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Author Topic: UK Resident - Using LLC to register RV  (Read 9756 times)

Joe C

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UK Resident - Using LLC to register RV
« on: May 29, 2008, 01:03:16 PM »
Hi all

I have read previous posts concerning purchasing an RV via LLC in Montana.
My situation is that I am a UK citizen and as such have a visa that allows me to travel in the USA for six months at a time.

As I am not a resident of any state and have no property or relations and my intention is to travel throughout the USA/Canada/Mexico will I be doing anything illegal by registering my RV in Montana.

Joe

John From Detroit

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Re: UK Resident - Using LLC to register RV
« Reply #1 on: May 29, 2008, 01:39:13 PM »
That is a very good question and as I'm not a lawyer.. I have no answer

Are you using your international driver's license or do you have a license issued by a US state? 

(That, I suspect, will be the lawyer's first question after you settle the money issues)

It might make a difference

If you do form a Montana LLC.. I'd give it a name that is not yours.. For example.  "The UK Travler's trust" and have someone who knows how draw up a formal lease/rental agreement.
Nothing adds excitement like something that is none of your business
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Ned

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Re: UK Resident - Using LLC to register RV
« Reply #2 on: May 29, 2008, 01:41:53 PM »
We have several UK members that have done just that.  You can either use the Advanced Search above to look for the related topics or I'm sure one or more of them will join in here with the details.  Also see these articles in our library for more information.
-- Ned -- Fulltimer 1997-2013
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Ron

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Re: UK Resident - Using LLC to register RV
« Reply #3 on: May 29, 2008, 01:55:17 PM »
Since you are from the UK you should have no issues with purchasing an RV then registering it via an LLC.  You need to find the RV first then make arrangements to have it registered in MT under an LLC.
Ron & Sam-home is where we park it. Currently located   HERE

Carl L

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Re: UK Resident - Using LLC to register RV
« Reply #4 on: May 29, 2008, 02:05:45 PM »
Hi all

I have read previous posts concerning purchasing an RV via LLC in Montana.
My situation is that I am a UK citizen and as such have a visa that allows me to travel in the USA for six months at a time.

As I am not a resident of any state and have no property or relations and my intention is to travel throughout the USA/Canada/Mexico will I be doing anything illegal by registering my RV in Montana.

Joe

Why?  American residents use out of state registrations to avoid sales/use taxes and to pay less in annual ad valorum or weight taxes when getting or renewing registrations.   A foreign tourist has no state of residence and can pick what ever state he would buy his RV in to register it.  One route is to do so in a low tax state.   Another route is to buy in a state with a lot of competition in RV sales, relying on that to drive down purchase price and compensate for the lack of a sales tax break.  

LLCs for RV purchase are a bit of a dodge and are under attack by high tax states.  Lawyers do not set them up for free.   If I were you, I would avoid the complication of your American touring.   Shoot as bad as sales tax can get (my California nicks us for 8.5%) it pales beside VAT.
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Joe C

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Re: UK Resident - Using LLC to register RV
« Reply #5 on: May 30, 2008, 01:28:03 AM »
Hi
Last year in 2007 I bought my RV in California and was advised (suggested) that I buy it out of state using an LLC. This I done and have been touring off and on for 11 months.

To date I have spent 1 month touring and 3 months storage in Texas. Two months touring in Mexico. One month touring California and 1 month storage Las Vegas.

My friends are using my  RV to tour from Las vegas to Vancouver. Then it will be stored in Vancouver for approx 3 months.

My intention will be to collect RV in Vancouver Sept/Oct travel to Ontario and then onto warmer climate - Texas/Florida/Mexico

My reasons for mentioning these trips is the fact that my LLC and the registering of the RV is due late June 2008 and I am not sure what to do. Should I continue or pick another state and register it there paying taxes.

I use my international licence and as such my Insurance is double if I had a USA licence.

Joe

Tom

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Re: UK Resident - Using LLC to register RV
« Reply #6 on: May 30, 2008, 04:12:34 AM »
Quote
... in 2007 I bought my RV in California and was advised (suggested) that I buy it out of state using an LLC.

Does that mean you purchased the RV in California and took delivery in another state? Or did you you purchase it in another state and take delivery there? In which state is the RV registered? Am I correct in assuming you didn't pay sales tax to California or any other state?

