This is a valid option for some, but for anyone considering this, do some thorough research first! A year or so back, I was THIS close to pulling the trigger on doing this for my vehicles, but just as I was getting all of my ducks in a row, the NY legislature put a provision in their annual budget bill that killed this. (I *could* have still done it, but I still would have owed the sales tax to NY, so it didn't make financial sense to do so from that aspect, but even less palatable in my case is, because I was looking to transfer vehicles that I already own, once the LLC owned them and I drove them in NY, the state could have forced me to pay sales tax on them *again*. Having to pay it once was bad enough!) The main reason I was looking into this was to avoid NY's annoying annual inspections, also many of my vehicles are older and thus could have qualified for a lifetime plate in MT, unlike NY where registration fees are due every 2 years; the sales tax avoidance was just a really nice bonus. Avoiding the annual inspections wasn't worth the "double taxation" risk to me though, so I had to pull the plug on the idea.
Anyway, the socialist states are getting wise to these Montana vehicle LLCs, so if you are looking to go this route, be very careful and do your homework!