Most states’ laws require car owners to register their cars but the fees can amount to hundreds, if not thousands, of dollars in sales tax before receiving your license plates. The sales tax may quickly add up, especially on premium or exotic automobiles with higher ticket prices.
In California, for example, registering a $1,500,000 automobile might cost roughly $120,000 in sales tax. That’s a substantial sum of money. With that sales tax, you could purchase a new, high-end Tesla. However, Montana offers a completely different sales tax process that most car owners would seek to enjoy. If you register a car in Montana, there is no sales tax. You will pay $0 sales tax on your new automobile. In addition , there is no car inspection and no emissions testing. Moreover, people who buy RVs should also consider registering their RVs in Montana.
Here are some benefits of registering your car in Montana.
1. You Don’t Need To Pay Sales Tasks
You may purchase your dream automobile with a recognized Montana LLC and avoid paying additional sales tax. Perhaps you’re perplexed as to how this is feasible. According to MCA 61-3-311, all automobiles registered in Montana are exempt from sales tax and do not pay personal property tax. The registration costs in Montana are in place of any personal property tax. The most intriguing aspect is that all LLCs are exempt from having to buy their automobiles in Montana to avoid paying taxes. Because all LLCs are considered Montana citizens, they are tax-free.
2. You Save Money
When buying an automobile in a different state, some tax costs are deducted; for example, if buying a car valued at $1.7 million before taxation, taxation fees are subtracted. It will be taxed at least 7%, which means you’ll have to pay an extra $101,200 for a license plate in other states if you purchase the identical automobile through a Montana LLC. You saved almost $101,200. Some may ask why he can buy a high-end automobile but not pay taxes. However, the point here is to save money. Nobody likes to waste money, no matter how affluent they are. As a result, an LLC is the most cost-effective option for purchasing high-end vehicles.
3. Non-Montana Residents Can Open a LLC In Montana
A trusted Montana registered agent can assist you in forming and maintaining a limited liability company. Your LLC, not you individually, is a Montana resident. That implies your Ferrari or Lamborghini will be registered in Montana under the name of your LLC. You do not need to relocate to become a Montana resident.
4. You Can List Other Vehicles Under Your LLC
If you are concerned about the safety of your other vehicles, there’s no reason to be worried. Under your LLC, you may list all of the additional automobiles you own. The true benefit of forming an LLC for high-end vehicles in Montana is that you may obtain a permanent license plate if your vehicle is more than 11 years old.
In conclusion, registering your car in Montana helps save you money and allows you to enjoy many other benefits. If you want to learn more about how to register your car in Montana, the professionals at 5 Star Registration are available to answer all your questions.