Buying a boat vs. buying the LLC that owns it.
The boat I looked today is LLC (Limited Liability Corporation) owned.
I will definitely contact legal counsel and my accountant if I decide to make an offer to purchase.
From what I determined in my brief Internet search to day there is no CA sales tax if the LLC is purchased, which on a 35K dollar boat would save you around $3150. You then pay an annual LLC tax of $800.
If I buy the boat out of the LLC, I pay the sales tax, and around 1% of the boats value a year in taxes, which would be around $350.
So, 10 year in an LLC would be around $8000.
10 year of private ownership of the boat would b around $6650, without considering the depreciation.
There are also legal advantages to be considered if I ever decide to run the boat as a charter.
Does anyone have any experience with a LLC?