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Author Topic: Joint ownership of an RV in the USA, overseas owners, legal form of ownership  (Read 2575 times)

EvaV

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Dear all,

I have already been reading this similar topic http://www.rvforum.net/SMF_forum/index.php/topic,26894.msg257435.html#msg257435 . It was written in year 2009. I'd like to know whether there has been anybody else facing a similar issue in the meanwhile.

We are considering the possibility of establishing a joint ownership of an American RV.
We are 3 Spanish couples who would like to spend short holidays RVing in the USA, at different seasons of the year.
The whole ownership would last for 5 years, and we would sell the RV at the end.
So we would fly to the USA on several different occasions.

Could a nonprofit organization or association own an RV in the USA?
Or must we create an LLC in the USA ?

Thanks very much in advance,
Eva
« Last Edit: October 30, 2013, 01:57:21 AM by EvaV »
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Tom

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Quote
I have already been reading this similar topic http://www.rvforum.net/SMF_forum/index.php/topic,26894.msg257435.html#msg257435 .... I'd like to know whether there has been anybody else facing a similar issue in the meanwhile.

You could try browsing/searching topics on our Visitors to the USA message board.

Quote
We are considering the possibility of establishing a joint ownership of an American RV.
Could a nonprofit organization or association own an RV in the USA? Or must we create an LLC in the USA ?

Would this nonprofit organization be a US-based nonprofit organization? I'd think you'd need at least a US-based address to register an RV here.
Edit: Corrected quoted text.
« Last Edit: November 01, 2013, 08:11:08 AM by Tom »
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EvaV

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Hi, Tom, thanks very much for answering !
I'll have a look at the visitors message board, for sure. There must be lots of useful information there.

Do you think that might be a possibility, creating a nonprofit US-based organization in order to register our RV?


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Ernie n Tara

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Creating a non profit for the single purpose of owning an RV would seem to be to be fraud!  On the other hand, a partnership would seem logical and legal. There is no reasonable way to avoid liability, but that's why we have insurance. A partnership would ensure equal responsibility among the parties if written correctly, and I see no real difference between an American citizen and a foreign national in this respect. 

Ownership by a foreign partnership would seem another reasonable approach.

All of that said, you need to talk to a lawyer specializing in this field, not just anyone who has access to this forum.

JM2C,

Ernie
Ernie 'n Tara

2011 Winn Journey 34y
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Tom

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We might have an issue with terminology here; US & state tax laws have very specific criteria for "nonprofit" organizations. As Ernie suggests, you'd be well advised to consult a lawyer on this subject. However, it should be a lawyer knowledgeable in US laws relating to nonprofit organizations.
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EvaV

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Thanks very much for your answers.
We take for granted we'll have to pay sales tax, plus registration, plus insurance.

It is only a question we have about how to reflect this joint ownership, we'll get in touch with some lawyer.
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Gary RV_Wizard

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In US tax terminology, you are talking about a "not for profit" rather than "non-profit". A not-for-profit entity exists for the benefit of its member/owners and is not intended to engage in a business to make money. In your case, the partnership isn't going to earn any money anyway, so the difference is moot. You, the owners, will invest funds in the partnership and the partnership pays the bills and shares the benefits (the RV) among the partners.

That's not a legal opinion, nor is is 100% technically correct, but it gives you the idea of what can be done.
Gary
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Gary Brinck
Summers: Black Mountain, NC
Home: Ocala National Forest, FL

EvaV

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Thanks very much, I'll remember the term for future inquiries: "not for profit" entity.
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Alfa38User

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Would the easiest way to do this not be an LLC with all listed as partners such as those formed in Montana (or perhaps other states considering what is happening to those 'famous'  Montana LLC's around the country)?  The period of time seems to make this work, but this would be a question for knowledgeable US residents to answer... I guess.
Stu
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Tom

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A Montana LLC would work, and has been used by numerous non-US residents, and reported here.
« Last Edit: October 31, 2013, 10:21:35 AM by Tom »
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EvaV

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Thanks very much for the answers.

We'll have to ask whether a Spanish company or association might become an American RV owner.

In case not, we'll have to ask more details about establishing an LLC (we are not planning to travel together to the USA, so we could not sign any document in the USA alltogether, in case this is an important issue).
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EvaV

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Sorry for coming again with this topic. It is important for us in order to walk towards our final objective, buying an RV which should be owned by serveral people.

We will forget about the "not-for-profit entity" as a legal form of ownership.
In order to make the question easier to answer, does any of you know whether the owner of an American vehicle can be a foreigner company, or must be a company created in the USA?

Thanks very much in advance !
Eva
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Tom

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Anyone can buy a vehicle, provided you can pay in whatever form they need, but you'll probably need an address in the USA to register it.
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EvaV

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So if we create a company in Spain, and we somehow get an address in the USA, we'll be able to buy a vehicle, in the same way as individual persons could do.
Thanks again, Tom !
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Tom

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That's my belief, and we bought our first vehicle while we lived in the UK. But the US address can't be just a mailbox in some states.
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EvaV

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Thanks again, Tom !
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Tom

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Hopefully, some of our fulltime RVers who don't have a permanent address in the US will explain how they handle the address issue for registering their vehicles.
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EvaV

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I'd read already some bits and pieces. But I did not know that the same procedures that were valid for individuals, could also be valid for companies.

•   As you mentioned, there are companies which offer mailbox services
•   May be we could also use the particular address of the RV seller
•   Or become member of an RV Club, like Escapee in en Texas.
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