Has anyone ever heard of doing this?

[Carguy!]

The company that I am buying my new motorhome from suggested setting up an LLC (Limited Liability Corporation) using this company:

http://www.actionservices-mt.com/

This is supposed to eliminate sales tax, protect the motorhome from being attatched in potential law suits, cut down on the cost to register the vehicle, etc...

From everything I have read it is legal and obviously the savings are huge, I am just wondering what is the down side.

I would of saved a bunch of money if I would of done this on my CGT, but I would of had to have a Montana plate on it as I drove it around. I am not as worried having a Montana plate on the RV, as it wouldn't look out of place and everyone would just think I am a long distance traveler!

 

[ncdogdoc]

The company that I am buying my new motorhome from suggested setting up an LLC (Limited Liability Corporation) using this company:

http://www.actionservices-mt.com/

This is supposed to eliminate sales tax, protect the motorhome from being attatched in potential law suits, cut down on the cost to register the vehicle, etc...

From everything I have read it is legal and obviously the savings are huge, I am just wondering what is the down side.

I would of saved a bunch of money if I would of done this on my CGT, but I would of had to have a Montana plate on it as I drove it around. I am not as worried having a Montana plate on the RV, as it wouldn't look out of place and everyone would just think I am a long distance traveler!

While I am being lazy and did not read the link, the two biggest drawbacks I see is increased insurance costs because this vehicle is not shared amongst your others for group discounts, and it will be insured as a commercial vehicle, also more expensive.

The other will be cost when sold as the vehicle will have to be depreciated over its life, so that when sold you will owe taxes on any money made as profit, i.e. the amount sold above the last stated value on your LLC tax return. I am not sure about savings on acquiring, except savings on registration in a different state.

I guess I really should read this first, huh

 

[Carguy!]

While I am being lazy and did not read the link, the two biggest drawbacks I see is increased insurance costs because this vehicle is not shared amongst your others for group discounts, and it will be insured as a commercial vehicle, also more expensive.

The other will be cost when sold as the vehicle will have to be depreciated over its life, so that when sold you will owe taxes on any money made as profit, i.e. the amount sold above the last stated value on your LLC tax return. I am not sure about savings on acquiring, except savings on registration in a different state.

I guess I really should read this first, huh

Those are both great points, I will check with my insurance guy and see if I can insure it through him and if there will be additional costs becuase it is owned by a company.

I am not worried about the depreciation aspect as I plan on keeping it for a long time and it generates additional tax savings over the years I do own it so if there is a profit when I sell I have already received that money through tax savings. I will also check with my accountant to see if I am missing anything, I hadn't thought about either of those two issues.

Thanks! And no you obviously didn't need to read the link to give some great advice.