Why do people register boats in Montana?
Montana imposes no sales tax, which means you can save thousands of dollars on your boat purchase. Furthermore, Montana requires permanent registration of boats and trailers, eliminating the need for annual renewal fees for tabs/registration. Registering a new car in Montana has a loophole that allows owners to avoid paying sales tax. The state has the highest number of registered cars per person in the United States. A new Utah law is aimed at cracking down on those who are using the Montana loophole to dodge paying taxes.People register cars in Montana because there is no statewide sales tax. This is appealing if someone is buying an expensive car where the taxes are potentially hundreds of thousands of dollars.This is especially true with the popular “Montana LLC loophole,” which has gained attention in recent years. By setting up a limited liability corporation (LLC) in Montana—a process that’s quick and inexpensive—car owners can register high-end or luxury vehicles without paying sales tax.The firm registers and titles the vehicle in the LLC’s name and sends you the Montana license plates for the vehicle. This tactic to get around paying sales taxes is used with Montana LLCs because Montana doesn’t impose sales tax on the purchase of vehicles by its residents, including resident LLCs.
Do you need insurance on a boat in Montana?
Boat insurance isn’t required by Montana law, but some marinas may mandate boat liability coverage. In addition, if you lease or finance your watercraft, your lender may require comprehensive and collision coverages for your boat, which may pay to repair or replace your damaged or stolen watercraft. Limited Liability: One of the greatest advantages of forming a Montana LLC is “personal liability protection”. As an owner of an LLC, you will not be held under personal liability for any debts of that LLC. The creditors of LLC will not be able to touch your personal assets including car, property, bank accounts etc.
Can you register a car in Montana and not live there?
Non-residents Taxes or fees in lieu of taxes are due, along with appropriate registration fees (U. S. Non-residents may choose to register by the calendar quarter. The vehicle must display the license plate or decal from both its home state and from Montana. Montana has 0% sales tax, which means you can legally avoid paying your home state’s high vehicle taxes.
What is the Montana license plate loophole?
Registering a new car in Montana has a loophole that allows owners to avoid paying sales tax. The state has the highest number of registered cars per person in the United States. A new Utah law is aimed at cracking down on those who are using the Montana loophole to dodge paying taxes. In 2024, Montana had a grand total of 3,679,831 vehicles registered. Other states, such California, Utah and Wyoming, are cracking down.