A common misconception is that registering a vehicle under a Montana LLC will complicate your tax returns. In reality, that’s not the case at all.
Here’s why:
A Montana LLC used for vehicle registration is classified as an asset-holding LLC. This means it has no revenue, no expenses, and exists solely to own the vehicles registered under it.
Since the LLC isn’t generating income, no tax return needs to be filed—and the IRS has no reason to be concerned. According to IRS guidelines, an LLC with no income isn’t required to file a tax return.
Additionally, because this is an out-of-state LLC, you won’t need to file state tax returns in your home state. Your personal tax return remains unaffected, with no mention of the Montana LLC required.
The Purpose of a Montana LLC
The sole reason for forming this LLC is to establish residency for vehicle registration in Montana—that’s it. You don’t need an active business, and for most people, this is the only LLC they’ll ever own.
And if law enforcement stops you, they’re not interested in your tax filings. Their concern? Why you were going 112 in a 65.
Which brings us to the next point…