Quote:
Originally Posted by BlkGS
This isn't a tax loophole. It's tax fraud. Almost all states have laws stating a vehicle that is residing in that state for at least 30 days has to be registered in that state. So you are violating the law to defraud the government and other taxpayers.
I do enjoy reading the BS reasons that people think it's ok to cheat it. Real low character people lol.
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Please cite your sources that this is tax fraud which can be charged crminailly, and corresponding court cases where the state won and someone was imprisoned for said tax fraud (not a settlement where no charges no were filed). I can't find a single one nationwide in my searches.
The LLC owns the car, not the individual person. It is an entity. Check court case for Thomas v. Bridges in Louisiana where an RV owner was sued by the state for $46k in back taxes. The RV owner won in court because the courts ruled that the RV was registered to the LLC, not him personally, and therefore the Louisiana resident could not be held personally liable. This is probably the most well known Montana LLC tax case.
You might not like the law, but that's how it works. There are tons of laws that shield individuals from liability through an LLC and afford special tax benefits to entities registered as corporations and LLCs. The most likely outcome of any state enforcement action is a settlement because neither the state nor the person being sued wants to pay a lawyer to go to court and litigate it. In my opinion, the state would lose every time, but I am not a lawyer. Utah may have created a law to try to claw back their money, but that doesn't mean it will hold up in court when they sue an individual which is a separate entitty than the LLC registered in another state which actually owns the car.