You must not be looking at any Diesel work trucks of a certain vintage — they’re all MT plates
4 Likes
MT plates I’ve seen (living in Cali over 40 years) are typically associated with heavy contractors like pavers, electricians, arborists,etc. Often the signage on these trucks actually refers to MT offices. Lots of Idaho contractors, too. Cali if ruthless if they catch you trying to cheat them…it will cost you heavily.
2 Likes
Thanks for the feedback guys. I guess there is no proper way of doing this without getting into trouble, so possibly not worth it. Regarding the second question thu:
Any takers?
There is a lot of grey area here that would need to be unpacked.
Eventually your CPA. If your only goal is to maximize revenue and pay the least federal/state tax, you should find an accountant like the one I didn’t hire (“the Shark”)
Inside the grey area sounds a lot like drop-shipping in one form or another, plenty of websites and podcasts discussing FBA that touch on this. None of it is a substitute for actual tax advice from a pro.
1 Like
if you think LLC in MT and OR is difficult. Amazon polices is much more difficult.
Once you are banned on Amazon, you are banned for life.
3 Likes
If you go to the exotic car meets like Ogara Sunset GT you will seen many with montana plates.
A lot of people here talk about sales tax, but MT also has fixed DMV rates. In california the dmv tags are % of value of the car… So it can add up quickly once your in hypercar price ranges.
If you got a lot of cars, and rarely drive the MT plate cars, I dont think anyones going to notice if you actually have a MT drivers license… I got friends who live 6mnths and 1 day in NV to avoid state income tax… All it takes is a condo/cell phone and some bills and they are good to go.
2 Likes
Fair enough, I’l have to look for a CPA. Never had one.
Any ideas if CA residents establish LLC in other states have any issues?
I only need to register the car in other state for 12 months, after which i can bring to CA and register here.
Might be worthwhile setting up some bills in OR or MT for this
Im not sure what you are trying to get at? But yeah all thats possible, but its a lot of work.
As a CA resident you can make a company in any state. It just depends on what your going to do with it and how to fund the company.
Before I say too much, what is the reason of setting up the LLC in FL or TX versus your home state where you have physical presence there, which would be most straight-forward? Are you asking because Florida has no state income tax for its residents? I am not sure if you would benefit from this; I believe, if you are a CA resident, and you have a Florida LLC, CA will know that you had income from another state and will tax you on the state level anyways.
Ah I see, this is exactly what I was asking. Sorry I wasn’t raised here, some of the tax rules evade me.
However, if I am setting up an LLC say in FL, regardless of where I personally reside, why would CA tax me if the LLC is in another state? Its not my income, its the corporations income
Because that’s not how income tax works in America. Every business would incorporate in Florida if doing so allowed them to avoid having to pay state income taxes where they actually live - assuming the business makes money and you want to be able to pay yourself a salary/use the money for non business purposes.
But it sounds like you really need a CPA and maybe a lawyer. You are asking from advice I wouldn’t feel comfortable getting from internet strangers.
4 Likes
You are 100% correct. I should understand where to find one lol.
I thought all companies were incorporated in Delaware for the same reason
The long and short of it is most companies incorporate there because Delaware has a Democratic/bipartisan consensus to keep their corporate laws up to date and their Court of Equity consistently has competent jurists selected for their experience and education rather than political reasons.
4 Likes
It would be easier to move to Nevada, and live part time in California if you want to avoid CA taxes.
Works great if you have no kids and a simple tax structure. Or have an actual operating business making income in that State.
1 Like
I dont have a simple tax structure lol. But do plan on operating a legit business outside CA thu
If you, the primary member lives in CA, then you have to have a CA LLC (as primary or parent LLC) and have a nested LLC (or child LLC) in another state. You cannot avoid CA taxation by simply setting up LLC in another state. They will come to know and will back tax you. What are you trying to avoid, the CA franchise tax fee for a start?
1 Like
I am trying to understand the legal framework of this country and state. And as Mitt Romney said, I want to pay as little tax as I am legally required to do.
5 Likes
Keep in mind one of the way’s Mitt Romney does this is by living in Utah with a flat tax rate of 4.95% on income and prior to that he made enough money where the tax paid didn’t impact his lifestyle or financial choices.
Obviously you have chosen to live in CA with the benefits that accompany that choice, if your looking to pay less in taxes are you considering a move out of CA and to a state with a lower tax structure or Total Cost of Living?
Better to “move” how ever you want that to look.
Ive entertained what you are suggesting myself but could not figure out a clean way without moving.
Somethings that you will need if you live in a different state but spend time in CA.
- have an address/house pay mortgage/property tax/bills/rent what ever
- credit card that gets used gas/groceries
- cellphone would help
- pay mostly with cash while in CA
- make sure you dont have kids attending school in CA…
If you are going to avoid paying max taxes, just be very aggressive on your corporate taxes and be reasonable on your personal. Otherwise move to a different state.