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Montana LLC

Ballsdeep

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Anyone have experience with the Montana LLC?

Looking at Motorhomes and fingers crossed we found one and hoping to pick it up soon. The seller provided me with a contact to set up an LLC to register the new rig- It would have a Montana license plate and I would avoid the heavy California tax and registration fees. My question is- is it worth it? Sounds great to save a few thousand dollars however on the flip side I dont want to be pulled over on my way home from Havasu or the desert because my tow vehicle, trailer, or boat have a CA plate. I have heard that the CHP is onto this and since it pays their salaries- they may be more inclined to pull you over for something stupid.

Has anyone gone through the process and had any experience or issues being pulled over?
 

CampbellCarl

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Been a few years but read the fine print with regard to how many days the coach can be in CA during the early part of the LLC licensing period. Also should talk about keeping fuel and camping/grocery receipts proving the periods that the coach is out of the state.

If you keep the coach for 15 years, you can apply for a permanent tag.

Of course, I have ZERO first hand knowledge of these things...

:D
 

sirbob

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While I have not done it myself I know a number of people who have.

A couple of things I've heard - don't buy the motorhome in CA. If you bought it here, CA will want to the taxes paid here.

This is a bit of a cottage industry in MT - and they are good at it. I would suggest having some idea of what the business is that you are LLCing in MT. (possibly you will rent MH out?)

Getting pulled over will only be a problem if you can't look the guy in the eye and say why you have the LLC - there is no law against doing business in a favorable state (or country) to avoid taxes - corporations do it all the time and in essence you are acting as a company. That's how countries like Ireland are getting a lot of US companies to incorporate there.

It will take a little planning but is worth it for a big ticket item - ever notice how many Provost RVs have MT plates?
 

McKay

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Many of my friends here in utah use them. Few things of note. Not easy to do it unless paying cash, as if you need a loan on it most banks have issues with them. A couple of my friends also have written up formal rental agreements showing they rent it from the LLC in the event they are pulled over. And they all do travel out of state often.
 

boatpi

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I have a MT and a NV llc. I do business in five states and I've never had a problem, but again I have a viable business. these were all set up at the recommendation of my CPA . My personal vehicles are registered in my name at my residence in California.

A lot of this guards you against liability lawsuits . If you own income property out of state and self manage general you will have an LLC in that state.

As a general reference, once you own a vehicle for one year and one day you can license vehicle in California without paying sale tax as long as is not an ownership change.
 

sfury

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I heard a story of one guy with his 600k Country Coach getting popped by California because he used the 241 toll road with his transponder. They made a case using his travels on the toll road. By the time he paid his attorney, taxes and fines it was big bucks.:eek
 

Ballsdeep

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As a general reference, once you own a vehicle for one year and one day you can license vehicle in California without paying sale tax as long as is not an ownership change.
I am still trying to wrap my head around all of this, but I am assuming the LLC would own the motorhome, correct? So regarding the 1 year and 1 day rule, wouldnt it be considered a change in ownership if the LLC sold it to me in CA?
 

boatpi

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The LLC owns the vehicle and a vehicle should have business insurance on it . If the LL C sells it to an individual sales tax must be collected in California if you registered in California based upon the sales price . If the LLC decides to change the title from Montana to California and there are no changes in the LLC name yet there can be a change in the mailing address, there is no sales tax collected after one year and one day after the title was first issued in Montana.
 

Enen

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I had my coach in a Montana LLC. I will put the next truck I purchase into that LLC as well. Tags are $125 per year, and there is no vehicle tax. I drove my coach all across the country and never had a problem.
 

Enen

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Many of my friends here in utah use them. Few things of note. Not easy to do it unless paying cash, as if you need a loan on it most banks have issues with them. A couple of my friends also have written up formal rental agreements showing they rent it from the LLC in the event they are pulled over. And they all do travel out of state often.
Completely false. Banks will absolutely finance into the name of the LLC wherever it's domiciled. It is standard commercial financing. RV dealerships are very familiar with it. Private party transactions just have to tell their bank loan officer how they want to take title. Even if you have an existing loan in your personal name, it is easy to have it moved into an LLC.

It cost $800 and about 15 minutes of your time to set up a Montana LLC. The law firm that handled mine is in White Fish, MT. They act as the statutory agent, and handle all of the necessary setup and ongoing paperwork.

