Charter yacht LLC. Colorado, or Delaware?

[DougMc]

Hello,
We’re buying a yacht to keep in charter in the BVI.
We’ll own the boat in an LLC, and the question is whether the LLC should be a Colorado LLC, where we live, or whether there is a significant advantage in it being a Delaware LLC, for instance?

Thanks,
Doug

[Adelie]

Welcome.

I would suggest updating your profile with your general location and your boat make & model or “Looking” in the "Boat" category. This info shows up under your UserName in every post in the web view. Many questions are boat and/or location dependent and having these tidbits under your UserName saves answering those questions repeatedly. If you need help setting up your profile then click on this link: https://www.cruisersforum.com/forums...ml#post3308797

I would happily help more if the link above is not enough.

[redneckrob]

Originally Posted by DougMc

Hello,
We’re buying a yacht to keep in charter in the BVI.
We’ll own the boat in an LLC, and the question is whether the LLC should be a Colorado LLC, where we live, or whether there is a significant advantage in it being a Delaware LLC, for instance?

Thanks,
Doug

If you do any work for the LLC in CO then technically you would need to register the DE LLC as a foreign corporation in CO, which just means double the paperwork. I see no advantage to a DE LLC unless you're in some situation where you think DE corporate law would be more advantageous. I can't think of any specific cases like that for boat ownership.

[DougMc]

Originally Posted by redneckrob

If you do any work for the LLC in CO then technically you would need to register the DE LLC as a foreign corporation in CO, which just means double the paperwork. I see no advantage to a DE LLC unless you're in some situation where you think DE corporate law would be more advantageous. I can't think of any specific cases like that for boat ownership.

Thanks. That makes sense. I hadn't really considered doing work in Colorado, but I'm sure I will be. It makes things simpler and cleaner to simply set up in Colorado.
doug