My girlfriend and I would like to purchase
a boat and do some sailing in our retirement
and are considering the following plan. I'd love any comments on the sanity check, is it doable, etc. Lifelong dream of a kid who started sailing at age 12.
We'd like to purchase
a 1-2 year-old cruising catamaran
and put it into charter service
for 2-3 years to help defray the costs of the boat. We would be happy if the boat chartering breaks even -- that is, covers the charter
costs and pays the loan. We have saved up a substantial (>30% of a ~40ft cat) down-payment, and believe that we can qualify for a loan on the balance; net worth, income
We plan on using the boat during times when it isn't being chartered. I have extensive experience chartering in the Caribbean
and have recently qualified for my OUPV/6-pack licence. Obviously, the BVI is on our list of places we're considering, given the volume of business the companies there are able to generate.
My question is this: Does it make sense financially for us to form an LLC or perhaps a Corporation to "run" the charter business? Does anyone have any experience in this area? Specifically, does forming a formal partnership
infer any advantages to help with costs such as travel, interest expense, etc. For example, can the corporation depreciate the value of the boat to reduce income taxes
? Are any of the advantages to an LLC/Corporation that aren't available to an individual? I'm assuming we'll be working with a Charter company and set up our business using the "performance" model as opposed to the guaranteed return model
I've seen the references
to sailonline.com and catamaranguru.com, but I wondered if anyone else had either direct experience with forming a corporation, or could point me to more detailed information on the subject.