debbie1952
Member
We are thinking of setting up a limited liability corp. in Montana. To save on taxas and registration fees. Does anyone have experience or know of the drawbacks of this. We will be spending most of our time in Louisiana.
Limited liability corporation
- Thread starter debbie1952
- Start date
danemayer
Well-known member
Hi debbie1952,
Welcome to the Heartland Owners Forum. I'm sure you'll find a lot of useful information here along with a great bunch of people who are willing to share what they've learned.
I'd expect someone with experience in this area to chime in shortly. You might also want to seek professional guidance to make sure you're aware of any recent changes to the law.
Welcome to the Heartland Owners Forum. I'm sure you'll find a lot of useful information here along with a great bunch of people who are willing to share what they've learned.
I'd expect someone with experience in this area to chime in shortly. You might also want to seek professional guidance to make sure you're aware of any recent changes to the law.
evolvingpowercat
Well-known member
You may want to also consult with an attorney in your home state and understand what your home state thinks of this tax dodge and what would happen to you if your home state decides to go after you over it. That said thousands of people do it to save money and there are many law firms in Montana set up to do it for a very reasonable price.
RoadJunkie
Well-known member
I don't know--and haven't heard of--anyone who has created a "legitimate" LLC for a 5'er of any other tow-able vehicle, but we have a friend who has done this for their motorhome. They have not been pursued or thrown in the slammer, yet. I believe there are similar programs in South Dakota. I've also heard campground banter about people buying one square foot of land to establish "residency" in a state that does not charge sales tax. I mean, think about it...sales tax on a $300,000.00 (or more) motorhome? Yikes! This level of taxation can push people to seek a method of shelter. Is it legal, or is it tax evasion? I dunno.
Bob&Patty
Founders of SoCal Chapter
Cant answer your question. We do own property in Montana and the Horn and TV are registered their. When we do buy a new 5er, we do an out of state delivery so we do not pay sales tax and DMV fees. BTW, in Montana a trailer is a one pay...never pay again plate and the TV was 1/2 of what California wanted. WOOOHOOOO
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TandT
Founding Utah Chapter Leaders-Retired
Debbie,
Montana LLC's are advertised in TrailerLife magazine. Most are done by attorneys.
If you fulltime I believe it is fairly easy. I have friends that have done it with no problems. I am told if you dot all the i's and cross all the t's your former state may not like it, but there is very little that they can do.
The sticking point seems to be if you still own property in a particular state. However, I am told that this can also be done, if it is done properly. Trace
Montana LLC's are advertised in TrailerLife magazine. Most are done by attorneys.
If you fulltime I believe it is fairly easy. I have friends that have done it with no problems. I am told if you dot all the i's and cross all the t's your former state may not like it, but there is very little that they can do.
The sticking point seems to be if you still own property in a particular state. However, I am told that this can also be done, if it is done properly. Trace
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WOW! Yes I do! LLC is NOT a state mandated tax but a federal. IF you set up an LLC you MUST have a seperate bank account for that business and it is available to the feds for audit. If you keep your business associated with your personal they can't audit it. OH BROTHER I have been down this road a thousand times. I have owned a remodel business for 26 years and have never been audited for an LLC. I can't ever emagine anyone even thinking of doing an LLC it is the WORST thing you can do!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
SilverRhino
Well-known member
Not supposed to get political...........So to follow my Mother's advice..."nothing good to say about something, say nothing"!
Just my opinion / feeling!
Just my opinion / feeling!
jayc
Legendary Member
I have read on other forums about people that still own property in their home state and even have jobs there that have registered vehicles and RV's, both trailers and motorhomes that have done this and then been proscuted for tax evasion. Best advice is to see an attorney in both states to check on liability.
TXBobcat
Fulltime
I have no idea about setting up an LLC. On the Escapees Forum I read a number of threads about LLC's.
