23 Feb All About Montana LLCs and RV Ownership
Many people who purchase an RV choose to create an LLC, or limited liability company, in Montana, because of the enormous cost-saving benefits. An LLC is legally a standalone business entity that can provide many tax benefits on large purchases, such as an RV.
Here, we’ll cover:
- How to use a Montana LLC to buy an RV tax-free;
- A cost savings analysis for Montana LLC and RV ownership; and
- How to get started.
How to Use a Montana LLC to Buy an RV Tax-Free
Once a Montana LLC is set up, it is its own legal entity that you can use to make purchases in Montana, even if you aren’t a state resident. With a Montana LLC, you can purchase an RV—and pay nothing on sales tax upfront, since there is 0% sales tax in Montana. Sales tax from a big-ticket item, such as an RV can sometimes add up to thousands or tens of thousands of dollars in sales tax, so using a Montana LLC to buy an RV tax-free can represent enormous savings.
In order to purchase an RV with your Montana LLC, you will need to set up a business bank account to fund your LLC. This is also a requirement for filing annual tax reports for your LLC. You can open a free business checking account for the LLC, and use this account only for activities specific to the LLC, including for the RV’s maintenance, gas, camping fees, and storage fees.
If you need to take out a loan to purchase your RV, you’ll have to make sure your bank will loan to an LLC and, most often, you’ll be required to personally secure the debt of the LLC.
When your RV is purchased by your Montana LLC, your Montana LLC is the legal owner of the RV. You must register and title your RV in the state of Montana, under the LLC’s name, and the insurance must also be under the LLC’s name. You can designate individuals who have permission to operate the RV. As your registered agent, MT Vehicles can help you get your vehicle registered in Montana through your LLC.
Other advantages of having a Montana LLC include no use tax or property tax on vehicle registration, and the ability to itemize your deductions on annual tax returns.
What Address Do You Use For a Montana LLC/RV Registration?
Your Montana LLC must have a valid street address in the state of Montana, even if you are not a Montana resident. Not only can MT Vehicles help you handle your registered agent paperwork, but we can provide the street address needed for your Montana LLC, as well as for your RV registration and title.
In addition to the tax benefits, having your registered agent as the valid street address for your LLC can have the added benefit of giving you personal privacy, with our Montana LLC Privacy Package. With this package, a proprietary management company is used on the public record and any members of the LLC are not named personally. Only the name of the LLC, the registered agent, and the LLC’s Montana address are public.
Even though your LLC is legally located in Montana, you won’t miss your mail. We offer a mail forwarding service to make sure you don’t miss any important documents related to your Montana LLC and RV ownership.
How Long Will it Take to Register an RV in Montana?
The amount of time it takes to complete the application process for an LLC in Montana depends on several factors, and can sometimes take only a few hours, or up to a few weeks. Learn more about how long it takes to form a Montana LLC by clicking here.
To register an RV in Montana, MT Services will file your vehicle registration as soon as your Montana LLC is set up and we receive the necessary documents about your RV, including the signed Montana title application and the Manufacturer’s Certificate of Origin (MCO). In Montana, the Secretary of State registers and titles the vehicle simultaneously. Once your paperwork has been submitted, you can expect your plates and registration within three to eight weeks.
A Cost Savings Analysis for Montana LLC and RV Ownership
What is the cost to set up a Montana LLC?
The costs to set up an LLC in Montana include the basic cost to file Articles of Organization (AOO) for an LLC with the Montana Secretary of State and the price to secure the services of a Registered Agent, which is a legal requirement in Montana. Many people also pay for professional assistance for the AOO filing, to avoid common pitfalls that can complicate the process.
Initial AOO filing fee to Montana Secretary of State: $70
Annual LLC filing fees to Montana Secretary of State: $15
Registered Agent Services: Variable
AOO Filing Professional Services: Variable
What is the cost to purchase and register an RV with a Montana LLC?
The state of Montana presents a lot of advantages for RV ownership through a Montana LLC. First—Montana is a 0% sales tax state, which means you could save thousands, or even tens of thousands of dollars on sales tax upfront. Secondly, Montana has reasonable registration fees and has no use tax or property tax for vehicle registration and requires no vehicle inspections, so there are no added costs. Many people who engage professional help to set up a Montana LLC also need help to register a vehicle or an RV purchased through their Montana LLC—however, many agencies that file LLC paperwork don’t offer an easy, flat fee for services that include vehicle registration. MT Vehicles is different, offering one flat fee that includes AOO filing for your Montana LLC, Registered Agent services, and vehicle registration.
Montana sales tax for RV purchase: $0
Montana use tax for RV registration: $0
Montana property tax for RV registration: $0
Professional services fees for RV registration: Variable
The state of Montana structures registration fees according to the age of the RV, and according to its manufacturer suggested retail price. Below are Montana RV registration fees for RVs valued under $300,000:
Up to 2 years old: $282.50 per year
2 years old up to 5 years old: $224.25 per year
5 years old up to 8 years old: $132.50 per year
8 years and older: $97.50 per year
Below are the registration fees for RVs valued over $300,000:
Up to 2 years old: $1,082.50 per year
2 years old up to 5 years old: $1,024.25 per year
5 years old up to 8 years old: $932.50 per year
8 years old up to 10 years old: $897.50 per year
What does a Montana LLC/RV package include?
MT Vehicles has decades of experience acting as a registered agent for Montana LLCs and helping customers with their Montana LLC vehicle registrations. We offer a comprehensive Montana RV LLC package, which helps you save time and thousands of dollars by putting professionals in charge of managing the process for your Montana LLC and RV registration.
For one flat fee, our Montana RV LLC package includes:
- Initial LLC filing with the Montana Secretary of State,
- Optional assistance obtaining an Employer Identification Number (EIN), which serves as your LLC’s tax ID number;
- Annual filing to renew LLC in Montana;
- Filing for your RV’s Montana registration and license plates; and
- Updates with every step of the process.
MT Vehicles charges one flat fee of $1,295 for the Montana LLC/RV package. For RVs valued over $300,000, the package is $2,095, to include the additional fees to the Montana Vehicle Department. Many convenient package upgrades are available, depending on your needs, including:
- Privacy package (armored): $495
- Privacy package (premium): $595
- PMB/Basic privacy package: $100
- Business Bank Account services: $295
- Mail Forwarding Service: $275
- Expedited Secretary of State Filing: $100
- FedEx License Plate Delivery: $45
Not only does our basic Montana LLC/RV LLC package help you fulfill the state requirement to have a registered agent for your LLC, but we keep things simple so don’t have to navigate complex legal paperwork—you just get to enjoy the tax benefits.
How to Get Started
It’s easy to get started with our simple, secure online process. Click here to get started by creating a new client account, or give us a call at (855) 976-0042.