Yes it does. If it was illegal, you wouldn't be able to do it. Remeber when Trump told Hillary "I know the tax laws better then anyone and use them to my advantage and know they are rigged but you won't change them bc you and all your ppl use them for their advantage"? Not verbatim but along those lines. It applies here.
I recently switched my fleet to Montana. Not to skip taxes (I already paid them to my home state when I bought them) but because my state requires yearly inspections and emissions tests on cars I drive 500 miles a year and I know my cars much better than some random guy doing state inspections. It's a long-term time saver for me.
@@goodson77784 Yeah, because if I lived 12 minutes to the west in a different county in my same state, it wouldn't be required. How is it any different?
@@afhyoutube You're not doing it with one car you're doing it with a FLEET in your own words but then driving them in your own home state does that not seem really unethical. Forget the fact that that revenue should be going to the state the cars drive in. Guess not in your mind.
@@goodson77784congrats bootlicker boy, you going to tattle tale?? Jesus you are a pussy, who wouldn’t want to pay less money to a government that does very little for you individually? He’ll keep doing what benefits him and you’ll whine about something that doesn’t affect you
I don’t mess with the Montana thing BUT it’s insane how a vehicle is taxed repeatedly as it changes hands into perpetuity. Seems like after the initial purchase it should just be doc fees.
I switched mine to Montana from California because of smog reasons. 353k mile Lexus is having some issues passing smog. And California is just totally tyrannical. Otherwise I’d be happy to pay the taxes in CA and have my home states plates. I have several cars, and they are all registered here in California except for the one car that cannot pass smog. I ain’t doing it to avoid paying taxes, believe me I’d much rather do it legit and have my car registered in California. But I also just hate accepting defeat and paying this corrupt state thousands in taxes. Total overreach and theft, especially with the CARB and smog compliance bullshit.
100% support this. It's ridiculous that many states dont' offer options for older vehicles to be exempted from emissions testing. Espeically if they're designated classic vechicles.I'd love to do it just because state inspection is a PITA and I hate having a front plate.
Some smog shops will not even touch mid-engined cars because they say it's too much work to take off parts. So, it adds a bit more hassle. California is shooting car owners in their foot.
If I lived in Kentucky and owned a new 911, I might consider using the Montana LLC loophole. You don't pay tax at the point of sale on cars in Kentucky. You pay tax when you get your plates, and you pay tax every year based on the value of the car as it depreciates. But during covid used car prices went up. As a result, the yearly tax on my buddies beat to death 99 Lincoln Town Car went up. In Ohio, I pay sales tax once, and then $120 every two years for a new registration sticker.
I remember when Ed/VinWIKI had those videos on GA vs MT. Now that i'm thinking about it you might be right on it becoming a nothingburger, as there was no real follow up after the 1-2 videos on the subject. GA's sales tax regime, IIRC, is particularly nuts, as they apply MSRP for tax purposes ANY time the car changes hands, REGARDLESS of the selling price. Maybe Doug could poke Ed to do a follow up GA/MT VinWIKI video? I've been personally poking at the MT LLC concept, not because my cars are all that expensive #RamenNoodleBudget, but because I have a collection and I'd like to prevent any future hassles transferring them to my son or other heir(s), at the time of my passing. TECHNICALLY I'd save some cash every year on registration fees, as all of them are old enough to qualify for lifetime one-time registration, but the ROI is measured in decades for me.
It is not just Montana where car registration / tax issues occur. In the 90’s I was in a situation where two states required me to register my car in their state. My home state where my car was registered and insured along with having my drivers license, vote, and pay taxes. The other state is a high car tax state where I stayed while doing contract work the law required me to switch to their drivers license, car restriction, and insurance.
Makes sense to put your collection in a wyoming llc then register in your home state so attorneys can not see your assets. They will try to hit you with frivolous lawsuits.
I've always thought unless you enjoy the thrill of wrestling with the Feds, just pay your damn taxes and if you can't afford the taxes don't buy it unless it's necessary...the Feds are scary as hell lol
Counterpoint, fuck taxes and fuck the feds. Also, vehicle registration isn't a federal issue. I've had four cars registered in Montana for over ten years now, no issues with taxes. Never paid vehicle sales tax on any of them in NYC where I live, saving me close to six figures at this point, and an added bonus -- no annual inspections. If New York wasn't such a dogshit state that insists on shaking me down at every possible opportunity I'd not mind paying the taxes so much. But as it stands now, they can go fuck themselves.
