Like, in the police report. 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. To see what else is happening in Gallatin County subscribe to the online paper. Get full access to the Bozeman Daily Chronicle's award-winning news and sports coverage, as well as arts and entertainment, opinions and more. A Montana LLC is pretty anonymous to start with. An LLC is an asset protection entity that has no tax standing. Find a copy of the Chronicle. 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. But it wasn’t technically Thomas who made the purchase — a fact a court would later agree with. The first was parked in the driveway: a 2017 Mercedes-Benz G550 luxury SUV that lists for as low as $92,000 — used. How pathetic do you have to be to pull something like this ? There are several threads on this site, and many on others, about the promises and consequences. I’m thinking about forming a technology startup (that will probably fail like other startups ) and was trying to decide between Delaware, Montana, New Mexico, Nevada & Wyoming to form an LLC. Email notifications are only sent once a day, and only if there are new matching items. 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”. The next thing she knew, she was being pulled over by a local DPS trooper. Does it work? Low 23F. 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. He wrote The Lemon Law Bible and Chrysler’s Turbine Car: The Rise and Fall of Detroit’s Coolest Creation. League of Womens Voters 2020 Voting Guide, Out-of-state car buyers use Montana LLC's to evade taxes, lawmakers there gave state officials a law, Increasing number of Montana license plates reported on cars in California, Bozeman man arrested for meth possession, intent to sell at Three Forks motel, Forest Service considering heli-skiing operation in the Centennial Mountains, Loan, grant programs for Bozeman small businesses open Wednesday, Gallatin City-County Board of Health votes to continue suit against Rocking R Bar, Montana student lobbyists tracking budget, concealed carry and other key issues at the Legislature, Despite pandemic, city of Bozeman reports stable finances, Montana State's Bounty of the Bridgers sees expanded food insecurity due to pandemic, Gallatin City-County Health Board to review COVID-19 rules, Pop-up sculpture exhibit delights visitors at Story Mill Community Park, Man dies after crashing truck in Law and Justice Center, Wind downs power lines in Bozeman; outages reported in Livingston, Manhattan, Bozeman police monitoring government buildings for suspicious activity amid political tension. 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. The Montana company bought the RV, not Thomas, the court said. We take the time to get to know your goals and provide strategically tailored advice to create a strategy unique to you. As noted, this maneuver is probably illegal in your state. Please log in, or sign up for a new account and purchase a subscription to continue reading. Here’s where I’d be worried even if I thought I could dodge the IRS. False statements which form the basis of the denial letter you will receive shortly in the mail. This is a phone call I get too often –…. It can only work with LLCs formed in Montana because Montana is the only state which imposes no sales tax on the purchase of vehicles by its residents, including resident LLCs. Why? You will need to understand and comply with use tax laws in the states where the vehicles are located. 2.2m members in the cars community. Submit by email, by post to 2820 W. College St., Bozeman, MT 59718 or use our online form. But hey - you saved thousands of dollars! In Flathead County you would just pay the flat tax and state taxes so you’d pay like maybe $280,” Blackman said. Thank you for reading! “Say its a Maserati, if it were brand new in Gallatin County, you’re talking like $3,000. Subscribe today! You have a choice: Tell the insurance company the truth (“I live in Michigan, drive the vehicle almost exclusively in Michigan, store it and park it in Michigan, but have Montana plates on it in the name of a sham LLC.”) If you tell them the truth, will they insure the car? That’s not the point. Your exotic or expensive car or RV is purchased by your LLC. IRC § 761 Electing Partnership A foreign Montana LLC is any LLC formed outside of Montana but registered to do business in the state. 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. /r/Cars is the largest automotive enthusiast community on the Internet. They make up the revenue shortfall with income, property and use taxes. There are a couple problems which might crop up if you give it a try. Cloudy skies. 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. We hope that you continue to enjoy our free content. No more. Or you could tell them anything other than the previous parenthetical sentence, which would be a lie. The Montana LLC scheme used by the Louisiana taxpayer has been around for years and continues to be promoted by Montana-based lawyers. All Delaware corporations must conduct legitimate corporate business and follow strict guidelines to be allowed the benefits of their laws. LLCTLC can help you start an LLC in Montana, New Mexico, Wyoming, or Delaware, depending on your goals and needs. Now I would probably … You have permission to edit this article. They create an LLC in Montana and then buy and register the vehicle in the LLC's name. Managing a Montana LLC As Dianne drove through Washington State, she didn’t realize she was in a speed zone. Winds SSW at 5 to 10 mph.. Cloudy skies. “We did have agents in town that would have hundreds of LLCs in their names, but in the last seven or eight years they’ve not maintained in Gallatin County,” Blackman said. Are state sales taxes and use taxes too high? Depending on your state’s sales tax rate, you can legally save $25,000 or more on your purchase. Montana has no sales or use tax and no vehicle inspections. “Professional, courteous help throughout the process and as needed on-going. 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. The downsides to a Montana LLC are few if you are a full timer. “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. If there is a lien on the vehicle, it must be released prior to sale in one of two ways:. 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.”. The term “shell corporations” is applicable here. Forming an LLC does not create a business nor does it create a corporation. As I have noted in the past, the solution is to get the law changed. Send a photo to this reporter at email@example.com. 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. they are necessary and 2.) Online business name searches reveal the name of the LLC, the registered agent and office, and the principal business address. Your vehicles will be registered in Montana which has no sales tax. The secretary said they just receive the mail — a courier picks it up. 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. Montana’s LLC law dates back to 1991. Starting an LLC in Montana is easy. For a modest fee, several Montana “registered agent” companies, which are listed on the secretary of state’s website, will use that law, helping out-of-staters in legal tax evasion. 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. Editor's note: Articles produced by the Bozeman Chronicle staff and related to the coronavirus outbreak are accessible without a subscription until further notice. … The lender can use a signature stamp in the "Security Interest" box that states a release of interest in the vehicle. 1.4k votes, 761 comments. ... and before state's crackdown, they used to help customers with Montana LLCs. That’s it. 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. 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