re: CPA's -2nd Amendment Tax Holiday - Boat Purchase

I think you will run into a problem when contributing to an LLC. Generally, use tax is due upon the transfer, but there is an exemption if you previously paid sales/use tax (which aren't exactly the same, but close enough for this) in formation of the business.

In your case, you wouldn't have... so you may get caught up in that.

I'm not super familiar with the intricacies of the use tax, but you may be able to contribute it to a one-owner LLC without use tax issues. Then later bring the other person in on the partnership/LLC. A single member LLC is disregarded for FEDERAL INCOME tax... but I don't know the state's sales/use tax policy on them.

Does the LLC have a true business purpose or is it merely a holding company for sharing expenses and such?

There are a few quirks in partnership law (which is the default treatment of an LLC) with resale and disguised sales that you want to watch out for. Basically, hold on to it for 2+ years and you shouldn't have anything to worry about.

Watch out for insurance or loans. Once you change the name of who owns it, they may have a problem with this and raise the rates or call the loan. Generally they won't call the loan if you are actually adding a cosigner to it.