Big corporations much bigger than government avoid taxes and exploit loopholes all the time. I feel for individuals who try to save money, time, hassle, and avoid gov overreach in their own way.
I did mine because i can get permanent tags/registration for my vehicles. Also the state that i had them registered in, did away with inspections but are charging for its replacement and i dont have to deal with lines and people. Also security in case family wants anything from me ... And my vehicles aint nothing fancy, just something that when i visit friends up in MT, i look like a local
I’ve had company cars that were registered in the home state of the business that I worked for. Never had an issue with it. I believe the insurance was a commercial policy.
Well sure. You had a commercial insurance policy (as you should) and it was a legitimate business & legitimate company car. You shouldn't have an issue with that!
@ but how would anyone know the difference between a Montana LLC and any other LLC? As long as the car is insured properly I don’t see how anyone would know
@ it’s the same with companies and people registering trailers in Maine. Long term regulations and lower taxes/fees but you don’t see any uproar over those and it’s been done for decades. Just about every semi trailer is registered there. I don’t think I would ever bother with a Montana LLC but I just don’t see the big deal with them.
@@TheOriginalLugnutswith a expensive car, and a state that charges property tax on a car, or has a very high registration fee, or onerous regulations on emissions, there are significant savings. Take a Lamborghini Revulto. MSRP is $604,363. If you live in Virginia, the yearly property tax on that car is $24,174.50. So you can see where someone might want to avoid that tax, if they can. I’d avoid it by not living in Virginia, but others are not willing to do that.
Just mailed my MT paperwork out today on a car thats been sitting with no other way to register it. If things go smoothly, I may switch my fleet. Lets see how this goes…
@ as advertised! fast, communicative, straightforward. Got my plates and registration in 3 weeks. Montana title came 2 weeks later. Gonna figure out how to buy a new car with the MT llc next
If it’s so legal, why do people keep getting sued by their states? You missed the ENTIRE premise though. This is not a discussion about the technical legality, it’s about whether or not the juice is worth the squeeze.
I have 6 vehicles permanently registered in Montana, because I live here, and I gotta say you're probably on point with this. In the past couple years on roadtrips I have had some really weird stops, like pulled over for no reason, as soon as I show them my Montana DL they say alright, have a nice day. Is it a crackdown on out of state plates for in state residents, specifically Montana plated vehicles? Also from people I know with LLC, that live here and do business with them, I have heard Montana itself has started cracking down on this. They are looking for people buying Porsche 911 and MB G Wagons under LLCs as work vehicles, although that might be if they are writing it off as a business expense against actual profits, but still this may not be a loophole much longer. Feels like a few too many people have stuck their dick in the peanut butter jar and others have started to take notice.
You make an excellent point about the "tax writeoff" aspect of this. While I'm no CPA, I know that there are specific restrictions on the type of vehicle that can be used for a business writeoff, and that it HAS to be used primarily for legitimate business purposes. In addition to the state sales tax issues, some people may be getting into hot water with the IRS if they are also trying to use these allegedly improperly titled cars to also get a gray-area tax writeoff. There's an old saying that might apply here - "Don't break the law while you're breaking the law"
I wonder if the LLC that owns a LLC that owns a LLC that is a wholly owned entity of mine would help with that? Montana to Caymans to Ireland to the owner.
@switchcars Definitely. I live in Florida and Florida law says you have to register the car in the state within 14 days I think. But the car is legally registered in SD under my Florida address. Do I really want to spend my time money arguing a legal gray area in court, as you mentioned? My coworker brought the SD thing up to me as a way to avoid Florida registration fees, but I told him it seems like the headache would add up to more than a few hundred dollars. The other thing I wondered about was, what if he gets into an accident, in a car registered in SD but under his FL address. I'm sure the insurance company will happily tell him he's on his own.