Rental agreements in case they get pulled over- LOL. That seriously made me laugh. :D I have driven tens of thousands of miles across every state west of the Mississippi in my coach. I have never been pulled over. I only have one friend that got stopped going to the dunes. He had a 45 ft pusher w a 30 ft stacker trailer. Got stopped for being over length, and he was by a lot.
 

Ballsdeep

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All good info thanks!! Keep it coming, still not sure what I am gonna do if I decide to pull the trigger on this.
 

ONE-A-DAY

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We have our boat, motorhome and jeep all registered through a Montana LLC. You have to pay cash for the vehicles, financing won't work. Banks won't play ball with the out of state reg not in your name but rather the Llc name. Been doing it for about 15 years, use Bennett law, google them, great people. It will cost you about $1500 to set up.

I've also have transferred vehicles from the Llc to Arizona and Arizona only charges a value fee, nothing compared to paying tax if you want to change them over after some time.

I got fucked caught on one motorhome. The law says you have to keep out of the state for one year. Well I forgot and traded it in on another one at a California dealer. State now had proof that I used it in California, and sent me a bill for $15,000 in taxes and fees. I argued it and provided copy's of my Arizona storage receipts, repair receipts from Arizona and gas receipts from Arizona and proof of my home ownership in Arizona. Got a letter from California saying have a nice day, sorry to have bothered you and they dropped the tax bill.

We tow the jeep with the coach a lot so it looks great that both have Montana plates.

Doing the math in my head over the years with a few dcbs, several different diesel pushers, couple of toons, a few jeeps, I've registered more than $500,000 worth of vehicle purchases through the LLC. That's a lot of tax avoidance.
 

Enen

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You have to pay cash for the vehicles, financing won't work. Banks won't play ball with the out of state reg not in your name but rather the Llc name.
I had mine financed through USAA Bank. It was titled to a Montana LLC. There was no problem with it at all.
 

ONE-A-DAY

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I had mine financed through USAA Bank. It was titled to a Montana LLC. There was no problem with it at all.
Good to know, I didn't think any lender would play along.
 

jack14r

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I have my motorcoach in a Montana LLC and this is the second one,I have saved about 10K per year in property taxes for 9 years ,I also have a trailer in the LLC and I never thought about a boat but I will do that next time.I use Bennett Law in Misoula,MT they are always on time with tags and the LLc renewal.
 

kiwi77

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John Bennett is the man. Been using him for various LLC's for twenty years.
 

Ballsdeep

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We have our boat, motorhome and jeep all registered through a Montana LLC. You have to pay cash for the vehicles, financing won't work. Banks won't play ball with the out of state reg not in your name but rather the Llc name. Been doing it for about 15 years, use Bennett law, google them, great people. It will cost you about $1500 to set up.

I've also have transferred vehicles from the Llc to Arizona and Arizona only charges a value fee, nothing compared to paying tax if you want to change them over after some time.

I got fucked caught on one motorhome. The law says you have to keep out of the state for one year. Well I forgot and traded it in on another one at a California dealer. State now had proof that I used it in California, and sent me a bill for $15,000 in taxes and fees. I argued it and provided copy's of my Arizona storage receipts, repair receipts from Arizona and gas receipts from Arizona and proof of my home ownership in Arizona. Got a letter from California saying have a nice day, sorry to have bothered you and they dropped the tax bill.

We tow the jeep with the coach a lot so it looks great that both have Montana plates.

Doing the math in my head over the years with a few dcbs, several different diesel pushers, couple of toons, a few jeeps, I've registered more than $500,000 worth of vehicle purchases through the LLC. That's a lot of tax avoidance.
So forgive my ignorance, I havent done a ton of research yet- You have to keep the pusher out of state for a year or be able to prove that its been out of state with gas receipts and whatever else as proof that its been used out of state even though it will probably be stored on the side of my house in CA?
 

boatpi

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ANY vehicle purchased ad to be registered in CA MUST be held in title for one year and one day IF you at ANY later time want to register in CA. This ONLY applies to avoiding sales taxes. In addition the title must be an out of state title, wait one year/day, register in CA without any sales tax. Or just keep it in Montana LLC.

If you purchase a Used vehicle, all you do is AFTER establishing an LLC in MT, complete the application, send that and the title to your LLC agent, they will title it in MT and send the plates and title back. EVERYTHING MUST be in the name of the LLC, used title signed off, bill of sale, federal odometer statement, Etc.

