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