It’s tax evasion.

It is not illegal by Montana law, but once the car in in Georgia for 30 days or more , it is illegal under Georgia law to not register and pay the tax. Montana law is irrelavent at that point. If these Georgia residents kept the car in Montana they wouldn’t have to pay georgia anything. 

loophole implies a gap in the law.

corporations registered in Deleware, must still register as an out-of-state company in states where they do business. Those business divisions must still abide by local laws and pay local taxes.

i know of someone with a boxster that got busted and had to pay. Though if you daily it, your risk of detection goes through the roof. 

If the car never left Montana there would be no problem.

There is nothing illegal about owning property or an LLC outisde the state. What does become illegal is if that property is then brought into another state, and the LLC does not register as a Foreign or out of state LLC and thus property tax not paid. The LLC still must abide by the second state laws if the assets are…

Using an LLC to protect assets is legitimate. However in most states you are still required to pay property tax on those assets.

because they aren’t using it for a business.

There have been a couple articles on this. It appears even the folks setting up know its illegal and try to cover their butt. The notion that these guys “didn’t know it was illegal” was a bit absurd. 

“Interestingly, even the websites of the companies that promote this scamscheme hint that what you are doing is illegal:

My suspicion is they would then have to get a Georgia dealeship license, which opens up a whole other can of worms and expenses. 

I’m not familiar with Georgia law, but my suspicion would be that they would then have to register as a used car dealer as well as licensing and all that jazz.

Given the number of shady get-rich-quick stock ads I’ve seen on youtube, I perdict more crap to hit the fan.  

I agree that is why georgia wants their money. I was saying to elwood, the reason their LLC may not provide protection is because their corportation is not inteded to be a business, but instead for personal gain. They would have to prove they are using it for a business. Funny in doing so they would

because the cars aren’t being used for business purposes. 

Because they may be forced to prove the car is for business purposes.

https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059

https://jalopnik.com/the-pitfalls-of-the-montana-license-plate-scam-1711216059

Doesn’t California, have a 25 year rule for classic cars?