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I was having a conversation with a good friend last night who recently set up a limited liability corporation in Montana (resident of Arizona) to purchase a new motorhome and transfer ownership to the corporation. Instead of having to pay over $10K in taxes, he can pay a small fee for registration. I think he said it was only $1500 or so to set up the LLC and it should minimize potential liability if he ever had an accident where the plaintiff could only sue the corporation.
Has anyone set something like this up and how easy is it to do? If I can pay $1500 to minimize my potential liabilities and transfer ownership of my vehicles and boat into the corporation, that'd be ideal. I've tried to find some advice online but it's all over the board so I'd like to get a few personal opinions from those who've done something like this.
Also, if I'm a corporation does that allow me to use corporate tax deductions such as personal and travel expenses? Could I purchase a new vehicle in the name of the corporation and deduct a percentage of expenses associated with that vehicle?
At this point in my life, I'd really like to quarantine any potential liabilities against myself.
Eventually I'm also thinking about purchasing a rental property and would like to transfer said property into the LLC as well.
Some of these will actually hold up.
Most though will end up with attorney and CPA fees that exceed the savings.
That protection is called umbrella insurance.
(even if you get into the rental business which you probably shouldn't)
If I can pay an attorney to draw up an LLC for under $2000, how exactly would that negligible amount exceed potential benefits?
And I have an umbrella policy but it would still make me feel better to have a holding corporation which would be a separate entity in case something ever happened.
Not asking advice about going into the rental business either.
If I can pay an attorney to draw up an LLC for under $2000, how exactly would that negligible amount exceed potential benefits?
That's just the first bill.
Add the other bills for when AZ (who has seen these schemes before) makes inquiries.
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And I have an umbrella policy but it would still make me feel better to have a holding corporation which would be a separate entity in case something ever happened.
I was having a conversation with a good friend last night who recently set up a limited liability corporation in Montana (resident of Arizona) to purchase a new motorhome and transfer ownership to the corporation. Instead of having to pay over $10K in taxes, he can pay a small fee for registration. I think he said it was only $1500 or so to set up the LLC and it should minimize potential liability if he ever had an accident where the plaintiff could only sue the corporation.
Has anyone set something like this up and how easy is it to do? If I can pay $1500 to minimize my potential liabilities and transfer ownership of my vehicles and boat into the corporation, that'd be ideal. I've tried to find some advice online but it's all over the board so I'd like to get a few personal opinions from those who've done something like this.
Also, if I'm a corporation does that allow me to use corporate tax deductions such as personal and travel expenses? Could I purchase a new vehicle in the name of the corporation and deduct a percentage of expenses associated with that vehicle?
At this point in my life, I'd really like to quarantine any potential liabilities against myself.
Eventually I'm also thinking about purchasing a rental property and would like to transfer said property into the LLC as well.
Advice?
in order to take deductions you need income from the llc.. you cant deduct much of anything you couldnt deduct before the llc as everything passes through to your own personal income tax. just because something is held in an llc name doesnt give you anymore deductions then you get anyway ...
I lived in Helena Montana for fourteen years and moving back to Colorado in 2008.
Colorado was very upset that Colorado in state residents were purchasing RV's , high dollar exotic cars and boats and registering them through a Montana LLC.
Prior to leaving Montana I remember watching the local Helena news concerning a story about this.
The Montana Attorney General stated there wasn't enough of this to do anything about it and essentially ignored Colorado concerning it further.
To the best of my knowledge this is still a viable way to forgo having to pay taxes on high dollar vehicles.
I lived in Helena Montana for fourteen years and moving back to Colorado in 2008.
Colorado was very upset that Colorado in state residents were purchasing RV's , high dollar exotic cars and boats and registering them through a Montana LLC.
Prior to leaving Montana I remember watching the local Helena news concerning a story about this.
The Montana Attorney General stated there wasn't enough of this to do anything about it and essentially ignored Colorado concerning it further.
To the best of my knowledge this is still a viable way to forgo having to pay taxes on high dollar vehicles.
This is the general idea of what I'd like to do. Form an LLC in Montana or Nevada and transfer ownership of my boat and vehicles into the corporation. If my vehicles are registered under the LLC in Montana, I imagine my insurance payments would go down drastically as well because Arizona has such high insurance rates due to vehicle theft.
I'll likely trade my pickup off this winter and if I have an LLC, I'd like to purchase the new truck in the name of the corporation and not be forced to pay $4000 in taxes on it.
The friend who I talked to hasn't had any problems with buying a vehicle in-state, transferring ownership to the corporation, and registering the vehicle in Montana. In fact, Montana evidently seems to be popular in which to register high-dollar vehicles and motorcoaches from the reading I've done.
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That's just the first bill.
Add the other bills for when AZ (who has seen these schemes before) makes inquiries.
Doesn't seem financially viable for a state to pursue an individual for a few thousand dollars worth of tax dollars. In fact, it seems very rarely do states every pursue a matter like this simply because of the amount of money and resources it takes.
And the link you sent is talking about those $100 online schemes to start a corporation. I'd go to an actual lawyer and have him draw up the LLC, small price to pay for the potential benefits I can see.
Tax evasion aside, you have NO protection from liability through a dummy LLC, or even a real one for that matter, if you are the sole employee or one of a few employees. A 1st year law student could fight that in court and win.
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