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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10453
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Yeah I live in Florida. Starting a fishing guide service.

Customer Question

Yeah I live in Florida. Starting a fishing guide service. Already paid sales tax on boat when I purchased. Do I need to pay sales tax again when I transfer to llc
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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No the LLC is considered a passthrough, both for income tax purposes and this, as well.

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You are not selling the boat to the LLC, you are contributing it as a capital contribution of property

Expert:  Lane replied 1 year ago.

Checking with Florida now to be sure

Expert:  Lane replied 1 year ago.

OK ... Spoke with Richard Gould (FL Boat Enforcement Operations;(###) ###-#### ***** he said no, that was considered a gift, or contribution, TO the LLC ... but he will be calling me back with the actual citation to the sales tax code ... worst case tomorrow morning.

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Ill post something as soon as I hear back

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But again, from a tax and legal perspective, it would be very unlikely, because this is not an exchange or a sales transaction (you are not receiving anything FROM the LLC)

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Check back shortly , I'll look in the FL code myself as well

Expert:  Kent-cssm replied 1 year ago.
Hello,
We received your customer service inquiry, however, we are unable to respond to you because we do not have your email address. Please contact customer support at***@******.*** and provide us with your email address and a link to this question page so that we can help you. (http://www.justanswer.com/tax/99hk0-yeah-live-florida-starting-fishing-guide-service-already.html).
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The JustAnswer Customer Support Team
Expert:  Lane replied 1 year ago.

Received the call back.... You do not have to pay sales tax agian when registering your boat to an LLC which you completely own.

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Hope this has helped

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Lane

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If this HAS helped, and you don't have questions, I'd appreciate a positive rating (by clicking the stars or smiley faces on your screen) ... that's how we're credited for the work here)

.

Expert:  Lane replied 1 year ago.
Hey,
.. received another call from Richard Gould at Fl. Sales tax.
He said, again, that you should NOT be charged for sales tax just to re-title to your LLC.
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But he wanted to provide the "heads-up" that if if you had any outstanding taxes owed to the state at all, THAT could trigger the tax OR other issue.
... just wanted to provide that additional "heads-up."
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let me know if you have questions...
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Lane
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Again, if HAS helped, and you don't have questions, I'd really appreciate a positive rating (by clicking the stars or smiley faces on your screen) ... that's how we're credited for the work here)
.