Montana LLC

Ed Dray · 05-24-2006, 11:09 AM

We will purchase a new 5th wheel in about 2 months, and join your full-timer community. Does anyone have thoughts based on experience about the Montana LLC. We plan to make S.Dakota our residence state although we are open to opinions on that subject as well.
Your input is valued. Thank you,
Ed & Marilyn

Motor31 · 05-24-2006, 03:47 PM

We have a Montana LLC. You will save all the sales tax on your rig if you want to use an LLC then still put your "domicile", not vehicle registration, in South Dakota.

You need to weigh whether or not the LLC will save enough on the sales tax to make the operation worthwhile. There are a couple of attorneys doing this type of work. I can give you the number of the one I use and I think the other advertises in Trailer Life magazine as well as some editions of the Escapees magazines. Talking to them will give you some hard info and possibly some figures to mull over. I believe South Dakota has a low sales tax of 3.5%.

For a full timer the LLC may be a good thing. Talk to one or more of the lawyers that do this work before you decide. Many feel just taking the rig into SD saves enough by itself without the LLC.

CampingCaptain · 05-25-2006, 09:33 AM

Mike,
This is the first time I have heard about a "Montana LLC." How does it work and what are the advantages of setting one up? What are the reasons that someone would want or need to go that route? Thanks.

hitchup · 05-25-2006, 10:06 AM

CampCap: Trailer Life usually runs MT attorney ads in the back, but did a quick scan & couldn't find anything. They help you set up as a LLC, a Limited Liability Corp. It's to avoid paying sales taxes. Just another "something" to think about before you decide to go fulltime.

We paid 6% tax on our RV's in FL. The 1999 issue of "Selecting an RV Home Base" says MT has no sales tax, SD is 4%. TX is 6.4%. Am sure figures are somewhat out of date, but if you don't have the 2006 version, I would suggest getting it.

Do a lookup on RV.net. Know you like to spend time there, too.

CampingCaptain · 05-25-2006, 02:22 PM

hitchup (David?),
Thanks for the info. I will definitely check it out. From where I sit, 2007 seems a long way off, but I know it will be here before we know it and we're hoping to not have too many loose ends to tie up when we're ready to go.