I’m not saying that taxes are fair, just, or pleasant. I’m saying that it’s not worth it to try and avoid it in this manner. The juice ain’t worth the squeeze
Dark Olive Metallic is 🔥 12 yrs ago I tried to buy a used Dark Olive Metallic 07 Cayman S from a dealer in Minneapolis but they wouldn't budge on their price. Was disappointed but a cpl wks later I purchased the Signal Green Cayman S Sport you see here. Things work out for a reason.
Last year here in so Cal at a sat. Cars&Coffee two state agents came looking for a particular Porsche with Montana plate. The car was there and the second person scuttlebutt was about a $10,000 fine and penalty plus his attorney costs!! So not worth it . Calif DMV has on their web site an page to inform on any out of state plated. cars.
Im not sure but I think the IRS requires a business to show some profit within a certain amount of years to try to prevent a shell company put up to avoid taxes .. ?
Saw a guy on RUclips who had a 4 wheeler registered in Montana because they allow them on the road, while PA does not. Police officer who pulled him over was not accepting his bullshit.
@@caseyorosz3619 The fellow road users dealing with something that doesn't meet safety standards and isn't paying registration to help repair roads or whatever the state has decided to do with those fees.
@@switchcarsI have houses in NJ and FL with cars registered at each address. It would be illegal to have licenses in both states so by your logic 1/2 the year I’d “fail” this test while being 100% legal.
Jesus take this podcast down, what an embarrassment. Simping for the government 🤦 did you really say taxes are moral? Have you seen the BS they're wasting it on? Capitulating to your thieves is not "moral". Btw just hyopthetically lets say someone owned an $85000 vehicle in Connecticut - by no means "rich" just wanting a nice vehicle after working hard 100+ hours a week. Sales tax right off the bat is $6587 (7.75% luxury sales tax). Then they tax it as property every single year - around $2500-3000 annually in an average town. Thats close to $20K in taxes over 5 years - almost a quarter of the price of the already expensive car! Now lets say you live in a city like Hartford or New Haven, property tax is triple. You could literally, and I kid you not, pay something like $35-40K in sales and property tax on this hypothetical vehicle over 5 years. That is highway ROBBERY and whoever came up with this system should be in prison. Any way to avoid it in my book, should be utilized.
@switchcars yeah you're saying not worth the risk... ok what're the odds they catch up to you and make you repay it with interest? Pretty low. Not zero but low. I agree with you on being properly insured, get a commercial policy. That is a bigger risk IMO.
@Nidkidful oh is that all we have to do? Let me try that. If only someone had mentioned this sooner... Or maybe the leeches of society in many areas easily outnumber those who actually produce something. The biggest employer in Connecticut is the state government, and the next 4 after that are all funded almost entirely by the government. Of course the status quo works for them because they literally profit from it at everyone else's expense. And what do we get for this confiscatory tax policy? Low crime? Nope Good roads? Nope 50th out of 50 financial situation and debt? Check
I have to disagree bro in California if u just have intakes on a stock ass car u get state reffed id rather register my car in Montana and actually be able to enjoy MY own car 🤦🏽♂️
Lots of things have changed in many moons. Even this week things changed, as a federal judge in TX has put a preliminary injunction on the enforcement of the Beneficial Ownership Filing.
A good litigator attorney is going to cost you $500 an hour. Expect 40 hours of prep before any court appearance. Saving on state tax? Yah, ok. In my state (MA), cars 15 years old or older are not inspected for emissions. Safety, yes, but not emissions. So go ahead and yank the emissions stuff and throw a 1960's carbureted 4 barrel and have fun.
Unless they're trading a significant number of cars every year, the cost to obtain and maintain a dealer license in most states will outweigh the sales tax savings.
Here in Calif the Calif highway patrol actively pulls over out of state plated cars as CHP is funded by car registrations! They have no sense of humor!!😂
5:08 is always a hilarious take to hear, tell that to the Taliban who beat our tanks with 80’s Hilux’s for 20 years and ultimately won. Love the show but not a good angle in my opinion.
@@switchcars The summary issue I had with this video is the attitude of “I don’t want to do interestingly legal things because the government won’t like me.” As if the government is something to be afraid of. It’s just pussy-like. That’s my main issue. You provided some good reasons not to go for the Montana LLC but clearly a motivating factor for y’all is staying on the government’s good side, because your risk reward meter is rocking a 3-5% risk taking balance and that’s just too low. Informative video. Good content. I watch your clips sometimes. But this was very off for me.
