Quote:
Originally Posted by twobjshelbys
The Montana LLC tax dodge is a thing of the past. Most states are on to the deal and if they find you've registered it and don't have a legitimate business will be mighty unhappy. A number of years ago the counties around Denver went looking for motor homes and boats with Montana registrations (easy to find since they are often parked outside). They were fined, had to pay the sales tax that was due and also registrations that had been avoided since the date of the fradulent Montana registrations. Some people were mightily unpleased.
I don't understand why people would do it on a Cobra. Sure, I had to pay sales tax on the purchase amount, but since it was registered as a 65 the plates were something like $50 every 5 years. (More if you have a vanity plate.)
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If the state you are registering affords you the process to register it as the year it replicates then there is no question. The clients I have known to use it were never looking to avoid taxes, it was always to simplify the process in several tricky (and often unrealistic) states. Some of these states allow individuals within the DMV to literally rewrite the rules on the spot.
FYI California is nowhere near the most difficult states and I admire their clear process that appears to be consistent. I would not look for loopholes if CA were my state as they simply are not needed.