Co-ownership

[A_B]

Sold my old Ski Antique and thinking about going into halves on a boat with my lake partner.

Does it sound crazy to form a LLC to own the boat so our kids don't do something stupid and screw the other owner?

We have a LLC that owns a lake, but there is another owner that is not in on the boat (he doesn't ski any more), but we didn't want to tie the lake or other owner to it.

 

What is the best way to make this work?

Thanks

[ScarletArrow]

Gotta go LLC IMHO - sh$t happens, feelings get hurt, friendships lost...

[liquid d]

If you do co-owners without llc , make sure you have a contract in place that discusses expenses, liability (get an umbrella-they are cheap), where parked, and disposall/buyout options, possible future partners....

[RichardDoane]

@ab - an LLC for sure with a set list of rules, and always plan the exit strategy, we have an LLC for the Broho Malibu that 4 of us share, email richard@burienautorepair.com if you want a little more info

[eleeski]

Or you can look at the money as just gone. I put money into Stan's boat. Worst financial investment I've made - the one partner who left got a paltry buyout that was way more than his share was worth (nobody was happy with the financials of the deal but we are all still friends).

 

Best money spent ever. I got use of a boat that I really wanted when I needed it. The per ride cost may be less than that of my personal boat. I was able to afford the money hit in 08 - I look at it as gone from that point on. The rest of the partners seem to share this view. Stan is the dictator of all things boat - but he has been a benevolent dictator worthy of the trust we have given him.

 

Expect nothing but ski rides from the boat. No residual asset value. No help with maintenence. And a good dose of acceptance (why are we spending for a tower?! Oh, because he wants it. OK)(Why do I have to buy the shaft repair kit? Oh, because I knew what was wrong and if I'm going to ski I need to fix that)(Eric pisses me off because he never wipes the boat down. Suffer!).

 

Getting a sweet new boat through a partnership can get you access to a sweet new boat. But financially you (or your kids) are screwed no matter what. You can get boats cheaper (my old 97 Nautique is for sale at a very affordable price) but you get what you pay for. If all partners are willing to walk away if needed, you might get enough years out of the boat to make it worthwhile.

 

@AB, Most reasonable is to make the boat part of the lake LLC and save the extra LLC setup and operating costs. Maybe your third lake partner might get his interest rekindled. Maybe he would want to help a bit with the boat. The real estate is unlikely to sell before the boat is depreciated substantially - by your use. So even if he doesn't go along it's still not too unfair.

 

Or you can spend so many hours figuring out partnership agreements and LLCs that the summer will be over before you get to use the boat.

 

Eric