Updated: Nov 17
Acquiring a new Ferrari, Lamborghini or some 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 all LLC’s don’t have to purchase their vehicles in Montana so as to avoid paying the taxes. All LLCs are viewed as residents of Montana hence they are exempted from taxation.
What Perks do you enjoy?
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.
Let us assume that you are purchasing a 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 have to pay for a license plate. 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.
You don’t have to live in Montana to open a Montana LLC
Registered agents can help you form a LLC and maintain it efficiently. 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 Montana State.
You can list your other vehicles under your LLC
Are you worried about your other cars? What happens to the Porsche or Bugatti Or the Mercedes-Benz that you own? No need to worry. You can actually list all the other vehicles that you own under your LLC. The real beauty of a 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.
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.