Out-of-State Title Loopholes: How Montana and Vermont LLCs Bend the Rules

The Expert Podcast

Episode 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.