@@JaredPaideiayou are welcome to do otherwise if you have a different risk-reward ratio. I’m not Wesley Snipes. Not am I a boot licker. I just prefer not to get audited and to stay out of jail/off the government’s naughty list. Other than Cannonball. That’s where my risk/reward meter is completely broken!
IMO. If you cheat on taxes, you lose all right to bitch about how taxes are spent. No complaining about poorly maintained roads, slow or incompetent police or other govt entity, public schools etc. Now if you're Legally reducing your tax burden, thats a different story.
In California its actually a misdemeanor to register a vehicle out of state. The CHP will stop and cite you, the officers are well aware of the game. Officers all look out for Montana, South Dakota and the other cheater states. Also, Montana now will disclose the principals of the LLC so owners are not protected.
You guys started with sayig blah blah on stuff that you weren't sure about, but in the end you were successfull at scaring away the skeptic in me.😮 I wanted to put a dislike on the video initially, but ended up putting a like on it. 🙁.
The tax system is beyond BS but the Montana LLC isn’t really a loophole. I didn’t like the tax system so I moved. The US Gov is the worlds largest gang & they will absolutely destroy you if you cross them. Risking federal time isn’t worth the $10K you’ll save from using a montana LLC. It’s also trashy, I’ve never met someone who actually had money who used the montana LLC, it’s always someone who can’t afford their 14th owner salvage title Maserati Quattroporte. The montana plates scream “I can’t afford my car”
While you're not wrong about the IRS/Feds, your stereotype of Montana LLC users is not accurate. In my experience it's seasoned collectors who just want to minimize their tax liability.
@@switchcars There is no IRS/Fed liability. It's a state issue, so your really up against your state tax authority and if they will try to come after you for the back taxes.
@@carz0159let’s play a game. IRS gets the info of every Montana LLC owner based on FINCEN required reporting. IRS says - “hmm, we have a database of people trying to avoid taxes. Wonder if they’re trying to avoid federal taxes in a way that we don’t think is legal. Let’s audit them, won’t this be fun!” It can’t go well for anybody
I can't blame people for trying when you see how misappropriated our taxes are.
Still doesn't make it right.
Yes it does. If it was illegal, you wouldn't be able to do it. Remeber when Trump told Hillary "I know the tax laws better then anyone and use them to my advantage and know they are rigged but you won't change them bc you and all your ppl use them for their advantage"? Not verbatim but along those lines. It applies here.
I recently switched my fleet to Montana. Not to skip taxes (I already paid them to my home state when I bought them) but because my state requires yearly inspections and emissions tests on cars I drive 500 miles a year and I know my cars much better than some random guy doing state inspections. It's a long-term time saver for me.
so you can skip inspections and emissions testing because montana doesn't require them. totally shady. sickening.
@@goodson77784 Yeah, because if I lived 12 minutes to the west in a different county in my same state, it wouldn't be required. How is it any different?
@@afhyoutube You're not doing it with one car you're doing it with a FLEET in your own words but then driving them in your own home state does that not seem really unethical. Forget the fact that that revenue should be going to the state the cars drive in. Guess not in your mind.
Hey get out of here fed
@@goodson77784congrats bootlicker boy, you going to tattle tale?? Jesus you are a pussy, who wouldn’t want to pay less money to a government that does very little for you individually? He’ll keep doing what benefits him and you’ll whine about something that doesn’t affect you
It is your duty as an American citizen to avoid as many taxes as possible
Corporate bootlicker detected
I don’t mess with the Montana thing BUT it’s insane how a vehicle is taxed repeatedly as it changes hands into perpetuity. Seems like after the initial purchase it should just be doc fees.
Absolutely agree. Similar to Europe’s VAT
I switched mine to Montana from California because of smog reasons. 353k mile Lexus is having some issues passing smog. And California is just totally tyrannical. Otherwise I’d be happy to pay the taxes in CA and have my home states plates.
I have several cars, and they are all registered here in California except for the one car that cannot pass smog. I ain’t doing it to avoid paying taxes, believe me I’d much rather do it legit and have my car registered in California. But I also just hate accepting defeat and paying this corrupt state thousands in taxes. Total overreach and theft, especially with the CARB and smog compliance bullshit.
