If, however, you establish a Montana LLC for the "sole purpose" of avoiding sales taxes (which is what the Montana lawyers and companies say you can do), the Delaware corporation comparison fails. After the Montana Department of Revenue submitted a $1.35 million request for 20 full-time employees, office equipment and operating expenses, Rep. Bill … This website may supply general information about the law but it is for informational purposes only. “At the Office of the Secretary of State, we are tasked with following the law, not making the laws,” said … The lender can use a signature stamp in the "Security Interest" box that states a release of interest in the vehicle. Register a Vessel in Montana. You will need to understand and comply with use tax laws in the states where the vehicles are located. We hope that you continue to enjoy our free content. Objectivism: A Philosophy for Life on Earth Your exotic or expensive car or RV is purchased by your LLC. Montana’s LLC law dates back to 1991. “But that’s not even the best part. they can rightfully deny a claim in most states if it is shown that the underlying policy was obtained through fraud, even if the underlying fraud has nothing to do with your claim. Montana LLC Law, Montana Code Annotated Title 35, Chapter 8 of the Montana Limited Liability Company Act. But the state of Georgia feels that this is … Troy Carter covers politics and county government for the Chronicle. I’ve seen a post from previously (on LeaseHackr) regarding Montana LLCs. But if you do, that Montana plate will pop up. It’s a strategy made possible by a loophole in Montana law, and wealthy out-of-state residents have been using it for years — setting up limited liability companies in the state and avoiding paying thousands of dollars in sales taxes to their home states. They create an LLC in Montana and then buy and register the vehicle in the LLC's name. Winds SSW at 5 to 10 mph.. Cloudy skies. You don't buy the motor home, your LLC does. "My car was stolen and the insurance company won't pay me." Send a photo to this reporter at tcarter@dailychronicle.com. The scam works like this: You hire a Montana law firm to form a corporation or limited liability company (LLC) for you. So, an industry has sprung up to assist people from other states who want to take advantage of Montana’s laws while living elsewhere. “It started off as motorhomes and now there are other vehicles in the mix.”. They saved me thousands of dollars,” said Ken G., a retired Tennessee man who praised $49 MONTANA Registered Agent. At Montana Registered Agent LLC, we provide Montana … The Montana LLC scheme used by the Louisiana taxpayer has been around for years and continues to be promoted by Montana-based lawyers. We actually formed a Montana LLC, but in reality, most states (including ours) have increased their scrutiny of out-of-state plates and know all about Montana LLC's as a vehicle to avoid certain DMV/registration and property taxes. And you are merely driving your “company car.” Even though the company is a sham set up for the sole purpose of evading taxes. Set up a “Acme, LLC Auto Rental” company and tell the police and tax agency that you are renting it. Starting an LLC in Montana is easy. The secretary said they just receive the mail — a courier picks it up. Online business name searches reveal the name of the LLC, the registered agent and office, and the principal business address. A foreign Montana LLC is any LLC formed outside of Montana but registered to do business in the state. Editor's note: Articles produced by the Bozeman Chronicle staff and related to the coronavirus outbreak are accessible without a subscription until further notice. Follow the step-by-step guide below to start your Montana LLC … Two LLCs registrations later, we were talking to the secretary of a Whitefish law firm whose address was on file for an entity named RIME 55 Holdings. Low 23F. That’s it. Managing a Montana LLC As Dianne drove through Washington State, she didn’t realize she was in a speed zone. Do a quick Google search and see the various people who ended up being audited trying to defend this scheme. Gallatin County collects a 0.5 percent local option vehicle tax that is distributed to the county and incorporated municipalities in it. Montana has no sales or use tax and no vehicle inspections. For tax purposes an LLC is called a disregarded entity. The bad news is that you shouldn’t act upon any of the information without consulting a qualified professional attorney who will, probably, bill you by the hour. Kim Buchanan, Gallatin County Treasurer, and Laura Blackman, Motor Vehicle Supervisor for Gallatin Valley, explain how a loophole in Montana law allows out-of-state residents to avoid paying sales taxes by registering their vehicles in Montana. To see what else is happening in Gallatin County subscribe to the online paper. In 2014, lawmakers there gave state officials a law that they could use to go after RV owners with Montana tags by giving them 30 days to register in Nebraska or pay a fine up to 50 percent of the unpaid taxes. Your exotic or expensive car or … The same page reads: “It would massively disrupt the entire way corporations and LLCs work to not allow LLCs to be formed for the sole purpose of owning something and avoiding taxes.”