Lamborghini Talk banner
41 - 60 of 82 Posts

·
Vendor
Joined
·
3,008 Posts
The Montana registration likely would not stand up in any state that challenged a particular owner or owners over it. I’m not sure how many of them have done so, but I know GA has popped a few people.

Luxury car owners dodge Ga. tax with Montana scheme


Sent from my iPhone using Tapatalk
States have really cracked down on this. I have many customers that used to do this and now don't if they are going to keep the car for a while. In md, PA, and many others your're now a target. If you get pulled over, and if the cop wants to be difficult, you could be forced to register the car in that state and pay tax. 3 years ago this wasn't an issue and no one cared but they've caught on. Now, if you plan on getting a car and only keeping it for 6 months or a year, it's worth it. But even now the Montana LLC is charging years fee's and in 5 years you'd could easily pay $5k anyway to Montana as they are now cashing in, plus the fee's to open the LLC there. If you live in an area where cops don't like exotics, or you're one of the few with a lambo, etc, you will be a target.
 

·
Registered
Joined
·
370 Posts
Is not a dealer license the "better" safer way to go. It costs more but is much safer.
I think many states have made that potential loophole a lot more difficult as well, by requiring a permanent place of business that is not a residence and spelling out a lot of specific requirements for the physical facility and even sales, etc. States want their taxes, so over time they have worked to close other options off.

Now that’s not to say there are no options at all. For example, many states exempt transactions between lineal relatives from sales tax if you buy from a family member. So if you have such a relative who lives in a state that does not charge sales tax on cars or charges a small flat fee (those states usually have an annual ad valorem tax on cars instead), you may be able to have the relative buy the vehicle and register it in their state, pay the small fee if there is one, and then buy it from the relative without paying tax in your state (because your transaction with the relative is exempt).


Sent from my iPhone using Tapatalk
 

·
Registered
Joined
·
16 Posts
I have a Montana LLC.
I got my “out of my personal residence state” insurance through Hagerty.
I talked to my financial advisor and he recommended paying for half the car in cash and paying the other half with a 2.4% loan.
The reason being the 33+% taxes on a retirement or investment account withdrawal doesn’t make financial sense since my investments are making a much better return than the 2.4%. It would take 10-12 years of loan interest to equal the one time large hit on my investments. Plus that money stays invested and making positive returns.
There was no problem for me to get a loan for half value on my Huracan.
The new Montana title puts the bank as a partial lien holder is all.
I contacted a Montana licensing agent that does this everyday and is very thorough and walked me through it.
Another positive aspect of is there are 200 different plates of all different colors and designs to choose from. My plates match my cars..lol

There’s really not a lot to it. I know my successful experience contradicts some of the false info above… but I did it. 🤷‍♂️

I have a registered LLC with a legitimate address of property (not just a PO Box), a Montana title and license plates, 50% loan and good insurance policy by a very reputable company that handles a lot of exotics.

Car Vehicle Grille Motor vehicle Hood
 

·
Administrator
Joined
·
4,136 Posts
I have a Montana LLC.
I got my “out of my personal residence state” insurance through Hagerty.
I talked to my financial advisor and he recommended paying for half the car in cash and paying the other half with a 2.4% loan.
The reason being the 33+% taxes on a retirement or investment account withdrawal doesn’t make financial sense since my investments are making a much better return than the 2.4%. It would take 10-12 years of loan interest to equal the one time large hit on my investments. Plus that money stays invested and making positive returns.
There was no problem for me to get a loan for half value on my Huracan.
The new Montana title puts the bank as a partial lien holder is all.
I contacted a Montana licensing agent that does this everyday and is very thorough and walked me through it.
Another positive aspect of is there are 200 different plates of all different colors and designs to choose from. My plates match my cars..lol

There’s really not a lot to it. I know my successful experience contradicts some of the false info above… but I did it. 🤷‍♂️

I have a registered LLC with a legitimate address of property (not just a PO Box), a Montana title and license plates, 50% loan and good insurance policy by a very reputable company that handles a lot of exotics.

The best part is I saved 5 figure$ in sales tax and there’s no personal property tax every year.

View attachment 305106
Who financed it?
 

·
Registered
Joined
·
671 Posts
@TooBlue Thanks for the information! What agency are you going through to do the LLC and vehicle title/plates/tax? Also who financed your car? That’s interesting with Hagerty insurance as State Farm wasn’t too fond of me registering it in MT and driving it here in AZ.
 

·
Registered
Joined
·
16 Posts
@kotykb I’m not at home. My specific info is there and I’ll post it when I get home.
AS most here probably know another advantage the LLC is that if unfortunately there’s any sort of legal action due to an auto incident or whatever involving your car, the car belongs to the LLC and the claimant is only entitled to the assets of the LLC if you were held responsible. Which is obviously just the car. Not your house and other personal assets.
* There are extenuating circumstances i.e a DWI, illegal activity, direct negligence of the driver etc.

Montana enjoys the income and has made this process pretty simple and straightforward. Definitely use a Montana licensing agent and I made sure the agent doesn’t apply using only a PO Box.

* The laws in each state is different. Talk to a lawyer about the legality. If you call the star office they will definitely tell you it can’t be done. They want the revenue.
I believe I read the state of California actually gives a reward for reporting a Montana or any of the other states license plate that doesn’t charge sales tax and the owner has full time residency in Cal..

