Porsche Registration in Montana?

[Guest yeatsy]

Has anyone registered their porsche in Montana under an LLC? Have you had any problems? What was your experience like?

[phillipj]

I know that it's very popular here in So Cal with our 9.75% sales tax.

I have a friend who's attorney set up the whole thing up for $3k. Not a bad expense considering he bought a $200,000 car (would have been around $20k in taxes here.) I think that max reg & title expense for a car in Montana is $350.

I would do some research about things like insurance requiremments etc...

Hope I helped a little

[Vintage Racer]

Has anyone registered their porsche in Montana under an LLC? Have you had any problems? What was your experience like?

Taxing authorities do not like it when you form an entity to escape taxes. If a trust or LLC is formed for the sole purpose of escaping the payment of taxes, you could be subject to a long court battle.

Then you will have the problem of parking and driving a car in GA with Montana tags.

I have a friend who's attorney set up the whole thing up for $3k. Not a bad expense considering he bought a $200,000 car (would have been around $20k in taxes here.) I think that max reg & title expense for a car in Montana is $350.

I would do some research about things like insurance requirements etc...

You may have insurance problems (unless you own a home in Montana).

The trust or the LLC will also be required to file tax forms every year. You'd need to factor in another $1000/year for an accountant.

[wwest]

Has anyone registered their porsche in Montana under an LLC? Have you had any problems? What was your experience like?

Most states, like mine, WA, require in state registration within 30 days of purchase or "bringing" a car into the state of primary use/residence. Get caught = get FINDED.

[Guest yeatsy]

Has anyone registered their porsche in Montana under an LLC? Have you had any problems? What was your experience like?

Most states, like mine, WA, require in state registration within 30 days of purchase or "bringing" a car into the state of primary use/residence. Get caught = get FINDED.

Right, that seems to be the case when you are an individual registering the car in your personal name. My understanding is that the LLC is never a resident of the state of Washington or any other state and is therefore not subject to that states registration statute of limitations.

[Vintage Racer]

Right, that seems to be the case when you are an individual registering the car in your personal name. My understanding is that the LLC is never a resident of the state of Washington or any other state and is therefore not subject to that states registration statute of limitations.

Yes. But.

A LLC is a partnership-type corporate entity. It still requires a state of domicile (you'll need to file federal and state tax forms in the state of its physical residence). If you form the LLC in Montana, you'll be registered by the Montana Secretary of State as a Montana Corporation. You'll need a mailing address (that could be in GA, but what if they ask you the address of the entity in Montana)?

A LLC isn't the taxpayer. Tax liability (if it makes money) or tax losses (if it loses money) are generated to another entity (another LLC or an individual taxpayer) via the Form K-1 which must be filed with the tax form. If you start transferring losses to an individual's Form 1040, you are subject to an audit to prove its a for-profit corp.

In these days of government's grab for more tax revenue to support federal and state deficits, the risks are high.

GA is only one of a few states that do not charge sales tax on a vehicle titled in a person's name. You can buy a Carrera GT for $350,000 and pay $20 for the tag (no 7% sales tax).

I wouldn't touch this arrangement, but I sleep better knowing I will not be threatened with IRS actions.

[Guest yeatsy]

Right, that seems to be the case when you are an individual registering the car in your personal name. My understanding is that the LLC is never a resident of the state of Washington or any other state and is therefore not subject to that states registration statute of limitations.

Yes. But.

A LLC is a partnership-type corporate entity. It still requires a state of domicile (you'll need to file federal and state tax forms in the state of its physical residence). If you form the LLC in Montana, you'll be registered by the Montana Secretary of State as a Montana Corporation. You'll need a mailing address (that could be in GA, but what if they ask you the address of the entity in Montana)?

A LLC isn't the taxpayer. Tax liability (if it makes money) or tax losses (if it loses money) are generated to another entity (another LLC or an individual taxpayer) via the Form K-1 which must be filed with the tax form. If you start transferring losses to an individual's Form 1040, you are subject to an audit to prove its a for-profit corp.

In these days of government's grab for more tax revenue to support federal and state deficits, the risks are high.

GA is only one of a few states that do not charge sales tax on a vehicle titled in a person's name. You can buy a Carrera GT for $350,000 and pay $20 for the tag (no 7% sales tax).

I wouldn't touch this arrangement, but I sleep better knowing I will not be threatened with IRS actions.

Is it correct that if the LLC generates under $4000 in profit, it is not required to file with the IRS? I looked up some information at the Montana Department of Revenue and if the LLC made under $400 in PROFIT, MT does not require it file a tax return. The LLC only needs to file something called the affidavit of corporate inactivity. That keeps the company in good standing with the taxing authority there. Seems pretty simple.

The reason I'm interested is because MT offers the permanent plate and the ability to display an original Montana plate on my '57. I found some nice Montana 1957 plates and it'd be fun to actually have them on my car :)

[Vintage Racer]

Is it correct that if the LLC generates under $4000 in profit, it is not required to file with the IRS? I looked up some information at the Montana Department of Revenue and if the LLC made under $400 in PROFIT, MT does not require it file a tax return. The LLC only needs to file something called the affidavit of corporate inactivity. That keeps the company in good standing with the taxing authority there. Seems pretty simple.

The reason I'm interested is because MT offers the permanent plate and the ability to display an original Montana plate on my '57. I found some nice Montana 1957 plates and it'd be fun to actually have them on my car :)

The IRS would certainly want you to file with a $4000 profit. I know of no IRS $400 limit.

The State of Georgia allows a tag with the year of the car's production to be used on an antique. I know a number of guys with 1965-1973 tags on their 911s. Most bought the tags off eBay.

The annual taxes on my two longhoods are $50/year. The no-deductible annual insurance is another $132/yr. Both were purchased with no sales tax.

[Guest yeatsy]

Is it correct that if the LLC generates under $4000 in profit, it is not required to file with the IRS? I looked up some information at the Montana Department of Revenue and if the LLC made under $400 in PROFIT, MT does not require it file a tax return. The LLC only needs to file something called the affidavit of corporate inactivity. That keeps the company in good standing with the taxing authority there. Seems pretty simple.

The reason I'm interested is because MT offers the permanent plate and the ability to display an original Montana plate on my '57. I found some nice Montana 1957 plates and it'd be fun to actually have them on my car :)

The IRS would certainly want you to file with a $4000 profit. I know of no IRS $400 limit.

The State of Georgia allows a tag with the year of the car's production to be used on an antique. I know a number of guys with 1965-1973 tags on their 911s. Most bought the tags off eBay.

The annual taxes on my two longhoods are $50/year. The no-deductible annual insurance is another $132/yr. Both were purchased with no sales tax.

$400 limit is with the MT Dept. of Revenue, not the IRS. The IRS is $4000.