Vehicle-Holding Montana LLCs Can Help Montana Residents, Too

A lot of the time (like, ~99%), when we talk about the Montana LLC program here at Dirt Legal, we are gearing it toward out-of-staters who are looking to save some money on the tax burden of registering or titling a car in their own state. But did you know that not all of Montana has no tax? State tax, yes, but not necessarily each individual county.

Montana has 56 counties, and in 2022 only six counties did not collect any tax revenue from vehicles. So, even though the State of Montana collects no sales tax, that does not mean that if you establish a Montana LLC just anywhere you would be free from sales tax collection. And here’s the wild thing: we can actually help people who are already Montana residents pay no sales tax by establishing a Montana LLC for their vehicles.

Ready to find out how? Let’s go!

How to establish an LLC in Montana as a Montana resident

First and foremost, to qualify for any title and registration of a vehicle in Montana, you must be a resident.

For years, and until very recently, Vermont was a state where your residence or affiliation was required. Well, that door has closed, so there are few states with loose or no residency requirements that remain great choices for vehicle registrations. With that in mind, Montana is the clear winner for all title and registration needs. 

So, how do you go about establishing an LLC in Montana? You must meet a few basic guidelines to establish an LLC in Montana for any reason. Note that there is no distinction between using that LLC to create a business or establishing a residence.

Here’s a straightforward rundown of what it takes to establish a Montana LLC:

1. Choose a Name. Make sure the name is unique and complies with Montana's naming rules. You can check name availability on the Montana Secretary of State's website.

2. File Articles of Organization. Prepare and file the Articles of Organization with the Montana Secretary of State. You can file online or by mail.

3. Choose a Registered Agent. Appoint a Registered Agent who will receive legal documents on behalf of your LLC. Dirt Legal can act as your Registered Agent.

4. Create an Operating Agreement. While not required, creating an operating agreement that outlines your LLC's ownership structure and operating procedures is advisable.

5. Get an EIN. Obtain an Employer Identification Number (EIN) from the IRS for tax purposes.

6. Comply with Montana's Tax and Regulatory Requirements. Check and fulfill any additional state and local requirements, such as licenses and permits.

7. File an Annual Report. LLCs in Montana must file an annual report with the Secretary of State.

If you have any concerns about using a Montana LLC, you should consult an attorney familiar with the process; we are not attorneys, and this is not legal advice. We are enthusiasts who have helped a whole lot of people (tens of thousands and counting) get their vehicles tagged, titled, or street-legal and saved some coin along the way.

We can save you all that work

Dirt Legal has helped tens of thousands of people with our thorough and comprehensive Montana LLC packages. Backed by our 100% Money Back Guarantee, we’ll get your vehicle(s) into an LLC in Montana on your behalf, completing all those steps and more while you take a nap.

Is all of Montana tax-free?

So, here’s the thing: Yes, all of Montana is free from state sales tax since there is none at the state level. But counties have their own approved and enforced tax codes within the county, and each one is a little different.

What Montana counties aren't tax-free?

According to data gathered in 2022, out of the 56 counties in Montana, only six took in zero revenue from vehicle registration and renewals. These are:

1. Big Horn 

2. Deer Lodge

3. Flathead

4. Granite

5. Phillips

6. Richland

The other fifty counties assess those taxes.

How can a Montana LLC benefit Montana residents?

When you realize that no state sales tax still doesn’t equal registration costs for most Montana residents, you might want to rethink how you’ve been registering your car this whole time.

Again, if you live in any of the fifty counties that do assess taxes for vehicle registration in Montana, you are on the hook for the local rate. Let’s take a look at what this can mean for you. 

It will take a lot of work to get an exact count with so many variables, so I will work with averages for a little bit here. The average revenue from Beaverhead County from April-June 2022 was $57,241.75. The grand total of all vehicles registered in 2021 was 36,798, which amounts to about 3,066 vehicles per month on average. Now, this is all vehicles, including trailers, RVs, motorcycles, etc. That brings the average tax on each unit to about $18. But again, this is a wag, and many of these vehicles in the county are permanent registrations, meaning they are no longer assessed. 

How does this tax assessment look today? It’s more like $59 per vehicle now. It's not terrible, but it is certainly a substantial increase in tax assessments per vehicle. And it’s all money you can keep in your pocket by making the right moves.

How MUCH can this benefit a Montana resident?

The best use of an LLC when you are already a Montana resident is probably in using it for multiple vehicles, where the taxes really start to pile up.

Again, all of the counties are different. Their rates are all different, but let’s assume you have four vehicles to register annually. Well, if each of those ends up being $59, that’s $236 a year. Maybe that doesn’t matter too much to you. Of course, over just four years, that’s almost a grand, and that’s under the assumption that tax rates would remain static (not likely). 

And, of course, if you have even more vehicles than that (think about operating a corporate fleet, or a family’s fleet of toys), the cost only goes up. But if you are already using an LLC or you are going to start an LLC, the impact of adding multiple vehicles to an LLC is pretty minimal.

Start that LLC before your next round of renewals comes around and you’ll be singing all the way to the bank. Toss your UTVs and ATVs in there too! Boats - why not? RVs? Sure! It all adds up.

I’m sold! How do I make this happen?

A couple of options exist for starting an LLC in Montana when you are already a Montana resident. Yes, you can do all of the legwork yourself as we talked about earlier. Or you can have us do it for you! When you have us do it, the process will be much easier, faster, and free of risky pitfalls. 

See, our program does not discriminate based on your state. Whether you are from California, Alabama, New Jersey, Montana, or anywhere else, the process is exactly the same. 

And it doesn’t really matter what vehicle(s) you have that you want to register under the LLC. A standard passenger auto? Too easy. RV or motorhome? No problem. Surplus military vehicle? Bring on that SF-97. We can also use a Montana LLC to sort out vehicles with title issues, like those sold with incomplete paperwork.

The Dirt Legal Advantage

Dirt Legal is the industry leader for all of your out-of-state title and registration needs. We have been at the forefront of this the entire time, and in fact our creation spawned much of this market. Why trust anyone else with your LLC?

Montana is a beautiful state to title and register your vehicles in, and if you are already in Montana but not saving on tax revenue like you could be, we can still help you out.  Anyone can start an LLC in Montana, including Montana residents. And why shouldn’t you? It’s your hard-earned livelihood that is on the line here.

If you have questions about the Montana LLC process we haven’t covered in this article, check out our Montana LLC series information base. The odds are good that your answer is within one of those articles! Check out our comprehensive Montana LLC packages backed by our 100% Money Back Guarantee, and call us if you can’t find what you are looking for. Chances are that we have dealt with it all at least once or twice!

Remember, start that LLC before your next round of taxes for maximum savings!