Montana Registration
11-24-2021 | 10:55 AM
#1
Thread Starter
Three Wheelin'
Joined: Jan 2004
Posts: 1,272
Likes: 173
From: Darien, CT
Montana Registration
Well, I am very surprised I have not seen this topic come up? it must be taboo or very discrete. I see lot so Montana plates at local shows. In CT I will be looking at $14K+ in sales taxes and over $3K in property taxes every year. I was wanted to know more about the legal registration process for Montana.
I looked a a few websites and initial costs and the up keep costs of the LLC seem minimal and almost nothing compared to the property taxes. Is there a go to / recommended source that people have used to help with the process. Maybe there are legal downsides, but I would at least like to better understand the process and see if it is right for me.
I looked a a few websites and initial costs and the up keep costs of the LLC seem minimal and almost nothing compared to the property taxes. Is there a go to / recommended source that people have used to help with the process. Maybe there are legal downsides, but I would at least like to better understand the process and see if it is right for me.
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11-24-2021, 06:01 PM
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Joined: Jan 2016
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From: New Orleans, LA (NOLA)
All three of my Porsches are registered in MT as are many of my buddies' cars. To prevent any second guessing and to give myself an extra layer of protection, I also drafted a rental contract from my LLC to myself. So if I get pulled over or challenged in anyway, I just tell them I am renting the car from a company based out of MT. It doesn't matter if I own the company and that I am renting the car for $1 a year. None of the cars were bought in my home state. The rental contracts were also not signed/executed in my home state either. I was open and honest with my insurance company on my arrangement. They don't care as long as I am paying the premium for where it is garaged. My LLC is listed as an interested party with my insurance company, and on my insurance account the cars show they are registered in MT, owned by my LLC and garaged in my home state.
My GT3 was the first car my LLC bought new and there was no issue with the dealership registering it in MT and no issue with insurance. I only had to give them the articles of incorporation and have my LLC listed on the insurance card. No issue at all.
There is NOTHING illegal about doing this. My LLC is in good standing and created IAW the laws of MT. It's not a tax dodge, it is not fraud and it is not tax evasion. That is just BS nonsense. The primary purpose of an LLC is to limit liability which includes tax liability. Go look at how many US corporations are registered in Delaware or International companies registered in Ireland.
Edit: The State of Delaware is a leading domicile for U.S. and international corporations. More than 1,000,000 business entities have made Delaware their legal home......and they are all registered at a tiny office in Wilmington.
My GT3 was the first car my LLC bought new and there was no issue with the dealership registering it in MT and no issue with insurance. I only had to give them the articles of incorporation and have my LLC listed on the insurance card. No issue at all.
There is NOTHING illegal about doing this. My LLC is in good standing and created IAW the laws of MT. It's not a tax dodge, it is not fraud and it is not tax evasion. That is just BS nonsense. The primary purpose of an LLC is to limit liability which includes tax liability. Go look at how many US corporations are registered in Delaware or International companies registered in Ireland.
Edit: The State of Delaware is a leading domicile for U.S. and international corporations. More than 1,000,000 business entities have made Delaware their legal home......and they are all registered at a tiny office in Wilmington.
11-24-2021 | 10:58 AM
#2
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11-24-2021 | 11:24 AM
#4
Three Wheelin'
Joined: Feb 2018
Posts: 1,784
Likes: 637
From: Greenwich, CT
RodneyR: I am in the same boat as you as I live in Greenwich. They deem all vehicles, leased, financed or owned, as property and are taxed as property in CT based on your local mill rate which varies from town to town.
When I bought my first Porsche I paid the crazy 15k in taxes at registration at DMV on my Credit Card and for every year thereafter I was and am still hit with a property tax based on the depreciated value. Its a terrible tax that very few states impose, but CT is one of them. If I could go back and do it all over again I would have started out with the Montana trick. Its a lot of money. potentially 20k upfront and many thousands annually, but because I already paid it, so long as I trade in or sell my car to a dealer, I get that tax credited to my next car.
For example, I paid the 15k on my 2018 Targa and traded it in to the local dealer for a new car. When I get the new car I now have a 15k tax credit towards the taxes I need to pay on the new car. If the taxes are now 20k for the new car, I only have to pay 5k difference. If the taxes are 12k on the new car I pay nothing and lose 3k in credits. However, you still have to pay CT the property tax on the car every year for life.
Montana is the way to go on a new car if you didn't F up like I did not knowing the first time around. Let me also add that you will have a Montana license plate on the car and CT has made threats over the years about cracking down on people doing this, but I don't know of a single person who has gotten in any trouble and I don't think that they can legally stop you from registering it in Montana. PM me if you wish to discuss further.
When I bought my first Porsche I paid the crazy 15k in taxes at registration at DMV on my Credit Card and for every year thereafter I was and am still hit with a property tax based on the depreciated value. Its a terrible tax that very few states impose, but CT is one of them. If I could go back and do it all over again I would have started out with the Montana trick. Its a lot of money. potentially 20k upfront and many thousands annually, but because I already paid it, so long as I trade in or sell my car to a dealer, I get that tax credited to my next car.
