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-   -   Buying an LLC (https://www.trawlerforum.com/forums/s62/buying-llc-52331.html)

Pianomn255 08-07-2020 01:33 PM

The only time I ever saw that it might be prudent to buy the LLC was when there was multiple assets in the corporation i.e., boat, slip, charter company, etc. and you are buying the whole enchilada. I agree that you need an attourney to handle a transaction like that!

asvan1w 08-07-2020 01:36 PM

Youíre UNDER CONTRACT and now youíre asking? Youíre under contract to buy a boat but apparently are buying the LLC. Donít mean to be snarky but maybe would be helpful to read what you signed? Sigh...

bligh 08-07-2020 01:42 PM

Quote:

Originally Posted by asvan1w (Post 909370)
Youíre UNDER CONTRACT and now youíre asking? Youíre under contract to buy a boat but apparently are buying the LLC. Donít mean to be snarky but maybe would be helpful to read what you signed? Sigh...


HI. Welcome to TF. Thanks for your input. I already have the issue straightened out thanks to the members here. I apologize if i caused you any discontent- I am clearly not on the same intellectual level as you are.

Best,
Scott

Swfla 08-07-2020 01:47 PM

It did take him 5 posts since 2018 to come up with that nugget of helpful advice.

ljk 08-07-2020 02:50 PM

Quote:

Originally Posted by bligh (Post 906448)
I do need to buy the LLC. If I buy the LLC , then I avoid CA sales tax (8%).




Don't waste your money on a lawyer, because no lawyer is going to give you the answer you want!



Go ahead and do what you want, then PRAY that you don't have any liability from unknown creditors of the LLC!

tn6437 08-07-2020 03:06 PM

my son and his wife bought a llc that owned a boat. it is no different than buying a business, which in reality is what it is.all that you need to be concerned about is that you are only purchasing the assets of the llc, be certain that there are no liabilities attached. any good corporate lawyer can draw up the purchase agreement to protect you. the llc will need to file annual tax returns , for income and expenses. you can easily turn your boat into a rental and write off all the expenses.

BandB 08-07-2020 03:06 PM

Quote:

Originally Posted by guy with a boat (Post 909295)
Filing a tax return on an LLC isnít necessarily required if that entity has no income or deductible expenses, as is often the case when its only asset is the boat. Filing a return would be required if the is boat being chartered or otherwise operated as a business. State requirements on this may vary, and the attorney handling the acquisition will be able to give advice specific to a given LLC.

I should have said an annual filing which would differ based on circumstances. In some cases it would simply be an annual report. However, the state of Delaware does not require that but they do require the annual payment of a $300 tax. Penalty for non payment or late payment is $200.

This just points out the need to get specific advice from experts who know your details.

Swfla 08-07-2020 03:16 PM

Quote:

Originally Posted by ljk (Post 909412)
Don't waste your money on a lawyer, because no lawyer is going to give you the answer you want!



Go ahead and do what you want, then PRAY that you don't have any liability from unknown creditors of the LLC!

You must have missed post 68.

SDR 08-07-2020 04:26 PM

Have you owned a business before? Get ready to pay $800 per year minimum tax, and file quarterly corporate tax returns. A tax firm charges a lot to do business taxes. Just buy the asset, unless it's a charter and you actually want to go in business and make profit with the boat. Don't let some person talk you into something you are not required to do.

Stradale 08-07-2020 04:38 PM

I've used Wenthur Law Group in SD twice. Bullet proof and worth their costs to make sure it is/was done correctly.



Will McTaggart, Legal Assistant
Wenthur Law Group, LLP
4121 Napier Street
San Diego, CA 92110
(858) 284-6555 Ė Cell
(619) 398-9050, Ext. 204 - Direct Dial
(619) 398-9051 - Fax

Comodave 08-07-2020 04:45 PM

Quote:

Originally Posted by SDR (Post 909447)
Have you owned a business before? Get ready to pay $800 per year minimum tax, and file quarterly corporate tax returns. A tax firm charges a lot to do business taxes. Just buy the asset, unless it's a charter and you actually want to go in business and make profit with the boat. Don't let some person talk you into something you are not required to do.

I owned an LLC for almost 20 years and didnít have any of these issues.

ProMaritime 08-07-2020 07:09 PM

As mentioned, if you buy the LLC the boat will still belong to the LLC. If the LLC has other debts, liabilities or pending or existing law suits that have nothing to do with the boat they will still go right along with the LLC if you buy it as a means to acquire the boat.

