........ or asking people in Florida for advice about taxes in California is like the cardiologist/ingrown toenail.
Im not sure how this thread took a turn towards nefarious tax avoidance. My recommendation to consult a skilled expert was because the path to taxation in California is complicated, LLC or not. The liability can exceed the actual sales tax due as the same folks also deal with annual property tax of the boat and the slip where it resides (the so called shadow tax - the land beneath your boat).
Most states, you pay the sales tax and you move on with your life which is also true in California. Unfortunately. That's not the only tax you will be liable for during ownership. I suspect it's not that complicated for knowledgeable persons. But God forbid of you run afoul.
Peter
I’ll say it again: tax AVOIDANCE is not nefarious. Tax avoidance is simply paying every cent you legally owe and not one penny more. One avoids paying taxes that are not owed. Evasion is the non-payment of legally owed taxes through illegal means, something very very different from the avoidance of paying un-owed taxes. If the powers that be did not want citizens using the tax code to their advantage they would change the rules, something they can do whenever they choose.
BTW, at the time we bought the LLC, we were California residents and had been for 30+ years. We also had bought and sold commercial real estate held by LLCs many times during that period of our lives. We also got a buy in from our California tax accountant on the Delaware LLC purchase as well as having a Florida attorney consult, write and review the contracts. We have dealt with the California BOE constantly for decades with no issues on this and other LLC transactions. It’s not hard: just hire an expert to advise and review.
Using an LLC to own an expensive asset is not rocket science! It is a routine everyday part of American business and is encouraged by the government through the tax code. There is nothing nefarious about it.