As a word of caution about domicile, if you intend to make Texas your home (which is the legal definition of domicile), you should truly “make Texas your home” by going above and beyond the process of selling your home in California and registering your vehicle and obtaining your driver license in Texas. In fact, since you plan to travel extensively throughout the country, to firmly establish Texas as your home, you need to follow what I call the Ten Commandments of Domicile (in this order):
- Obtain your Texas address;
- Register your vehicles in Texas;
- Obtain your Texas driver licenses;
- Register to vote;
- File an Affidavit o f Domicile with the court;
- Establish community relations i n Texas;
- Change to local businesses for banking, accountants, doctors and dentists;
- Have your estate planning documents (wills, trusts an d powers o f attorney) written i n Texas;
- Keep stored belongings in Texas;
- If you still have real estate outside o f Texas, rent the real estate o r otherwise sho w that you aren’t using it as your “hub.”
The reason the Washington DPS officer suspected a problem was because of the discrepancy between Texas plates, Texas driver licenses and that Montana plate on the RV. Consistency between these items, license plates and driver license, is the best way to proceed. Realistically speaking, if you intend to claim domicile in Texas, then bite the bullet and pay the Texas sales tax for your RV. Then, all your vehicles will have Texas license plates. Your driver license will be Texas and, if you are pulled over for speeding in Washington State, you won’t face felony charges for tax evasion.
As an aside, it is important to remember that paying Texas sales tax helps to fund the local Livingston, Texas, community, a low-income, rural area, 70 miles northeast of Houston. The taxes also provide funds necessary to keep Texas roads in good repair. After Hurricane Harvey, there’s even a greater need for assistance in this regard.
So, if you truly want to leave your cares behind when you choose the full-time RV lifestyle, I recommend staying informed and remain certain that you are following the proper procedures to avoid future legal problems. Adhering to the advice of legal counsel will provide you with peace of mind and worry-free RV travels.
To add to your article and I feel correct decision…1) when any of the LLC creating law firms are asked for an opinion of its legality they make none and send you a copy of your present state law re who is required to have plates in that state 2) as an insurance agent for many years I also have serious issues of using a “personal Auto Policy” to cover a vehicle that is a commercial enterprise. The personal auto specifically excludes coverage for commercial activities/ventures. If a commercial policy is used it does not provide the broader coverage of a personal policy..
Enjoyed your article…
We have been full time RV for 2+ years. Domiciled in South Dakota.
We sold everything in Iowa where we had lived for almost 20 years.
Our wills were last done in 2017 as I prepared to retire.
Nothing has changed but reading your blog makes me wonder if it would be best to redo our wills in SD. If so it would be boilerplate with no changes. Seems like unnecessary cost at an attorney.
We are sure to be in SD at least once a yes or more often-we have family on both sides.
Have registered to vote etc.
Since we have no real property anywhere I am not convinced it needs to be done.
Full time means the end could come for either/both of us anywhere other than SD.
Your counsel would be appreciated!
Phil & Evy Somsen
SKP #131800
Hi there!
With specific questions like yours, we recommend you reach out to legal counsel directly so all factors can be considered in the discussion. Loring & Associates (who Mrs. Adams works with) typically offer a free consultation, which sounds like it would be helpful in your case. http://www.loringlaw.com/
I get a kick out of people who want all of the perks their taxes pay for but don’t want to pay any taxes
Great insight and good advice.
Great article! We looked at doing a Montana LLC ,but it seemed a bit risky so we opted to ‘bite the bullet’ and pay Colorado sales tax when we purchased our RV. Changing domicile to Florida using Escapees was simple when the time came to become fulltimers.
Thank you for sharing very informative article. I recently bought used RV from Texas on November 6th. Drove it to Ca where we live. But we rent both of our houses. 1house has been rented for 4years the house we currently live in will be renting in 10days. We already have contract to rent. We want to be fulltime RVing. Planning to use Montana state to register our RV
LLC. What is the requirement and legal. We also own 2 cars still register CA and I have CA driver license.
I found this article very close to my case… but I would like to make sure if we are going to be legally with our LLC Montana RV register and still have 2 cars CA register.
Thank you for our RVing community and this forum.
Ngoc , I’m certain that if a Cal State Trooper were to pull you over and find you had a Cal driver-license, a toad-car licensed in Cal and a motor-home with Montana plates it would not go well….
To avoid that one guy I know never brings his Montana LLC licensed MH into Cal, -ever-. It’s parked in Oregon.
I found this line of thoughts, decided that our daughter should read it and save it…. the whole thing, for reference. This covid 19 situation has really put folks around here in a situation. Not knowing where to park the RV, our daughter is now parked in a friend’s driveway, just waiting for the lifting of the law saying she must stay there Until she leaves the state where she is parked. Good thing she has friends…
I travel with a motor coach and jeep both owned and registered by the same Montana LLC, my drivers license is from a state other than Montana, I have a rental agreement from the Montana LLC for the motor home and the jeep.
I never say the I HAVE A MOTOR HOME REGISTERED IN A LLC etc…..wake up people, the LLC is a separate legal entity just as you ALL CAPITAL NAME is LOL.
Hi Steve. Thank you for sharing your thoughts. Since you have a rental agreement with the MT LLC, do you need to file a tax return for the LLC. Thanks for any comments.
The IRS treats one-member LLCs as sole proprietorships for tax purposes. This means that the LLC itself does not pay taxes and does not have to file a return with the IRS. As the sole owner of your LLC, you must report all profits (or losses) of the LLC on Schedule C and submit it with your 1040 tax return.
I would venture that the rental income and the costs incurred by the LLC to maintain, store, license etc the RV would not generate a profit that would create a tax liability.