California's "out of state delivery" provisions allow you to buy in California and legally avoid paying sales tax in California. They require taking delivery in another state and keeping the vehicle outside of California for 91 consecutive days out of the first 6 months of ownership. They also require that you be able to show you bought the RV for use outside of California, which involves filing a form with the Board Of Equalization and having receipts that "prove" you used the RV outside California for 91 consecutive days, e.g. receipts for fuel and campgrounds. Storage fees do not count, although some folks use a campground for storage and claim they were "using" the RV there.

California may (often does) "audit" folks who take this route, meaning that they send out a letter asking for proof of the out of state delivery (this would have been the form mentioned above, signed by the dealer at the time of delivery and countersigned by a notary public), and for copies of the receipts showing use.

All of the above normally applies to people who live in California and ultimately bring their RV back to California, and who normally register their RV here. For clarification, there is no requirement to form an LLC or use it to purchase an RV in order to be able to take advantage of the California 'out of state delivery' provision.

Your situation is quite different in that you don't live in California and at most might be travellng through the state en route to somewhere else. Given that, I fail to see why you would need or want to pay high California registration fees. It would seem "logical" to re-register the RV in Montana, which would mean that the "pink slip" (proof of title/ownership) would be changed to Montana, and then you'd pay the annual fees to Montana. Many LLC owners use their LLC lawyer to handle the title and pay the registration fees, and to obtain the tags (equivalent of the UK tax disk). However, you might want to check out the costs of re-registering, annual fees, etc and compare them to continuing to pay annual fees to California; You might decide it's not worth changing anything.

Where folks seem to get in trouble is when they legally reside in one state and register their RV in another state (such as Montana). Their 'home state' can (and some do) claim that the LLC was formed specifically for the purpose of avoiding the annual fees. Since you have no legal residence in the USA, I don't see how any state could have that recourse in your situation.

Be advised that the above is merely an opinion and that neither I nor anyone here can provide legal advice.
« Last Edit: May 30, 2008, 12:21:15 PM by Tom »
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UK-RV

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Re: UK Resident - Using LLC to register RV
« Reply #7 on: May 30, 2008, 12:00:53 PM »

Quote
If you do form a Montana LLC.. I'd give it a name that is not yours..

If you plan to import into the UK, DO NOT use a different name.

Use your own (ie Joe Blogs LLC) as it will be much easier for Customs etc to deal with.

Paul

Tom

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Re: UK Resident - Using LLC to register RV
« Reply #8 on: May 30, 2008, 12:23:44 PM »
Good warning Paul.

It appears that Joe formed his LLC last June and used it to purchase his RV. Hopefully, he used his real name rather than Donald Duck or Kermit the Frog.
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Ian H

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Re: UK Resident - Using LLC to register RV
« Reply #9 on: May 30, 2008, 02:22:25 PM »
Hi Joe
depending on your budget you will have to work out if the LLC route is best for your purchase.It costs around $1k to set up so it will only benefit if your planning on spending a fair bit

Ian
Ian and Doreen
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Joe C

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Re: UK Resident - Using LLC to register RV
« Reply #10 on: May 30, 2008, 05:19:47 PM »
Hi all

I formed the LLC with mine and my wifes name. The cost for forming LLC and registering the RV in Montana was under $1000. Sales tax for purchasing and registering in California would have cost approx $6000. So I saved a substantial amount of money. Registration for the renewal of the LLC and the new registration plates will be approx $250 for the incoming year.

I am now happy to continue using the LLC until i decide to bring the RV back to Ireland - probaly 2009.

As for receipts I use my American Visa card to pay for all my camp fees and fuel bills so I am happy to supply these details upon request.

Thanks for all your help on this subject.

PS does anyone know of any RV campsites in Vancouver or any similar forums for Canadians

Joe

Tom

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Re: UK Resident - Using LLC to register RV
« Reply #11 on: May 30, 2008, 05:39:43 PM »
Sounds like you have it all figured out Joe. I sure wouldn't change the arrangement you have. As for California auditing you, they're unlikely to find you  ;D

Forum staffer Steve is a Canadian and has provided some useful information to myself and others in the past about campgrounds and things to see in Canada. Hopefully Steve will see your message and respond. Meanwhile, you might want to take a peek at the RVing in Canada area of our library. Also use the Advanced search link above to find prior relevant discussions.
« Last Edit: May 30, 2008, 05:55:50 PM by Tom »
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Steve, CDN

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Re: UK Resident - Using LLC to register RV
« Reply #12 on: May 30, 2008, 08:54:58 PM »
I don't have first hand experience RVing in Western Canada however one of the best resources I know is the RV travel video made by Forum member Bob Howen called Western Canada By RV.

