How to Register Your Montana LLC Vehicle If You Bought It at a Dealership

LLCTLC
May 28
5 min read

Updated: Jun 9

*To receive the tax advantages of a Montana LLC, you will need to set up the Montana LLC before you purchase anything!

One question that frequently arises is how to handle Montana LLC registration when purchasing a vehicle brand new from a dealership, or used from one, for that matter. If you are making a cash purchase, this option is definitely on the table, as there is no reason you cannot buy a car or any other vehicle from a dealership and have them process the title through your Montana-registered agents at LLC TLC.

If you plan to finance or lease the vehicle, don't fret! You may still be able to use a Montana LLC to save on sales tax - just be sure to contact us before you buy the vehicle so we can walk you through all the proper steps.

How does this work, and will it incur any hardship for you?

First Things First

Generally speaking, it is understood that you will title and register any vehicle you purchase in the state where you live. If you live in Virginia, you will title, register, and pay sales taxes on it in the Commonwealth of Virginia.

Of course, if you aren’t a fan of your home state’s tax structures (this applies to Virginia) or its state inspection or smog inspection requirements, you might be wondering if there are any other viable and legal options.

There are.

Registering your vehicle in Montana under a Montana LLC is the easiest, fastest, and most cost-effective way to solve both of those issues. Montana has no state sales tax, so your bill will be precisely zero dollars. Additionally, there are no use taxes or ad valorem taxes. Montana has no emissions testing standards, nor are there any state inspection requirements; therefore, your vehicle will never be required to undergo testing.

Oh, and Montana was one of the first states to legalize traditionally off-highway vehicles (OHVs), such as ATVs and UTV/SXSs, for street-legal use.

Now that you understand what makes registering in Montana so great, here is a look at the process.

Step 1: Set Up Your Montana LLC

The first step in the process, and one that can be completed before purchasing anything, is to establish a Montana LLC. The reputable, experienced Montana registered agents at LLC TLC are your secret weapon in this part of the process.

You will need a Montana LLC to register your vehicle in Montana if Montana is not your domicile (i.e., your state of residence). Montana does not allow out-of-state registrations per se, but instead requires that you have evidence of residency. The LLC satisfies that requirement.

Why is an LLC necessary for registration?

Unless you own a physical residence or intend to own a physical residence in Montana for the sake of meeting the residency requirements, the vehicle you are buying must be purchased by the LLC, not you. The dealership will need to be informed of this, but it isn’t anything unusual or unlawful, so please let them know ahead of time.

The Steps to Form a Montana LLC

Here are the basic steps to form your Montana LLC

Choose a business name and register with the Montana Secretary of State. You can call it just about anything you want, within reason. For example, one very common practice in the aviation community is to name the LLC with the FAA registration number of the aircraft (e.g., N12345 LLC). This is convenient because not only is the N-number transferred with the sale, but the LLC can also be transferred, and everyone is familiar with its name.
Appoint a Montana Registered Agent. LLC TLC is your preferred Montana agent, located in the lovely city of Helena, Montana. Call (877) 913-5100 or email us at info@llctlc.com to meet our great team!
File the Articles of Organization. You will complete this, which details pertinent information such as the LLC name, the appointed registered agent, and the management structure. Additionally, you must include the nominal filing fee.

Step 2: Purchase the Vehicle from a Dealership

Now is the fun part! The second step is relatively straightforward; simply visit the dealership as you would on any other occasion and select the vehicle you wish to purchase. It is important to note that a cash purchase is required, as financing is generally not available through an LLC.

There are just a few steps you need to take when you buy a vehicle from a dealership through a Montana LLC:

Remember that the Montana LLC is making the purchase, not you.
Notify the dealership about the Montana LLC registration. This does not change much, except that the dealership now knows what name to put on the title paperwork.
The dealership needs to send the paperwork directly to LLC TLC upon completion of the sale. We will handle all of the titling and registration.

Step 3: LLC TLC Handles the Registration Process

As a rule of thumb, the dealership handles the whole registration process when you buy a new car. This is a little different because the dealership needs to send the appropriate paperwork to LLC TLC.

The dealership needs to send us the following items:

Bill of Sale
Manufacturer’s Certificate of Origin (new vehicles) or Title (used vehicles)
Purchase agreement

LLC TLC will handle the rest of the process for you. We will complete and submit the title and registration paperwork after inspecting it for completeness and accuracy. All fees are included in your package deal,, so you know the cost upfront. With our location right here in Helena, your wait times are very short.

Step 4: Receive Your Montana License Plates and Title

The license plate, title, and registration paperwork will be sent to you directly from the DMV. We don't handle anything else once we provide the paperwork and pay the fees. You will get your tag, title, and registration generally in a couple of weeks.

That’s it!

Common Questions About Montana LLC Vehicle Registration

Here are a few of the most frequently asked questions we receive at LLC TLC.

Do I Need to Live in Montana to Use an LLC for Vehicle Registration?

No, you sure don’t. But if you don’t live in Montana, you will have to use an LLC for out-of-state vehicle registrations.

Can I Finance a Vehicle and Still Register It Under a Montana Limited Liability Company (LLC)?

Generally speaking, no. Ownership is typically expected to be purchased with cash and bought outright, but your bank may make an exception.

Will My Insurance Be Affected by Montana Registration?

You should contact your insurance provider and inform them of your specific plans. If they don’t want to cover it, several insurance agencies specialize in out-of-state registrations and Montana LLC purchases.

Are There Any Downsides to Registering a Vehicle in Montana?

Only if you do not want to save a lot of money.

In all seriousness, try to be conscientious about this process. In the past, certain states have targeted individuals who utilized the Montana LLC process for tax avoidance, with Georgia being a notable example.

If you garner 9 million likes on Instagram with your Canary Yellow Ferrari sporting Montana plates in a state that is not Montana, be forewarned that your home state might not appreciate that behavior.

Final Thoughts

LLC TLC is your go-to partner to help you get title and registration paperwork worked out if you already have an LLC. If you already own a vehicle or two through an LLC, or if you have an existing LLC that you're using for another purpose, we can assist you with your next vehicle purchase.