Using a Montana LLC to register a vehicle you garage in California or another high-tax state is increasingly scrutinized by state revenue agencies. California actively pursues these arrangements and can assess back taxes, penalties, and interest if they determine the vehicle is domiciled there.
Wyoming LLC
Wyoming is the stronger pick for asset protection. Its statutes explicitly make the charging order the sole remedy for a creditor against a single-member LLC, which is rare and meaningful, most states leave single-member LLCs exposed. Annual fees run about $52 for the state report, formation costs through a registered agent typically land between $100 and $300, and Wyoming does not require you to disclose member names on public filings, giving you genuine anonymity if you use a nominee or manager structure. For anyone comparing domestic options, Wyoming vs Florida covers how Wyoming stacks up against another popular choice for holding companies.
Montana LLC
Montana is primarily used for one specific purpose: registering vehicles and trailers to avoid sales tax in high-tax states like California. Residents of other states set up a Montana LLC, title their RV, boat, or luxury car through it, and sidestep sales tax entirely since Montana has none. For general asset protection, Montana is a step behind Wyoming. Its charging order protection is not as explicitly codified for single-member LLCs, and courts in your home state may not respect the structure if you do not maintain genuine separateness. Formation costs are modest, around $35 for the state filing, and annual report fees sit at $20, making it one of the cheapest LLCs in the country to maintain.
Things people ask first.
Which state has stronger asset protection, Wyoming or Montana?
Wyoming is clearly stronger. It explicitly extends single-member charging order protection by statute, which Montana does not. Creditors attacking a Wyoming LLC interest are limited to that remedy alone, meaning they cannot force a dissolution or seize underlying assets directly.
Can I use a Montana LLC to avoid sales tax on a car if I live in another state?
Technically the structure works because Montana has no sales tax, but your home state may consider the vehicle subject to its own use tax if it is primarily garaged there. California, for example, actively audits this and has assessed large penalties on owners who use Montana LLCs purely to dodge California sales tax.
Do I need to live in Wyoming or Montana to form an LLC there?
No. Neither state requires you to be a resident. You need only a registered agent with a physical address in the state, which any formation service can provide for $50 to $150 per year.
Which LLC is cheaper to maintain annually?
Montana is cheaper at roughly $20 per year for the annual report versus Wyoming's $52. Formation is also cheaper in Montana, but the difference is small enough that it should not drive the decision.
Can a Wyoming LLC hold real estate located in another state?
Yes, but the LLC will typically need to register as a foreign LLC in whatever state the property sits in, which means paying that state's fees and potentially exposing the structure to that state's laws. For multi-state property, a layered structure using a Wyoming holding company above state-specific LLCs is cleaner.
Does a Wyoming LLC protect privacy for its members?
Wyoming does not require member names on the public Articles of Organization. If you appoint a manager rather than listing yourself as a member, your name stays off the public record entirely, which is one of Wyoming's primary advantages over most other states.
Is a single domestic LLC actually enough to protect your assets?
The Offshore Playbook shows you how Wyoming and Montana LLCs fit into multi-layer structures alongside offshore trusts, foreign holding companies, and banking arrangements that give real separation between you and your assets.
Get the Offshore Playbook