Posted on December 5, 2010.
Is it true that you do not have to pay tax on recreational vehicles in Montana? We were told if you configure an LLC in Montana, no matter where you live, you do not pay taxes for selling your RV? We did not know if it was true or even legal?
Advantages and disadvantages of using Montana Holding Companies To avoid sales tax when purchasing RV
Holding companies or limited liability companies, are a way to save thousands of dollars in sales tax when purchasing luxury vehicles.
Say you're thinking of buying a motorhome upscale. If so, the sales tax is likely to be an important component of the total price tag. With luxury RV coaches easily cost $ 500,000 and over, this little 7% sales tax can reach a lot of money.
There is a perfectly legal way to avoid giving the government $ 35,000 ($ 500,000 at 7%) or more. When a company buys a vehicle, they are not required to pay sales tax.
In the state of Montana, you can set up a holding company in Montana, your RV registered under that name, and you will not be liable to pay sales tax.
You do not need to go to Montana to do this, it can all be handled by mail.
This is not an option for everyone. Every year there are legal fees and matches per year to fight, and this will complicate your income tax paperwork, too. The advantages and disadvantages of a limited liability company must be carefully reviewed by a lawyer.
Used to, or less expensive RVs, the establishment of holding companies is probably too much time and money on real savings. This is a loophole for those who can afford to invest in an expensive recreational vehicle, and most likely already have professional and legal obligations that require lawyers and accountants
