More about Montana LLCs
The LLC is usually the best business type to form for asset acquisition. Here are some details about LLCs
- The Limited Liability Company form of business offers both the protections from personal liability of a corporation and the favorable tax treatment of a partnership. It provides for flexibility in the contribution and distribution of assets.
- Under this type of structure, you need not hold annual meetings, elect officers or issue stock.
- There are no stockholders. Owners are called members.
- The LLC can purchase assets like vehicles, boats and aircraft.
- Because the LLC is considered a Montana resident, no sales taxes are collected on purchases.
- An LLC-purchased vehicle is not owned by you but by your Montana LLC and your business address will be 302 N. Last Chance Gulch, Suite 409, Helena Montana, not your home state address.
- You can also have a private, Montana mailbox address for LLC members. Click here to learn more.
- Official Government documents come to us, not you, and we - as your Montana Registered Agent - forward official correspondence to your home address.
- The cost to form your LLC is $575 and is all-inclusive.
More about Licensing with an LLC
Absolutely! Your LLC will be legal and valid in all 50 states. Your Montana plates will be legal and valid in all 50 states.
To our knowledge, none of our over 2,000 clients has ever been ordered by any court to pay a sales tax or a penalty on a vehicle licensed through a Montana LLC that we helped set up. While we're not attorneys and cannot offer legal advice, the key point is that it's not you that will buy the motorhome (or airplane or boat) but a Montana LLC (of which you are simply a member.)
The LLC is considered a Montana resident and, as such, resides and does business in a state with no sales tax. States with sales taxes are understandably not happy about this but that’s the way it is. Even so, It's always a good idea to research the rules and regulations in your state prior to any legal transaction.
Most states have regulations regarding the registration and use of vehicles, boats and airplanes licensed in other jurisdictions but domiciled in their state but that’s a different issue. Every state is different and we encourage you to thoroughly research your own state’s policies on this matter as well. It's you that must make the decision if a Montana LLC is right for you.
Check with your lender to confirm they will make a loan to an LLC. Remember, your LLC and not you personally will own the vehicle.
If your lender won't loan to your LLC, click here to see lenders that will.
Montana does not require proof of insurance to license a vehicle owned by an LLC.
When you do insure your vehicle, speak with your insurance agent and make sure he or she understands your vehicle will be licensed in Montana through your LLC but may be domiciled elsewhere. If your insurer has a problem with that situation, click here to see insurance companies that are "LLC friendly".
If your LLC has no business activity you do not need to file a tax return but instead may file a Disregarded Entity form
We include the preparation of the DER-1 for you in our annual $175 fee (emailed January 1st of each year.)
NOTE: You can automate payments for all annual requirements and vehicle renewals. For details, click here
Tax questions? Call the Montana Dept. of Revenue: 406-444-2441
- Annual Montana Registered Agent fee.
- Annual LLC Report filing and payment of state fees.
- Annual Disregarded Entity form (DER-1) preparation.
Those are the only annual requirements to keep your LLC active and in good standing
Learn more about annual LLC requirements.
Your vehicle's annual registration reminder will be mailed to you about a month before it's due.
NOTE: You can automate payments for all your annual requirements. For details, click here