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Transferring personal boat to a LLC

Old 06-10-2019, 08:26 AM
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Default Transferring personal boat to a LLC

Hey guys! I recently bought a new boat and the boat is currently in my name. I would like to put it in my LLC I created. I have already added occasional charter insurance through Charter Lakes. When I went to the DMV to do this they want me to pay sales tax on the boat again.

Do you guys have any suggestions? Can I leave the boat in my personal name, but run charters through the LLC? I am really trying to protect my personal assets like my house, vehicles, ETC. Any info would be greatly appreciated.

Thanks,

Tyler
Old 06-10-2019, 08:43 AM
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The LLC has to "buy" the boat from you. Hence the sales tax charged to the LLC.
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Old 06-10-2019, 09:04 AM
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I highly suggest you get a lawyers advice.

Greg
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Old 06-10-2019, 09:46 AM
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Is this a 14' skiff or a 72 Bayliss?
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Old 06-10-2019, 10:42 AM
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Originally Posted by Yankee Capts View Post
I highly suggest you get a lawyers advice.

Greg
Couldn't agree more. Talk to your attorney about the cost versus benefit of an LLC in your very specific case.

Depending on your specific application, It may not provide as much protection as you think...and it could cost a lot; especially if you already have a loan on the boat in your name.
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Old 06-10-2019, 10:50 AM
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Just make sure that you have adequate insurance coverage. Don’t know what state you’re in but homesteads are exempt from judgments. Pay the consultation fee with an attorney in your state. Also look at “piercing the corporate veil”
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Old 06-10-2019, 02:17 PM
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Thanks guys! I contacted my attorney. He said it's best to keep it in my name and hold a bunch of liability insurance on the boat and charter insurance.


Thanks,
Tyler
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Old 06-10-2019, 02:35 PM
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Our attorney recommended, actually pleaded with us, to transfer the ownership of the charter boat to the LLC.

She claimed to taxes were a small price to pay for the protection.

Granted, we screwed up when we bought the boat in the first place by documenting it in our names - should have documented it to the LLC at time of purchase.
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Old 06-10-2019, 02:55 PM
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Originally Posted by teichholz View Post
... it's best to keep it in my name and hold a bunch of liability insurance on the boat and charter insurance.
You received some good advice. When two or more persons want to team up and run a charter business, an LLC or corporate entity makes some sense. For a one man show, the benefit, if any, is dubious at best.
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Old 06-10-2019, 03:03 PM
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Originally Posted by Pez Vela View Post
You received some good advice. When two or more persons want to team up and run a charter business, an LLC or corporate entity makes some sense. For a one man show, the benefit, if any, is dubious at best.
That may be the difference in why we got different advice. Two of us (50-50 partnership) own the boat and LLC.
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Old 06-10-2019, 05:51 PM
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I recently did this with the assistance of my brother in law lawyer who created a trust for us and the kids. The biggest PITA by far was re-documenting through the coast guard.
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Old 06-10-2019, 06:11 PM
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Originally Posted by teichholz View Post
Thanks guys! I contacted my attorney. He said it's best to keep it in my name and hold a bunch of liability insurance on the boat and charter insurance.


Thanks,
Tyler
That's how I do it.
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