LLC for Shelby ownership?

[BGlover67]

Can I ask if anyone here utilized an LLC or similar method to purchase their car?  Considering it more for a means to limit tax liability as opposed to liability issues.

[Harris Speedster]

B
Are you by any chance a licensed and bonded auto dealer ?
That makes a difference.
Do you plan on purchasing another car, if and when you sell this car?

You can defer losses, just like you can defer profits from tax liabilities. IRS recognizes as OK.
Just saying because, been there and done that.
John

[BGlover67]

I'm not a dealer, just a Dentist 
I'm just wondering if there was any merit to exploring this option.

[Rickmustang]

Yes. I have Montana plates linked to my Montana llc

[JD]

a number of California car guys do the llc thing through Montana, taxes and emissions from what I've heard

[pchmotoho]

There is a huge discussion of this topic right now on Ferrari Chat if you want more opinions on it. 

[98SVT - was 06GT]

Yes. I have Montana plates linked to my Montana llc

Tell us more. Tired of paying CA.

[CSX 4133]

Just be aware states are going after the Montana registered cars, where the owner (be it individual/business) lives elsewhere. California is one of those states which feels they are missing an income stream. 


https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059

[Rickmustang]

One disadvantage is you have to have commercial insurance on the vehicle when it is registered to an LLC. The advantage is no sales tax when you purchase the car, plane, boat, etc. There is a LLC setup fee and small annual fee as a non-revenue tax return must be filed every year.

[Side-Oilers]

One disadvantage is you have to have commercial insurance on the vehicle when it is registered to an LLC. The advantage is no sales tax when you purchase the car, plane, boat, etc. There is a LLC setup fee and small annual fee as a non-revenue tax return must be filed every year.

A good friend of mine has had a Montana LLC for 15 years.  Never had a problem.  Hagerty insures his cars under his LLC, and with him personally as an additional insured.  He told me the price of the policy hardly changed with the LLC situation.

[owenkelley]

This is an interesting topic to me because I live in Montana and have been involved in the car business here for the last 30 years. The LLC issue has always been one of those subjects that people have strong feelings about. Some see it as people who can afford to purchase extremely expensive cars, motorhomes etc. and are evading the taxes required by their home state resulting in their neighbors picking up the tax burden instead of themselves. On the other hand, if their home state would change the way they tax these vehicles maybe they would at least collect some of the revenue they are missing out on completely now. When the sales tax is 9% and you're purchasing a million dollar car the tax becomes a serious number. A friend of mine who was the President of the State Legislature some years back told me if he had stayed with the Legislature he would have gone after the LLC program and try to put an end to it because he viewed it as wealthy people just trying to avoid paying the taxes they should have to pay. Another friend of mine is a retired state judge, and his attitude is - "every state has a gimmick, a few local attorneys saw an opportunity that was legal and jumped on it, good for them!" one of the guys I met at this year's Legislature started his LLC business licensing collector cars for out of state residents when he was in high school! He really had some foresight!

Some cars get stored here in Montana for a period of time and then are apparently licensed in their home state afterward because it meets the requirement that they were located at the owners other property in Montana (their LLC) for that time then transferred to their other residence and registered. I saw a warehouse that had some incredibly value cars in it including a 289 Cobra. I actually saw the Cobra driving down Missoula streets in the middle of February.

I also have a cousin who works for the IRS in California and he tells me that they are cracking down on people driving these high dollar vehicles around California with Montana plates on them. He tells me there's a phone number you can call to blow the whistle on your neighbor. This is apparently why so many of the cars are stored here now and later moved and registered in the home state.

It has always amused me when I am at a car show in a far away state and see a car with Montana plates and I know that car has never seen a Montana road! I attended a Shelby Meet in Southern California about 6 years ago and saw the 427 Cobra that was in the movie The Gumball Rally displayed with plates from my hometown, along with a '67 GT500 and a "68 KR convertible. Pretty sure the Gumball Rally did not take place in Montana....

[Side-Oilers]

Great insight and personal experience, owenkelley. Thanks very much for sharing.