A New vehicle needs MSO, federal odometer statement and application + about $500.

fees; Mt LLC, about $700 to start, about $125 each year after for agent, yearly fee for the state of MT $80, MT reg fees paid online each year for vehicle. Yearly reg fee is $125-$225 depending on value.

Nevada has stayed a income tax free state in one way because the LLC fees are way up, now about $450 per year. I believe Nevada is a not sales tax state on used vehicles purchased from private parties like AZ???? I believe AZ and NV as in CA a VIN inspection is required for used, in MT it is NOT.
 

McKay

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Completely false. Banks will absolutely finance into the name of the LLC wherever it's domiciled. It is standard commercial financing. RV dealerships are very familiar with it. Private party transactions just have to tell their bank loan officer how they want to take title. Even if you have an existing loan in your personal name, it is easy to have it moved into an LLC.

It cost $800 and about 15 minutes of your time to set up a Montana LLC. The law firm that handled mine is in White Fish, MT. They act as the statutory agent, and handle all of the necessary setup and ongoing paperwork.

Rental agreements in case they get pulled over- LOL. That seriously made me laugh. :D I have driven tens of thousands of miles across every state west of the Mississippi in my coach. I have never been pulled over. I only have one friend that got stopped going to the dunes. He had a 45 ft pusher w a 30 ft stacker trailer. Got stopped for being over length, and he was by a lot.
You make me laugh. OK sorry guys. I guess per Enen, banks will loan on vehicles placed in your Montana LLC. Just take a printout of his post with you when you go to get financing. :)
 

hav19

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The Law Firm We Used for our Diesel Pushers Montana's LLC - Helped us with everything from working with the Financial Firm that we got our loan through, to helping us get Insurance that was about 60% less then what I was quoted in AZ. I sold the coach 2 years ago, but would go that direction again without question.
 

LakeMead Boater

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Completely false. Banks will absolutely finance into the name of the LLC wherever it's domiciled. It is standard commercial financing. RV dealerships are very familiar with it. Private party transactions just have to tell their bank loan officer how they want to take title. Even if you have an existing loan in your personal name, it is easy to have it moved into an LLC.

It cost $800 and about 15 minutes of your time to set up a Montana LLC. The law firm that handled mine is in White Fish, MT. They act as the statutory agent, and handle all of the necessary setup and ongoing paperwork.

Rental agreements in case they get pulled over- LOL. That seriously made me laugh. :D I have driven tens of thousands of miles across every state west of the Mississippi in my coach. I have never been pulled over. I only have one friend that got stopped going to the dunes. He had a 45 ft pusher w a 30 ft stacker trailer. Got stopped for being over length, and he was by a lot.
Slightly off topic, but your buddy who got pulled over for being over length, what happened? Did they make him drop the trailer?
 

ONE-A-DAY

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So forgive my ignorance, I havent done a ton of research yet- You have to keep the pusher out of state for a year or be able to prove that its been out of state with gas receipts and whatever else as proof that its been used out of state even though it will probably be stored on the side of my house in CA?
You can drive it anywhere you want just don't do something to prove it was used in state for one year, i.e. like I did, trade it in in California so DMV got tipped off and notified the state board of equalization.
 

ONE-A-DAY

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This time of year you meet lots of snowbirds who think you live in Montana, however they know who is a resident and who is a LLC, the license plate number has something to do with it. LLCs get certain number configurations and residents get another, never Been able to figure it out by the Montana locals know.
 

ONE-A-DAY

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When I bought my jeep and boat from dealers in HAvasu we went to a parking lot in Laughlin where a notary met us to do the paperwork and take delivery. From there you send in the paperwork to the law firm in Montana and they send you the plates.

We bought one coach from the Motorhome Specialist in Texas, they are the largest dealer in the country, and they have a Montana LLC rep on site fill time to work with customers interested in setting it up.
 

Waterjunky

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dredging this up from the past.....

Any changes to this process? I am looking at an RV that is currently registered out of state. I am thinking about the LLC for a year or two and then considering bringing it in to my personal residence. I am lookin at buying shortly.

PM's are welcome if you want.
 

ONE-A-DAY

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dredging this up from the past.....

Any changes to this process? I am looking at an RV that is currently registered out of state. I am thinking about the LLC for a year or two and then considering bringing it in to my personal residence. I am lookin at buying shortly.

