LLC when homebuilding boat?

you might be able to create a ledger of major materials costs and go to your suppliers and get records of the sales (if not too long ago, many retailers keep digital archives of sales). Even if incomplete, all you need is enough "compelling evidence" to substantiate that sales tax was paid. Do not let a state dept. of Revenue employee tell you that you have to "prove" it with receipts, it is not required under the law, but it makes it easier.

My parents who live in California gave us an old car they bought new, they had all of the sales records except the receipt that show they paid the sales tax on it. Washington state first claimed they were going to charge us the sales tax, but we provided the documentation of the purchase agreement, the dealer, list of options, etc. They waved the WA sales tax because it was pretty clear the sales tax had been paid in CA.

 

That depends. In Washington (and many other states), if the sales tax you paid in another state is less than what you would pay in Washington, they will charge you the difference. Doesn't matter how long ago it was either. I paid sales tax on my motorhome in South Dakota. When I registered it in Washington five years later I paid an additional 2 grand that was the difference between the two. (Yes this is legal, dastardly but legal)

 

No, it would have been 1996.

 

From the half a dozen times I've done this/ known others that registered boats it's normal here for them to maybe glance at the receipts and then stamp and sign off on it.

You guys have different jurisdiction on different lakes with different rules in WA??

 

A state that depends on sales tax more (one of the 7 w/o individual income tax) is going to have more red tape for sales tax collection. Bureaucracy needs somewhere to add the extra fees

 

In Washington boats under 10 hp do not have to be registered if they are used on waters that are sole state jurisdiction. Boats used on Federal waters are required to be registered if they are "motorized"; i.e. any engine (but not electric motors).

To complicate matters there is what is called joint jurisdiction, that is both the Fed and the state have jurisdiction. American lake is one of those. So the boat has be registered if it has an engine. If the lake were a little smaller I would just row it. My sailing dinghy doesn't have to be registered. No engine.

 

In Washington it also has to be less than 16 ft, and have less than 10hp motor, to be exempt from registration, kayak, canoes and row boats of any size do not need to be registered (that is why all my home built sailboats will be 15' 11-7/8").

In California any boat longer than 8 ft needs to be registered, in some states if it has no motor, no matter the size it does not need to be registered. Many states exempt any boat used only for racing. So it varies all over the place depending on the state.

 

It's a federal thing here,though the lakes and such are provincial mandate except those on the border.
So you can go anywhere in Can. and it's valid.

Only more than 10 hp and up to 15 tons you need a license but it is free,and need regi too.

Anything else it's either/or both-regi is optional for proof of ownership,loans etc..

BUT you have to have a boaters operators license ,which I love as it keeps most idiots off the water-so I don't have to waste my time and fuel helping them.

 

Down here(in Florida) you only need a boat operator's license if you were born after a certain year.

 

An LLC to build one boat won't do anything for your really. Your losses are limited to the income, there is no tax advantage. Going to a supplier with an LLC, will save you sales taxes, but you'll need to provide your tax number and since you have no income, you'll be paying. As to a cut on any price for anything, maybe if you joined SAM'S Club, LOL, as suppliers look to the volume of business usually, not just to who is buying it.

What you have as well is what is called a "sham transaction" by the IRS, there is no business contemplated.

An LLC that is not maintained properly with a business mission can easily be pierced by anyone recently passing a Bar examine. You'll need a seperation of funds, an Operating Agreement and Minutes of meetings, the maintenance of keeping your corporate entity will surely outweigh any benefit for holding one asset.

You insurance may cost more as well, under a commercial entity and your property taxes may be more as well.

If you did get in some little scrape, say a liability issue from hitting someone, you as an individual won't usually be able to represent your company as it is a seperate entity and you'll need an attorney for representation.

Lots of down sides, so no, it's an idea, but not a good one, IMO.