Quote:
Originally Posted by Crimson92
Doesn't make it right.
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If Montana wants to attract business (and residents) to its state by not having a sales tax on their cars, then that is their right. It costs $70 to file for an LLC in Montana. A small portion of those who start a business in Montana are using it as a tool to not pay tax on the car. The Secretary of State of Montana is well aware of these techniques and they probably feel that what they gain overall from this incentive is well worth the side effects of these LLCs started just to acquire cars. Don't forget, those cars still have to be registered in Montana, so they are generating income from registrations. Also, the dealers and brokers selling cars in Montana still profit from those sales which stimulate their economy. That is all income they would normally not have if they didn't have this tax incentive... all for the price of giving out articles of incorporation and keeping a file. Whether or not the LLCs actually do business in the state of Montana, they still benefit from them.