PM's are welcome if you want.
Nothing has changed, I have my boats and RV under the LLC, only issue I ran into was I traded in a motorhome to a California dealer within one year of the purchase which tipped off DMV that the rig was in the state within the first year. I filed and appeal with CA DMV using the story that we were traveling through the state when we had catistrophic engine failure and we ended up trading in the motorhome to the place it was towed to. I provided receipts for storage, repairs and gas purchased in Arizona (i used all my boat gas ones) for the year to prove it was being used out of the state and they dropped the $16,000 in charges for taxes and penalties.
 

Cdog

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We have our boat, motorhome and jeep all registered through a Montana LLC. You have to pay cash for the vehicles, financing won't work. Banks won't play ball with the out of state reg not in your name but rather the Llc name. Been doing it for about 15 years, use Bennett law, google them, great people. It will cost you about $1500 to set up.

I've also have transferred vehicles from the Llc to Arizona and Arizona only charges a value fee, nothing compared to paying tax if you want to change them over after some time.

I got fucked caught on one motorhome. The law says you have to keep out of the state for one year. Well I forgot and traded it in on another one at a California dealer. State now had proof that I used it in California, and sent me a bill for $15,000 in taxes and fees. I argued it and provided copy's of my Arizona storage receipts, repair receipts from Arizona and gas receipts from Arizona and proof of my home ownership in Arizona. Got a letter from California saying have a nice day, sorry to have bothered you and they dropped the tax bill.

We tow the jeep with the coach a lot so it looks great that both have Montana plates.

Doing the math in my head over the years with a few dcbs, several different diesel pushers, couple of toons, a few jeeps, I've registered more than $500,000 worth of vehicle purchases through the LLC. That's a lot of tax avoidance.

I have one as well and bought my toy hauler through it. Insured through Good Sam/General. I'm getting ready to buy a new 75k truck later this year/paying cash. How do I handle vehicle insurance on the new truck registered in MT? I'm an AZ resident.
 

ONE-A-DAY

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I have one as well and bought my toy hauler through it. Insured through Good Sam/General. I'm getting ready to buy a new 75k truck later this year/paying cash. How do I handle vehicle insurance on the new truck? I'm an AZ resident.
We use Geico and they will issue a Montana insurance card. Ive not found any lenders that will loan on LLC owned vehicles, its typically gotta be cash deals, banks are not fond of doing loans on them.
 

Cdog

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We use Geico and they will issue a Montana insurance card. Ive not found any lenders that will loan on LLC owned vehicles, its typically gotta be cash deals, banks are not fond of doing loans on them.
I paid cash for the toy hauler in CA and had it delivered to AZ then registered in my MT LLC. I'm trying to find a volume Ford dealer to do the same deal. Would like to avoid CA though to keep from having an issue since I do business in CA still and need to drive the truck there.

My main issue was who I can insure my Mt truck through. Thx!
 

Ziggy

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Although I know of several that have done it, it still scares the shit outta me from a liability standpoint should there be a catastrophic accident.
 

ONE-A-DAY

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I paid cash for the toy hauler in CA and had it delivered to AZ then registered in my MT LLC. I'm trying to find a volume Ford dealer to do the same deal. Would like to avoid CA though to keep from having an issue since I do business in CA still and need to drive the truck there.

My main issue was who I can insure my Mt truck through. Thx!
Some dealers will do it some wont. I bought a truck from Riverside Ford and they did the "one day trip" pass thing and let me take it to Arizona to register it. Selman Chevy (Jason) is also ok with it on my camaro recently.
 

Cdog

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Although I know of several that have done it, it still scares the shit outta me from a liability standpoint should there be a catastrophic accident.

Why? You're driving a company vehicle. You net less liability behind the LLC than you do personally. It's a smarter move than to have personal ownership. I would think especially in something as volatile as a boat.
 

Ziggy

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Why? You're driving a company vehicle. You net less liability behind the LLC than you do personally. It's a smarter move than to have personal ownership. I would think especially in something as volatile as a boat.
I've heard of some nightmares, lawyers are good a digging up assets you're protecting behind the ghost LLC. Again, these were extreme deals, probably with some negligence involved.
 

ONE-A-DAY

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Why? You're driving a company vehicle. You net less liability behind the LLC than you do personally. It's a smarter move than to have personal ownership. I would think especially in something as volatile as a boat.
Exactly, my buddy has a company car registered out of their home office in North Carolina, its basically the same deal. Just dont get caught in CA within one year of purchase.
 

