Tacomasailor
Veteran Member
We are considering the purchase of a $500K power boat being sold in the US, which is owned by a Mexican citizen through a BVI LLC. We will keep the boat in the US (San Diego) and hope to finance it thru a US bank.
The US broker tells me we can purchase the BVI LLC. I know all about purchasing a boat owned by a California LLC but I am not familiar with the purchase of a non-US LLC.
Does anyone have any experience with purchasing a non-US LLC? What observations can you offer on that purchase? What kinds of problems could we experience and what should we watch out for?
If the boat is owned by a BVI LLC - can I document it with the USCG?
We could purchase the boat outside the LLC but that would cost $45,000+ dollars in California Use Tax.
Anything you have to offer about this kind of purchase, of which I know nothing, would be appreciated.
I found the following FAQ answers on the USCG website but do not understand them:
WHAT VESSELS MAY BE DOCUMENTED?
A vessel must measure at least five net tons and, with the exception of certain oil spill response vessels, must be wholly owned by a citizen of the U.S.
We are US Citizens
HOW DO I ESTABLISH U.S. CITIZENSHIP?
Citizenship is established by completion of form CG-1258. In addition to individuals, corporations, partnerships, and other entities capable of holding legal title may be deemed citizens for documentation purposes. Corporations must be registered in a state or the U.S; the chief executive officer and chairman of the board of directors must be U.S. citizens, and no more than a minority of the number of directors necessary to constitute a quorum may be non-citizens. In addition, at least 75% of the stock must be vested in U.S. citizens for a coastwise or fisheries endorsement.
The statement in RED seems to rule out USCG documentation.
The US broker tells me we can purchase the BVI LLC. I know all about purchasing a boat owned by a California LLC but I am not familiar with the purchase of a non-US LLC.
Does anyone have any experience with purchasing a non-US LLC? What observations can you offer on that purchase? What kinds of problems could we experience and what should we watch out for?
If the boat is owned by a BVI LLC - can I document it with the USCG?
We could purchase the boat outside the LLC but that would cost $45,000+ dollars in California Use Tax.
Anything you have to offer about this kind of purchase, of which I know nothing, would be appreciated.
I found the following FAQ answers on the USCG website but do not understand them:
WHAT VESSELS MAY BE DOCUMENTED?
A vessel must measure at least five net tons and, with the exception of certain oil spill response vessels, must be wholly owned by a citizen of the U.S.
We are US Citizens
HOW DO I ESTABLISH U.S. CITIZENSHIP?
Citizenship is established by completion of form CG-1258. In addition to individuals, corporations, partnerships, and other entities capable of holding legal title may be deemed citizens for documentation purposes. Corporations must be registered in a state or the U.S; the chief executive officer and chairman of the board of directors must be U.S. citizens, and no more than a minority of the number of directors necessary to constitute a quorum may be non-citizens. In addition, at least 75% of the stock must be vested in U.S. citizens for a coastwise or fisheries endorsement.
The statement in RED seems to rule out USCG documentation.
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