Acquiring a new Ferrari, Lamborghini or other high-end car? If yes, you can easily buy your dream car with a recognized Montana LLC and avoid paying additional sales tax. Maybe you are wondering how this is possible. Well, according to MCA 61-3-311, all vehicles registered in Montana avoid sales tax; they are not subjected to personal property tax. In Montana, the registration fees are in lieu of any personal property tax. The most interesting part is that Montana LLCs don’t have to purchase their vehicles in the state of Montana to avoid paying taxes. Vehicles can be purchased anywhere and registered to the Montana LLC, making this a huge tax benefit for people who live elsewhere. Montana LLCs are viewed as "residents" of Montana, which is why they are exempted from taxation, even if the owner is in California, or Texas, or New York.
What are the perks of owning a Montana LLC?
A Montana LLC brings you a lot of benefits that you can only imagine if you are buying your state-of-the-art car in another state. Below are some of the reasons why you should consider buying your vehicle through an LLC in Montana.
Avoid Sales Tax with Montana Registration
Let's assume that you are purchasing a Bugatti Veyron. The cost of the Veyron is roughly $1.7 million before taxation. If you are buying the Veyron in other states, it will be taxed at least seven percent which is an additional $101,200 that you'd pay in taxes, and that's before paying any registration fees to actually get a license plate and title. Now assume that you are purchasing the same Veyron through a LLC out of Montana. What does it mean?
You just saved around $101,200. Probably you are reading this and wondering how someone can afford $1.7 million to buy the car and then fail to raise approximately $120,000 to pay taxes. The idea here is about saving. It does not matter how wealthy you are, nobody likes to spend their money needlessly. Thus, the cheaper solution of buying high-end cars lies with Montana LLC.
Registered agents can help you form a Montana LLC, maintain it, file your annual report, and represent you at the DMV. Your LLC is a resident of Montana and not you personally. That means that the title of your Ferrari or Lamborghini will be under the name of your LLC in Montana. You don’t have to move and become a resident of the state of Montana to utilize the benefits of Montana registration with a Montana LLC.
You can list your other vehicles under your LLC
Are you worried about your other cars? What happens to the Porsche, Bugatti, or the Mercedes-Benz you own? No need to worry. You can actually "sell" the vehicles over to your Montana LLC to reap the benefits of lesser renewal fees and sometimes permanent registration (if your vehicle qualifies). The real beauty of an LLC in Montana for high-end cars is that if your car is more than 11 years old, you can easily get a permanent plate for it, meaning you pay no yearly fees for the vehicle registration! Just a one time fee and then you're done.
Even more surprising is the fact that avoiding the tax burden by registering your car in a LLC from Montana is pretty easy. You need to find an LLC registration service residing within Montana who is willing to act as your “registered agent” and set up an LLC (Limited Liability Company) on your behalf. The essence of this company is to provide an actual Montana address to complete the formation of your LLC. After forming the LLC, it becomes the owner of your vehicle. Technically, the vehicle is no longer yours. Instead, the ownership rights of the vehicle now lie with your newly formed Montana LLC.
Ready to Save on Vehicle Registration? Contact LLCTLC Today!
Let LLCTLC guide you through the process of Montana vehicle registration through our registered agent services. With our expertise in LLC formation and vehicle registration, we make it easy to enjoy the financial benefits without the hassle. Contact us today to get started and discover how much you can save by registering your vehicle through a Montana LLC!