Montana or Texas RV Registration?

[Marianne45]

Has anyone who lives in Texas made a decision to establish an LLC in Montana to register their RV?  Our understanding is that there would be no sales tax or requirement to get a Class A or B Non CDL license for vehicles weighing over 26,001 pounds. What are your thoughts?  Thanks in advance.

[Kirk W]

While I have not done so, I have several friends who have. I would suggest that you start by reading this article from Escapees, authored by a practicing attorney and member. 

Edited August 20, 2021 by Kirk W
repair link

[Marianne45]

There wasn’t an article attached. 

Edited August 19, 2021 by Marianne45
Change

[whj469]

Does it bother you to start up a company with the only purpose to not pay sales tax? If the article Kirk tried to attach is the one that I have read by same author, they will tell you not to do it. I fully agree, it is not something that I would do.

[sandsys]

Kirk, your link brought me right back here.

My understanding is, if you start an LLC to buy an RV, the company then owns that RV which then becomes a commercial vehicle with all kinds of implications.

Hopefully, Kirk will fix his link so you can get a more informed answer than mine since we all know how well my memory is working nowadays.  

Linda

[Kirk W]

16 hours ago, Marianne45 said:

There wasn’t an article attached. 

I am sorry. I don't know what happened, but I just repaired the link. Here is another.

Is a Montana LLC Right for You?

I am quite sure that this is the article which whj469 was referencing and it is not favorable to the idea, but I have also known people who did use the LLC successfully and there are attorney's in Montana who will still perform this for a fee. 

Edited August 20, 2021 by Kirk W

[lappir]

There are pros and cons to each. I have made a choice and so far am happy with it. You may choose to do what I did and regret it. If you would like to know the how's and why's, send me a PM. 

 

Rod

[TXiceman]

Rather than "free" advice on the internet, your best source is to contact a good Tax Account and possibly an attorney familiar with LLC requirements.  Lots of states are seeing the Montana LLC as tax evasion and will go after these folks.

Ken

[Kirk W]

2 hours ago, TXiceman said:

Rather than "free" advice on the internet, your best source is to contact a good Tax Account and possibly an attorney familiar with LLC requirements. 

That article in the link was written by Susie Adams, a practicing attorney located in Livingston TX. 

[Marianne45]

Thanks to all who replied.  To us the thought of getting an LLC for the purpose of avoiding sales tax and also to avoid having to get the Class B non CDL license in Texas  just doesn’t feel right.  At this point our big frustration is the drivers license that makes it next to impossible to accomplish legally.  Somehow the laws in Texas are screwed up!  

Edited September 1, 2021 by Marianne45

[Kirk W]

1 hour ago, Marianne45 said:

Somehow the laws in Texas are screwed up!  

I'm not sure exactly what you mean? There doesn't seem to be any provision to allow you to learn or to get the RV to the office for the test, but I have never heard of anyone having a problem by just doing it. 

[2gypsies]

1 hour ago, Marianne45 said:

Thanks to all who replied.  To us the thought of getting an LLC for the purpose of avoiding sales tax and also to avoid having to get the Class B non CDL license in Texas  just doesn’t feel right.  At this point our big frustration is the drivers license that makes it next to impossible to accomplish legally.  Somehow the laws in Texas are screwed up!  

Not sure what you mean by "impossible to accomplish legally".  Do you mean in Texas?  Please explain.

[Barbaraok]

3 hours ago, Marianne45 said:

Thanks to all who replied.  To us the thought of getting an LLC for the purpose of avoiding sales tax and also to avoid having to get the Class B non CDL license in Texas  just doesn’t feel right.  At this point our big frustration is the drivers license that makes it next to impossible to accomplish legally.  Somehow the laws in Texas are screwed up!  

If you can not pass the written and driving test to get the Class B license YOU HAVE NO BUSINESS HANDLING A RIG THAT SIZE.   Spend your money on the attorney and the upkeep of your LLC every year.  But please, don't give us any talk about it being to hard to get the upgrade license!   All of us here who have the upgraded licenses (including ME) were able to do it with by taking the time to read the required chapters (all of it good information), take the test (not very difficult) and do the 20-30 minute drive.  Again, if you are incapable of doing that, you have no business driving that big of a rig barreling down the highway!

