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You Can Avoid Paying Taxes on Your New Car, Although It’s Risky Business

In Montana you don’t have to pay a sales tax on car purchases and non-residents have found a loophole so they can benefit from this. Forming a LLC through a lawyer in Montana can get you Montana plates and people from all over the country are benefitting from this. You might however, run into dome issues including insurance problems.

Key Takeaways:

  • Avoiding high tax on your new car is possible, but it can be a risky business.
  • Many insurers view LLCs as week-old fish, and will deny a claim if you lied about where it will be driven
  • Folks often establish Montana LLCs because they’re furious over their state’s steep taxes.

“If you’re ethical, you’ll tell your agent that your true state of residency is Michigan, that you’ll drive the McLaren in Michigan and will store it in Michigan, but the car will bear Montana plates in the name of a Montana LLC.”

https://www.caranddriver.com/columns/you-can-avoid-taxes-on-your-new-car-although-its-risky-business-feature