As a buyer of exotic cars and probably other types of moveable property, you can save thousands of dollars on vehicle registration and sales tax by using a Montana LLC. In setting up an LLC in Montana, you can save money on purchasing a car, RV, motorcycle, ATV, boat or airplane. The process for setting up an LLC is fast, affordable and will allow you do business from another state. Here's a more in-depth look at how an LLC can save you money.
Key Montana LLC Advantages:
- Quick turnaround time
- Tax-free purchasing of moveable property
- Allows you to easily manage movable property
- Create a corporate structure by combining LLCs from different states
- No vehicle inspections involved
- Keep your existing driver's license
- Avoid paying personal property tax
- You won't need a lawyer
- Protect your assets and limit your liability
How Much Money You Can Save
The amount of money you can save through a Montana LLC depends on sales and personal property tax in your home state and where your business is based. If your business is based in California, you will save a substantial amount on sales tax when you purchase vehicles, boats or aircrafts. If your business depends on making many of these purchases, your savings will thousands of dollars.
History of Montana Tax Laws
Montana was admitted to the union in 1889 to become the 41st state. The state revised its original Constitution in 1972, which included a statewide reappraisal system, that gave the state oversight over property taxes.
The history of state sales taxes across the United States traces back to the Great Depression era. Many states in the south, mid-west and west adopted sales taxes during the 1930s, with several holdouts through the 1960s. Meanwhile, Montana has never implemented a state sales tax, along with Alaska, Delaware, Oregon and New Hampshire. The Washington Post wrote an opinion piece in 2014 that Montana has the fairest tax system in America.
How a No Sales Tax State Benefits an Exotic Car Buyer
In most states you have to pay a sales tax when you purchase any kind of car or even any other product. Buyers of exotic cars are already spending a significant amount of money, sometimes making the added sales tax cost prohibitive. Some exotic vehicles are priced in the millions. It's simply easier to buy an exotic vehicle in Montana.
Not only will you avoid paying thousands of extra dollars on sales tax, you can save money on vehicle registration in Montana. In California, for example, it may cost over $100,000 to register an exotic car worth over $1 million, but in Montana registration for that same vehicle only costs a few hundred dollars. Montana also has the lowest rate in America for license plates.
Ideal Montana LLC Businesses
Any business that operates outside of Montana can benefit from starting a Montana LLC. The reason Montana is a no sales tax state is because it is a pro business state, in which it's easier to launch a business than in most other states.
Several industries can cut costs by setting up an LLC in Montana, especially if you run a rodeo, RV park, racetrack or do car shows, trade shows and anything involving luxury vehicles. It's also ideal if you showcase technology such as green energy, which will allow you to save money on a Tesla Model S or X.
Healthcare organizations and law firms who want to expand services to multiple states will save an enormous amount setting up an LLC in Montana. Think about how much less paperwork and red tape will be involved.
When you buy a car - especially a high-priced vehicle - you can save enormously on your purchase by using Montana, which has no sales tax. By registering with an agent, you will have access to this easy option of saving thousands of dollars. You'll pay less on registration and it can be processed much faster than in another state. The same time and cost efficiencies are true if you are starting an LLC in Montana. Contact a registered agent for more information.