Most Americans have to pay a sales tax when they make purchases, unless you happen to live in one of the five states that do not require a sales tax. Those five states are Montana, Oregon, Alaska, Delaware and New Hampshire. The main advantage of these states with no sales tax are big savings on major purchases. You can create further benefits for yourself by launching an LLC business and registering your vehicles through your company in one of those five states.
Collecting cars can be rewarding on one hand and expensive on the other. Many states, unfortunately, make this vision cost-prohibitive, even for high income earners. Luckily there's a way to save money if you start an LLC in Montana. Here are some important tips on how you can beat high taxes and fees when purchasing vehicles and save money through an LLC.
Purchasing a luxury vehicle is part of enjoying a high income, but that doesn't mean you need to pay the highest price. One of the ways to save money that you can use for other goals is to start an LLC in Montana. You will save tens of thousands of dollars on a Bentley, Ferrari, Tesla or other luxury brands since Montana has no sales tax. Here are ways to maximize the experience of purchasing your dream car.
Currently about 20 percent of American households earn over $100K. Many treat themselves to buying luxury vehicles but must face expensive state sales tax and licensing and registration fees on top of inspections. By purchasing a luxury vehicle through your Montana Limited Liability Company, you can save up to five figures on sales tax and fees in addition to the cost of your car.
Rodeo shows are exciting and highly profitable events for individuals and groups. Numerous people travel around the country to participate in the activities or watch professional cowboys in roping, racing and riding competitions. Whether you are going to rodeo events for pleasure or business, it is important to have a reliable means of transportation. In general, the nomadic lifestyle of rodeos is one of the most common challenges for enthusiasts and pro. If you choose to use chartered transport, you will have to deal with high long-term costs.
Recreational vehicles are perfect for exploring the country in style. If you are thinking about touring, you should consider purchasing a luxury RV for your needs. Luxury RVs are ideal if you would like to avoid the inconvenience of moving around the country in planes, trains or cars. They are self-contained homes on wheels with all the necessary amenities. Also, travelling in an RV can save you a lot of money because you will not need to stop in hotels at night.
If you are planning on spending time traveling around the country and touring rodeos with your family or friends, you should think about getting a recreational vehicle or motor home. These types of automobiles are ideal for traveling in a group because of the total low costs, particularly in relation to accommodation. In addition, you will be able to visit numerous areas that would be difficult without the flexibility of owning a travel vehicle.
A limited liability corporation (LLC) is an excellent way to run a business with partners. Running such a firm in a no sales tax state such as Montana is a bonus. It will allow you to make purchases on big items such as vehicles without paying a sales tax. Montana is one of five states in the United States that have not implemented a sales tax, whereas most states have adopted this tax since the Great Depression. The following are the top 5 benefits of running an LLC without paying sales tax.
Montana has no sales tax. The law in Montana allows entities to register a sales tax-free automobile in the state. Montana law does not technically require shareholder agreements. The extent to which a small company is mandated to pay income tax in Montana depends on its income. For instance, a corporation pays double taxation—the company must pay corporate license tax (income tax) in Montana, as a legal entity and shareholders are required to pay personal income tax on dispersed dividends. A Montana LLC on the other hand only pays income tax.
Are you thinking about how you can avoid the 6% or more sales tax on your RV registration in your state? Well, the answer may be a Montana LLC. By registering your RV under a Montana LLC, you save lots of money on licensing fee, taxes an inspection fee. Although some people tend to think that it's a form of tax evasion, the Federal law doesn't prohibit a citizen from setting up an LLC anywhere. Let us have a look at how it is done and some of its benefits.