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actually knows of anybody first hand that has been hassled by a state over a LLC

Try this one on for size.

Colorado charges RV Owners

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We elected to obtain residency in South Dakota and registered all of our vehicles there.

garybtt: can you please enlighten us as to exactly what is involved in accomplishing the above?

We contracted with a mail forwarding company and used that address for all of our mail. This is the address for registering our vehicles. Check out http://alternativeresources.net/ this will give all the info you need. South Dakota charges 3 percent tax on vehicles that was a very large savings for us. I went to SD and have my drivers license there and have stayed there in order to register to vote.

Hello All, wondered about this for a while. We elected to register our rig in the state we live in (WA) paid the sales tax, and will deduct it on our Federal Return next year. Ok, I believe there is a sales tax limit for deductions, if so, oh well, as our state does not have Income tax which is worse, you can do the math on that one. We can also deduct the interest on the loan, second house you know, so we might win in both cases, if not, then the old "death and Taxes" thing applies. I work for the government, and even though you might beat them, they will get you another way, and when the do, it seems to cost more than had you played the game streight. WA routinely goes after vehicles registered in other states, and when they find you jiggered them, they may you pay the back sales tax plus interest for all the time you beat the clock, in some cases more than the vehicles are worth when caught. Not worth it for me.

Colorado is very unfriendly to Montana LLC owners; they are currently persuing sales tax and registration charges against 120 owners. We are one of them; we used Bennett Law Firm. They are absolutlely "no help". Our tax advisor has responded to the state for us and he says Colorado is all wrong. That doesn't help when it costs thousands to hire an attorney if you can find one to represent you. I would advise anyone who owns anything in Colorado not to do an LLC in hopes of saving any money. The taxes and penalties, plus payment to Bennett will far exceed any savings we might have made. Our only recourse will be pay them in excess of $8000 or go to court and spend even more. The state does not recognize Montana LLCs and goes after the individual. Would love to participate in a class-action suit against the state. Are there any takers/

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Our tax advisor has responded to the state for us and he says Colorado is all wrong.

I know many who say the IRS is all wrong too. Just look at the "stupid" rule that says your business actually has to make money after x number of years. And if it doesn't they call it a hobby and dis-allow your deductions from you business that never made money.

parmm, exactly true. And Fleetwood here in CA. just reported their 8th year of straight loss (in the business section of the Riverside Co. Paper). They are still in business, at least they were at 1:47 pm today. Now granted, they have many different divisions, and I say the above, tongue in cheek, but it does seem to follow a more stringent coarse of action when applied to a "small" business man.

I think if you can afford to buy it you should b e able to take care of your tax and regestration obligations in your real state of residance This opinion may (will) tick off a lot of folks but I feel everyone has to do whatis right in their lives

Most CPA's will tell you that all companies and their individual clients should structure their assets to avoid un-necessary taxes. LLC structure allows this. Now some states like CO, VA, and CA do not like individuals doing the same thing companies are doing. The LLC also works best if you are a full timer with no property in any state and do not spend more than 3 months in one location. Oh yes, the car and RV should have the same plates to avoid issues. JMHO!!!