Out-of-State Title Loopholes: How Montana and Vermont LLCs Bend the Rules
Download MP3Episode Description:
- Thinking about titling your car in another state like Vermont or Montana to avoid inspections, sales taxes, or insurance requirements? Here's why that's risky.
- Introduction to ALPR (Automated License Plate Readers) — cameras that scan and monitor license plates everywhere.
- Example: Registering a vehicle in Montana to avoid California’s smog tests, sales taxes, and inspections.
- How the Montana loophole works:
- Setting up a corporation to title a vehicle.
- Driving in your home state with Montana plates, thinking you are legally covered.
- Reality check:
- Every state requires you to title and register a car where you primarily use it.
- Police officers manually run out-of-state plates and can stop and investigate you.
- Automated systems (ALPR):
- Detect patterns like your car crossing the same intersections daily.
- Flag non-local plates and trigger investigations.
- Government response:
- Request records from Montana or other states.
- Track corporation ownership back to you.
- Open tax evasion or registration fraud investigations.
- Consequences if caught:
- Vehicle seizure and impoundment.
- Potential loss of the vehicle permanently.
- Heavy fines and legal action.
- Introduction to Flock Safety:
- Private-sector ALPR systems used by HOAs, apartments, parking lots, and sold to police departments.
- Insurance risks:
- Incorrect garage address can void insurance claims.
- Insurance agents may report mismatches to state tax boards.
- Potential denial of insurance coverage if car use location doesn’t match registered location.
- Bottom line:
- Short-term savings from out-of-state loopholes can lead to major long-term costs and legal trouble.
- Final advice:
- Think twice before trying to outsmart vehicle registration laws.
- Proper registration might cost more upfront but will save you from bigger headaches later.
- Explore more videos on the channel for additional advice and information on vehicle-related issues and legal compliance.