For example, I paid the 15k on my 2018 Targa and traded it in to the local dealer for a new car. When I get the new car I now have a 15k tax credit towards the taxes I need to pay on the new car. If the taxes are now 20k for the new car, I only have to pay 5k difference. If the taxes are 12k on the new car I pay nothing and lose 3k in credits. However, you still have to pay CT the property tax on the car every year for life.
Montana is the way to go on a new car if you didn't F up like I did not knowing the first time around. Let me also add that you will have a Montana license plate on the car and CT has made threats over the years about cracking down on people doing this, but I don't know of a single person who has gotten in any trouble and I don't think that they can legally stop you from registering it in Montana. PM me if you wish to discuss further.
11-24-2021 | 11:56 AM
#6
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11-24-2021 | 11:58 AM
#7
Three Wheelin'
Joined: Feb 2018
Posts: 1,784
Likes: 637
From: Greenwich, CT
Its not just 3k every year for life, it's the 8.75% initial registration fee. On a 200k car that's $17,500 in registration fees from day one.
Register in Montana and pay $175 and you're done.
Over 5 years you pay $175 to Montana or $33,000 to CT.
Register in Montana and pay $175 and you're done.
Over 5 years you pay $175 to Montana or $33,000 to CT.
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11-24-2021 | 12:11 PM
#9
Three Wheelin'
Joined: Feb 2018
Posts: 1,784
Likes: 637
From: Greenwich, CT
There is another factor to consider.. If the Democrats manage to repeal the SALT tax (which limits all US citizens to a maximum of $10,000 in property tax deductions) and get their wish of a maximum of $85,000 in property tax deductions, then paying CT the property tax won't sting as much. Being able to deduct the property tax on the car in addition to your home would certainly help, but the law hasn't been repealed yet and it still pales in comparison to the Montana trick.
11-24-2021 | 12:21 PM
#10
Thread Starter
Three Wheelin'
Joined: Jan 2004
Posts: 1,272
Likes: 173
From: Darien, CT
RodneyR: I am in the same boat as you as I live in Greenwich. They deem all vehicles, leased, financed or owned, as property and are taxed as property in CT based on your local mill rate which varies from town to town.
When I bought my first Porsche I paid the crazy 15k in taxes at registration at DMV on my Credit Card and for every year thereafter I was and am still hit with a property tax based on the depreciated value. Its a terrible tax that very few states impose, but CT is one of them. If I could go back and do it all over again I would have started out with the Montana trick. Its a lot of money. potentially 20k upfront and many thousands annually, but because I already paid it, so long as I trade in or sell my car to a dealer, I get that tax credited to my next car.
For example, I paid the 15k on my 2018 Targa and traded it in to the local dealer for a new car. When I get the new car I now have a 15k tax credit towards the taxes I need to pay on the new car. If the taxes are now 20k for the new car, I only have to pay 5k difference. If the taxes are 12k on the new car I pay nothing and lose 3k in credits. However, you still have to pay CT the property tax on the car every year for life.
Montana is the way to go on a new car if you didn't F up like I did not knowing the first time around. Let me also add that you will have a Montana license plate on the car and CT has made threats over the years about cracking down on people doing this, but I don't know of a single person who has gotten in any trouble and I don't think that they can legally stop you from registering it in Montana. PM me if you wish to discuss further.
When I bought my first Porsche I paid the crazy 15k in taxes at registration at DMV on my Credit Card and for every year thereafter I was and am still hit with a property tax based on the depreciated value. Its a terrible tax that very few states impose, but CT is one of them. If I could go back and do it all over again I would have started out with the Montana trick. Its a lot of money. potentially 20k upfront and many thousands annually, but because I already paid it, so long as I trade in or sell my car to a dealer, I get that tax credited to my next car.
For example, I paid the 15k on my 2018 Targa and traded it in to the local dealer for a new car. When I get the new car I now have a 15k tax credit towards the taxes I need to pay on the new car. If the taxes are now 20k for the new car, I only have to pay 5k difference. If the taxes are 12k on the new car I pay nothing and lose 3k in credits. However, you still have to pay CT the property tax on the car every year for life.
Montana is the way to go on a new car if you didn't F up like I did not knowing the first time around. Let me also add that you will have a Montana license plate on the car and CT has made threats over the years about cracking down on people doing this, but I don't know of a single person who has gotten in any trouble and I don't think that they can legally stop you from registering it in Montana. PM me if you wish to discuss further.
11-24-2021 | 12:26 PM
#11
Thread Starter
Three Wheelin'
Joined: Jan 2004
Posts: 1,272
Likes: 173
From: Darien, CT
$50K in taxes for a $200K total is crazy.
11-24-2021 | 12:27 PM
#12
Thread Starter
Three Wheelin'
Joined: Jan 2004
Posts: 1,272
Likes: 173
From: Darien, CT
Reach out to Rennlister @subshooter . He's well versed in this matter. Happy Thanksgiving.
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