Re: LLC or Corporate ownership of vessel
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It is not necessarily that simple. Until last year I had my boat owned by an UK corporation which was owned by a HONG KONG Holding which ultimately I own; she was Dutch registered; I hold Dutch passport; but also USA as well as CHINA legal residency. Still several insurance companies were asking about ultimate beneficiary of these corporations.
In 1 case I was asked where I file my taxes which is both in USA as well as the NETHERLANDS. As soon as they realize the USA connection they refused my application.
Also - it is very possible to avoid or down play my USA connection (f.e.: by using the address of my overseas companies) but I really don't want to run the risk once I have a substantial claim that they investigate and deny coverage under the premises that I didn't fully disclose on my application.
-------- Original message --------
From: "Mark Erdos via groups.io" <mcerdos@...>
Date: 9/7/21 19:46 (GMT-08:00)
Subject: Re: [AmelYachtOwners] LLC or Corporate ownership of vessel
On the contrary, having the vessel owned by an LLC has many advantages. First, there is the obvious tax advantage. Second, if you are American and you flag and own your vessel outside of the USA, you can obtain insurance where other US flagged vessels can’t. When it comes time to sell the vessel, you can sell the entire corporation to the new owner. This way the new owner gets the insurance, licenses etc. I would never buy a vessel this way, but it is an option. Perhaps the best advantage is the protection of your personal assets should be find yourself liable in an accident or spill of some type. Keep in mind laws change from country to country but all will recognize limited liability.
One of the other reasons we put our Amel into a corporation was survivor benefits. As share holders, we both have ownership. A friend had a lot of trouble when her husband died in a foreign port. She found out the hard way how every country has different laws. The vessel was in his name and they refused to immediately acknowledge their US legal will. The vessel was seized. She had to hire a local lawyer and eventually got control of the vessel so she could sell it.
All port authorities understand corporate owned vessels. If a single super yacht has ever entered their country, then they understand. Every single large yacht is corporate owned. We are BVI owned and flagged and have never had issue with entering.
The cost can vary from country to country. There are big differences. Grand Cayman is one of the most expensive. Some countries require tonnage surveys and vessel surveys. You need to watch for annual fees and filing requirements for the corporation. Also, countries require registration renewals at various times. Some are annually which is a real pain if you plan to sail the globe.
If you have specific questions feel free to private email me.
With best regards,
Sailing Vessel - Cream Puff - SM2K - #275
Currently cruising - Tahiti, French Polynesia
main@AmelYachtOwners.groups.io [mailto:main@AmelYachtOwners.groups.io] On
Behalf Of Ben and Gayle Super Maramu #347 via groups.io