Bob and his wife Judy make RV travel videos by actually making the trips, adding commentary and insights for RV travellers.  The video can be purchased from Bob's website Click HERE

There are also a number of Forum members in Western Canada, so a new posting titled something like "Need Vancouver Campground Info"  or "Need Western Canada Info" would draw their attention, where you caould ask specific questions.
« Last Edit: May 30, 2008, 08:57:56 PM by Steve, CDN »
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forestboy

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Re: UK Resident - Using LLC to register RV
« Reply #13 on: May 31, 2008, 12:11:06 AM »

I am a uk resident who owns an rv & car in the states, I spend 3 months travelling then put the rv & car into storage until the next trip.
We set up an LLC in Montana using our existing uk company name and bought both vehicles through this channel.
We saved a substancial amount on both purchases. The company we used was TaxFreeRv the cost was $950 plus annual cost of $150 but this has already been waived as we refered a potential customer who signed up, so next year's free. They have been extremely helpfull especially when buying a car, as car dealers are not as cooperative as RV dealers when it comes to not paying purchase tax. One even refused to give the cash back incentive on offer because he thought the car was too cheap, needless to say we did'nt buy from him. They also operate a postal service, not sure how good it is as we have'nt taken up the offer yet , but if it's anything like they're other business it will be very professional.
Cheers
Rory & Jan
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PattieAM

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Re: UK Resident - Using LLC to register RV
« Reply #14 on: June 01, 2008, 12:20:21 PM »
I read somewhere that LLC's are also an insurance issue....and obtaining Emergency Roadside Assistance via say Good Sam Club-ERS may be difficult as LLC's are excluded.  As this doesn't apply to me, I did not investigate it further than my GS-ERS pamphlet, but you might want to investigate it.

Tom

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Re: UK Resident - Using LLC to register RV
« Reply #15 on: June 01, 2008, 12:30:34 PM »
There was also an issue with LLC-owned RVs entering California being classed as a commercial vehicle, reported by forum member Al Griefer. Al brought it to the attention of FMCA and contacted the CA BOE. Al came away with a letter saying essentially that RVs were exempt unless they appeared to be used for commercial purposes.

You can read the discussion here.
« Last Edit: June 01, 2008, 12:39:42 PM by Tom »
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UK-RV

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Re: UK Resident - Using LLC to register RV
« Reply #16 on: June 01, 2008, 12:55:55 PM »

There is an issue with using an LLC should your purchase turn out to be a Lemon.

As you know, we had issues with our Ford Focus and were advised (by a forum member) that the Magnussan Moss Warranty Act (I think my spelling is wrong) covers buyers against any warranty problems with the selling dealer.

However, the Act is no use if your vehicle is registered under an LLC as it only applies to personal matters not company purchases.

Paul

Ron

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Re: UK Resident - Using LLC to register RV
« Reply #17 on: June 01, 2008, 03:17:34 PM »
Good point Paul I hadn't even considered that but it is a valid consideration.  Thanks for bringing that up.
Ron & Sam-home is where we park it. Currently located   HERE

forestboy

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Re: UK Resident - Using LLC to register RV
« Reply #18 on: June 02, 2008, 11:04:59 AM »
I read somewhere that LLC's are also an insurance issue....and obtaining Emergency Roadside Assistance via say Good Sam Club-ERS may be difficult as LLC's are excluded.  As this doesn't apply to me, I did not investigate it further than my GS-ERS pamphlet, but you might want to investigate it.


I heard this but had no problems insuring both vehicles or obtaining roadside assistance.
I used Garden City who insured me with Progressive and roadside assistance for both RV & car is included.
[edit]Fixed quote[/edit]
« Last Edit: June 02, 2008, 11:36:20 AM by Tom »
Cheers
Rory & Jan
2004 Damon in UK
Yamaha FJR1300
Kawasaki 650 Versys
2005 National Dolphin 5355 USA
2007 Saturn VUE toad

Joe C

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Re: UK Resident - Using LLC to register RV
« Reply #19 on: June 02, 2008, 03:13:33 PM »
Hi Forestboy

I have afully comprehensive insurance policy with AON who also supply Road Side Assistance and Mexico insurance. I have also purchased Good Sam Recovery service and at present both companies are happy to take my money and they are aware that I am a UK citizen with an International Licence and an LLC in Montana. They did advise me that if I was to get a US driving licence I could save some money, however if I get a US licence in a state other than Montana I may run inti some difficulty. I am happy with my current system and I completed my first six month tour (4 months USA & 2 months Mexico). Hope to cross into Canada and tour for 3-4 months then into Florida/Texas for winter.

Joe

 

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