[docj]

I'm puzzled as to how a MT LLC has any impact on one's driver's license.  Most people who have MT LLC's don't become MT residents, so they still have to obtain drivers licenses from another State.  Your home State's rules govern the class of license you need to carry in order to to drive a specific vehicle; not the State in which the vehicle is registered.

FWIW we have a Class A MH registered to a MT LLC and we are SD residents and have been for ~11 years.  Under SD law our MH can be driven by anyone holding a "regular" class of license although I happen to hold a Class B CDL.

[Marianne45]

WOW, I never said we had concerns about passing the written or road test in Texas.  I know we are more anal than most, but driving your own vehicle to take the test is driving illegally.  IF you get into an accident, you COULD have insurance issues. Many people don’t worry about it and just go ahead and drive to take the road test.  
On the topic of getting a LLC in Montana…I was told by an RV Dealer that doing that would solve the issue of having to get a Class B Non CDL.  I’m not sure that is an avenue we wish to take for several reasons,  but obviously we would need to research that further.

I hope I didn’t offend anyone.

[bigjim]

probably just confused. It can be easy on line vs in person where you can immediatly clear up misunderstanding each other.

[Kirk W]

7 hours ago, Marianne45 said:

 IF you get into an accident, you COULD have insurance issues. Many people don’t worry about it and just go ahead and drive to take the road test.

That is an issue that I have seen discussed numerous times but never with any way around it. I have also not heard of any incidents where it became a legal problem. I think you may want to ask your insurance agent about the issue. If you are not yet a TX resident and still have a license from your previous state that is legal to drive the motorhome, that would cover you for the travel before you take the test. I am reaching out to see if I can get better information on your questions, since I am not well informed on the subject. 

[docj]

8 hours ago, Marianne45 said:

On the topic of getting a LLC in Montana…I was told by an RV Dealer that doing that would solve the issue of having to get a Class B Non CDL.  I’m not sure that is an avenue we wish to take for several reasons,  but obviously we would need to research that further.

As I said in my previous post, the rules relative to what you can legally drive are those of the State from which you hold a drivers license.  The reciprocity principal states that if you are legal to drive that vehicle in the State that issued you a license, you are legal to drive it in any State.

[Kirk W]

9 minutes ago, docj said:

The reciprocity principal states that if you are legal to drive that vehicle in the State that issued you a license, you are legal to drive it in any State.

And if your present license is from TX and you just bought a bigger motorhome?

[LindaH]

9 hours ago, Marianne45 said:

On the topic of getting a LLC in Montana…I was told by an RV Dealer that doing that would solve the issue of having to get a Class B Non CDL.

I would never take the word of an RV dealer -- for much of anything, but particularly about this issue since the dealer is wrong.

Unless you are also planning to make Montana your domicile state, docj is correct in saying that your driver's license has to be obtained from your domicile state.  If that state is Texas and your rig meets or exceeds the weight requirements, then you'll need a Class A or Class B non-CDL driver's license.

9 hours ago, Marianne45 said:

driving your own vehicle to take the test is driving illegally.  

I think you're way overthinking this.  Most, if not all of us, who have had to get the upgraded Texas driver's license have driven to the test site with whatever driver's license we currently have.  I have never heard of anyone being ticked or arrested for driving to the test site with the "wrong" driver's license.

 

[Marianne45]

We try to do things by the book…in this case driving to take the road test is a challenge.

I have tried multiple avenues to be able to obtain the upgraded license prior to getting the RV.  Renting an RV to take the test usually requires a minimum of 2 nights and costs like $1500.  All we need it for is a half a day.  
 

Thanks for all your input. 

[docj]

2 hours ago, Marianne45 said:

We try to do things by the book…in this case driving to take the road test is a challenge.

I have tried multiple avenues to be able to obtain the upgraded license prior to getting the RV.  Renting an RV to take the test usually requires a minimum of 2 nights and costs like $1500.  All we need it for is a half a day.  
 

FWIW, I got my CDL by talking a course at the local community college.  I used the college's truck for my driving exam and my instructor drove it there!  All very legal.

[Marianne45]

Docj where was that?  That’s an ideal situation!!

[Kirk W]

42 minutes ago, Marianne45 said:

That’s an ideal situation!!

Only if you get a CDL which you do not need. Can I ask you for just a little bit of patience as I am waiting for a reply from a practicing TX attorney who is looking into the issue. Are you already a TX resident and looking to buy the RV? 

[Marianne45]

Yes, Kirk…Texas resident and looking to purchase an RV.