| Where should I register my aircraft? | | | | 6094.5. Improper use of certificate. Except as |
| Many people believe that they can set up an LLC in | | | | provided in Sections 6012.8 and 6012.9: |
| Delaware or any other location outside California in | | | | (a) Any person, including any officer or employee of |
| order to avoid sales or use tax in California. The | | | | a corporation, who gives a resale certificate for |
| state where the LLC or corporation is registered has | | | | property which he or she knows at the time of |
| nothing to do with legally avoiding tax in California. In | | | | purchase is not to be resold by him or her or the |
| fact, as I have mentioned before many times, don't | | | | corporation in the regular course of business for the |
| leave things to chance. | | | | purpose of evading payment to the seller of the |
| If the State of California decides to, they can charge | | | | amount of the tax applicable to the transaction is |
| you with fraud. The following section of law will be | | | | guilty of a misdemeanor punishable as provided in |
| their support. | | | | Section 7153. |
| 6485.1. 50 percent penalty. Any purchaser of a | | | | (b) Any person, including any officer or employee of |
| vehicle, vessel, or aircraft who registers it outside the | | | | a corporation, who gives a resale certificate for |
| State of California for the purpose of evading the | | | | property which he or she knows at the time of |
| payment of taxes due under this part shall be liable | | | | purchase is not to be resold by him or her or the |
| for a penalty of 50 percent of any tax determined | | | | corporation in the regular course of business is liable |
| to be due on the sales price of the vehicle, vessel, or | | | | to the state for the amount of tax that would be |
| aircraft. | | | | due if he or she had not given such resale certificate. |
| Why don't I just become an aircraft dealer so I can | | | | In addition to the tax, the person shall be liable to the |
| buy aircraft without paying tax? | | | | state for a penalty of 10 percent of the tax or five |
| Everyone knows someone who routinely brags about | | | | hundred dollars ($500) whichever is greater, for each |
| this resale scheme. Well the following sections of law | | | | purchase made for personal gain or to evade the |
| explain the truth. | | | | payment of taxes. |