How To Legally Register A Car In Montana Through An Llc

montana Car ownership is fun and convenient, just paying sales tax, apply tax, or personal property tax on your motorcar is expensive and annoying. What if y'all could avert that, and avert almanac auto inspections, just by filling out a little bit of paperwork? That's the premise of companies that offer to help you incorporate in Montana, accept your corporation own the vehicle, and pay no taxes.

If y'all're an actual resident of the state of Montana, this post doesn't apply to you. Every bit a resident of that state, yous're supposed to register your vehicle there. It's the residue of us, who have the misfortune to live in places that aren't Montana, who might notice this scheme tempting. The problem, Michigan lemon law attorney Steve Lehto explains: the state where you lot actually live tin can always take hold of up with you.

Here'due south how it works: y'all pay a few hundred bucks to a law house in Montana to annals a limited liability corporation. Your LLC then purchases the motorcar as your "company car." Your corporation doesn't be for any reason other than to own your car, and y'all just owe Montana registration fees and a payment to the lawyers to keep your corporation registered.

If this worked, wouldn't anybody register their car in Montana? This scheme doesn't really pay off if you're buying a used 2004 Camry, but it'due south tempting if yous want to purchase a half-dozen-figure supercar. (Never mind that if you can afford a six-figure supercar, you can afford to pay taxes on that auto.)

Lehto points out in a blog mail for Jalopnik that there are 2 problems with this: first, you lot can probably get away with the scheme for a while, only do y'all actually want to risk tax penalties over this? Second, your insurance visitor will probably non be thrilled with your registration scheme, which will cause problems when you make it an accident, and the insurance company denies your claim when they notice that the car is registered to a Montana LLC.

In summary: try being honest and paying the taxes you owe. Y'all generally tin can't become incorrect past doing that.

The Pitfalls Of The Montana License Plate Scam [The Garage]