100% support this. It's ridiculous that many states dont' offer options for older vehicles to be exempted from emissions testing. Espeically if they're designated classic vechicles.I'd love to do it just because state inspection is a PITA and I hate having a front plate.
Some smog shops will not even touch mid-engined cars because they say it's too much work to take off parts. So, it adds a bit more hassle. California is shooting car owners in their foot.
If I lived in Kentucky and owned a new 911, I might consider using the Montana LLC loophole. You don't pay tax at the point of sale on cars in Kentucky. You pay tax when you get your plates, and you pay tax every year based on the value of the car as it depreciates. But during covid used car prices went up. As a result, the yearly tax on my buddies beat to death 99 Lincoln Town Car went up. In Ohio, I pay sales tax once, and then $120 every two years for a new registration sticker.
Eh I disagree on this one boys. I’m not publicly encouraging crimes but I’m not going to remind the teacher about the homework
Basically you're encouraging crime
@ 🤷♂️
He was the kid in the classroom reminding the teacher of the homework :( lol
I remember when Ed/VinWIKI had those videos on GA vs MT. Now that i'm thinking about it you might be right on it becoming a nothingburger, as there was no real follow up after the 1-2 videos on the subject. GA's sales tax regime, IIRC, is particularly nuts, as they apply MSRP for tax purposes ANY time the car changes hands, REGARDLESS of the selling price.
Maybe Doug could poke Ed to do a follow up GA/MT VinWIKI video?
I've been personally poking at the MT LLC concept, not because my cars are all that expensive #RamenNoodleBudget, but because I have a collection and I'd like to prevent any future hassles transferring them to my son or other heir(s), at the time of my passing. TECHNICALLY I'd save some cash every year on registration fees, as all of them are old enough to qualify for lifetime one-time registration, but the ROI is measured in decades for me.
A simple will would be a lot easier to transfer your assets to your next of kin.
@switchcars probably, but if you think Ohio is bad, you should try New Jersey! 🤣
It is not just Montana where car registration / tax issues occur. In the 90’s I was in a situation where two states required me to register my car in their state. My home state where my car was registered and insured along with having my drivers license, vote, and pay taxes. The other state is a high car tax state where I stayed while doing contract work the law required me to switch to their drivers license, car restriction, and insurance.
Makes sense to put your collection in a wyoming llc then register in your home state so attorneys can not see your assets. They will try to hit you with frivolous lawsuits.
I've always thought unless you enjoy the thrill of wrestling with the Feds, just pay your damn taxes and if you can't afford the taxes don't buy it unless it's necessary...the Feds are scary as hell lol
Counterpoint, fuck taxes and fuck the feds. Also, vehicle registration isn't a federal issue. I've had four cars registered in Montana for over ten years now, no issues with taxes. Never paid vehicle sales tax on any of them in NYC where I live, saving me close to six figures at this point, and an added bonus -- no annual inspections. If New York wasn't such a dogshit state that insists on shaking me down at every possible opportunity I'd not mind paying the taxes so much. But as it stands now, they can go fuck themselves.
Big corporations much bigger than government avoid taxes and exploit loopholes all the time.
I feel for individuals who try to save money, time, hassle, and avoid gov overreach in their own way.
I did mine because i can get permanent tags/registration for my vehicles. Also the state that i had them registered in, did away with inspections but are charging for its replacement and i dont have to deal with lines and people. Also security in case family wants anything from me ... And my vehicles aint nothing fancy, just something that when i visit friends up in MT, i look like a local
I’ve had company cars that were registered in the home state of the business that I worked for. Never had an issue with it. I believe the insurance was a commercial policy.
Well sure. You had a commercial insurance policy (as you should) and it was a legitimate business & legitimate company car. You shouldn't have an issue with that!
@ but how would anyone know the difference between a Montana LLC and any other LLC? As long as the car is insured properly I don’t see how anyone would know
@@TheOriginalLugnuts well, Montana, for starters. Nobody puts their car in a Texas LLC to avoid taxes
@ it’s the same with companies and people registering trailers in Maine. Long term regulations and lower taxes/fees but you don’t see any uproar over those and it’s been done for decades. Just about every semi trailer is registered there. I don’t think I would ever bother with a Montana LLC but I just don’t see the big deal with them.
