Randy – it is doubtful. At least in my state, you’ll have to pay a transfer tax that will close to the value that would have been the sales or ad valeorem tax mentioned above. And the state has some weird valuation thing it does, calling it fair market value or something similar. But it isn’t what you’d see in Kelly Blue Book or on any of the RV sale sites. I swear, I think they just make the values up sometimes – and it is never in your favor.

Kimberly

I am a tax attorney. I’ve had clients that provide company owned vehicles for executives and employees in several states, all the vehicles were registered where the corporation is headquartered. We have never had any pushback on the Ford SUVs given to regional managers or even the Mercedes E-classes and Cadillacs given to division VPs, but give a Mercedes-Maybach or a Bentley to a division President and an assessment notice is coming about half the time. Or worse, an officer pulls them over. Sales taxes and property taxes are based on the use of the vehicle in the state, not the ownership of the vehicle. And the assessment notice doesn’t come to the corporation, it comes to owner of the home where the car is garaged. Since the driver’s name isn’t on any paperwork, it isn’t some high tech records matching, the cases where I’ve learned the source it’s either been a local cop intrigued by seeing the high end car with out of state plates every day or (and I think this is most cases) a neighbor (or the maid) who’s ticked off about something unrelated. The definition of criminal tax evasion in all states that I’m aware of requires knowingly filing a false return or otherwise making a false statement under oath not the failure to file a return, so it’s not a crime but the civil penalties for failure to make a timely return and timely pay can be significant dollars.

Ted, I can’t give you legal advice here. You’ll need to check with a lawyer to find out what the best setup would be for you.

Kimberly

Tommy, I don’t disagree. Just got to deal with the hand we are dealt though. Call Congress and the state legislators to make some changes.

Kimberly

John,

In some cases, yes, an individual can recover defense costs. But it is very unlikely in a tax evasion case. I would not count on that in this type of situation due to sovereign immunity.

Kimberly

John,

In Georgia, there is a requirement that when you move a vehicle into the state, you have to register it within 30 days. So the state is arguing that it is a tax evasion to setup the Montana LLC, when it is really owned by you individually and you have all intentions of using it as a Georgia vehicle. Courts can “pierce the corporate veil” to disregard the corporate entity when it is done for fraudulent purposes and in certain other circumstances.

Whether you agree with it or not, you should be aware of the position that the state is taking before you proceed with your plan to register an RV in a Montana LLC. If nothing else, you should factor into your budget potential costs to hire attorneys to defend you in your state of residency and potentially the taxes and fines from not doing it before. There are definitely situations where it is advisable to proceed. But there are many other situations where it is not and it is “buyer beware” if you do proceed.

A Montana LLC is not going to save you money if you end up having to pay lawyers to fight your state of residency. Even if you win.

Kimberly