Just remember there are reporting requirements and tax liabilities for LLCs that need to be looked at before it's totally a "no brainer"
Very true my friend, and you are absolutely correct, but it's still pretty much a no brainer.
There is the quarterly tax reporting for the time the LLC is operational. If there's no income, then there are no payments. You have (IIRC-per my CPA), 4 years to show a profit. Otherwise, in the case of boats, you have a very expensive hobby
. In the meantime, if the vessel is licensed through an LLC, make the business maritime related, and he may actually have the opportunity to write off a good portion of the purchase, accessories, fuel, et al, for the time he has the "business."
Once he arrives at his destination, transfer the boat from the LLC to himself via a lawful purchase. Pay the necessary taxes to his government, obtain insurance in his own country once the vessel is properly licensed there. Since "he" will no longer be subject to U.S. Law, close the LLC and be done with it.
Or keep it open for a couple of years to prove you could not make a go of it, then close it.
It's really nothing more than a legal work-around to get him to his final destination. As my CPA says: "You don't screw with the IRS!
Instead, you beat them into submission with their own laws
"
OD