Are you thinking about buying a yacht or boat to enjoy this summer? If so, you’re probably most looking forward to getting out on the water and spending time with family and friends.
What you’re probably not looking forward to is the amount you’ll owe in sales tax on your purchase. Find out how to say “goodbye” to sales tax and take advantage of other great benefits. Here are 3 reasons why owning a Montana LLC is a smart idea if you’re planning to purchase a boat or yacht.
Benefit #1: Purchases are Made Under Your LLC
The 2018 tax year will bring many individual taxpayers some shocking realities. Most notably, the IRS is removing the ability to claim itemized deductions on your tax return. It doesn’t matter how many itemized deductions you’ve previously been able to justifiably claim…this fiscal year is going to be different.
Only those with a business entity such as a corporation, LLC, or sole proprietorship are able to itemize deductions on their returns. There are many more forms involved in filing taxes this way, but 1) itemized deductions are allowed and 2) there are tax professionals who can help with everything!
By owning a Montana LLC, you will be eligible to purchase items under the LLC name and deduct some of them (where allowed by law) as business expenses. Talk to a tax professional if you have any questions about which purchases qualify as valid business expenses.
Benefit #2: Out of State Boat Registration
If you own a Montana LLC, your boat can be purchased under the LLC name and registered in the state of Montana. This allows you to fall under the jurisdiction of Montana harbor laws and to receive your boat title in the state of Montana.
Montana is very reasonable with their fees for registration. You can enjoy using your boat or yacht in your home state and beyond while keeping it registered under your LLC (which is its own entity residing in Montana).
Another advantage is that the title and registration of boats, yachts, and other vehicles you purchase under your Montana LLC will list the business as the registered owner, not an individual person. For those who wish to remain anonymous for boat and vehicle purchases, this option is quite appealing.
Benefit #3: Pay No Sales Tax at the Time of Purchase
Did you know that Montana is one of several states that do not collect sales tax on purchases made inside its borders? No matter if the purchase is small or large, sales tax is still 0%. If the wheels are turning inside your head right about now, then we’re on the same page…
Yes, you can buy a boat or yacht without paying any sales tax.
For those who live in states that collect sales tax (as most Americans do), hundreds or even thousands are spent on sales tax charges for boat, yacht, and vehicle purchases. However, if you buy these large ticket items under your Montana LLC, you get the benefit of making the purchase as if you were a Montana resident.
This means you pay no sales tax at the time of purchase…no matter what state you buy the item in!
We can help you start your Montana LLC and handle all of the filing paperwork, Registered Agent requirement, and even process your out-of-state boat or yacht registration paperwork. All this for one, easy flat fee. Contact us today!