Do I actually need to live in montana to register a vehicle there?

Posted by stphnkuester@reddit | askcarguys | View on Reddit | 41 comments

I live in texas and have been looking into the whole montana llc vehicle registration thing for a custom build i am planning. From what I understand, you don’t actually need to live in montana because the vehicle is owned by the llc, not personally.

What i am still confused about is how this works in practice long term

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Imaginary_Golf7211@reddit

In my state they are actively working closing this loophole.

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Anxiety-Avocado@reddit

I actually use the Montana LLC structure myself, and have for a few years now.

You don’t need to live in Montana since the vehicle is owned by the LLC. The long-term part mostly comes down to your home state, insurance, and keeping the LLC in good standing.

A lot of people oversimplify it, especially online, but it’s definitely something worth researching carefully based on your specific state and situation. Happy to answer any questions about the process or my experience with it if you have any.

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captain_sta11@reddit

It’s a loophole that states are very much catching onto. It’s easily tax avoidance and a lot of states are handling it as tax evasion and heavily cracking down on it.

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DimensionCareful507@reddit

whats the benefit of registering in Montana?

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Anxiety-Avocado@reddit

Lack of sales tax, potential permanent registration options for qualifying vehicles, and privacy through an LLC structure.

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PomegranatePlus6526@reddit

Tax avoidance. You might be able to save 10k a year, plus some states charge for plates based on residual value of the car. So very expensive yearly.

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Ifyouhavethemeans@reddit

They arrested YouTuber Cody Detwiler for avoiding TN sales taxes on his prop cars for video content. He was on YouTube, so low hanging fruit to make an example of.

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thrwaway75132@reddit

My kids school investigates the home address of people who drop their kids off with out of state tags (to make sure you don’t live over the border and use someone else’s address for school).

The resource officer asked someone about their Montana tags on an exotic. Basically told them you live here, you have six months to changes your tags after moving, I’ll give you a ticket a ticket if I keep seeing it.

It’s a 9/11 GT3 that I’m guessing homie doesn’t want to pony up 7% to the state on the purchase price.

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popcornfart@reddit

Cali? When I moved there I used to get tickets quite frequently for having out of state plates.

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Billz3bub666@reddit

Move there and become a Dental Floss tycoon

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Smitty-TBR2430@reddit

Your age is showing. 😜

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Billz3bub666@reddit

you could get a little horse trailer

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Smitty-TBR2430@reddit

For the Pygmy Pony?

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Billz3bub666@reddit

His name is Mighty Little

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AggravatingSpread837@reddit

You need to pay an attorney to set up a limited liability corporation for you in order to register a vehicle in Montana without being a resident.

End up costing you a lot more.

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jrileyy229@reddit

There are several services/website that will do it for you, costs like $500.. and then a few hundred a year for renewal and tax return.

While it's largely been used for tax avoidance, there are some other use cases. I have a buddy who bought a high end kit car from one of the big names and they assured him it would be able to be registered in our state, it was not. After months of nonsense, it now has montana plates... Even though he paid tax on it. Some states are very strict, other states like florida you can plate a top fuel dragster and drive it on the street if you wanted.

For OP, who mentions a custom build, this may be a valid consideration. Presumably he's paying tax on all parts bought... So it's not tax avoidance.... It's beurocracy nonsense avoidance.

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AggravatingSpread837@reddit

Oh, I’m completely aware.

If you are a California driver, and you’re not worried about having your car, impounded, by all means register in Montana. Other states are stepping up enforcement against vehicles registered in Montana being operated on their roads as well.

If you are simply trying to escape your local DMV fees, seems like a pretty expensive way to save money.

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jrileyy229@reddit

Well, I'm not in California... And it seems to me that's about tax avoidance and not some kind of safety thing. So good, I hope they do crack down, rich people buying ferraris should be paying taxes.

That is a slippery slope though... Apple, the richest company in the world at the time, didn't pay taxes for a decade, and we were all okay with it and still bought their products... They used ireland as their Montana.

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MikeExMachina@reddit

Yeah your too late to this game bro

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Quicksix666@reddit

Ask whistling diesel

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Signal-Confusion-976@reddit

How much do you think you are going to save. It's kind of a grey area. Recently states have been going after people for this. The states are charging people with tax evasion. By the time you pay a lawyer to set up a llc and register a vehicle there it will probably end up costing you more than registering in your state.

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Individual-Fail4709@reddit

Cheap to register a car in Texas. Don't do this. All states are cracking down on the Montana plates loophole.

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JPhi1618@reddit

Does this not save you the 6.25% sales tax?

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Individual-Fail4709@reddit

Will cost you to set up your LLC and you may save if the state doesn't catch you.

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JPhi1618@reddit

First, for OP this is not a good idea, but if you’re buying a $200k+ car, tax is going to be well over $10k, and the idea is to save that right? You say it’s “cheap” to register a car, and for a used Camry it’s no big deal, but that’s not who uses Montana LLCs.

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Individual-Fail4709@reddit

Evading taxes is never a good idea and his builder would have to go along with it.

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Interesting-Swim-162@reddit

This isn’t something you do for a custom build, this is something you do for a crazy expensive supercar to avoid paying taxes.

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Muttonboat@reddit

isn't it also a way to skirt inspection in some states?

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Interesting-Swim-162@reddit

Just pay a guy $100 to pass you.

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S7alker@reddit

At your own risk https://taxprofblog.aals.org/2026/02/02/more-states-cracking-down-on-the-montana-vehicle-registration-tax-loophole/

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Low-Carob9772@reddit

Are you building something that would not be legal to register in Texas? Information would help people help you... I'm in Florida... if it has a title you can register it and drive pretty much anything that isn't an obvious danger to society.. yet we still do that successfully most of the time as well...

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Longjumping_Lynx_972@reddit

Funny thing ive noticed, the people who dodge taxes complain the loudest about things being broken that tax dollars would fix.

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Busy-Organization942@reddit

Not a tax attorney, but I think you also need to file a tax return for the LLC every year, so that needs to be figured in.

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bobqzzi@reddit

Don't do it. It's tax evasion

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Chockfullofnutmeg@reddit

It’s illegal in your state. https://www.jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059/

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unpolire@reddit

My brother did this for a fleet of motorcycles. I looked into it for my cars. Initial LLC setup fee. Annual LLC representation fee. Vehicle registration fee based upon the age of the vehicle. All vehicles are titled and owned by your Montana LLC. Then California wanted its vehicle sales taxes and the CA DMV started enforcing citing vehicle owners for evasion of fees. I did not do it.

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natenese@reddit

Use Legal Tags LLC. We've done it before for lost titles in Illinois. Costs $750.00 for the whole process but you do need a VIN that isn't stolen or salvage. Works great, and then you have a title you can transfer back to Texas. Easy & quick but not the most cost effective.

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