@@TheOriginalLugnutswith a expensive car, and a state that charges property tax on a car, or has a very high registration fee, or onerous regulations on emissions, there are significant savings.
Take a Lamborghini Revulto. MSRP is $604,363. If you live in Virginia, the yearly property tax on that car is $24,174.50.
So you can see where someone might want to avoid that tax, if they can.
I’d avoid it by not living in Virginia, but others are not willing to do that.
Just mailed my MT paperwork out today on a car thats been sitting with no other way to register it. If things go smoothly, I may switch my fleet. Lets see how this goes…
So how did it go?
@ as advertised! fast, communicative, straightforward. Got my plates and registration in 3 weeks. Montana title came 2 weeks later. Gonna figure out how to buy a new car with the MT llc next
B.S. technically legal is all that counts.
Carrying a million bucks in cash on an airplane is technically legal, doesn't mean it's worth the risk.
@@switchcarsdon’t even drive around with cash - police will take it off you. Airports are worse.
This is useless video. Montana llc been going on for over 10 years. Its fully legal.
If it’s so legal, why do people keep getting sued by their states?
You missed the ENTIRE premise though. This is not a discussion about the technical legality, it’s about whether or not the juice is worth the squeeze.
@@switchcars it's worth it
I have 6 vehicles permanently registered in Montana, because I live here, and I gotta say you're probably on point with this. In the past couple years on roadtrips I have had some really weird stops, like pulled over for no reason, as soon as I show them my Montana DL they say alright, have a nice day. Is it a crackdown on out of state plates for in state residents, specifically Montana plated vehicles? Also from people I know with LLC, that live here and do business with them, I have heard Montana itself has started cracking down on this. They are looking for people buying Porsche 911 and MB G Wagons under LLCs as work vehicles, although that might be if they are writing it off as a business expense against actual profits, but still this may not be a loophole much longer. Feels like a few too many people have stuck their dick in the peanut butter jar and others have started to take notice.
You make an excellent point about the "tax writeoff" aspect of this. While I'm no CPA, I know that there are specific restrictions on the type of vehicle that can be used for a business writeoff, and that it HAS to be used primarily for legitimate business purposes. In addition to the state sales tax issues, some people may be getting into hot water with the IRS if they are also trying to use these allegedly improperly titled cars to also get a gray-area tax writeoff. There's an old saying that might apply here - "Don't break the law while you're breaking the law"
Buy it in an llc then sell it to an irrevocable trust. Done. Same thing with aircraft.
I wonder if the LLC that owns a LLC that owns a LLC that is a wholly owned entity of mine would help with that? Montana to Caymans to Ireland to the owner.
In MO you also have a yearly personal property tax you have to pay on the cars you own.
I’ve heard that South Dakota allows out of state residents to register cars there legally.
Whether or not SD allows it is not the issue, it’s whether or not it is violating the resident state laws. That’s a big grey area.
@switchcars Definitely. I live in Florida and Florida law says you have to register the car in the state within 14 days I think. But the car is legally registered in SD under my Florida address. Do I really want to spend my time money arguing a legal gray area in court, as you mentioned? My coworker brought the SD thing up to me as a way to avoid Florida registration fees, but I told him it seems like the headache would add up to more than a few hundred dollars. The other thing I wondered about was, what if he gets into an accident, in a car registered in SD but under his FL address. I'm sure the insurance company will happily tell him he's on his own.
damn didn't think you'd be the hater on this, Maybe the property taxes are absurd and thats why these avenues occur
I’m not saying that taxes are fair, just, or pleasant. I’m saying that it’s not worth it to try and avoid it in this manner. The juice ain’t worth the squeeze
Dark Olive Metallic is 🔥 12 yrs ago I tried to buy a used Dark Olive Metallic 07 Cayman S from a dealer in Minneapolis but they wouldn't budge on their price. Was disappointed but a cpl wks later I purchased the Signal Green Cayman S Sport you see here. Things work out for a reason.
