Qualifying RVers can eliminate Excessive Sales, Use, and Property Taxes!
Full time RVers can eliminate state income taxes as well!
You are getting ready to purchase the RV of your dreams. You have budgeted the monies, maybe you have financing lined up, you compare and shop on the Internet, and/or RV Dealers to squeeze this in to your budget, and low and behold sales taxes dramatically increase your cost and blow away your budget. After consulting with your State Department of Motor Vehicles, you also find that you will owe thousands more in license plate renewal fees. What’s a buyer to do?
Instead of delaying your plans, there is another option. Why overpay your taxes if you don’t have to?
Thousands of RV owners have legally avoided paying taxes on their purchase, as well as making the tag renewals affordable. Here’s how it works……..
Check your state vehicle statutes and determine if your vehicle(s) will be outside of your home state enough days annually to register in a different state. Don’t hesitate to consult an in-state attorney to confirm your findings.
Set up a Montana Limited Liability Company (LLC). Once in place, this company is a ‘resident’ of Montana, and a resident can register all the vehicles they like. Montana has no sales taxes, and very low property and use taxes on RV’s. Also with no vehicle inspections in the state, you never have to even visit the state.
The requirement for an out of state resident to own a Montana LLC is that they have an active account with a Montana commercial registered agent. As required by Montana state law, the registered agent’s address will serve as your company’s address.
Once you have had a professional service organization complete the necessary and specific legal documents as relates to your company owning the RV, then you are ready to make your purchase.
Be sure to renew your company every year, or your vehicle registration will not be legal in Montana.
Insurance is quite easy to purchase through an LLC, so this part should be easy. Financing is very specialized, and you must find a lender in advance who can help you out.
Is this for everyone?
It seems like everyone would do this, right? Save lots of money, no legal worries? The reality is that unless you qualify statutorily you should not pursue this opportunity.
First, does the amount of your savings justify the expense of this set up? This calculation varies from state to state, depending on sales, use and property taxes in that state. Just do the math. Most RVbuyers will save thousands if not tens of thousands of dollars, after all costs.
Is this legal for you? Again, take a look at your resident state statutes.
Will my lender work with me? If not, and you won’t consider other lenders, then this won’t work.
What’s a buyer to do? Set up companies, doing legal documents. Yikes!
Call a service provider who specializes in Montana LLC formations and vehicle registrations. They can,
- Send you your state statutes to decide if this is a legal fit for your particular profile
- Help you with the math. Does this make economic sense
- Set up and maintain your company, year in and year out
- Register all the vehicles you like, including tow vehicles, any of the ‘toys’ (ATV’s motorcycles), boats, yachts, planes, etc.
Should I call a Montana Law Firm or a Service Bureau?
- Law firms can be a good choice, but remember, they also do many other types of legal work. Will they be responsive to my needs when I call, or will I get voice mail and play phone tag? You will have an on-going relationship with the company you choose, so work with a good one that is focused on you-the customer. A strong Service Provider has lawyers handling the documents and the provider often focuses on just two things, setting up and maintaining companies, and registering vehicles. The focus should be on you, the customer!
What should I look for when shopping for a Service Bureau?
- Are they a member of the Better Business Bureau on-line edition? If yes, what is there rating (A through F)? Do they have any unresolved complaints? This can be checked out with a few mouse clicks in minutes.
- Are they registered as a Registered Agent with the Secretary of State in Montana?
- How long have they been in business?
- How many customers do they currently service?