If you are running a business in Montana and want to save money by purchasing supplies, equipment, machinery and vehicles from out of state, you may be required to pay a sales tax. The good news is that you can avoid paying this tax through the use of an LLC.
Meanwhile, check here to learn how to register a vehicle in Montana.
How You Pay Zero Sales Tax During Car Purchase And Registration
Suppose your business is based in Virginia, and you have an office in Wyoming. You purchase a vehicle from a dealer in California. Because you are purchasing the car from out of state, you are required to pay sales tax anywhere you reside.
However, if you form an LLC in Montana and ask your business partner to operate it on your behalf, then the vehicle will not be considered purchased for resale. This means that no sales tax will be due.
Note that Montana is a pro-business region, meaning it’s a no sales tax state. Therefore, launching a business in this state is cost-effective and easier, not to mention the Montana vehicle registration process is stress-free.
What Do You Gain By Paying Zero Sales Tax When Purchasing Your Vehicle?
Wondering why you should register your car in Montana?
Simply because Montana is incredibly affordable when compared to other states in the country, and can save car owners tens of thousands of dollars in the long run.
Many people are not aware that they are expected to pay sales tax on many items they buy, including vehicles.
In some cases, it is possible to avoid paying sales tax if you know how.
One thing you can do is use a Montana LLC in order to buy a vehicle and register it where you live. This means you do not have to pay sales taxes on the vehicle when you get it – a good way for those buying vehicles for their business purposes to save money and get new ones for less.
If you keep the car for more than one year, the state will not charge regular sales tax on your vehicle, but will instead charge a certain percentage of your personal income. This can make a huge difference, especially if you have several vehicles and plan to use them regularly in your job or business. You will have to register the car in Montana, and have the plates registered at your local DMV office.
If your LLC is located in Montana, this process will be easy. All that needs to be done is that you go online and fill out a form before your license plates arrive in the mail. This process is fast and easy, and lets you enjoy owning new vehicles without paying as much for them due to sales tax.
Primary Montana LLC benefits include:
- Cost-effective method of acquiring a vehicle
- You can avoid car inspections
- You are allowed to keep your current driver’s license
- You are not required to pay personal property tax
- No need to hire a lawyer
Montana LLC Drawback
The only drawback to forming a Montana LLC is that it can be tricky to maintain because of annual reports. That’s where a Montana registered agent comes to the rescue.
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