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Montana on pace for record number of new business starts “registering a car or an RV in a new Montana LLC is considered a new business in Montana”
November 29, 2024/
Business registration in Montana has seen a significant increase over the past few months, with 10,000 new businesses being registered. This growth is attributed to recent changes in state policies.
Many people register expensive cars in Montana because of the state’s unique tax structure, which includes no statewide sales tax and low registration fees:
- No sales tax: Montana has no statewide sales tax, so you only have to pay a registration fee, which is typically a couple hundred dollars.
- Low registration fees: Montana has low registration fees for light vehicles, which are typically cars and pickup trucks:
- 0 to 4 years old: $217
- 5 to 10 years old: $87
- 11 years or more: $28
- No vehicle inspections or emissions tests: Montana doesn’t require vehicle inspections or emissions tests.
- No residency requirements: You don’t need to be a Montana resident to register a vehicle there.
To register an expensive car in Montana without living there, you can form a Montana Limited Liability Company (LLC) and have the LLC buy and register the vehicle:
- Form a Montana LLC
- Transfer the title of the vehicle to the LLC
- Register the vehicle in Montana under the company’s name
The LLC provides privacy and potential liability protection, and you can use it for a bona fide business purpose to avoid being seen as a tax dodge.
Montana does apply a luxury tax to certain vehicles, but you can avoid it by registering the vehicle under your Montana LLC:
- Light vehiclesIf the original MSRP is at or above $150,000, there’s an $825 annual luxury tax until the vehicle is 11 years old.
- RVs/motor homes
If the original MSRP is at or above $300,000, there’s an $800 annual luxury tax until the vehicle is 11 years old.