 

·
Premium Member
2022 H EVO RWD Grigio Lynx
Joined
·
2,570 Posts
@kotykb I’m not at home. My specific info is there and I’ll post it when I get home.
AS most here probably know another advantage the LLC is that if unfortunately there’s any sort of legal action due to an auto incident or whatever involving your car, the car belongs to the LLC and the claimant is only entitled to the assets of the LLC if you were held responsible. Which is obviously just the car. Not your house and other personal assets.
* There are extenuating circumstances i.e a DWI, illegal activity, direct negligence of the driver etc.

Montana enjoys the income and has made this process pretty simple and straightforward. Definitely use a Montana licensing agent and I made sure the agent doesn’t apply using only a PO Box.

* The laws in each state is different. Talk to a lawyer about the legality. If you call the star office they will definitely tell you it can’t be done. They want the revenue.
I believe I read the state of California actually gives a reward for reporting a Montana or any of the other states license plate that doesn’t charge sales tax and the owner has full time residency in Cal..

I think most are aware of what you’ve stated but to my knowledge I’m not aware of a lender that is good lending to a Montana LLC for the purpose of buying a car. Anxious to read who you used even though I recently learned I cannot go this route.
 

·
Registered
Joined
·
16 Posts
@TooBlue Thanks for the information! What agency are you going through to do the LLC and vehicle title/plates/tax? Also who financed your car? That’s interesting with Hagerty insurance as State Farm wasn’t too fond of me registering it in MT and driving it here in AZ.
I think most are aware of what you’ve stated but to my knowledge I’m not aware of a lender that is good lending to a Montana LLC for the purpose of buying a car. Anxious to read who you used even though I recently learned I cannot go this route.
I understand it may be common knowledge to several but obviously not to all which is understandable and why I commented
There are comments above that simply aren’t true.🤷‍♂️
I’m away from home and my plans have changed, I won’t be home until tomorrow.
I also wanted to call my bank associate first thing so she will know there may be several people calling.
I’m sure it’s not a big deal and they would want the business.
 

·
Administrator
Joined
·
4,136 Posts
Well, TooBlue sent quite a long message privately to me and didn't include the bank that finances these cars under an LLC in Montana. I will assume that it doesn't exist since the simple name was too difficult to add in the private message.


If anyone does in fact have a bank willing to finance Montana LLC cars, reach out as it would be great info for the community.
 

·
Registered
Joined
·
16 Posts
Well, TooBlue sent quite a long message privately to me and didn't include the bank that finances these cars under an LLC in Montana. I will assume that it doesn't exist since the simple name was too difficult to add in the private message.


If anyone does in fact have a bank willing to finance Montana LLC cars, reach out as it would be great info for the community.
WOW,…Did you even read it? I wasn’t at home and didn’t have any paperwork with me!
I wasn’t going post a useless comment without specific information… The facts being contrary to your negative comment above referncing me and I was full of sh-t.
I explained in detail some additional information in my “lengthy” message you might be interested in knowing. My apology.
This exact subject (the lender) was explained in that message as well??? Your comment above doesn’t reflect that I explained my simple intention in the “lengthy” message.
I told you that I wanted to call the financing officer that helped me first thing Monday morning to let her know there may be some people calling about out of state LLC financing.
It’s somewhat of unconventional loan. The call to her was so she could have info ready and not be caught off guard. Just a professional courtesy.
I also stated in the message I would post the information !?!?
It’s a lending institution and I’m sure they would want the business. No big deal.
I also wasn’t aware this information was needed within 24-48 hours after my comment. Especially when the banks were closed and are closed till Monday when I plan to make the call.
That is all is…
I wasn’t going to post a meaningless comment without information until Monday as I said.
I apologize for sending you additional information on a loan on out of resident state financing
Why would I keep a possible avenue for the hard to get financing?
Hopefully the information will help some other members here that are considering the LLC and financing if needed.

Not sure why the negative comments when I thought my first post here might help inform some people looking to work the system and save money. Something I’ve already done and can save some time and legwork for anyone thinking about this.
(I.e. a reputable insurance company that will confer the LLC)

Monday Is just a few hours away.

Thanks
 

·
Registered
Joined
·
16 Posts
Not that I care, I paid the piper in california for my car, but there does seem to be alot of beating around the bush.....
No beating around the bush as was implied.

As I explained, I just wanted to give the loan officer a heads up so they would have info ready to streamline the process.
That’s all…

My apology. Just stating some facts to help anyone with the facts of my experience of how this works.

I won’t do that again…
 

·
Premium Member
2022 H EVO RWD Grigio Lynx
Joined
·
2,570 Posts
Now that wasn’t difficult.
Just a little effort and research???

Alltru Credit Union
636-916-8300
Nancy @ Ext. 8306
Thanks for the info. Don't know how many here are from St. Louis so don't think Nancy has much to worry about. Their rates on the longer end are pretty high for a CU but if they allow you to save on taxes that saves a ton!
 

·
Administrator
Joined
·
4,136 Posts
Thanks for the info. Don't know how many here are from St. Louis so don't think Nancy has much to worry about. Their rates on the longer end are pretty high for a CU but if they allow you to save on taxes that saves a ton!
Rates look good to me. Like you said, not many will be calling as you have to live in bumble*** to join. Thanks for posting tooblue
 
41 - 60 of 82 Posts
Top