Boat and Yacht Registration
Call Us First!
Whether you are planning to purchase any type of motorized watercraft, from a pontoon boat to a yacht, your first call should be to TaxFree RV!
Purchasing a boat is not an inexpensive proposition, so the idea of saving tens of thousands of dollars is probably very appealing. Whether you are buying a $150,000 pontoon boat or a $500,000 yacht, a factor to consider is the combined state and local sales tax. Combined sales tax rates can range from the high in California of 10.75% to a low in Wyoming of 5.39%. However, when you are buying a high-end boat, that still means thousands or tens of thousands of dollars in sales tax. By calling TaxFree RV first we can make sure you never pay sales tax!
Montana LLC
A limited liability company, commonly referred to as an LLC, is an important first step because it combines the benefits of both a corporation and a partnership. With an LLC, business owners, for tax purposes, only pay one level of tax. More importantly, business owners, also known as members, enjoy limited liability protection for their personal assets. This means that if the LLC faces any financial obligations or legal issues, the personal assets of the members are typically safeguarded and cannot be used to fulfill these obligations. Liability is limited to the assets of the LLC. While TaxFree RV can let you know how formation of the LLC is done, we are not attorneys. If you do have questions about the extent to which your Montana LLC can protect you from liability, it is best to consult with your attorney.
One of the primary advantages of using a Montana LLC to purchase and own a boat or yacht is the potential tax savings. Montana is known for its favorable tax laws, including having no sales tax or personal property tax on boats or yachts. By having TaxFree RV form an LLC for you in Montana, you can take advantage of these tax benefits. When you form an LLC in Montana, the LLC can purchase the boat or yacht on your behalf as a legal entity of Montana. This is why you do not have to be a resident of Montana to get the sales tax benefits of purchasing a boat. By having TaxFree RV form the Montana LLC, the legal entity purchasing the RV is a resident of Montana and therefore does not need to pay sales tax. This is true regardless of where the owner actually lives.
Additionally, owning a boat or yacht through a Montana LLC can simplify the licensing and registration process. Unlike other states where boats and yachts are registered individually, Montana offers the option for boats and yachts owned by an LLC to be licensed through the Department of Motor Vehicles. This streamlined process can save you time and frustration when it comes to obtaining the necessary permits and documentation.
We will walk you through all the steps, answer any questions, and our instructions will include what documentation you will need to send to us. We use a Priority Filing with fax confirmation when setting up your Montana LLC. This means that we will have your LLC in place in no more than 2 business days!
If you are interested in saving thousands of dollars in sales tax, contact TaxFree RV today to learn more.
How Long Will it Take to Register my Boat in Montana?
If you’re planning to register your boat in Montana, you may be curious about how long the process will take. Registering a boat is an important step to ensure compliance with state regulations and enjoy your time on the water legally. Fortunately, when you are working with TaxFree RV, registration of your boat is straightforward and efficient, allowing you to get your boat on the water quickly.
Once we have set up the Montana LLC with the Montana Secretary of State you can purchase your watercraft as a representative of the LLC. It will be the Montana LLC on the boat title. Since we will have set up your Montana LLC and are your registered agent, the boat dealer will send us the proof of ownership; such as a certificate of title, manufacturer’s certificate of origin, or a bill of sale. We will pay the $10 titling fee.
For the registration, we will again send you all of the documentation. Once we have collected all the required documentation from you, we will fill out all of the paperwork on your behalf as your registered agent. We take care of the initial registration and boat registration fee. Fortunately, the initial registration is also the only registration. In Montana, boats are required to be permanently registered, so there is no recurring annual registration fee. We pay the fees and make sure that your registration proceeds smoothly. This can save you time and hassle in the long run. The process can take up to three weeks.
If you have any questions about the process and the timing, please contact TaxFree RV and one of our registration experts will be happy to answer.
Why TaxFree RV is Different
When it comes to boat registration in Montana, there are a few key factors that set TaxFree RV apart from the competition. Our streamlined process and 40 years of expert knowledge of Montana boat registration laws make registering your boat with us a hassle-free experience.
