Quote:
Originally Posted by Donatello.
Regular people cannot afford the cars that make doing a MT LLC worthwhile. Man, some of you ARE out of touch or just don't care...
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*sigh*
Let me give you an example:
Year 1
$50K new vehicle - around the avg price of a new vehicle
In Colorado that is about $1K to register.
Insurance is roughly $2k a year for full coverage.
Sales taxes are typically around 8%, I live in an unincorporated location so my tax is 5%. Let’s split the difference, that is $3.25K in sales tax.
Total outlay in year 1 is $56,250
Cost to setup an LLC in Montana let’s call it $500
In Montana the registration cost is $250-$300, let’s call it $300.
Insurance is roughly 10%-20% cheaper in Montana, let’s say 10%. That makes annual insurance $1,800.
No sales tax in Montana, this would be $0
Total initial outlay is $52,600
1st year savings of $3,650
Now, after year one you don’t pay sales tax, thus the bulk of the savings is eliminated. Colorado also reduces your registration fees/taxes each year. So over time the savings will reduce until you reach a breakeven point.
That being said you will save on insurance each year as well as registration costs until around year 5. At which point you could simply buy a new car, retitle the car in Colorado or depending on the registration cost after 5 years it still may be cheaper in Montana.