One I heard about and don't know if it is true, is if you set your RV in a business, LLC, and you have an accident you could have a problem using a private individual insurance policy. I think the insurance denied payment because the MH was setup in a business. Not sure about this but you might check this out also.
BC
One I heard about and don't know if it is true, is if you set your RV in a business, LLC, and you have an accident you could have a problem using a private individual insurance policy. I think the insurance denied payment because the MH was setup in a business. Not sure about this but you might check this out also.
BC
rick_debbie_gallant
Well-known member
LLC sounds good, however, as for me, I will just go ahead and pay my taxes. While I don't have much money, I have just enough to buy into this lifestyle and enjoy myself as does
my wife. I don't like paying taxes, but it is a necessary part of
Life and helps pay for the things we enjoy.
my wife. I don't like paying taxes, but it is a necessary part of
Life and helps pay for the things we enjoy.
JohnDar
Prolifically Gabby Member
I'm with you on this one, Rick. We pay our share and then some.
rick_debbie_gallant
Well-known member
Thanks John. We are Currently in Fredericton New Brunswick. We are heading to N. S. and P. E. I. And should be home sometime in October. FUEL JUST JUMPED 13 cents a liter. THAT IS 52 cents a
Gallon. Oh well that is life.
Gallon. Oh well that is life.
wdk450
Well-known member
I just wish that all of the different tax rates and types of property and income taxed/not taxed across all of the states (and even counties and municipalities that tax) was just somewhat close to level, across these United States. When we have threads on trailer licencing, and some states pay $50 lifetime, while others of us pay $500 a year, it just doesn't seem fair.
And no, I can't move to another state - I'm stuck in an "upside down" mortgage due to the mortgage bubble, with no relief in sight.
rick_debbie_gallant
Well-known member
Yup, us also. So far there is zero personnel property tax in Michigan. Sales tax is 6% but not on food items.
Income tax used to be zero for those retired. Now it is 4.3%.
Tags for trailers is I think 75. For a lifetime (I think)
Property tax depends on county and school district and when u bought your house.
wdk450
Well-known member
On the other hand, my gold mining stocks fund made almost 5% - Today. The Federal Reserve floodgates have been turned wide open for the indefinite future ( some say not to expect change in this until 2015 because the QE3 policy is now tied to the unemployment numbers). Oil and other commodity prices will all go up. Real Estate values are expected to go back up. A lot of inflation (not the tires type) will be with us, and unimaginable national debt.
Sorry if I fudged the "political" rules (I edited out my election comment related to this news), but the cost of a lot of stuff we buy for our RV's is going up.
dave10a
Well-known member
My neighbor got a LLC to avoid sales and property tax, and guess what he was severely fined by Connecticut for tax evasion. He is still digging out of that hole. It is easier to pay your taxes than try and avoid them. The states are on the look out for tax evaders--- especially in these time when many states are in debt big time.
We have had our LLC for 5 yrs no problem, Tow Vehicle and 5th wheel registered in Montana to my Company, LLC and insured as company vehicles, never a problem, when we are home in NY I do keep both in the garage. we are on the road 6 months out of the year, what i find interesting is how do woudl anyone find out it was a LLC vehicle? Perm plates on the 5th wheel. We were pulled over in CA, got a warning for speeding 60 in a 55,,, LOE did not look twice and I had my TX CDL.
I think the worry is overrated conatact, Bennet law in Montana they can go over it with you.
I think the worry is overrated conatact, Bennet law in Montana they can go over it with you.
robnmo
Well-known member
We have an LLC through Indiana, but it's associated with our parttime business. We keep all records, receipts, etc, do a percentage of usage for business vs personal on truck, RV, campgrounds, insurance, etc all done through our tax person. We pay estimated taxes both Federal and State, as long as it's legit I don't see a problem if it's being done simply to skirt (so to speak) regulations, and dodge taxes, ins, etc, guess that's a personal call, but the consequences could be a disaster.
