LLCs, KU, And FB

 Posted by at 12:39 am  Nick's Blog
Apr 132018

After reading yesterday’s blog, a regular reader posted a couple comments suggesting that people form an LLC and avoid all the registration hassles from their state. For those who haven’t heard the term before, an LLC is a limited liability corporation. Many people form them in Montana, which welcomes out-of-state residents to do so. To hear the guys that are making money forming them talk, it’s a great way to save a fortune on taxes and registration. Well, maybe not.

I have been preaching against setting up a Montana LLC to avoid paying sales taxes on an RV for years. It’s popular with people who live in a state with high registration costs and sales taxes who want to save money. However, it can really bite you in the butt if your home state catches you. Fines can be well over $10,000 and several states are actively looking for residents who do this, including Colorado, Arizona and California. Another state that frowns on LLCs is Iowa. Go back to yesterday’s blog and read the comment by longtime reader Gary Hershlander, who formed a Montana LLC and found himself in court facing both civil and criminal penalties.

There are also problems for fulltimers who use LLCs. In one case I know of, there was a major accident and the RVer’s insurance company would not pay because he bought the insurance as a private individual and the RV was registered to an LLC, which is a company. They said he needed commercial insurance. There have been other problems, including California demanding road taxes because an RV licensed to an LLC is considered a commercial vehicle. We also had a subscriber whose bank called the loans on his RV and car because by setting up an LLC he had limited his personal liability and they loaned the money to buy the RV based upon his creditworthiness.

There are several paralegals and attorneys in Montana who advertise in RV magazines to set up LLCs for RVers and, of course, they will assure you this will never happen. A few years ago one of these outfits challenged me for writing about my stand on this. I replied that if he would buy a $100,000 insurance bond to guarantee to protect me if I got in trouble with his LLC, I would not only set one up, but would admit I was wrong and promote it in every issue of the Gypsy Journal. He declined. I wonder why.

Here is an excellent article on Montana LLCs with a lot of information that you need to read and understand before you think about setting one up.

On another topic, somebody yesterday told me that he, his wife, and daughter are all avid readers, but even with average prices of $2.99 to $3.99 for e-books, keeping up with their favorite authors is starting to put a strain on the budget. I suggested he look at Amazon’s Kindle Unlimited subscription program. A monthly fee of just $9.99 gives KU subscribers access to over 1 million e-books (including all of mine), as well as thousands of audiobooks and issues of current magazines that they can read on any device. If you are an active reader and buy more than three e-books a month it can save you a lot of money. Click this link to learn more and sign up for a free no obligation 30 day trial of Kindle Unlimited.

And finally, apparently the latest scam going around is an instant message I received from somebody saying that he is from the Facebook main office and that Mark Zuckerberg is selecting certain Facebook members to receive $50,000 as compensation for the information leaks that are currently in the news. And can you believe that I’m one of the lucky ones chosen to receive this windfall? Of course, it’s small potatoes compared to the $10 million that nice man from Nigeria is going to be depositing in my bank account any day now. But what the heck, $50,000 is $50,000. I’ll take it.

Every day we are getting orders from readers taking us up on our special offer of digital back issues of the Gypsy Journal for the years 2003 through 2017. They come in PDF format on a USB thumb drive and will provide you with weeks of great reading about places to visit from coast to coast and our adventures as fulltime RVers. The normal cost of the back issue collection is $75, but we are running a special through the end of April for just $65, which includes shipping. Don’t miss out on this great deal. If interested, you can log onto and make payment to  Be sure to include your mailing address for fast delivery.

A lot of you do your online shopping by clicking this Amazon link or the Amazon Search box at the top right sidebar of this blog. We appreciate that, because when you purchase an item on Amazon any time of the year from one of our links, we earn a small commission, which helps us offset the cost of publishing the blog.

Be sure to enter our latest Free Drawing. This week’s prize is an audiobook of Chesapeake 1880 by my friend Ken Rossignol, a tale of life in the Chesapeake Bay region as the industrial revolution changed the world forever. To enter, all you have to do is click on this Free Drawing link or the tab at the top of this page and enter your name (first and last) in the comments section at the bottom of that page (not this one). Only one entry per person per drawing please, and you must enter with your real name. To prevent spam or multiple entries, the names of cartoon or movie characters are not allowed. The winner will be drawn Sunday evening.

Thought For The Day – In my defense, I was left unsupervised.

Nick Russell

World-Famous, New York Times Best Selling Author, and All-Around Nice Guy!

  3 Responses to “LLCs, KU, And FB”

  1. Possibly another option if you are a snowbird or stay in some RV Pks for any length of time. SKP Pk, Benson, AZ(for SKPers) probably has over 3k exchange bks (at least when we stayed there several times between ’98 & ’14).

    We have in our rv– library cards (w/pin holes in each) for AZ, AR, TX and 2 for NM towns. Also, we have shown pic ID & 2nd ID (usually passport) and left a cash deposit of $30-35 (getting a receipt) in both MO & CO towns we like. We try to remember to switch appropriate city/state lib cards as we travel. Hmmmm; sometimes we have to walk/drive back to rv for “today’s” appropriate city lib card. Just saying.

    Got to remember to switch pin-hole plastic lib. cards when we leave this state next month to spend May 11 to Aug 11 in one of our favorite NM rv pks. cc

  2. I’m a friend of Nick’s and a fairly new lawyer. I work for a state court for two judges. I think most people would be surprised how few lawyers even understand the doctrine of corporate personhood. It’s basically this, corporations are entities that are legally distinct from the person who creates them. The benefit can be limited liability. The drawback is that you can’t claim to be the corporation whenever it would be beneficial to you. We’ve had several cases recently where seasoned attorneys tried to ignore this and it has ended up not going well for them. LLCs are not always the best thing for all situations.

  3. is a web site that lists hundreds of free Kindle books every day. You can set what genre you want and you get a daily email. I’ve gotten hundreds of books.

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