. Kim Buchanan, Gallatin County Treasurer, explains how a loophole in Montana law allows out-of-state residents to avoid paying sales taxes by registering their vehicles in Montana. Yes, I know, you are going to argue that “you” don’t own the car - the LLC does. “Per Montana (law), the business purpose for an LLC is not required for registration with the office.”. RV Roamer summarized the pros and cons of the Montana LLC, and I only wanted to emphasize a point. A Montana LLC is considered a Montana resident and, like any other resident of Montana, won't pay a sales tax on any purchase. And nonresidents can get permanent plates for their “classic” collector cars, which might sell for tens or hundreds of thousands of dollars, for about $150, in part because the county’s local tax bottoms out at $2.50 after a vehicle hits 18 years old, she said. Can you get it trouble for it? You have permission to edit this article. You might never get in an accident. Exception: An SMLLC doesn’t need to file a Form DER-1 if it is owned by an individual who was a full-time Montana resident during the tax period. 2.2m members in the cars community. Winds SSW at 5 to 10 mph. Please log in, or sign up for a new account and purchase a subscription to continue reading. Corporate taxes are amongst the lowest in the country, and sales tax doesn’t exist. Please log in, or sign up for a new account to continue reading. Single Member Limited Liability Company (SMLLC) An SMLLC is treated as a disregarded entity, whether formed in Montana or in another state or country. Selling a Montana-titled vehicle If you sell your Montana-titled vehicle, follow this step-by-step to make the process easy. ... and before state's crackdown, they used to help customers with Montana LLCs. they are necessary and 2.) And the number of nonresident vehicle registrations is growing, said Joann Loehr, Montana’s title and registration bureau chief. If you didn’t know about it, then here is what it basically is, you set up an LLC in Montana, and register cars there through that, and pay no sales tax on the cars, RVs, Planes, whatever else. I am not the fun police so I will tell you that in many states, you can probably do the foregoing and skate for quite a while without getting caught. Typically, they register in a Montana county that doesn't have a local-option tax. Apparently Georgia isn’t messing around anymore. : Title 35-8-107 talks about the powers of a Montana entity operating on its own, independent from the members and managers. California, Massachusetts and Iowa have passed laws aiming to prevent their residents from using the Montana loophole. … $45/year Montana registered agent service. But it wasn’t technically Thomas who made the purchase — a fact a court would later agree with. The next thing she knew, she was being pulled over by a local DPS trooper. The number of vehicles bearing Montana plates out of state is unknown but estimated in the thousands. Featured Resources. You pay no sales or use tax and then bring your car to whatever state you live in and drive the vehicle with tax-free impunity. A Montana LLC is pretty anonymous to start with. This is a phone call I get too often –…. Montana LLC Asset Protection How a Basic Montana LLC Works. The Chronicle attempted to track down a person who had recently bought an RV using a Montana LLC. According to the Montana Limited Liability Company Act, an LLC must use a proper business identifier as part of its name as described by the statute: “limited liability company” or “limited company” or the abbreviations “l.l.c.”, “l.c.”, “llc”, or “lc”. Get full access to the Bozeman Daily Chronicle's award-winning news and sports coverage, as well as arts and entertainment, opinions and more. Here’s where I’d be worried even if I thought I could dodge the IRS. The only downside is that you have to put an ugly Montana plate on your vehicle. LLCTLC can help you start an LLC in Montana, New Mexico, Wyoming, or Delaware, depending on your goals and needs. The Montana company bought the RV, not Thomas, the court said. Wednesday's Best Deals: Aukey Webcam, PlayStation Plus, Eastbay Athleisure, Dog Chew Toys, and More. There are a couple problems which might crop up if you give it a try. As the attorney in this relationship, I have to be the one to tell you the bad news, and it’s twofold bad news. We take the time to get to know your goals and provide strategically tailored advice to create a strategy unique to you. Subscribers get full, survey-free access to the Bozeman Daily Chronicle's award-winning coverage both on our website and in our e-edition, a digital replica of the print edition. IRC § 761 Electing Partnership Members (owners) of the LLC and its managers do not show up on the Secretary of State website. I get asked from time to time about the so-called Montana License Plate Scam: Can you safely register your vehicle in Montana and drive it in your non-Montana home state? 