Different states have different tax requirements. For example, Hawaii has no "Use" tax or personal property tax but does have Sales tax. California has both sales and use plus personal property taxes. So, if you buy a used car (or boat) in California, but don't register it in California (totally legal), you can ship to Hawaii and pay no tax other than registration. Same if you buy a used boat or car in Hawaii, no use or sales tax is required, only if it is new. Where if you buy and register in California there is a Use tax and personal property tax on used cars, boats, planes etc. You really have to understand the taxing laws of the state or states you are dealing with. Obviously, the previous posts point this out. LLCs do, or can, have issues when traveling to other countries, at least I have seen in aircraft. This has to do with proving the captain has authority to take the boat out of the US. It's just more paperwork but you have to check to make sure you can prove you have the authority. I am assuming that this transfers over to boats but again depends on the country and its laws. I don't think an LLC in California is going to help you in your tax debt to California, but it may in other states. There are so many tax avoidance issues with the Feds and different state, you really have to be up on them. At one time you could buy a railroad car and get all kinds of tax write offs but that is defunct now. As soon as the govt kills one tax write off, another one appears. Many times they follow the "Law of unforseen consequences" LOL!