Out of State Montana Registration Legal?

jirwin

Well-Known Member
Is the whole Montana thing really on the up and up? Was just reading this and it made me curious how you guys spin it. Seems like you're asking to be audited, or have your insurance cancelles if you fet in an accident (potentially making you liable for everything). Have any of you with Montana plates gotten in an accident or ticket with the car?
 

Ark :D

Goblin Guru
It's 100% legal.

The Montana registered agent registers an LLC (a business) for you, with you being the owner. The agent provides you with a mailing address and acts as an in-state proxy for you. You then sell your car to your LLC, to which it is then titled. It is then considered a company car and can legally be registered in Montana. Since you own the LLC that owns the car, you can drive it anywhere, as long ad you carry insurance on it, and are a state-licensed driver.

Insurance is trickier. My daily driver insurer laughed at me when I mentioned the Montana registration, then laughed harder when I mentioned it being a kit car. But I came across a specialty insurance agent who painlessly got it insured through Modern for less than $500 a year. I since spoke to Modern and was assured that the Montana registration was not an issue, and they do it all the time.

Disclaimer: I have not made an insurance claim, nor have I been ticketed, so if/when that hammer drops, may be up ****'s Creek with no paddle, who knows.

For what it's worth, I've had multiple encounters with police, and not once has one given me trouble. Most of them offer a thumbs-up and I even honk and wave to them now. I respect them though, I dont speed or act stupid on the road.
 

Ark :D

Goblin Guru
Also, yes, I read both articles and understand that I'm behaving exactly the way the article said I would. But I can tell you this: if I had ANY inkling that I was doing something illegal or unethical, I wouldnt have done it. My car would be sold and enjoyed by someone else in a different state than I live in, no sweat, no worries.
 

Gtstorey

Well-Known Member
As far as the taxes, I plan on trying to get my state to take them first, but if they don't want them, I'll go the Montana route.
 

Briann1177

Goblin Guru
Until the Goblin came around, I would be willing to go out on a pretty long limb and say that the vast majority of the MT registrations were done to avoid taxes. Now that that there are more and more Goblins on the road, I think a new reason of going the MT route has been introduced. I think most builders here who have gone the MT route have done it not to avoid the taxes but to avoid the complex registration laws in their states. They basically don't want to deal with the hassle of bumpers, wipers, parking brake, fenders, etc. I also have heard that states like IL don't allow any tube chassis whatsoever on the roads so having the MT option gives them a way forward


Is it legal? Yes. Is it ethical? Questionable, but that doesn't really matter. It's certainly a risky move to go that route, but I think as long you don't bring unnecessary attention to yourself, you should be fine.
 

r3drckt

Goblin Guru
It’s not just Goblins, Kit car builders have been using the MT route for years to register their cars in states that make it impossible or reasonable to title and register the vehicle in their home state.
 

jirwin

Well-Known Member
@Briann1177 I tend to agree. More for regulations than taxes. I've been looking into it for insurance reasons, because Michigan insurance is iiiinsane. I'm already registered here, so they got their money. If I understand the process correctly, I would be insuring it in Montana, but driving it in Michigan. I believe insuring in another state could be an issue though - at least if I was involved in an accident. Insurance companies will avoid paying out if at all possible.
 

Desert Sasqwatch

Goblin Guru
I'm trying to understand if this thread is a dig at Goblins being registered in an out of state situation or a poke at skipping taxes? The articles provided focus mainly on avoiding paying taxes. Most Goblins registered in Montana were done because the DMV in their home state will not register one or put so many restrictions on the car it becomes almost impossible to register.

IMO, there are ways to make the system work for you and if Montana provides a means to legally register your Goblin, that is a good thing. Understandably things like insurance can be an Achilles heel, but I'm sure there are companies that work the system themselves and have the necessary things in place to correctly register a Montana plated car.
 

jirwin

Well-Known Member
Not a dig. I'm debating doing it after the fact and after looking into it, it seems like their are some issues is all. I don't want to do something that could bite me in the ass. Whether that be tax evasion or having to pay to cover an accident because insurance finds the whole thing sketchy. Just looking for more insight on how others see it.
 

SmsDetroit

Well-Known Member
It's 100% legal.

The Montana registered agent registers an LLC (a business) for you, with you being the owner. The agent provides you with a mailing address and acts as an in-state proxy for you. You then sell your car to your LLC, to which it is then titled. It is then considered a company car and can legally be registered in Montana. Since you own the LLC that owns the car, you can drive it anywhere, as long ad you carry insurance on it, and are a state-licensed driver.

Insurance is trickier. My daily driver insurer laughed at me when I mentioned the Montana registration, then laughed harder when I mentioned it being a kit car. But I came across a specialty insurance agent who painlessly got it insured through Modern for less than $500 a year. I since spoke to Modern and was assured that the Montana registration was not an issue, and they do it all the time.

Disclaimer: I have not made an insurance claim, nor have I been ticketed, so if/when that hammer drops, may be up ****'s Creek with no paddle, who knows.

For what it's worth, I've had multiple encounters with police, and not once has one given me trouble. Most of them offer a thumbs-up and I even honk and wave to them now. I respect them though, I dont speed or act stupid on the road.
Funny. Modern turned me down
 

Ark :D

Goblin Guru
I'm not understanding .... why approach Modern directly when a recipe for success is posted in the link above?

I'm not so egotistical as to say "Everyone should follow my path", but I can say for sure that while I was building my car, I followed what was known to work, posted by others on this forum. The path of least resistance, etc.

*edit* Just realized this is a derail. Sorry about that.
 

Dsteinhorst

Well-Known Member
I went Montana after Wisconsin pulled my title, so I had no choice. I had already paid WI sales tax which was not refunded, so I'm good there. I haven't been hassled yet, but I'm sure the inspector that pulled my title will be back to talk. Wisconsin law states if it is legal in its home jurisdiction, it can be operated in WI.

Regarding insurance, I went through Progressive commercial after telling them it is a "vehicle owned by my business." Did it all over the phone in 35 mins. They didn't have a single issue with any of the vehicle or driver information. I had to be insured in the state the Goblin was kept in, not where it was registered. Price was about what others have stated.

I have directed other WI Goblin owners to go MT, and it has worked out well. It's the only option in our state, according to my inspector.
 

jirwin

Well-Known Member
Thanks for the insight @Dsteinhorst . That would be very similar to my situation (minus pulled title) if I transferred it - already paid tax and whatnot.
 
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