Here at Dirt Legal, we talk a whole lot about the Montana LLC program and how you can save a boatload of money. We love the freedom that it affords owners who are tired of paying 6%, 7%, 8%, 10%+ in sales taxes on their cars, plus other riders like vehicle use tax. Oh, that’s not all: there is a slew of taxes that certain states tack on that Montana hasn't even heard of.
But what we haven’t talked about a whole lot is the nuts and bolts of the process. Here’s the thing: You do not have to use a third party like us to get a Montana LLC or do the title and registration process. It isn’t illegal to go it alone, but there is a lot of work ahead of you if you choose to figure it all out yourself.
The Montana registered agent is one of the first pieces in the Montana LLC puzzle. Let’s talk a little bit about what they are, who they are, and why you must use them.
Why Use a Montana Registered Agent
Okay, so the first question we usually get is, “Why use a Montana registered agent?”
The answer is simple: All legal businesses in Montana are required by Montana law to assign a registered agent to the business.
Registered agents are the parties named on the LLC paperwork as the entity responsible for all process notices, government correspondence, and compliance-related documents.
However, the registered agent does not have to be an attorney. Anyone can be named as the registered agent; they must share the same address as the LLC. A P.O. box is insufficient to satisfy this requirement, so the registered agent must have some sort of office setting to operate from.
So, in summary, the reason why you would use a Montana registered agent is because you are legally required to do so. But, of course, it only makes sense when you use it as an asset-holding company to register your vehicles to have a registered agent handle the LLC documentation in-state. For one, it is required that they be in-state, but nobody knows Montana law - and the intricacies of having vehicles registered in Montana - like Montanans.
Why register in Montana at all?
Montana is a wildly popular place to register all kinds of vehicles for a couple of great reasons:
There is no sales tax
They will title and register UTVs, ATVs, and surplus military vehicles for street-legal use
After the vehicle is 11 years old, the registration becomes permanent.
Montana is a sparsely populated state with a whole lot of land area. It’s also crazy rugged. Montana represents one of the best examples of a state that should allow OHVs to operate on public roads. Of course, we are here to argue that all states should follow suit, but that is an argument for another article.
The main reason (besides no sales tax) that you should consider our Montana LLC registration program is because of reciprocity. Reciprocity, simply put, is the agreement between states or territories to honor another state's rules and practices. One basic example is window tint: the rules on window tint vary widely from state to state, but you should be safe driving through a state where your tint doesn’t meet local rules because the laws in the state where your vehicle is registered take precedence over states where you're only driving there.
Street legal UTV titles and registrations are an extension of this concept. Does it work? Not always. For instance, Colorado altered the statute's verbiage to say that OHVs are not allowed on public roads at all, even if they have a street-legal tag and title from another state. Yes, we are pretty sure they are aiming for Montana. No, I don’t think Montana cares. Either way, the legality of that situation is something for attorneys to decide, but a good Montana registered agent can ensure that all your paperwork is in order in case that conversation ever comes up.
Dirt Bikes, UTVs, and Other Off-Road Vehicles
A handful of states will title UTVs, ATVs, or other OHVs as street-legal and issue registration and license plates. Oklahoma and Iowa are the latest examples of states applying some common sense and letting people drive these vehicles.
But, it is safe to say that these states are the exception, not the rule.
Montana has been the OG for driving off-road things on the roads or driving really fast. Yes, we know they have since gone back to imposing speed limits.
But Montana still makes the most sense because of how the Montana LLC registration program is structured.
See, here’s the thing (and it is supported by dozens of cases that we’ve reviewed): if you use tags from a state that doesn’t require any form of residency, namely South Dakota, you will probably run into problems sooner or later.
First, your UTV draws attention, so it’ll definitely be targeted in states that haven’t made them street-legal yet.
Second, every state we know of requires you to title and transfer the registration within a specified period. You cannot just keep driving a vehicle with out-of-state tags forever. This probably wouldn’t ever be a problem if you are driving a Honda Accord or a Toyota Camry, which are totally inconspicuous. But a UTV? You’re going to get pulled over eventually, probably sooner than later.
But see, if you have an LLC in Montana, and the LLC owns the vehicle, then reciprocity laws should take precedence. Should is the operative word here. You need to know and remember that an officer may still choose to give you a ticket, and you may have to argue that ticket in court, and this is something that's been done many times to the success of the UTV drivers in many states. Regardless, your situation has a lot more going for it if your vehicle is registered correctly to a Montana LLC as opposed to directly to you in a different state.
Exotics and High-Value Classics
Montana license plates became popular in the 1990s when high rollers realized they didn’t need to eat California’s ridiculous sales taxes.
Now, here’s the thing: if you are planning on buying an exotic or a high-value classic and registering it in Montana, you will incur a luxury car fee. The luxury fee is a flat $825 one-time fee, and no, it is not, by definition, a tax. It is a fee.
But considering the sales tax in LA on a $225,000 exotic would be around $22,500, a one-time fee of less than a grand is a bargain.
Good Montana registered agents are well-versed in making this happen.
Regular Cars and Trucks
Like a UTV or ATV, an exotic car with Montana plates draws attention. Exotic cars draw attention to begin with, and everyone knows the Montana game now. You have to be careful or you might draw the ire of the local tax office, and yes, they can choose to go after you. A good Montana registered agent has played that game before.
But the Montana LLC registration program is not just for these guys. It isn’t just for the OHVs that are hard to tag elsewhere.
It’s for the farmer or rancher who is tired of getting raked over the coals when they buy a new work truck. Or the family who can finally afford a minivan, only to turn around and fork over another three grand in taxes.
We never intended our programs to reach the super-rich solely. Will we help them register their exotic cars? Of course! But we want these savings to be accessible to the everyman.
And when it comes right down to it, you want the most experienced registered agent you can get your hands on, which is why we started offering Montana registered agent services alongside our existing programs.
Parting Thoughts
Before you can do anything, you must have a registered agent. Thankfully, we can care for all that when you select any of our Montana LLC registration options. No matter what kind of vehicles you plan on registering (don’t worry, you can do as many as you want), you’ll get the velvet glove treatment from Dirt Legal.
Also, if you have title issues or are missing a title, make sure to check out our title services.
For most of the United States, motorcycle riding season is over, but that doesn’t mean you shouldn’t think about registering your new bike. The holidays are the perfect time to beat the DMV rush, avoid penalties, and save money with Montana LLC registration. Learn how Dirt Legal can streamline the process and save you time and hassle.