If you live in California costs are higher because of the state's sales tax of 7.25%, depending on where you reside some local municipalities tax rate can be as high as 9.75%. Residents may not notice how much taxes they pay when they regularly shop for groceries, but it becomes painfully noticeable when you buy a high-end vehicle. A car that costs $100,000, for example, will generate a sales tax of over $7,000 with high registration and license plate fees tacked on. Here's how you can bypass the California sales tax on moveable property by setting up a Montana LLC.
The Benefit of No Tax
Setting up a Montana LLC is fast and easy and will allow you to save thousands of dollars on moveable property, by not paying the California sales tax. Ask yourself what you can do with all that extra cash - how it might be better spent on home improvement or some type of money-making investment. Why should you have to pay enormous taxes just because you earn higher income than the average person or you're able to save? When you set up an LLC in Montana, all your business costs pay for themselves through the savings from paying no sales tax.
It's possible to benefit from a Montana LLC without even worrying about running a business. You will get the benefit of avoiding state taxes for your purchases of cars, trucks, motorbikes, boats and aircraft. It will make it easier for you to decide on purchasing your dream vehicle, which may be an exotic or classic car. Many times Californians talk themselves out of making these purchases, due to the high California sales tax.
Reasons to Hire a Montana Registered Agent
The key to filing all the proper paperwork if you want to make purchases in Montana is to hire a Registered Agent based in Montana. Be careful that you don't hire the wrong agent that doesn't do enough work to lower your fees. You should not have to pay any sales tax or high DMV registration fees. Keep in mind that you will have to register your car in a county where a registered agent has an office. Understand that you can pay dramatically less in some counties than others.
The most efficient registered agents are those who use software that helps clients register their vehicles easily. You may only need to deal with a registered agent that provides basic registration services and doesn't need to charge higher prices to pay for marketing.
Since Montana is such an attractive state for filing an LLC and purchasing vehicles, there are many people who do side jobs as a registered agent and work from their homes. You may find better deals working with agents dedicated full-time to helping out-of-state clients register businesses and vehicles in Montana. So don't rush into thinking the first agent who comes along will be sufficient to help cut your California sales tax. You can enjoy further savings by working with the right agent.
Many Californians don't necessarily want to set up an out-of-state business and are more interested in just getting a good deal on owning a motor-home or RV. They may only travel one time per year in their trailer, but can still benefit from setting up a Montana LLC, which allows them to completely avoid paying the California sales tax.
You can simplify the process of vehicle registration and setting up a Montana LLC by paying a registered agent for a package. This deal should include fast ordering of license plates and registration, which should be completed within seven days. The information you submit for your LLC and vehicles will be private. The agent can also create a custom draft of your LLC operating agreement, based on how your vehicles will be used.
The agent will allow you to use their address for vehicle titles, registrations and insurance. They will then scan all your local documents and put them into your account. Always be aware to avoid agents that prey upon out-of-state residents who are just looking to quickly pay any price lower than their state tax. Certain fees, such as filing an annual report, are expected, but make sure you are not being hit with extra fees.
Buying the vehicle of your dreams, such as an exotic car, an electric car or even an RV, boat or airplane, doesn't have to involve paying a high sales tax from California. You can enjoy significant savings by registering an LLC in Montana, which will allow you to cut high taxes completely from your bill. Contact your local registered agent to learn more about how you can avoid overpaying on state taxes and registration fees.