Empathy List Archives

JW

Jeffrey Wolf

Fri, Jun 3, 2011 2:14 AM

My long-time, but strictly land-based attorney is advising me to create a LLC
to own the boat I'm in negotiation to purchase. I understand his desire to
create layer of liability protection. My boat broker is advising me to title
and register the boat in Rhode Island, thus avoiding a sales tax expense. The
broker also advises that creating a LLC for a boat will make the closing
significantly more complex. So my questions are:

How do you own your boat? As an individual, a LLC?
Does the state where the LLC is registered need to be the same state as
where the boat is titled and registered?
If the LLC and the boat need to com from the same state (i.e. Rhode Island)
does anyone have experience with a competent, affordable attorney with
experience in these matters that I could use? On this point, it's probably
best to e-mail me privately at wolfies@sbcglobal.net - I don't want to cast
any global stereotypes about attorney's propensity to sue, but. . .
Do you think my land-based attorney is making too much of an issue here?
Any other comments, experiences or opinions are also most welcome. Looks like
we're going to be full-time live-aboard cruisers in the next 30-60 days. Quite
exciting (and a bit overwhelming).
Jeff Wolf

My long-time, but strictly land-based attorney is advising me to create a LLC to own the boat I'm in negotiation to purchase. I understand his desire to create layer of liability protection. My boat broker is advising me to title and register the boat in Rhode Island, thus avoiding a sales tax expense. The broker also advises that creating a LLC for a boat will make the closing significantly more complex. So my questions are: 1) How do you own your boat? As an individual, a LLC? 2) Does the state where the LLC is registered need to be the same state as where the boat is titled and registered? 3) If the LLC and the boat need to com from the same state (i.e. Rhode Island) does anyone have experience with a competent, affordable attorney with experience in these matters that I could use? On this point, it's probably best to e-mail me privately at wolfies@sbcglobal.net - I don't want to cast any global stereotypes about attorney's propensity to sue, but. . . 4) Do you think my land-based attorney is making too much of an issue here? Any other comments, experiences or opinions are also most welcome. Looks like we're going to be full-time live-aboard cruisers in the next 30-60 days. Quite exciting (and a bit overwhelming). Jeff Wolf

JH

Jeff Hall

Fri, Jun 3, 2011 3:54 AM

Jeff,

We put Kismet into an LLC when we purchased her 2 years ago. The process
was very easy and painless. Very little extra paperwork involved.
We also used a maritime lawyer for closing. His firm facilitated the title
and lien searches. They were very thorough and explained the process in
detail. We probably could have done with, but the peace of mind in knowing
all the i's had been dotted and t's had been crossed was worth it in my
mind.

I have no affiliation with his firm other than using them once, so feel
comfortable passing the firm name along.
www.waterfrontlaw.com

If you'd like specific information about the attorney or contact
information, please send me an email.

With regards to setting up an LLC, this can easily be done on-line in your
state. Virginia was about $35.00 and instantaneous. Generic Articles of
Incorporation and By-Laws are readily available on-line and many states
offer these as well. They must be completed and mailed in with your
registration and check.

You'll need a Federal Employer ID number (EIN), which is easily obtained via
this website:
https://sa2.www4.irs.gov/modiein/individual/legal-structure.jsp

Disclaimer: I'm not an attorney, nor do I play one on tv, nor did I sleep
in a Motel 6 last night. That said, I may have left out a step or two, but
this is basically the process in a nutshell.

I would HIGHLY recommend setting up your boat in an LLC! As you mentioned,
it affords one another layer of protection, so why not.