Congrats that’s a great car. Not to be a Porsche pedant here, but it’s not Signal Green, it’s RS Green. Different colors
Last year here in so Cal at a sat. Cars&Coffee two state agents came looking for a particular Porsche with Montana plate. The car was there and the second person scuttlebutt was about a $10,000 fine and penalty plus his attorney costs!! So not worth it . Calif DMV has on their web site an page to inform on any out of state plated. cars.
Im not sure but I think the IRS requires a business to show some profit within a certain amount of years to try to prevent a shell company put up to avoid taxes .. ?
Only if you’re trying to deduct business expenses
Saw a guy on RUclips who had a 4 wheeler registered in Montana because they allow them on the road, while PA does not. Police officer who pulled him over was not accepting his bullshit.
If I was the cop I'd just say "great, can I see your Montana driver's license?"
Who was the victim in this "crime"?
@@switchcarsgood luck for us you’re not…last thing we need is another asshole with a badge.
@@caseyorosz3619 The fellow road users dealing with something that doesn't meet safety standards and isn't paying registration to help repair roads or whatever the state has decided to do with those fees.
@@switchcarsI have houses in NJ and FL with cars registered at each address.
It would be illegal to have licenses in both states so by your logic 1/2 the year I’d “fail” this test while being 100% legal.
Jesus take this podcast down, what an embarrassment. Simping for the government 🤦 did you really say taxes are moral? Have you seen the BS they're wasting it on?
Capitulating to your thieves is not "moral".
Btw just hyopthetically lets say someone owned an $85000 vehicle in Connecticut - by no means "rich" just wanting a nice vehicle after working hard 100+ hours a week.
Sales tax right off the bat is $6587 (7.75% luxury sales tax). Then they tax it as property every single year - around $2500-3000 annually in an average town. Thats close to $20K in taxes over 5 years - almost a quarter of the price of the already expensive car!
Now lets say you live in a city like Hartford or New Haven, property tax is triple. You could literally, and I kid you not, pay something like $35-40K in sales and property tax on this hypothetical vehicle over 5 years.
That is highway ROBBERY and whoever came up with this system should be in prison. Any way to avoid it in my book, should be utilized.
I don’t think you heard what I was saying. That’s ok. Neither does my wife most days
@switchcars yeah you're saying not worth the risk... ok what're the odds they catch up to you and make you repay it with interest? Pretty low. Not zero but low. I agree with you on being properly insured, get a commercial policy. That is a bigger risk IMO.
If you don't like the laws and taxes of your state, vote or move. Not liking a law isn't a reason to commit tax fraud.
@Nidkidful oh is that all we have to do? Let me try that. If only someone had mentioned this sooner... Or maybe the leeches of society in many areas easily outnumber those who actually produce something. The biggest employer in Connecticut is the state government, and the next 4 after that are all funded almost entirely by the government. Of course the status quo works for them because they literally profit from it at everyone else's expense. And what do we get for this confiscatory tax policy?
Low crime? Nope
Good roads? Nope
50th out of 50 financial situation and debt? Check
@@Nidkidfulexcellent point, well put. I’ll offer a third option - run for office
I'd pay my taxes, I only would do it to avoid nonsense tint/emissions/inspection rules, oh and no front plate tickets. Just let me enjoy my vehicle
Montana LLC is a good strategy and completely legal. Don't crap on people that are willing to take steps to protect their hard earned money.
Are you an attorney?
I have to disagree bro in California if u just have intakes on a stock ass car u get state reffed id rather register my car in Montana and actually be able to enjoy MY own car 🤦🏽♂️
Ed Bolian and Mr. Pasta made a perfect argument for this many moons ago
Lots of things have changed in many moons. Even this week things changed, as a federal judge in TX has put a preliminary injunction on the enforcement of the Beneficial Ownership Filing.
@@switchcars Even so, the argument still stands. In this moon and the many more to come
I approve of The Midnight hoodie
Closing loopholes is always a plus. Its never the ones that cant afford their taxes that look for these workarounds.
A good litigator attorney is going to cost you $500 an hour. Expect 40 hours of prep before any court appearance. Saving on state tax? Yah, ok. In my state (MA), cars 15 years old or older are not inspected for emissions. Safety, yes, but not emissions. So go ahead and yank the emissions stuff and throw a 1960's carbureted 4 barrel and have fun.
Supposedly South Dakota is easier than Montana for out of state plated!
The goverment always wins.
