Montana LLC - RV-Dreams Community Forum

BOBREED · RV-Dreams Community Member

Montana LLC

Jim01 · RV-Dreams Family Member

BOBREED,

I do not have any personal experience, but I am starting to hear that there may be some problems. Before you do anything, check with a lawyer, and the people you are going to finance it with. The people who are pushing the LLC will tell you that there is not a problem, but as always, check as many other resources as possible.

BOBREED · RV-Dreams Community Member

Thanks. That's what I'm hearing - that there may be some problems.
I'd hate to spend the $399+/- for one if nobody recognizes it.

BOBREED

Darrell and Judy · RV-Dreams Family Member

Go back to the "Main Page" for this forum and look under "We've made the decision, now what" section and there is an excellent topic related to LLC's. Howard has done a wonderful job of laying out the pros and cons, so to speak. I think you will find it very relevent and beneficial.

wmalefyt · RV-Dreams Family Member

BOBREED,

Did you read the topic in this forum on "Residency Issues Questions"?

BOBREED · RV-Dreams Community Member

Thanks - I will check out all the references you folks recommend. As a newbee to this site, I've not had a chance to read everything yet - but it's just a matter of time.
What a wealth of information.

BOBREED

Howard · Host

Here is the link to the prior discussion to save you some time. smile

http://rv-dreams.activeboard.com/forum.spark?forumID=91511&p=3&topicID=8349245

BOBREED · RV-Dreams Community Member

Thanks for pointing me to the very informative and enlightening discussion on LLC's in Sept 2006.

Based on the input and discussion "flavor", I think I'll pass on the LLC. I don't want to start a new lifestyle with concerns about being hauled to court over something that is, at this point, evasion and not avoidance. I believe our best approach is to research the states' taxation laws and establish residency for fulltiming in one that creates the best tax advantages. Right now, living in AZ does not create the best tax climate for us to establish full-timing residency. With income taxes, poperty taxes AND sales taxes, there are better solutions.

Every individual needs to establish his own comfort zone, and that zone varies greatly from individual to individual. We're still trying to find ours - AND we will.

Thanks again for your wonderful site and for the service you provide to the RVing community.

BOBREED

Darrell and Judy · RV-Dreams Family Member

You'll find that South Dakota will be one of the least expensive states especially with big savings on auto insurance, but we chose Texas for the convenience - we're escapee members - and we still saved alot between taxes and insurance. We didn't become Texans to avoid taxes but to establish a permanent address once we sold our house in Michigan. Michigan didn't really have anything for fulltime RVers and we needed a permanent address for insurance purposes, so we are registered voters, our cell phone area code is Livingston, we have our licenses and registrations through Texas, and will have our wills/estate planning done in Texas. It is our intent to be Texas residents so we have the comfort of knowing that we will never have any legal problems regarding that.

BOBREED · RV-Dreams Community Member

Thanks for that.

You say it is your intent to be Texas residents - does that mean after you full-time?

We'll probably look very hard at Texas and South Dakota, and also Florida as I hear that is also a tax friendly state. This is probably one of the most important decisions we face.

Thanks again - good luck.

Darrell and Judy · RV-Dreams Family Member

We are fulltimers and became Texas residents in October of 2006. Taxes are only one of the criteria to look at - auto and fulltimer insurance are also important. Nick Russell saved over $1,000 a year on his auto insurance by establishing his residency in South Dakota. Again, we are members of Escapees and decided on Texas because of the mail forwarding services, the Care Facility, and the general support services from the Escapees. We are sick of cold and winters so Texas fits the bill for a place that we would reside, not South Dakota. We don't like the high humidity in Florida (also auto insurance tends to be higher in FL due to the high numbers of senior citizens), so again Texas fits the bill. We are Texas residents and have done everything that one would do when moving to another state to establish our residence. Yes, it cost us a little more to be Texans than residents of South Dakota, but we have peace of mind should any legal questions arise. It is our full intent to be Texans. You are right, it is a very important decision and when making it we all have to use good judgement. Good luck with your decision and feel free to email me at DarrellandJudy@yahoo.com if you wish.

SKOOBDO · RV-Dreams Family Member

Initially, I had plans on becoming a Texas resident, however, I'm lazy and one less thing I have to do is on the top of my list, so I didn't want to be bothered with vehicle inspections, or a driving test (florida). I try to keep it simple and one less thing to be bothered with made my choice very easy

I chose South Dakota, and the only thing I "had" to do was take a simple eye test and photo for my DL. The mail forwarding company took care of everything else and the insurance company, mail forward co and DMV is all in the same retail/commercial strip. For me, I contacted EVERYBODY with my new address and saved copies of every e-mail showing my intent to sever ties with my old state. I got a new bank, new last will/test, new insurance (health/rv/auto), new plates/DL which are based out of South Dakota. I kept a old savings/checking account (which is national account anyway). I notified the IRS and the State and the Social Security Dept., of my relocation, even though I do not get SS yet. It took me about 2 months to call every place, as I only did a little at a time, and I did not get any mail forwarded from my old state to SD. I called every place and anybody that I thought should know. It alleviates junk mail also. I had posted in another post on this site about the importance of changing your will which will surely help when the old state may try to collect $$$ on your estate or the inheritance received by others. something to think about.

Darrell and Judy · RV-Dreams Family Member

SKOOBDO, that's exactly my point whether is be Florida, South Dakota, Texas, or any other state. Make it your residence in all ways, just as if you lived there year 'round.

Howard · Host

One last thing from me on Montana LLCs. Well this is not really about the LLC, but about Montana as a state of domicile.

Sales tax on full-timing set-ups, whether they be motorhomes or towables/tow vehicles is no small expense. Though I don't like the Montana LLCs as a method of tax avoidance, Montana is not a bad state to have as a personal domicile. As a legitimate resident of Montana there is no gray area - no sales tax, period.

Yes, they do have a progressive income tax of 1% - 6.9% based on Federal Adjusted Gross Income as a starting point, but depending on individual income, some might be better off financially becoming an actual resident of Montana and buying vehicles.

Of course, there are other factors to consider like insurance, but I just wanted to throw out some food for thought. Too often states with income tax are dismissed as possible full-timer domiciles without seeing what the actual income tax to an individual would be.

Be sure to check out our Choosing A Home Base page for several factors to consider in making this very important decision.