Jeff

MV Kismet
58' Hatteras LRC
Deltaville, VA

> Jeff, We put Kismet into an LLC when we purchased her 2 years ago. The process was very easy and painless. Very little extra paperwork involved. We also used a maritime lawyer for closing. His firm facilitated the title and lien searches. They were very thorough and explained the process in detail. We probably could have done with, but the peace of mind in knowing all the i's had been dotted and t's had been crossed was worth it in my mind. I have no affiliation with his firm other than using them once, so feel comfortable passing the firm name along. www.waterfrontlaw.com If you'd like specific information about the attorney or contact information, please send me an email. With regards to setting up an LLC, this can easily be done on-line in your state. Virginia was about $35.00 and instantaneous. Generic Articles of Incorporation and By-Laws are readily available on-line and many states offer these as well. They must be completed and mailed in with your registration and check. You'll need a Federal Employer ID number (EIN), which is easily obtained via this website: https://sa2.www4.irs.gov/modiein/individual/legal-structure.jsp Disclaimer: I'm not an attorney, nor do I play one on tv, nor did I sleep in a Motel 6 last night. That said, I may have left out a step or two, but this is basically the process in a nutshell. I would HIGHLY recommend setting up your boat in an LLC! As you mentioned, it affords one another layer of protection, so why not. Jeff MV Kismet 58' Hatteras LRC Deltaville, VA

TO

Ted or Sally

Fri, Jun 3, 2011 10:19 AM

I agree with Jeff Hall. Our last two boats have been owned in an LLC. No big
deal paperwork-wise.

Ted G
DeFever 44, Amici
Branford, CT

On Thu, Jun 2, 2011 at 10:14 PM, Jeffrey Wolf wolfies@sbcglobal.net wrote:

My long-time, but strictly land-based attorney is advising me to create a
LLC
to own the boat I'm in negotiation to purchase. I understand his desire to
create layer of liability protection. My boat broker is advising me to
title
and register the boat in Rhode Island, thus avoiding a sales tax expense.
The
broker also advises that creating a LLC for a boat will make the closing
significantly more complex.

I agree with Jeff Hall. Our last two boats have been owned in an LLC. No big deal paperwork-wise. Ted G DeFever 44, Amici Branford, CT On Thu, Jun 2, 2011 at 10:14 PM, Jeffrey Wolf <wolfies@sbcglobal.net> wrote: > My long-time, but strictly land-based attorney is advising me to create a > LLC > to own the boat I'm in negotiation to purchase. I understand his desire to > create layer of liability protection. My boat broker is advising me to > title > and register the boat in Rhode Island, thus avoiding a sales tax expense. > The > broker also advises that creating a LLC for a boat will make the closing > significantly more complex.

RC

R C Smith Jr

Fri, Jun 3, 2011 11:28 AM

My boat is owned by an LLC and I agree with Jeff as well. A couple of
points:

An LLC only requires one owner.
A sole owner LLC is simply a mention on your personal tax returnno
extra return.
LLC is formed by Articles of Organization, a one-pager, and all other
terms may be verbal.
Your lender may care that you have used an LLC and extra legal costs
could be incurred.
My LLC was created online in Delaware. No sales tax, but $250/yr fee on
LLC.

DO NOT THINK AN LLC WILL GET YOU OUT OF REGISTRATION COSTS! In my opinion
from experience, you WILL pay some state 5 percent or so. Call it sales tax,
excise taxwhateveryou will probably pay.

Bob

Robert Calhoun Smith Jr in DC
M/V MARY KATHRYN
Hatteras 58 LRC
Lying Stuart, FL

My boat is owned by an LLC and I agree with Jeff as well. A couple of points: 1. An LLC only requires one owner. 2. A sole owner LLC is simply a mention on your personal tax returnno extra return. 3. LLC is formed by Articles of Organization, a one-pager, and all other terms may be verbal. 4. Your lender may care that you have used an LLC and extra legal costs could be incurred. 5. My LLC was created online in Delaware. No sales tax, but $250/yr fee on LLC. DO NOT THINK AN LLC WILL GET YOU OUT OF REGISTRATION COSTS! In my opinion from experience, you WILL pay some state 5 percent or so. Call it sales tax, excise taxwhateveryou will probably pay. Bob ________________ Robert Calhoun Smith Jr in DC *M/V MARY KATHRYN* Hatteras 58 LRC Lying Stuart, FL

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