By Christopher M. Brainard, Esq.
Attorney | Real Estate Broker | Yacht & Maritime Legal Consultant
www.LawBrainard.com | (310) 266-4115
Owning a Yacht Is a Dream — Don’t Let It Become a Legal or Tax Nightmare
For many successful individuals, acquiring a luxury yacht is not just a symbol of lifestyle — it’s a legacy, a reward, and a vehicle for unforgettable memories. But with great assets come great responsibilities, especially in a world of tightening tax scrutiny, liability exposure, and regulatory compliance.
Whether you’re a yacht owner, a broker, or an estate planning professional, one question should never go unasked:
“Should this vessel be held in a Limited Liability Company (LLC)?”
The answer, more often than not, is a resounding yes.
The Case for Holding Title in an LLC
Let’s be clear — placing your yacht into a properly structured and managed LLC isn’t just about paperwork. It’s about shielding your wealth, streamlining tax consequences, and controlling liability. Here's why:
1. Liability Protection – Your Yacht Is a Lawsuit Magnet
Whether it’s a guest injury, a crew dispute, or a maritime collision, yacht ownership carries real legal risk. If you hold the vessel in your personal name and something goes wrong, your home, savings, and business interests are exposed.
An LLC creates a corporate shield that can significantly limit your personal liability. This is particularly critical for chartered vessels or yachts used for business entertainment.
2. Tax Planning & Depreciation Benefits
The IRS allows depreciation of luxury assets used in business contexts — including yachts in charter operations or those used for corporate purposes. Holding title through an LLC opens the door to:
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Section 179 or bonus depreciation in certain cases
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Deducting expenses like fuel, crew wages, and maintenance
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Legitimate business write-offs that are difficult to justify personally
We help our clients structure LLCs and usage logs to remain compliant and optimized.
3. Privacy & Discretion
An LLC can provide anonymity from public ownership records — protecting you from unwanted attention, frivolous lawsuits, or business rivals combing through vessel registries.
When properly formed and maintained, you can enjoy your yacht without broadcasting your net worth.
4. Easier Transfers and Smoother Sales
When the time comes to sell your yacht, transferring ownership of an LLC (instead of the vessel itself) may:
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Avoid certain sales/use taxes in some jurisdictions
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Simplify documentation and reduce registration hurdles
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Allow for greater flexibility in negotiations with high-end buyers
Imagine this: You don’t sell the yacht — you sell the entity that owns it. That means less regulatory friction and, in some cases, less tax burden for all parties.
5. Estate Planning Integration
Yachts are often among the most emotionally valuable and logistically complicated assets in a family’s estate. LLC ownership allows you to:
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Assign membership interests to a trust or heirs
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Avoid probate complications
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Preserve continuity of ownership through generations
At C.M. Brainard & Associates, we work with yacht owners to fold vessel-holding LLCs into their broader estate planning, often alongside real estate, investments, and business interests.
Yacht Brokers: Why This Matters to You
If you’re a yacht broker serving high-net-worth clients, aligning with a law firm that understands maritime transactions, litigation, and asset protection can elevate your service offering.
We act as outside general counsel for yacht brokerages and provide legal support that protects both your deals and your reputation — before, during, and after the sale.
Why Work With Our Firm?
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✅ Over 25 years of legal experience in California litigation, wealth strategy, and high-stakes negotiations
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✅ Licensed Real Estate Broker & Maritime Advisor – We speak your language
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✅ Yacht owners, brokers, and high-net-worth families trust us to protect their assets
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✅ Full-service offering: Wealth management, estate planning, business formation, maritime litigation
Let’s Secure the Dream — Not Just the Vessel
Owning a yacht should bring you freedom, not fear. If you're purchasing, selling, or already managing a yacht, let's ensure it's done right — legally, financially, and strategically.
📞 Text or call today for a confidential consultation: (310) 266-4115
🌐 www.LawBrainard.com
Christopher M. Brainard, Esq.
C.M. Brainard & Associates
Serving Clients Across California & the West Coast
📍 651 N. Sepulveda Blvd., Ste 2010, Bel Air, CA 90049
📞 (310) 266-4115
✉️ christopherbrainard@gmail.com