If the boat or the LLC or both have liens against them those creditors may be able to attach the boat, an asset of the LLC, and force a sale to satisfy the creditors.

If so you could end up with an empty LLC, no boat and lots of money down the drain. Could be a very expensive way to beat the California tax collector.

Swfla 08-07-2020 07:57 PM

ANY boat can have a lien on it preventing transfer of title. It's not just LLCs. Liens and lawsuits must be filed with the courts. A search can be done in the name of the LLC before closing. I'm confident that Scott will continue to check on things. The fact that he's here and discussing it shows that he's aware and exercising care. He's already discussed this with the law office who dealt with this exact LLC during the sale to the current owners. I think he'll have more headaches driving through LA traffic than from the LLC!

OldDan1943 08-07-2020 08:18 PM

The owner of the LLC can remove/buy that particular asset from the LLC then, sell the asset (boat) to you.
The owner can dissolve the LLC by removing all assets from the LLC or you can wait until the LLC expires.
I am not an attorney.

Seevee 08-07-2020 08:50 PM

Quote:

Originally Posted by SDR (Post 909447)
Have you owned a business before? Get ready to pay $800 per year minimum tax, and file quarterly corporate tax returns. A tax firm charges a lot to do business taxes. Just buy the asset, unless it's a charter and you actually want to go in business and make profit with the boat. Don't let some person talk you into something you are not required to do.




SDR,
I find this info hard to believe. Many of us have had business, LLC and other entities. I've never heard of the above tax. And quarterlies may or may not be required. AND, you don't need a tax firm to do this, but in a small business I'd be surprised that you couldn't get a competent accountant that would do everything for way south of $3K a year... more like half that.


Depends on what you need. I typically hire my own bookkeeper who will do 95% of the work pretty reasonable, and have an outside accountant, NOT a CPA, but who will fight the IRS for you, if needed, and that is pretty cheap.

Seevee 08-07-2020 08:51 PM

Quote:

Originally Posted by Swfla (Post 909521)
ANY boat can have a lien on it preventing transfer of title. It's not just LLCs. Liens and lawsuits must be filed with the courts. A search can be done in the name of the LLC before closing. I'm confident that Scott will continue to check on things. The fact that he's here and discussing it shows that he's aware and exercising care. He's already discussed this with the law office who dealt with this exact LLC during the sale to the current owners. I think he'll have more headaches driving through LA traffic than from the LLC!


Swfla,



Totally true, and often pretty easy. ANY liability that can be perfected can be found out, most likely in the courts. Buying LLCs and other businesses is done ALL the time. Not rocket science.



Sounds like the OP is certainly on the right track.

BandB 08-07-2020 09:30 PM

Quote:

Originally Posted by SDR (Post 909447)
Have you owned a business before? Get ready to pay $800 per year minimum tax, and file quarterly corporate tax returns. A tax firm charges a lot to do business taxes. Just buy the asset, unless it's a charter and you actually want to go in business and make profit with the boat. Don't let some person talk you into something you are not required to do.

Have you ever owned one that wasn't doing business? You don't have to pay $800 per year minimum tax and you don't have to file quarterly corporate tax returns. Your entire post is just totally inaccurate for the LLC he's dealing with and it's purposes.

He does have the $300 annual tax to Delaware and he has to file but not pay anything an annual partnership or S Corporation federal return depending on his election of treatment.

drb1025 08-07-2020 10:35 PM

So much fear mongering. I purchased an LLC that owns a boat almost 10 years ago. No sales taxes but I paid $5k for a good lawyerís diligence. Since then Iíve paid $60 annually to file a report with the state to keep the LLC active. No tax returns or other reports needed. Thatís it.

RickyD 08-07-2020 11:05 PM

Quote:

Originally Posted by caltexflanc (Post 906430)
You are in a contract to buy a boat from an LLC. Not the LLC itself. If your contract reads otherwise, get the broker to straighten that out.

Its best to buy the LLC that owns the boat as I did. Done properly you will avoid State sales tax. There should be no sales tax on a business purchase. When you buy a business you don't pay sales tax on all the office equipment, etc.

bligh 08-08-2020 01:27 AM

Quarterly corporate tax returns?! 800 a year minimum tax? Holy crinkly. Im calling this whole thing off!
Quote:

Originally Posted by SDR (Post 909447)
Have you owned a business before? Get ready to pay $800 per year minimum tax, and file quarterly corporate tax returns. A tax firm charges a lot to do business taxes. Just buy the asset, unless it's a charter and you actually want to go in business and make profit with the boat. Don't let some person talk you into something you are not required to do.



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