Montana LLC - Anybody have experiences?

I dont have personal experience but I have heard it is a lot of trouble and more than its worth with some of the restictions. I would be intereted in hearing the details and how it works

 

Easier to go to Oregon.

 

My only comment and I did speak with them recenlty, be ready to explain why you have a LLC in another state just for a car when your state comes knocking on your door one day to collect the sales tax. If it sounds to good to be true, it likely is. Just ask those that invested with Madoff.

All I am saying is be careful..

 

You may want to check on insurance rules in that state too. If they have no-fault insurance, and your state has real insurance you may save enough in the long run on insurance. I was considering that from Ohio where I live, going to FL or MI and no-fault was in both of those states.

Rick

 

Virginia requires that, the car being garaged in the commonwealth more than half the year, it must be registered here. So at least in my locale it's illegal, tax evasion. Don't know how or if ever one might get caught. Someone would really need to have a burr to want to track your garaging habits, maybe to the point of harassment so probably even defensible. But for my line of work, no can do.

 

All true... but you ARE posting in a "public non-subscribed" section that
can be searched via Google.

Just sayin'....

Jedi

 

I have several friends that set up an LLC in montana which you buy the car thru you own the LLC it will save you the sales taxes and personal property taxes in states that have them. But I cannot bring myself to do it . I kind of think it is one of things that works just fine until something like a bad accident happens or a state crack down on taxes and then you get put into a position that you may not want to be in ..... So i pay a bunch of taxes each year that my friends avoid but a really do not like the term Tax evasion.
My friends have had good luck with this system for years
just my two cents worth

 

I've done some research into the matter, although I have not employed this strategy personally and have no current plans to do so. There is a lot of relevant info to read in my thread here: http://www.ferrarichat.com/forum/showthread.php?t=341845

Basically, there are proper ways this can be done, and depending on your state's tax rate and/or annual use tax, it might be worth it, but doing it right requires more than just a shell out of state LLC to have 100% ownership of your car (not bulletproof). For Ohio, there is no use tax and just a 6.5% upfront tax for me, so I did not think "doing it right" (ie LLC own some real property or other business purpose besides car ownership in Montana) was worth it for me for the "relatively cheaper" 360 I bought. I know people in other states that have decided otherwise and have yet to have a problem with this strategy (not that they won't eventually, be it at a speeding ticket or other trigger point).

 

When tax avoidance is not in accordance with all the relevant laws of both states, it becomes evasion.

Jedi

 

While I realize this is probably very ignorant ... you are buying a $200k+ car ... at 7.5%, you're looking at $15k, maybe $20k in sales tax depending upon options? Is it really worth the hassle? Certainly, if you own a home in another state with a more favorable tax rate, it makes sense to buy it there, but why risk all of this to save $15k or $20k?

Though $15k is still $15k regardless of how much you earn or have in the bank, you are buying a FERRARI. Take pleasure in writing the check!

 

That may be but in the state i live in Virginia They have an annual personal property tax and if questioned by a tax auditor I question how he would feel . I pay about 20000 per year on various cars I own it would be nice to save the money however my insurance truthfully says the car is housed in Virginia and I would be asked if I kept the car in the state all year so .... it would require me to have the car outside of va for some portion of the year . So it gets difficult but maybe I am wrong if I am I would love to save the money...

 

It is dependent on the state in which you reside. Do your homework!

 

Just out of curiousity, in which states would this be legal?