One of the main advantages of using TaxFree RV is the ability to register your boat tax-free. When you register your boat through the Montana LLC that we set up for you, you can take advantage of Montana’s favorable tax laws. Montana does not have a sales tax or personal property tax on boats, which means you can save a significant amount of money by hiring us to set up your Montana LLC.
Not only does Montana provide tax-free boat registration, but TaxFree RV also offers personalized customer service to guide you through the registration process. We have an in-depth understanding of the registration process, including the specific documentation and fee requirements, ensuring that your boat is registered properly and in compliance with Montana law. We understand that navigating the boat registration process can be confusing, especially for first-time boat owners, so we strive to make the process as simple and straightforward as possible.
In addition to our comprehensive registration services, we also offer additional services to ensure that your boating experience in Montana is enjoyable and worry-free. We can assist with obtaining boater safety certificates, which may be necessary depending on your age and the type of watercraft you are operating. We can also provide guidance on obtaining special license plates for your boat, if desired.
At TaxFree RV, we understand that your boat is an investment and a source of enjoyment. We are committed to providing exceptional customer service and ensuring that your boat registration experience is seamless and stress-free. By choosing us to assist you, you can take advantage of Montana’s tax-free boat registration, save time and effort through our registration services, and receive personalized guidance throughout the process. Whether you are purchasing a personal watercraft, pontoon boat, motorized yacht, or something in between, let us handle your boat registration needs. Call us today and experience the difference of registering using TaxFree RV.
What if I Want to Register a Boat I Already Own?
If you have already purchased a boat in your personal name and are wondering if you can still take advantage of Montana’s tax-free boat registration through a Montana LLC, the answer is yes! Even if you have already purchased the boat, you can still hire us to set up your Montana LLC and then transfer the ownership to the LLC and register it tax-free.
Transferring the ownership of your boat to our Montana Boat LLC is a simple process. We will set up the Montana LLC for you. Once the Montana LLC is ready, you “sell” the boat to the LLC by transferring title to the LLC. This transfer will legally change the ownership of the boat from your personal name to your LLC. There is no need to pay sales tax on this transfer since there is no sales tax to be paid by the Montana LLC because Montana does not charge sales tax.
Once the certificate of ownership has been transferred to the Montana LLC, we will proceed with the boat registration process through the LLC. Our team of experts will assist you in gathering all the necessary documentation and completing the required paperwork. We will handle the submission of your application, payment of registration fees, and obtain the permanent boat registration decals and documentation on your behalf.
While you will not save as much money as if you had used a Montana LLC to purchase the boat, you can still save a significant amount of money annually. Unlike many states, Montana does not have a personal property tax on motorized boats, making it an attractive option for boat owners looking to reduce their expenses.
In addition to the tax benefits, working with us to register your boat through a Montana LLC offers the additional benefit of liability protection. With our personalized customer service and guidance throughout the registration process you will be enjoying the benefits of tax-free ownership in no time. Contact TaxFree RV when you are ready to proceed, and our knowledgeable experts will be there to answer any questions you may have and ensure that the registration process is smooth and hassle-free.
Which Boats Need to be Registered?
In Montana, not all types of vessels are required to be registered. Boats measuring 12 feet or longer, as well as all motorboats and personal watercraft, are required to be registered and are assigned a unique number. Registered boats will also have two types of decals affixed to the boat at all times: a permanent decal and a validation decal.
Sailboats that are non-motorized and less than 12 feet in length are not required to be registered or taxed. The exemption also applies to manually propelled boats, a larger vessel’s lifeboat, and government-owned vehicles.
The purpose of the permanent decal is to provide proof that the owner has paid the permanent registration fee. Once TaxFree RV has successfully registered you boat with the County Treasurer’s office we make sure you receive the decal. This decal MUST BE displayed on the left (port) bow, just behind the boat’s number, as proof of valid registration.
In addition to the permanent registration decal, registered water vehicles must also have two validation decals. The two validation decals will be place one on each side of the boat’s bow, behind the boat’s number. Unlike the permanent registration decal, validation decals are issued in every three years. When you work with TaxFree RV we will make sure that you get your permanent decal and your validation decals.
If you can see the tax benefits of working with TaxFree RV, contact us to get started today!