Waterjunky

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We are looking at Good Sams for insurance and possibly a loan. Doing some homework on this right now.
 

702sandman

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I’ve had my montana LLC since 2006 when I bought my first motor home new in Cali and didnt want to pay the huge tax bill so I opened up my LLC then and have registered every toy trailer or hauler I’ve owned thru it Since then. It’s been the best thing ever and even if I purchase a RZR I just send them the MSO and I receive a montana tittle. I live in Vegas and I’ve heard it’s way hard in California to make this work especially if you need to get a loan on the item you are buying. As for insurance I go thru my regular Allstate policy and my LLC is named as a additional insured on my motorhome. I have used Bennett law offices up there Since 2006 and they make everything so easy, every year it’s automatically handled for me.
 

ONE-A-DAY

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I’ve had my montana LLC since 2006 when I bought my first motor home new in Cali and didnt want to pay the huge tax bill so I opened up my LLC then and have registered every toy trailer or hauler I’ve owned thru it Since then. It’s been the best thing ever and even if I purchase a RZR I just send them the MSO and I receive a montana tittle. I live in Vegas and I’ve heard it’s way hard in California to make this work especially if you need to get a loan on the item you are buying. As for insurance I go thru my regular Allstate policy and my LLC is named as a additional insured on my motorhome. I have used Bennett law offices up there Since 2006 and they make everything so easy, every year it’s automatically handled for me.
Bennett Law is who I use as well, top notch folks.
 

Done-it-again

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Just set mine up last week. Looking to move my boat and cars over soon.
Getting a trailer built (will have loan) and working that out with a guy who deals in LLC loans.
 

HBCraig

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I have a few customers that deliver and register cranea in Montana. For tax reasons
 

ONE-A-DAY

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Just set mine up last week. Looking to move my boat and cars over soon.
Getting a trailer built (will have loan) and working that out with a guy who deals in LLC loans.
Can you send me his info, thx
 

Havafewinsider

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Anyone have experience with the Montana LLC?

Looking at Motorhomes and fingers crossed we found one and hoping to pick it up soon. The seller provided me with a contact to set up an LLC to register the new rig- It would have a Montana license plate and I would avoid the heavy California tax and registration fees. My question is- is it worth it? Sounds great to save a few thousand dollars however on the flip side I dont want to be pulled over on my way home from Havasu or the desert because my tow vehicle, trailer, or boat have a CA plate. I have heard that the CHP is onto this and since it pays their salaries- they may be more inclined to pull you over for something stupid.

Has anyone gone through the process and had any experience or issues being pulled over?
I have my plane and boat registered with https://www.49dollarmontanaregisteredagent.com Saved me alot of tax money for both. California has a luxury tax for boats and motorhomes that they attach to your property tax bill as a supplimential bill. The hard part mentioned in other posts is finding financing. The LLC compaines might be worth a call to inquire who's doing loans for your scenario. As far being pulled over with Montana plates and a different license I havent heard any horror stories but im sure the Cop could press it if they wanted
 

Hdgasser

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Good info here... gonna be buying a new toon and been looking into an MT llc the last couple days. Just gotta find someone to finance the balance
 

$hot

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Has anyone had a negative experience with any of the companies or LE?
 

wallnutz

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Just set mine up last week. Looking to move my boat and cars over soon.
Getting a trailer built (will have loan) and working that out with a guy who deals in LLC loans.
Can you please DM the info on your loan guy. Thanks!
 

rivergames

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Been a few years but read the fine print with regard to how many days the coach can be in CA during the early part of the LLC licensing period. Also should talk about keeping fuel and camping/grocery receipts proving the periods that the coach is out of the state.

If you keep the coach for 15 years, you can apply for a permanent tag.

Of course, I have ZERO first hand knowledge of these things...

:D
I miss ya buddy
 

BIG MIKE

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I am going to look at a 5th wheel today. We have been looking and this is a pretty good deal I found last night. (Paying Cash)

Only thing is my LLC in MT hasn’t been set up yet.

Question is can I put my name on the bill of sale for the time being and then send it to my lawyer next week to be put in my LLC’s name? Or maybe the guy will be cool and I’ll give him a deposit until the LLC is complete. And then we can finalize the deal.

Also the RV is in CA now does the deal have to be done out of state?
 

boatpi

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All documents must be in the name and address of the LLC. Location of sale does not matter, you need title or MSO and bill of sale. Turn around time for registration is 2-4 weeks.
 
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