Using an LLC to purchase a new motorhome

[4ducksrus]

I'd appreciate hearing from anyone who has used an LLC to purchase their motorhome, both positive and negative comments would be appreciated.  Thanks

 

[AverageBOB]

Limited Liability Corporation???

 

[4ducksrus]

Exactly.

 

[BernieD]

I'd appreciate hearing from anyone who has used an LLC to purchase their motorhome, both positive and negative comments would be appreciated.  Thanks

See Tom's response to Alan who asked a similar question. You can find lots of discussions by using search.

 

[tdst51]

See Tom's response to Alan who asked a similar question. You can find lots of discussions by using search.

What is that supposed to mean? I typed in LLC in the search, and got nothing. Do I need to type in the whole sentence- "Using an LLC to purchase a new motorhome"? I think I'll try it! Where do I find Tom's response to Alan's question? Thanks!

 

[Ned]

Use the Search button on the toolbar and type in LLC.  You'll get links a lot of previous topics regarding LLCs.

 

[Terier]

What is that supposed to mean? I typed in LLC in the search, and got nothing. Do I need to type in the whole sentence- "Using an LLC to purchase a new motorhome"? I think I'll try it! Where do I find Tom's response to Alan's question? Thanks!

I also had trouble finding it until I typed LLC (all caps).

 

[00RoadKing]

For what its worth I purchased a used RV last year and was looking at $16k in sales taxes and considered the whole LLC thing through an attorney in Montana. "Everbody does it" I was told. After talking to other attorney's and CPA's I elected to just pay the sales tax. Basically, as I understand it, if you set up an LLC in another state for the sole purpose of avoiding taxes you are guilty of tax fraud. True many people do it and get away with it.I guess I just figured that I didn't need the hassle. Bottom line is it is illegal and when and if they find you you will not simply be asked to pay the taxes, there will be fines interest and penalties. Many people may disagree with my post and my opinions but if it was legal EVERYONE would be doing it. Just my opinion.

 

[tallyo]

As I understand this issue, while it is legal to establish a LLC in any State where they are legal; it can become a major issue if they are established to avoid something in the State where you reside or homestead.
I know of instances where folks live( home,property taxes,etc)in one state and then established an LLC in Montana to avoid paying the sales tax and annual excise taxes in their home State. 3 years later their home State uncovers this action and they are now having had to pay the sales tax and 3 years of excise taxes.

I also understand several States are researching their RV dealers records to look at possible situations where LLC's were established to avoid paying sales taxes and/ or excise taxes. Colorado has collect several million along with Georgia and California. The major driving force here is the States poor financial conditions. ie. they need the money as much as we want to save money.

Full time RV'ers can declare any State they wish as residence and regularly use an LLC in a non sales tax State. If they have property in another State and take advantage of that States Homestead exemption, then they too may be in a precarious position.

Check with legal counsel is always a good starting point.........

 

[BernieD]

What is that supposed to mean? I typed in LLC in the search, and got nothing. Do I need to type in the whole sentence- "Using an LLC to purchase a new motorhome"? I think I'll try it! Where do I find Tom's response to Alan's question? Thanks!

Dave

Sorry, LLC works in the Advanced Search box but not in the search box at the top of pages. If you type LLC in the top box and it returns no results, another search box is by the response and you can type LLC in that box to bring up a lot of discussions.

 

[Ned]

I believe the search box at the top of the message page only searches the open topic.  Use the Search button to search the whole message base.

 

[phespe]

Limited Liability Corporation???

Nope it is a LIMITED LIABILITY COMPANY  Not a Corporation


PHE

 

[Wendy]

"Avoiding" taxes is perfectly legal. It means paying what you owe and avoiding paying any taxes that you don't legitimately owe. "Evading" taxes is illegal. That's what you do when you lie on your tax return or set up an LLC in a state where you don't reside for the sole purpose of not paying legally owed taxes in the state where you do reside/work.

Wendy

 

[PancakeBill]

Many states are now watching and prosecuting.  Might be tough getting financing for an RV in an LLC now.

 

[Orick]

Nope it is a LIMITED LIABILITY COMPANY  Not a Corporation


PHE

Why?

 

[tallyo]

"Avoiding" taxes is perfectly legal. It means paying what you owe and avoiding paying any taxes that you don't legitimately owe. "Evading" taxes is illegal. That's what you do when you lie on your tax return or set up an LLC in a state where you don't reside for the sole purpose of not paying legally owed taxes in the state where you do reside/work.

Wendy

Not to start WW111 here but; you might be splitting hairs here by defining "avoiding" and "evading"......Us scholarly folks use these words synonymously with each other. It's a lot like esoterica ......

A company can be a corporation as a corporation can be a company but; a company doesn't have to be a corporation...

Happy New Year.........

PS : scholarly folks is defined as those who graduated from the school of hard knocks. Or should it be University or College?

 

[Ned]

Like Wendy, I like to use the correct word when defining something.  There is a definite distinction between "avoidance" and "evasion", one is legal and one is not.

There is also a distinction between "college" and "university".  The "college" I attended became a "university" when they began offering post-graduate programs.

 

[COMer]

I think Wendy's comments were well stated and explain the LLC issue for those concerned about it.

 

[PancakeBill]

Check what happened to folks in Colorado.  State tax authority did a little research and fined  the LLC people, plus they hads to pay the tax.

Now if you are buying with no financing, you can probably do it, but if financing, many financial institutions will not write the loan. 

Of course the OP  I think was 'just wondering'...

 

[tallyo]

Like Wendy, I like to use the correct word when defining something.  There is a definite distinction between "avoidance" and "evasion", one is legal and one is not.

There is also a distinction between "college" and "university".  The "college" I attended became a "university" when they began offering post-graduate programs.

I know I know.............Y'all knew my point when I said avoiding.........for me it's a lot like saying I ate 3 donuts when I actually had 4......or something like that..........gezzzzzzzzzzz