Why doesn’t these owners just get a dealers license?
Unless they're trading a significant number of cars every year, the cost to obtain and maintain a dealer license in most states will outweigh the sales tax savings.
Here in Calif the Calif highway patrol actively pulls over out of state plated cars as CHP is funded by car registrations! They have no sense of humor!!😂
No love for people who buy shit they can't afford. If you can't pay the taxes don't buy the car.
5:08 is always a hilarious take to hear, tell that to the Taliban who beat our tanks with 80’s Hilux’s for 20 years and ultimately won. Love the show but not a good angle in my opinion.
Most US citizens are not the Taliban.
@ you’re right, I’d think they would fight even harder
@@JCC843 Waco has entered the chat.
@@switchcars Yeah they are better equipped and have access to more firearms....LOL!!! Horrible take is a horrible take.
If you don't like the rules of your state then move.
I own property in Montana so it easy answer for me
What a dumb video and take...
Far less valuable than your excellent insight. Thank you
I agree, but you aren’t providing any insight on why.
@@switchcars The summary issue I had with this video is the attitude of “I don’t want to do interestingly legal things because the government won’t like me.” As if the government is something to be afraid of. It’s just pussy-like. That’s my main issue. You provided some good reasons not to go for the Montana LLC but clearly a motivating factor for y’all is staying on the government’s good side, because your risk reward meter is rocking a 3-5% risk taking balance and that’s just too low.
Informative video. Good content. I watch your clips sometimes. But this was very off for me.
@@JaredPaideiayou are welcome to do otherwise if you have a different risk-reward ratio. I’m not Wesley Snipes. Not am I a boot licker. I just prefer not to get audited and to stay out of jail/off the government’s naughty list. Other than Cannonball. That’s where my risk/reward meter is completely broken!
You could just move here lol
IMO. If you cheat on taxes, you lose all right to bitch about how taxes are spent. No complaining about poorly maintained roads, slow or incompetent police or other govt entity, public schools etc. Now if you're Legally reducing your tax burden, thats a different story.
Great point
Makes no sense to do if you live in Ohio. Registration fees are barely $60 a year, depending on which county you live in.
In California its actually a misdemeanor to register a vehicle out of state. The CHP will stop and cite you, the officers are well aware of the game. Officers all look out for Montana, South Dakota and the other cheater states. Also, Montana now will disclose the principals of the LLC so owners are not protected.
Lol, it's not a misdemeanor. Sure officers target people, but if something is legal it's legal.
@@visiblegiraffe812 Look up 8804 CVC of the California vehicle code.
@@visiblegiraffe812 Look up California vehicle code 8804 CVC.
You guys started with sayig blah blah on stuff that you weren't sure about, but in the end you were successfull at scaring away the skeptic in me.😮
I wanted to put a dislike on the video initially, but ended up putting a like on it. 🙁.
The tax system is beyond BS but the Montana LLC isn’t really a loophole. I didn’t like the tax system so I moved.
The US Gov is the worlds largest gang & they will absolutely destroy you if you cross them. Risking federal time isn’t worth the $10K you’ll save from using a montana LLC.
It’s also trashy, I’ve never met someone who actually had money who used the montana LLC, it’s always someone who can’t afford their 14th owner salvage title Maserati Quattroporte.
The montana plates scream “I can’t afford my car”
While you're not wrong about the IRS/Feds, your stereotype of Montana LLC users is not accurate. In my experience it's seasoned collectors who just want to minimize their tax liability.
@@switchcars There is no IRS/Fed liability. It's a state issue, so your really up against your state tax authority and if they will try to come after you for the back taxes.
@@carz0159let’s play a game. IRS gets the info of every Montana LLC owner based on FINCEN required reporting. IRS says - “hmm, we have a database of people trying to avoid taxes. Wonder if they’re trying to avoid federal taxes in a way that we don’t think is legal. Let’s audit them, won’t this be fun!”
It can’t go well for anybody
You need a new circle of friends or maybe stop hanging out at 7-11 parking lot on sat nites. Plenty of guys have montana plates on their $3mn cars.
@@switchcars Another bs thought experiment....please give real world examples not some pie in the sky thinking of what you believe might happen.
What a dumb embarrassing video.
Thank you for the feedback