Because the state of Montana does not have a sales tax, so you can save money on taxes and fees if you make a large purchase, such as a vehicle, via your LLC. Moreover, registering a car or RV in Montana is also very cheap. For instance, a Ferrari price in Louisiana would attract a 9% sales tax, meaning you would pay a higher amount than the initial amount due to sales tax.
Contrary to popular belief, you do not have to live in Montana to create an LLC. An experienced Montana registered agent may help you with the procedure and make everything go smoothly.
The Process Of Establishing Ownership Of Your Vehicle
If you create an LLC in Montana before acquiring a car, it will be easier to establish this line of ownership. You only need to show the manufacturer’s certificate of origin. If you acquired your vehicle from a private party or a dealer, you’d need the title.
As the buyer, your LLC’s actual name must be disclosed. If your name, rather than the LLC name, appears on the title (most likely because you purchased it before creating your LLC), you’ll need to demonstrate a chain of ownership. This entails signing a bill of sale and transferring ownership from you to your LLC.
How an LLC In Montana Benefits Out-Of-State Residents
Out-of-state citizens can incorporate an LLC in Montana and utilize the in-state corporation to buy and register a car or RV. They’ll avoid paying high sales taxes by purchasing it as an out-of-state resident.
Other states, however, dislike this strategy since they rely primarily on automobile registration fees and tax income.
If a person has already registered a car in another state, the Montana DMV will seek confirmation of sales tax payment. However, Montana is not currently cracking down on shell businesses formed solely to acquire automobiles in the state since state law does not require anybody to identify the LLC’s business objective when registering the LLC.
Some state authorities demand that car registrations have a real estate stake in the state, although the conditions for demonstrating this are pretty minor.
Some governments are ready to go to extraordinary lengths to get tax income on expensive automobiles purchased out of state by their residents. They rely on that money to pay for the following:
- Social Services
Somebody who lives in a state with a sales tax, is not permitted by law to avoid paying sales or use tax on things which will be used, consumed, or retained in their home state. This also covers RVs that spend most of their time on the road and at out-of-state campsites.
In conclusion, a Montana LLC helps you save money and enables you to make a large purchase at low costs. If you need more information about how to register your car in Montana, don’t hesitate to contact 5 Star Registration.