A yacht is every water lover’s dream. It offers luxury, comfort, space, and living accommodations to take an extended vacation away from the cares of life. For those who have the means to purchase a yacht but are also money savvy buyers, we’d like to introduce you to the concept of starting a Montana LLC.
How Can I Avoid Sales Tax On My Yacht Purchase?
We’re so glad you asked this question! Did you know that several states (including Montana) offer its residents the advantage of not having to pay sales tax on anything they purchase within the state? This is pretty hard for most of us to imagine; some states demand up to 10% in sales tax charges.
Let’s say you live in California (one of the highest sales tax states) and you want to buy a yacht at your local dealership. For example, if you bought a Carver C34 Command Bridge Motor Yacht (price tag: $325,000) in California, you would owe 10% sales tax on your purchase, which amounts to $32,500.
Yes, we know you can do the math yourself, but sometimes it helps to see it right there in black and white. So…why pay over $30K in sales tax if you don’t have to?
Montana LLC Ownership = No Sales Tax
In order to get the benefits of being a Montana resident and not having to pay sales tax on your purchases, you’d have to either move to Montana or start a Montana LLC. If you have your heart set on staying right where you are, then a Montana LLC is a great way to have your cake and eat it too.
Starting a Montana LLC allows the LLC owner to be considered by the government (both state and federal) as a Montana resident. This is because an LLC is viewed as its own entity for tax purposes. As an LLC owner in Montana, you would be granted the same sales tax benefits that Montana residents receive.
You could then buy anything, large or small, under your LLC and not have to pay sales tax at the time of purchase. Yes, this includes cars, RVs, and even yachts. It doesn’t matter the item’s value because the more you spend on an item, the more you’re going to save in sales tax you don’t have to pay.
Out-of-State Boat and Vehicle Registration
Using the previous example, let’s say you purchased your yacht in California under your Montana LLC. You plan to stay right where you are and sail it on California waters, but how does out-of-state registration work? Glad you asked! Our company handles all out-of-state registration and title paperwork from start to finish for our LLC owners for one flat fee. Not only do we eliminate the frustration and confusion about how to get your yacht registered in Montana, but we can also:
- Serve as your Registered Agent (a Montana state requirement for LLC owners).
- File all of your LLC paperwork.
Get in touch with us today to learn more about our affordable flat rate fee to start your Montana LLC, file all necessary paperwork for you, and help you register one vehicle in Montana.
For almost 20 years we’ve been helping people just like you save thousands on sales tax and registration by starting a Montana LLC. Will you be next? We hope so!