From the bloggers at Roadtreking.
One of the biggest controversies in the RV world these days has to do with the fine line between tax avoidance and tax evasion.
I’m talking about the practice of setting up an LLC business in Montana to purchase a motorhome, thus avoiding sales and use tax and often stiff registration fees in the owner’s home state. Thousands of RV owners around the country do this and dozens of Montana legal firms specialize in making it happen.
This Montana scheme is very appealing. Essentially, it works like this: You form an LLC business in Montana. It costs you about $1,000 to have one of the Montana law firms set up your LLC and do the registration and titling paperwork and send you back the Montana license plates. Because Montana has no sale tax on an RV, your only cost is the $1,000 to set up the business that technically owns the RV, a Montana corporation, and the $150 or so the law firm charges every year to renew your registration and LLC charter.
To read the full story by Roadtreking, click here.