LLCTLC can help you start an LLC in Montana, New Mexico, Wyoming, or Delaware, depending on your goals and needs. Depending on your state’s sales tax rate, you can legally save $25,000 or more on your purchase. Subscribe today! The scam works like this: You hire a Montana law firm to form a corporation or limited liability company (LLC) for you. You have permission to edit this article. The only downside is that you have to put an ugly Montana plate on your vehicle. 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. He wrote The Lemon Law Bible and Chrysler’s Turbine Car: The Rise and Fall of Detroit’s Coolest Creation. 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. Winds SSW at 5 to 10 mph. “At the Office of the Secretary of State, we are tasked with following the law, not making the laws,” said … Ever spotted a luxury sports car with Montana plates in a far off state? You will need to understand and comply with use tax laws in the states where the vehicles are located. “Professional, courteous help throughout the process and as needed on-going. But if you do, that Montana plate will pop up. Laura Blackman, Motor Vehicle Supervisor for Gallatin Valley, explains how a loophole in Montana law allows out-of-state residents to avoid paying sales taxes by registering their vehicles in Montana. The next thing she knew, she was being pulled over by a local DPS trooper. That’s it. “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. This form will require notarization. You must login with an email address. I get asked from time to time about the so-called Montana License Plate Scam: Can you safely register your vehicle in Montana and drive it in your non-Montana home state? Or you could tell them anything other than the previous parenthetical sentence, which would be a lie. And you are merely driving your “company car.” Even though the company is a sham set up for the sole purpose of evading taxes. And her staff are strict in requiring the registrant to have “an interest in real property” in the county — but that could be something as small as a storage unit, boat slip, vacation home or an attorney’s office address. This website may supply general information about the law but it is for informational purposes only. If, however, you establish a Montana LLC for the "sole purpose" of avoiding sales taxes (which is what the Montana lawyers and companies say you can do), the Delaware corporation comparison fails. As I have noted in the past, the solution is to get the law changed. Two years later, when the Louisiana Department of Revenue caught up with Thomas, officials said he owed $49,509 in Louisiana sales tax and penalties, but Thomas appealed — and won. Montana LLC entity search, s corporation search, c corporation search, corporation entity search, business name search, company name lookup, name search, business EIN, business name availability, agent of record, incorporation date, corporate officers, legal … You own the LLC outright. Does it work? To see what else is happening in Gallatin County subscribe to the online paper. Find a copy of the Chronicle. $45/year Montana registered agent service. 1.4k votes, 761 comments. Winds SSW at 5 to 10 mph.. Cloudy skies. Low 23F. “My only assumption would be that they found other counties where they have lower taxes.”. It might not hurt Montana, but other states don’t like it and have taken action. There was a problem saving your notification. Montana’s LLC law dates back to 1991. Objectivism: A Philosophy for Life on Earth Typically, they register in a Montana county that doesn't have a local-option tax. But state officials said they’re not taking any steps to help other states enforce their tax laws, because all of this is legal in Montana and has been for decades. And an insurance adjuster, scrutinizing your claim might wonder what false statements you made on your insurance application. He noticed the Montana license plate on the RV and the Texas plate on the Jeep. Follow the step-by-step guide below to start your Montana LLC … The Montana license plate scam is a way for owners of high-end luxury to avoid paying sales tax by simply opening an LLC in Montana—which doesn’t charge car … Do a quick Google search and see the various people who ended up being audited trying to defend this scheme. Government officials in Arizona, California, Colorado, Maryland, Nevada and Washington state have created tip lines to catch tax cheats. Cloudy skies. There are a couple problems which might crop up if you give it a try. For example, if you formed an LLC in Idaho but wanted to conduct business in Montana as well, you would register as a foreign LLC in Montana. For tax purposes an LLC is called a disregarded entity. Kim Buchanan, Gallatin County Treasurer, and Laura Blackman, Motor Vehicle Supervisor for Gallatin Valley, explain how a loophole in Montana law allows out-of-state residents to avoid paying sales taxes by registering their vehicles in Montana.