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Montana LLC is this kosher?

Discussion in 'Ferrari Discussion (not model specific)' started by Ascend, May 2, 2021.

  1. Ascend

    Ascend Karting

    Jul 23, 2018
    62
    Full Name:
    Kim
    Hi!

    I know this topic has been beaten to death and is frowned upon by many members but I thought I would ask a question before speaking to a lawyer about it.

    I dont plan to use it for a personal vehicle that will be stored in my garage, but for a collectible vehicle, is it kosher to buy a car under LLC and store in Illinois (I live in a state close to it)

    Seems like as long as the vehicle is properly registered in its home state, it is not a big problem in illinois as long as I dont live there.

    Any thoughts and comments are welcome
     
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  3. gilly6993

    gilly6993 Formula 3

    Aug 20, 2009
    2,196
    Longmeadow, MA
    Full Name:
    Eric
    Ok maybe I’m the only one but I’m confused
    Montana LLC
    Store in IL
    Don’t live in either

    Correct?


    Sent from my iPhone using Tapatalk
     
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  4. Ascend

    Ascend Karting

    Jul 23, 2018
    62
    Full Name:
    Kim
    Yes
     
  5. LARRYH

    LARRYH F1 Veteran
    Rossa Subscribed Owner

    Jun 3, 2011
    7,328
    virginia usa
    If you are asking if a Montaña LLC can rent property in another state and store property owned by the Montana LLC in that space... I do not see why not ...
     
  6. Ascend

    Ascend Karting

    Jul 23, 2018
    62
    Full Name:
    Kim
    Correct

    Car is owned by Montana LLC
    Car is stored in Illinois in which I dont reside.

    Is this completely cool? Or have a chance to cause a problem?
     
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  8. Cigarzman

    Cigarzman F1 Veteran
    Rossa Subscribed Owner

    May 7, 2014
    6,165
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    Kirk
    It’s not a problem until you have a problem.
     
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  9. Nospinzone

    Nospinzone F1 Veteran

    Jul 1, 2013
    5,754
    Weston, MA
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    Since you aren't driving the car, make sure the storage facility has full insurance for damage or theft of your collector car.
     
  10. luccio

    luccio Rookie
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    Feb 10, 2021
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    Luccio
    I don't see why there would be any problem.
    My personal 'fleet' vehicles are owned by a Montana LLC, stored and driven in California...
     
  11. Ascend

    Ascend Karting

    Jul 23, 2018
    62
    Full Name:
    Kim
    I heard your domicile state can come after you and demand state sales tax + interest + penalty. Hence the idea of storing it in non domicile state.
     
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  13. Ascend

    Ascend Karting

    Jul 23, 2018
    62
    Full Name:
    Kim
    Wise words. Wonder if it is worth it for 60k in tax savings.
     
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  14. Cigarzman

    Cigarzman F1 Veteran
    Rossa Subscribed Owner

    May 7, 2014
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    Depends on how well you wish to sleep at night. Me… I paid “the man”. I sleep like a baby. Best , Kirk.
     
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  15. luccio

    luccio Rookie
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    Feb 10, 2021
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    Luccio
    Yeah that makes sense.
    The out of state LLC rents cars and I enjoy some benefits - like driving a couple of them.
    I now remember of a guy claiming he had an audit triggered by a speed ticket. He was clean (his out of state company is actually also renting exotic cars) but that triggered an audit...
    So if the purpose is solely tax evasion that's probably not a good idea. If there's a legit business behind the company then other states offer advantages that justify the move - lower registration tax being just one of them.
     
  16. Ascend

    Ascend Karting

    Jul 23, 2018
    62
    Full Name:
    Kim
    Do most people pay for sales tax? Anyone here use MT llc? I dont mind paying 13-14k in sales tax but anything that goes over 60k... thats a lot. Of course I would explore mt llc only if its legal and kosher. If not, id pay up and sleep well.
     
  17. luccio

    luccio Rookie
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    Feb 10, 2021
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    Luccio
    IMO if the sole purpose is tax evasion, as an individual, I wouldn't do it: pay tax and sleep well.
    If there's a legit business behind the MT llc around automotive (development, event, rental...) then it's a different story and the fiscal optimization maybe worth the investment in time and structure.
    I'm by no mean a CPA or anything close, but morale matters :)
     
  18. CornersWell

    CornersWell F1 Rookie

    Nov 24, 2004
    4,652
    In this particular fact set, the problem most likely potentially comes from IL. I've not heard that IL has been aggressively prosecuting this matter (certainly not like VA or CA, for example), though.

    Your state of domicile/residency would only have jurisdiction over the property if it entered into that state (and stayed there for some arbitrary period of time). Although, long-arm jurisdiction is, IMO, one of the issues that is wound up in this question.

    Sales tax and property tax wouldn't get the same treatment, either.

    CW
     
  19. PA32Pilot

    PA32Pilot Formula Junior
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    Mar 5, 2020
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    Glendora, CA
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    Jamie Kirk
    Two ways to be legit

    1) Register with Montana LLC however pay use tax in your state.

    2) Montana LLC buys car, as in a trust, transfer to you as a family gift and register it in your state, no tax in most states.
     
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  20. Ascend

    Ascend Karting

    Jul 23, 2018
    62
    Full Name:
    Kim

    2) sounds like a game changer. Would you mind elaborating?
     
  21. FerrariCognoscenti

    FerrariCognoscenti Formula Junior

    Jan 19, 2021
    303
    Please explain #2


    Sent from my iPhone using Tapatalk
     
  22. ScreaminRevs

    ScreaminRevs Formula Junior

    Apr 4, 2004
    360
    Chicago
    Shouldn't morale matter when it comes to the wasteful & unnecessary spending government?
     
  23. PA32Pilot

    PA32Pilot Formula Junior
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    Mar 5, 2020
    822
    Glendora, CA
    Full Name:
    Jamie Kirk
    California does not charge sales tax on family sales/transfer of vehicles.

    A transfer of ownership from a family trust to a family member may be tax exempt.
     
  24. anunakki

    anunakki Five Time F1 World Champ
    Rossa Subscribed Owner

    Oct 8, 2005
    55,937
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    Jerry
    Id imagine you should just ask your CPA and then listen to his advice.
     
  25. Ascend

    Ascend Karting

    Jul 23, 2018
    62
    Full Name:
    Kim

    But i dont think you can consider mt llc which is basically your alter ego as “family”
     
  26. BMW.SauberF1Team

    BMW.SauberF1Team F1 World Champ

    Dec 4, 2004
    13,339
    Just store it in Montana. It's a nice place to visit anyway. Illinois sucks by comparison.
     
  27. Ascend

    Ascend Karting

    Jul 23, 2018
    62
    Full Name:
    Kim
    Do you know of any exotic car storage in MT?
     
  28. BMW.SauberF1Team

    BMW.SauberF1Team F1 World Champ

    Dec 4, 2004
    13,339
    No, but I'm sure there are storage places there or you could get a hangar at Bozeman/Yellowstone airport and do a car storage yourself there and for others if you want. Then drive into Yellowstone national park for fun.
     
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