Should I Register My Vehicle in Montana?

Car and truck registration is the pits. You are under pressure to pay thousands of dollars in sales taxes and fees on a vehicle you've just invested a substantial amount in, and that will continue to cost you money. On a $10,000 daily driver, the sales tax and registration isn't going to put you out too much.

But what about when you have a brand-new F-350 and a fifth-wheel trailer with a combined value exceeding $200,000? That adds up to twenty grand just in sales tax. What if there were another solution, a better solution, to get you registered, titled, and on the road without losing your wallet? 

Well you're in luck, because there is! Let’s take a look at the best out-of-state option on the market and determine if it's the right one for you.

Understanding Out-of-State Vehicle Registration

The first step is understanding what out-of-state vehicle registration is. As the name suggests, out-of-state registration is simply registering your vehicle in a state other than the one you live in. This starts to cross over into some other topics that we’ll touch on another day, namely domicile versus residence. In short, you can have as many legal residences as you want all over the country, but you only have one domicile. 

It is generally understood and accepted that people register their vehicles in a state other than their domicile location for mostly one reason: tax savings. You can attribute it to other factors, but ultimately, it's all about saving on taxes. 

There are only a few options where this is still allowed, which include Montana and South Dakota. Vermont closed its provision a couple of years ago. South Dakota works for a few circumstances, but it leaves some crucial details on the table that can backfire for the owner. 

Montana does not allow anyone to register their vehicle in the state unless they can prove residence. Thankfully, proving residence in Montana is as simple as owning a Montana LLC. In this case, it is an asset-holding LLC (also known as a holding company) where you can park your vehicle (or vehicles; there are no restrictions on the number of vehicles an LLC can own) to provide residency in the state. 

Why Do People Choose to Register Their Vehicles Out-of-State?

The main reasons people choose to register their vehicles out of state are tax savings, no emissions or state vehicle inspections, and many vehicles are eligible for permanent registration.

Montana has no state sales tax, so if you’ve been holding out on that big purchase for the last few years because you knew you’d get skewered in your domicile state, you don’t have to look any further. LLCTLC is your Montana registered agent partner to register your supercar, Class A motorhome, fifth wheel trailer, or just about anything else you can think of. Even boats! (Find street-legal SxS info here.)

The Benefits of a Montana LLC for Vehicle Registration

When you create a Montana LLC for vehicle registration, several valuable benefits occur. First, no sales tax. Say you've just bought the Jayco Precept Prestige, with an MSRP of approximately $240,000. In sunny Southern California (take LA for example), you’re in the hole for over twenty-five grand. Ouch. 

But let’s not stop there. In California, once you have owned a motorhome for a few years, you are required to have it smog checked every year for the remainder of its useful life. However, since it is registered in Montana, it falls under Montana’s rules for smog and vehicle inspections, which are nonexistent. So, instead of getting antsy about making sure your considerable investment will pass smog this year, you can just go about driving it. 

And again, once you own the Montana LLC, you can use the same one to register as many vehicles as you want. This is particularly handy if you live in a state that does not permit street-legal UTVs, but you still want to take your Talon or RZR to Target. Thanks again to reciprocity laws, you can take that Montana-tagged quadricycle down Main Street with satisfaction and peace of mind.

Since it’s in the same LLC, you will enjoy the same tax-free savings you have come to know and love, and it will be faster the second, third, and fourth times. 

How to Start an LLC in Montana for Vehicle Registration

Doing this all on your own is possible, but it is not exactly easy. Several steps must be lined up along the way to ensure it is done correctly. Also, in order to register vehicles, you need someone to represent you at the DMV, otherwise, you have to come to Montana and travel to the county you're registered in any time you need to register a new vehicle to your LLC.

Setting Up an LLC in Montana

Choosing a Montana Registered Agent is the most crucial part. You must have a registered agent to handle legal notifications, paperwork, and a range of other tasks that may arise. They must also have a physical address located in Montana. 

LLCTLC is your trusted Montana registered agent agency located in Helena (unlike other prominent Montana registration companies who aren’t even based in the Treasure State). We have been in this business for nearly two decades and have helped thousands of satisfied customers register cars, trucks, RVs, SXSs, and more.

Filing the Necessary Paperwork- here is the deal: you are required to have a registered agent handle the paperwork in-state if you live out of state, which is about 80% of the whole out-of-state registration equation. If you decide to do this process on your own, you’ve got to figure out exactly how to get the paperwork done properly, and the registered agent still is on the hook to handle communications, legal notifications, and so on.

Don’t try to DIY it; it just isn’t worth your time. Contact us at (877) 913-5100 or begin the process right here. 

Is Registering Your Vehicle in Montana Legal?

This is the other question we are asked all the time. In short, yes, it is absolutely legal. You do not own your vehicle; the LLC owns your vehicle. The fact that you own the LLC is of no concern. The LLC still owns the vehicle, and it is based in Montana. It’s as simple as that. There are no laws on the books that preclude you from operating a vehicle that is owned by an LLC. 

Final Thoughts: Is a Montana LLC Right for You?

Do you have a high-dollar vehicle? Do you live in a state with a high sales tax rate? Does your state have smog checks or state inspections that you’d rather not partake in? If you answered yes to any of those, then you really should consider a Montana LLC for your registration needs. 

Ready to start? Click the link. Or give us a call at (877) 913-5100; we really would love to hear from you!