when the coach was stored in CA, driven in CA, with a CA toad and DL etc, etc.

I will admit, I hated the high cost of it however. It was downright painful when I registered my last coach.

Ray

[lewpopp]

I read somewhere there would be a road tax if you claimed your bus for business if it was licensed in Montana. That's why I told my wife to stop "hookin" out of the bus. Don't want no friggin road tax reports.