More Montana LLCs Under Enforcement

Crackdown on Montana LLCs
Breaking news. Keep an eye on this channel. This is an older article from about six months ago where California was cracking down on Montana LLCs.

State Consortium Joins the Crackdown
But there’s some news. There’s a group of states, a consortium of other states that have piggybacked on what California did. California was very successful in cracking down on these illegal Montana LLC titles and registrations.

Illegal Use and State Response
What makes it illegal is people are using it to avoid sales tax, to avoid title requirements, to avoid registration requirements such as emissions, inspections, and a whole number of other things.

Enforcement and Prosecutions
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.

Expansion of Enforcement
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 rollouts of prosecutions, regulation, and enforcement against these plates.

Legal Issues for Non-Residents
A lot of people think it’s legal because it’s legal to get a registration in Montana, which is legal in Montana. The problem is if you are 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, and on avoiding different types of requirements.

ALPR and Tracking
How do they find you? Well, there are a number of ways they do, but here’s 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 in parking lots. They’re on police cars. They’re on taxi cabs. They’re everywhere.

Enforcement Tactics
They’re monitoring every plate that drives by. 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.

Investigation and Consequences
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 at a gas station. Then what they’re going to do is file a request for the records of that license plate in Montana.

State Responses and Future Developments
If they see it’s under an LLC, they’re going to back-trace the LLC and they know where you go because you drive by the same intersection every day. They’re going to have you pulled over and they’re going to do an investigation—this is what they did in California.

Future Developments and Advice
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—we’re hearing feedback from the DMV commissioners and their offices—other states are following the lead of California and getting rid of this so-called loophole about getting license plates.

Resolution and Further Information
Remember, if you have a vehicle title problem, there are many easier ways than doing the Montana process. It may seem like it’s appealing 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.

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