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Need: Delaware Corporation Representative

Discussion in 'General Yachting Discussion' started by retiredguy, Sep 28, 2021.

  1. retiredguy

    retiredguy Member

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    Made an offer on a barge and looks like the seller is accepting it. I will not be staying in any one port (or state) for extended periods so I want to form a corporation in Delaware and use it to own the boat. Reading the Delaware rules, I MUST have a corporation representative in the state and the state provides a long list of names.

    I am hoping someone here can recommend a good one rather than just picking one from a list.

    Thanks!
  2. rtrafford

    rtrafford Senior Member

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    You need a Registered Agent located in Delaware as the agent of record for the entity (such as LLC). YOU can still manage the entity, essentially be the BOD. You form the entity, use the registered agent as point person for the entity, and establish a Members Operating Agreement, EIN, and open accounts, purchase insurance, etc.

    Just use a Delaware entity that creates the entities, files, and will serve as agent of record. Several of them are out there, such as IncNow.com
  3. rtrafford

    rtrafford Senior Member

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    Don't accept this process as legal advice. You'll want help in preparation of the MOA, any Affidavits for the entity such as approval to enter into a contract, purchase insurance, etc. But the agent of record itself is rather cookie cutter. Get a good attorney to guide you...
  4. olderboater

    olderboater Senior Member

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    I assume you're choosing Delaware to avoid registering in any other state and to avoid sales tax. You keep repeating you won't be in any state for extended times, but I remind you that time is often 60 or 90 days. You're taking a tight and potentially troubled path. A boat can legally be registered in Delaware only if that is it's state of principal use. Or maybe you intend to register elsewhere. Wherever you buy the boat will likely require you to show it left the state within 60 days and was registered elsewhere.

    As to a Corporate Agent in Delaware, the most used is CT Corporation but they are $305. Therefore, many use the dozens of others at $45. Most registered agents are law firms. Normally whoever you use for your incorporation is tied to a registered agent provider. Most go that route. Harvard Business Services (delawareinc.com) is one that has been around for decades. Their fee is $50. Their incorporation feel is also low. I would check BBB on any I chose.

    Now here's the one warning on registered agents. We all use them. I have many corporations using them in multiple states. I've always found them dependable, never had a problem. However, there are occasional problems. There are dozens of complaints on many. Most involve initial filings. However, the worst thing that can happen to you is a legal notice is sent to the agent and they fail to notify you. You lose a case you never know about. It happens. You can generally get it overturned and get a new trial, but it gets very troublesome and expensive.

    As others have said, you can form the corporation and do everything else without an attorney. I would never advise you do so.
  5. retiredguy

    retiredguy Member

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    Thanks guys, my attorney is on it but he had no recommendation for anyone in Delaware. I do think I have found someone though. Additionally I did more checking, I don't see any states with a short "stay" police and claiming I owe them sales tax. They all allow several months, however I do see where after so long a period almost every state has a time limitation. Even Florida gives up six months after the out of state (sale) boat coming into Florida.

    I DLed the latest laws in a PDF from from the Florida Department of Revenue and it says: Sales/Use tax is due when... "The boat is purchased in another state, a territory of the United States, or the District of Columbia and is brought into Florida within six (6) months of the purchase date". I won't go there for 6 months. :)
  6. olderboater

    olderboater Senior Member

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    Are you a Florida resident? If so, that quote applies to you. If not, it does not apply to you. Where is purchase of boat occurring? You need to be careful reading and interpreting all the rules. As to short stay police, several states are fairly diligent, while other states are not.

    Also, most states technically only have to give credit if you registered and paid sales tax in another state although in practice they give credit if you were in a sales tax free state.

    Every state's rules are different as is their enforcement.
  7. retiredguy

    retiredguy Member

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    I understand, I simply don't want some state claiming I owe them any sort of sales tax simply because I am moored there for awhile. I will retain my original states ID (drivers license) and records.
  8. Ty L.

    Ty L. New Member

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    Curious as how everything worked out? I retire from Federal service in 26 months and plan to buy a boat in in 14-20 months. After I retire I dont know where I will end up, my wife and I have been toying with island hopping in the Bahamas and the Caribbean and going to Puerto Rico or US Virgin Islands for any medical needs. We may even become expats if we find the right location. I currently live in Maryland and plan to talk to my CPA about finances this Spring, the plan is to out right buy a Hatteras to live a board and go on our little adventure.
  9. retiredguy

    retiredguy Member

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    Worked out fine and was fairly painless. I used a registering agent (https://northwestregisteredagent.com) to form our LLC corporation in Delaware. When we bought the boat we put the boats ownership into the corporation. Maryland (where we bought) requires a form stating the boat is NOT staying in MD and is in fact being bought by a Delaware corporation.

    After that an on line application to the Coast Guard to transfer documentation to the corporation as the new owners. Be aware, the Coast Guard has a specific Bill of Sale form (get it on line) that has to be signed by you and the seller and MUST be notarized.
  10. menkes

    menkes Member

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