Montana LLC: Tax-Free Car Buying & Hidden Benefits

Montana LLC: Tax-Free Car Buying & Hidden Benefits | Complete Step-by-Step Guide

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Күн бұрын

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State sales taxes can be extremely high. In fact, they can be as high as 7% depending on the state. For large purchases, such as vehicle purchases, high sales taxes can be a tremendous burden. Some people try to avoid state sales taxes by setting up an LLC in Montana and using the Montana LLC loophole.
In this video, Karlton Dennis breaks down the Montana LLC loophole. He goes over what this loophole is, why it exists, how it works, and how you can use it. Importantly, he also covers the potential legal risks of using this loophole. Not every state allows the Montana loophole to be used.
Considering the fact that many business owners purchase their vehicles through their LLCs, the Montana LLC loophole could potentially benefit many people. This loophole used to not be widely known or used. However, its use has picked up in recent years. Now, some states are fighting back against it.
Timecodes
0:00 Video Overview
0:26 What is a Montana LLC?
0:43 Benefits of Owning a Montana LLC
3:35 Can You Own a Montana LLC without Residency?
5:50 How to Setup a Montana LLC
*Disclaimer: I am not a financial advisor nor am I an attorney. This information is for entertainment purposes only. It is highly recommended that you speak with a tax professional or tax attorney before performing any of the strategies mentioned in this video. Thank you.
#taxes #taxfreeliving #taxexpert #taxreduction #llc

Пікірлер: 23

@karltondennis 4 күн бұрын

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@mattjmobile 2 күн бұрын

Minute 4:00 is key folks, listen to that carefully. Look up the concept of "nexus"; forming a MT LLC just to attempt to avoid a few thousand dollars of sales/use tax shouldn't be done. If you have many, many business vehicles, perhaps some legitimate creative uses of a MT LLC could be done, but not for the average Joe with just one or two business vehicles. Not worth it. Certainly don't use this advice to try avoiding sales tax on a personal vehicle, the States' Revenue Depts. could argue you have a strong nexus to your home state and that your LLC was just a nominee to avoid the sales/use tax you should've been paying in the first place. This is where most small businesspeople should just keep it simple. Overall, well presented, Karlton. Keep up making interesting videos.

@2020nallano Күн бұрын

Certainly! The issue with this strategy is that even if you establish a Montana LLC and buy a vehicle there, once you drive it to California, where I reside, California will indeed enforce the collection of Sales tax. This strategy is no different than purchasing a vehicle in Nevada where there is no sales tax- you don't need to form an LLC, yet once you drive it to California and register the vehicle, you are faced with paying sales tax in California.

@mikerodix4800 Күн бұрын

How many ways must the world tell you to leave California??

@FeruzaUtayeva-zz1nd 4 күн бұрын

Удачи вам 🎉

@DREDDWORLD 4 күн бұрын

This is wild how you popped up talking about this while I’m about to set up a LLC in Montana. I kept seeing people with hyper cars with Montana tags, but that Boi is them being nosey.

@rcruz401 Күн бұрын

Hey Karlton, I'm hoping you can answer this question: So, I recently purchased a vehicle that weighs shy of 6,000lbs for 70-80 % business use. I purchased it in my name and traded in my truck, which i used similarly for business. I have several LLCs with the state in which my properties are inside, I also have a C Corp, which is the property management company that we use to manage said properties. We typically have an accountable plan that reimburses us (my spouse and I) for business expenses, etc. Can i still do a bonus depreciation on the new vehicle? I only used the second approach to write off expenses on my previous truck, such as maintenance, tires, etc.

@Blue_Angel.555 4 күн бұрын

What about if you have an S-Corp, or just a C-Corp? Does that apply? How to switch a corporation from one state to another?

@ofezwadimaza 4 күн бұрын

What's the best state to file your LLC?

@divyv20 Күн бұрын

Hey Karlton , really nice video ! I was wondering if I could help you with more Quality Editing in your videos and also make a highly engaging Thumbnail . Pls let me know what do you think ?

@2901nc 4 күн бұрын

Don't forget insurance.

@Rabideen 11 сағат бұрын

Benefits of leasing vs buying a vehicle through the business?

@Halfnatty4882 4 күн бұрын

The popular Wes Watson did this with his vehicles

@javyhernandez4015 4 күн бұрын

I’ve heard this, but I’ve also heard it could be a headache and even a legal issue if you get into an accident in another state with the vehicle. Tax benefit, great, but what if I can’t even drive my car peacefully in another state? Also let’s not forget most if not all states do not let you drive cars registered in other states after a certain amount of days so if you get pulled over, could you possibly be given a ticket or order to register the car in your home state? If anyone has more info on this I’d love to hear it… I have a new car coming in in December and would love to do something like this, but I’d love to hear if these cons I’ve mentioned have been an issue for others or if these cons are nothing to worry about.

@mistermister8998 3 күн бұрын

All the issues you brought up are non-issues. You have a constitutional right to travel to any state you want. How long you stay and where is non of the government’s business. As long as you have that property insurance, registration and LLC paperwork in compliance, you’re good to go.

@patrickm444 3 күн бұрын

Ignores use tax

@ebells33 4 күн бұрын

Montana is extremely expensive for car insurance.

@user-ic6kq4vt9t 13 сағат бұрын

Just another way KD suggests F*R*A*U*D. Anyone ever hear of USE TAX? How about substance over form doctrine?

@richardbloom2209 3 күн бұрын

What about using a business car for personal use, funny you forgot to mention the tax implications of that. Maybe because you don’t understand that part.

@richardbloom2209 3 күн бұрын

This is terrible advice. Use tax anyone.

@isaacvalera9978 Күн бұрын

No it’s not, this is exactly what we do, except we do it in new Hampshire because it’s closer to us.

@user-ic6kq4vt9t 13 сағат бұрын

@@isaacvalera9978 Do you understand USE TAX?