My girlfriend and I would like to purchase
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.