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Understanding Vehicle Registration In A No Sales Tax State

Posted by MT Vehicles on Aug 16, 2018 4:41:37 PM

senior couple buying luxury car no sales tax state montanaDid you know that several states in the U.S. do not charge sales tax? That’s right, no matter whether you buy a candy bar or an expensive vehicle, the sales tax rate is zero.

Read on to learn more about how vehicle registration works in tax-free states.

Montana is a No Sales Tax State

trekking montana no sales state big country Residents of Montana enjoy so many perks of living in “Big Sky Country.” Known for miles of sprawling nature scenes, the Montana skyline is dotted with wildlife, trees, and lakes rather than tall buildings.

Those who live there also get the benefit of not having to pay sales tax. Sales tax is a fee charged for every in-state purchase. These rates can vary by state and even by county. Tax laws are responsible for that rates that are charged to residents.

Some states, such as California and New York, have some of the highest sales tax rates in the country. It’s not uncommon for these rates to hover around 10%. This means that everything purchased within the state costs an additional 10% because sales tax is added on.

Don’t get this confused with state income tax. The latter type of tax is assessed on the amount of money a resident of that state makes in taxable income. Although there are zero-income-tax states in the U.S., Montana is not one of them.


Vehicle Registration with a Montana LLC

Sales tax and vehicle registration have more in common with each other than you may think. In order to register a vehicle in a particular state, you must be considered a resident. Many states have their own laws about what constitutes a “resident,” but there is one thing that grants you permanent resident status: owning an LLC in that state.



A Montana LLC gets you access to being considered a Montana resident. This includes all of the benefits granted to those who live there. With an LLC, however, you don’t have to live in Montana. Your Montana LLC is considered its own standalone entity (much like an individual is) and is granted resident status in Montana. It is therefore given all the same legal rights that Montana residents have.

The best part about a Montana LLC is that you won’t have to pay sales tax when you buy a vehicle under your LLC’s name. This allows you the advantage of buying a car, boat, RV or any other vehicle under the “no sales tax” laws that apply to Montana residents. This applies to all purchases made under your LLC inside your home state of residence.


Start Your Montana LLC & Register Your Vehicle in MT

Vehicle registration in another state than your own can be confusing, but with LLCTLC we make everything easy for you. We will take care of all of the LLC filing paperwork, serve as your registered agent (as required by state law), and handle your vehicle registration (one vehicle) for one flat fee. Additional vehicles may be registered for an additional fee.


Get the benefit of paying no sales tax at the time of purchase by starting your own Montana LLC. We make it affordable, easy, and fast for you to start saving money today with an LLC.


Download the Ultimate Guide on Vehicle Registration with Your Montana LLC

Topics: Luxury Vehicles, Limited Liability Corporation, Vehicle Registration, Montana LLCs, Moveable Property, No Sales Tax State