Why is it good to buy a car in Montana?
That means if you purchase a vehicle under your Montana LLC, you could save thousands (or even hundreds of thousands) of dollars in taxes. No Emissions or Inspections – Montana doesn’t require smog, emissions, or annual inspections, which keeps the process simple and hassle-free. The “Montana Loophole” refers to the practice of buying and registering vehicles — often expensive luxury cars and RVs — through a Montana-based limited liability company to avoid paying sales tax and higher registration fees.
Why do rich people register cars in Montana?
Since Montana has no sales tax, owners of high-end cars like Ferrari and Lamborghini could avoid paying tens of thousands of dollars in taxes by registering their vehicles there instead of where they actually lived. Luxury car buyers in California and other states wanting their fancy ride but not wanting to pay sales taxes turn to Montana, which has no sales or personal property tax. They register the car there, which they can do from anywhere with paperwork, and bring it back to their home state.