How can TaxFreeRV help me save on significant sales tax expenses?
- Montana has no sales tax.
- Montana has no vehicle inspections. Your vehicle never needs to visit Montana*.
- We will form a Limited Liability Company (LLC) in Montana for you.
- You will then have your LLC buy your RV or other vehicles.
- The tax liability will move to Montana once your LLC takes ownership and registers the vehicle. Because Montana has no sales tax, you will only pay for the registration!
- RV and motorhome registrations in Montana are based on the year and body style
- Depending on your state’s statutes, paying state taxes when you are going to be out of your home state a significant amount of time may not be required.
*Salvaged vehicles may have additional requirements. Please contact our office for more information if you are purchasing a salvaged vehicle.
How fast can all the arrangements be made?
Typically, the first thing you will need in any purchase is to have the LLC set up with the Montana Secretary of State. 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!
How much time will it take to register my vehicle, once I have an LLC?
As soon as your LLC is set up, our Customer Service department will contact you regarding the next steps. You will receive a package of LLC documents (typically via email) and directions for each document. Those documents need to be completed and returned to our office before the registration can be processed.
Once the documents are complete and have arrived at our office, your plates should be delivered in 3 to 5 days via Priority Mail. Expedited service is available for an additional fee.
How do I get my license plates?
License plates are mailed to you via USPS Priority Mail. This is a 3 to 5 day guaranteed service. Your plates are shipped out of Red Lodge, Montana.
Plates can be shipped as quickly as overnight, if needed. We do ask that you pay for the additional shipping costs associated with this service.
Does my vehicle have to go to Montana?
No, your vehicle does not have to go to Montana! Because Montana has no requirements for vehicle inspections, all of the paperwork associated with registration, titling, and plate renewal can be done via mail, fax, email, or online.
Questions about Legality
Is registering my RV this way legal?
Absolutely! You can own a company in any state and any company can legally purchase assets like and RV. Literally thousands of happy customers have taken advantage of this unique, legal opportunity.
Please call our office or submit an online request and we will be happy to provide you with additional information regarding your particular state of residency.
Will this RV sales tax savings opportunity work in my state?
This opportunity is successful and legal in every state. However, there are statutory considerations that should be reviewed. Contact us to learn more about your state statutes.
It is important that if you have questions regarding your situation, you contact an attorney licensed in your state of residency to discuss your specific requirements.
Can I speak to an attorney?
Yes – in fact we encourage it! You will need an attorney licensed in your state of residency in order to determine how the program can work for your specific needs.
Can my attorney contact TaxFreeRV?
Yes. You can give them our toll free number: (888)441-5741
Can I get a ticket for not being listed on the RV registration?
No. TaxFree RV will provide you with a document called a Resolution to Operate to keep in your glove box. This document can be used to show that the LLC has authorized you to operate the vehicle.
Questions about Financing
Is financing different if I purchase my RV with an LLC?
Yes. Not all lending institutions will process loans for an LLC that purchases a personal vehicle, like a motorhome or travel trailer. These loans are hybrids of commercial and consumer loans, so you will want a lender that understands how it works. Typically, local banks and credit unions are happy to help with these hybrid loans.
If your lender has questions, offer to have us call them.
My bank/dealership says they can’t finance me if I use an LLC. Are there any other options?
Absolutely! You can also look into loan options that might include personal lines of credit and home equity loans. These types of loans generally do not require you to list the bank as a lien holder on any property purchased with the money, and may leave you the freedom to have the RV titled and registered to the LLC.
My bank said the financing is okay, as long as my personal name is on the title with the LLC. Is that okay?
Unfortunately, your personal name cannot appear on the title to the vehicle – even if your LLC is also listed. Each individual or company who applies for a vehicle title in Montana must prove that they are a resident of Montana. We can provide documentation showing that the LLC is legally set up in Montana with the Secretary of State. However, because you personally are not a resident of Montana, you will not be able to be listed on the title.
The good news is, there may be some flexibility with the loan paperwork. If your lender will allow you to write the loan contract showing the LLC and you personally as guarantors on the loan, but still have the vehicle registered and titled to the LLC only, we can work through the rest!
My lender is asking for a long list of LLC paperwork. Can you help?
Yes, we can! We have prepared a variety of paperwork for lenders. Please call or email us with the requirements, and we will be happy to provide you with the paperwork; or refer you to another resource where you can get the requested paperwork. We want to make you and your lender both comfortable with the transaction!
Questions about Titling and Plate Renewals
Who gets the title to the vehicle?
In Montana, the owner of the vehicle holds the title. The title to your vehicle will be sent to our office (your LLC’s address). We will scan a copy for our records, send you an email to let you know it’s on its way to you, and mail it to the shipping address you provide us! If you have a lien on the vehicle, the lien holder will get a separate lien record sent directly to them from the State.
How will I know when to renew my license plates? Won’t the renewal card go to my LLC address?
We will remind you! As part of our service, we will send you an email reminder at the beginning of the month when your registration is due for renewal. Then, when the renewal cards arrive from the State, we will also forward them out to you via first class mail. If you choose, you can renew your plates before the cards even arrive – our email to you will have directions for renewing through our office, over the phone with the County, and online.
Questions about Costs and Services Included
What does the TaxFreeRV service cost?
- Montana Company Formation – $475.00 This includes the creation and filing of your articles of organization with the Secretary of State as well as generating your operating agreement, resolutions to operate and company book which includes copies of all of your LLC paperwork. (State filing fees are additional).
- Registration of the first vehicle in the LLC – $420.00. This includes our fees for processing all of you vehicle paperwork, generation of the state registration form MV1 and vehicle registration, titling and licensing. (Registration fees and shipping are additional).
How much are the actual RV licensing fees?
RV license fees are determined based on the body type of the RV. Motor home fees are based solely on the year of the vehicle, and travel trailers are based on the length.
The cost of the registration of an RV can be as low as $130.00 and is no higher than $346 (including Priority Mail shipping charges). We will quote the licensing fees for trucks and cars as they can vary widely.
Are there any additional costs?
No. Any additional costs would be because of additional services requested by you! Examples would be additional vehicles registered to your LLC, or expedited shipping.
Are there any service fees after my LLC is set up?
Yes. There are three things you can expect to pay for each year – the LLC renewal fee to maintain our registered agent service, the annual report filing fee for your company, and the vehicle registration renewal. Each January, we will invoice you $145.00 to maintain our registered agent service andfor the annual report creation, filing with the Secretary of State and filing fees.
Annual registrations are billed directly by the State. Your cost is the exact amount shown on the Montana registration renewal card.
How can I sign up for Tax Free RV services?
Your order can be processed by calling us at (888) 441-5741. We accept payment by check or credit card.