The Expert Podcast

Okay, breaking news. Keep an eye on this channel. This is a uh an older article. This is from about six months ago where California was cracking down on Montana LLC's. But there's some news. There's a group of states, a consortium of other states where they have piggybacked on what what California did. California was very successful in cracking down on these illegal Montana LLC titles and registrations. And what makes it illegal is people are using it to avoid sales tax, to avoid title requirements, to avoid registration um requirements such as emissions, inspections, a whole number of things.

And when the states started finding out about this a few years ago, they didn't know what to do. Well, California figured out what to do. They actually came up with a system to trace these vehicles, trace them back to the owner who lives in their state, and they busted a bunch of people. Uh people were prosecuted, had to pay fines and penalties and had criminal prosecutions. Uh a group of other states, about 28 states have joined in now, and they're copying the same thing. So over the next few months, you're going to see a whole bunch of roll out of prosecutions, regulation, enforcement against these plates.

And a lot of people think it's legal because it's legal to get a a registration in Montana, which is legal in Montana. The problem is if you are a reg uh a resident of another state and you title it out of state in Montana through an LLC, you're more than likely violating your state laws on taxes, on registering a vehicle in your state, uh on um avoiding different type of requirements.

And how do they find you? Well, there's a number of ways they do, but here's one of them, just one of them. They have what's called ALPR, license plate readers. They're cameras all over the place. They're on street signs. They're on parking lots. They're on police cars. They're on taxi cabs. They're everywhere. And they're monitoring every plate that drives by.

And if they see a Montana plate go by on a regular basis over the course of a few weeks or a few months, they know that's not just somebody visiting the state from Montana on vacation. So if let's say you live in Texas and you have a Montana LLC license plate, they're going to see that plate go past a certain place on your way to work or in a gas station.

And then what they're going to do is they're going to file a request for the records of that license plate in Montana. If they see it's under an LLC, they're going to back trace the LLC and they're going to they know where you go because you drive by the same intersection every day and they're going to have you pulled over and they're going to do an investigation and this is what they did in California and they're going to charge you with back taxes, penalties, revoke your plate, maybe revoke your title and in some cases even seize your vehicle.

So keep an eye on this channel for some news coming out over the next few weeks or months where these other states and we're hearing feedback from the DMV commissioners and their offices to where other states are following the lead of California and getting rid of this so-called loophole about getting license plates.

And remember, if you have a vehicle you have a title problem for, there's many easier ways than doing the Montana process. It may seem like it's sexy because you're doing some kind of backdoor loophole, but it really takes more time and costs more money than just going through a process in your state. And our website will tell you more about that.

If you like this video, be sure to click on a few others on our channel to see if there's other information that might be helpful to you about this same subject or me maybe even other related subjects that could assist you with your resolution of your issue.