Thread: Newer vs. Older
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Old 04-25-2016, 11:02 AM   #73
MYTraveler
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Quote:
Originally Posted by drb1025 View Post
So there is a point where the value of the boat doesn't support the use of an LLC simply to save on taxes, but in a high sales tax state like WA, it can be advantageous. Oregon on the other hand, not so much. And if it is a charter boat or otherwise income (loss) producing, that is another matter.
In California, it is a common misconception that the transfer of LLC ownership will not trigger state sales tax on a vessel owned by the LLC for which sales tax was either previously paid or exempt. That is wrong, although as a practical matter it may be that the state will not assert the sales tax liability because it will not notice the LLC transfer. That may be true, but several years that state began making an effort to identify such transfers (which, more importantly, have property tax reassessment implications under California's prop 13 which limits reassessments between ownership changes).

I cannot speak to WA, but would be careful to confirm that no tax is triggered by the transfer of LLC ownership.
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