1.4k votes, 761 comments. Montana.gov. Montana LLCs don’t have to buy their vehicles in Montana to not pay the sales tax.”, The website even features a photo of former Secretary of State Linda McCulloch posing with staff. There was a problem saving your notification. title 35. corporations, partnerships, and associations chapter 8. montana limited liability company act For example, if you formed an LLC in Idaho but wanted to conduct business in Montana as well, you would register as a foreign LLC in Montana. Ever spotted a luxury sports car with Montana plates in a far off state? Are state sales taxes and use taxes too high? An LLC is an asset protection entity that has no tax standing. But I am the first to point out that 1.) “If you’re going to buy a Ferrari, Lamborghini, or some other exotic vehicle, you can buy the car or truck of your dreams with a Montana LLC and not pay sales tax,” the website says. You own the LLC outright. Steve Lehto has been practicing law for 23 years, almost exclusively in consumer protection and Michigan lemon law. Introductory offer for new subscribers only. But hey - you saved thousands of dollars! The Montana Vessel Bill of Sale is a legal document that will prove the legal sale and purchase of vessel/boat in the state of Montana.This document will also prove change of ownership. An LLC is not a corporation nor is it a business. The Montana license plate scam is back in the news. Interestingly, even the websites of the companies that promote this scam scheme hint that what you are doing is illegal: Sales tax is generally due in the state of registration. “At the Office of the Secretary of State, we are tasked with following the law, not making the laws,” said Secretary of State Corey Stapleton in a statement. Does it work? The downsides to a Montana LLC are few if you are a full timer. Or you could tell them anything other than the previous parenthetical sentence, which would be a lie. In Flathead County you would just pay the flat tax and state taxes so you’d pay like maybe $280,” Blackman said. Cloudy skies. Thank you for reading! The first was parked in the driveway: a 2017 Mercedes-Benz G550 luxury SUV that lists for as low as $92,000 — used. Forming an LLC does not create a business nor does it create a corporation. “My only assumption would be that they found other counties where they have lower taxes.”. Not break the law because you don’t agree with it. Why? POLICE from Leeds North West Neighbourhood Police Team continued much-requested parking patrols on East Chevin Road in Otley at the weekend. Like, in the police report. County DMV offices do slightly more paperwork, but the tax evaders pay them the same amount locals do. And an insurance adjuster, scrutinizing your claim might wonder what false statements you made on your insurance application. Depending on your state’s sales tax rate, you can legally save $25,000 or more on your purchase. Six of Montana's 56 counties do not collect a local option vehicle tax: Big Horn, Deer Lodge, Flathead, Granite, Phillips and Richland. Not really. To start an LLC in Montana you will need to file the Articles of Organization with the Montana Secretary of State, which costs $70.You can apply online. This does not create an attorney-client relationship and is not meant to constitute legal advice, so the good news is we’re not billing you by the hour for reading this. Montana is a great state for business. Montana LLC entity search, s corporation search, c corporation search, corporation entity search, business name search, company name lookup, name search, business EIN, business name availability, agent of record, incorporation date, corporate officers, legal … The second was the 2015 Cadillac Escalade alongside it, … Instead, it was bought by a Montana company, one formed for the sole purpose of buying the RV. As noted, this maneuver is probably illegal in your state. Subscribe today! The California Highway Patrol tells the Chronicle that in 2016 they received nearly six times the number of reports of potential scofflaws with Montana plates on their vehicles compared to 2010. And her staff are strict in requiring the registrant to have “an interest in real property” in the county — but that could be something as small as a storage unit, boat slip, vacation home or an attorney’s office address. 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