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Using A Montana LLC to Avoid California Sales Tax

Discussion in 'California (Southern)' started by Texas Forever, Feb 13, 2011.

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  1. Texas Forever

    Texas Forever Eight Time F1 World Champ
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    #1 Texas Forever, Feb 13, 2011
    Hi, I'm working on an article about folks in Texas using a Montana LLC to avoid sales tax and registration fees. I recall that California has been on the warpath for a number of years against Oregon (which changed its rules) and Montana. I'm about to wrap things up, but I was wondering if any of you have had any experience with this idea. Also, have you heard any war stories about California cracking down on Montana plates?

    Feel free to pm is you'd rather not post in an open forum.

    Dale
     
  2. RacerX_GTO

    RacerX_GTO F1 World Champ
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    #2 RacerX_GTO, Feb 19, 2011
    California is on a rampage on everything at all times and that is no exaggeration, the state is deep, deep in the hole ya know.

    http://www.the-signal.com/archives/14087/

    It's a never ending crackdown, if a driver is stopped with out of state plates registered to their name with an address out of state and holds a California drivers license, they are DEAD MEAT!
     
  3. Texas Forever

    Texas Forever Eight Time F1 World Champ
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    #3 Texas Forever, Feb 19, 2011
    Thanks. Califorinia is not alone in turning over rocks, just the most aggressive!

    Dale
     
  4. xs10shl

    xs10shl Formula 3

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    #4 xs10shl, Feb 19, 2011
    As an aside I remember there are rules regarding out-of-state LLCs doing business in California. I think if you do any business in California at all (why else would the car be here), even if you make no money, you are liable for an $800 minimum fee to the franchise tax board per year. I haven't looked into this in years but there are undoubtedly rules covering some variation of this scenario.
     
  5. jlonmark

    jlonmark F1 Rookie

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    Jay
    #5 jlonmark, Feb 19, 2011
    As long as you have:

    1) Driver's license - the state where the car is registered

    2) Insurance - the state where the car is registered

    3) Current registration - the state where the car is registered

    Then you can also enjoy: NO FRONT PLATE, WINDOW TINT, Modified exhaust, etc.
     
  6. dantm

    dantm Formula 3

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    #6 dantm, Feb 19, 2011
    On the same note -- what if you have a registration from Montana, and a drivers license from out of state (NOT Montana)...

    Would it work?

    Thanks!
     
  7. Glassman

    Glassman F1 World Champ
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    #7 Glassman, Feb 19, 2011
    Why don't you talk to the guys in Montana that are actually doing this.
    They are listed in numerous threads here.
     
  8. Texas Forever

    Texas Forever Eight Time F1 World Champ
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    #8 Texas Forever, Feb 20, 2011
    I'll post the article when I'm done. Long story short, it's not the Montana rules that matter. It is Colorado, Texas, California, and Massachusetts that have a problem with this. In Colorado, one guy plead guilty to criminal charges.

    Dale
     

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