Registering a Yacht

What Pascal said, ref "documentation" versus "registration."

State registration for documented boats varies. In Maryland, for example, we pay a "Documented Use" fee and apply a "Documented Vessel" sticker to our documented vessel; cheap actually, every two years.

I think I remember Florida is similar, and then they also have cruising permits ($) for out-of-state boats that stay in Florida longer than XXX days.

But you'd want to check with wherever you intend to stay for any length of time.

And state sales and use taxes are a separate issue. You can buy a boat somewhere and either pay sales taxes there or elsewhere if you pick a long-term cruising ground (jurisdiction) that collects sales taxes.

None of that has to do with documented home port. There's a registry of legitimate place names you can use (USCG website will point to it somewhere) and it even includes historic places without an actual post office, etc... but in any case there's a lot of freedom for picking your home port and it doesn't impact State taxes.

The actual DIY documentation/tax/etc. process isn't difficult or expensive; knowing what the process actually IS for your particular situation is why documentation agents can be a good thing.

-Chris

You really need to use a documentation service at this point as between the incorporation in Delaware you're planning and your lack of experience on Documentation and registration, you're at risk of making costly mistakes.

You have not disclosed what state you live in or where you intend to dock the boat initially. That information is vital to answering your questions as is knowing what state you are purchasing the boat in.

Home port has no relevance to anything. It's simply part of the boat's name. You use port of call which I don't know where you came up with that. Doesn't matter that there's no license decal as it would be for old owner anyway.

That's why the Ford Motor Company is incorporated in Delaware. They don't make a lot of cars there.

There’s a big difference between playing games versus using established lawful procedures that stand up if challenged.

There are many reasons to incorporate in many different places. Some of the reasons for Delaware will apply to him and some will not. Businesses generally have to register as foreign corporations in all the states they operate. One of the biggest advantages of Delaware is they don't use juries and so court cases are fast. However, you generally get sued in the state you're operating. So for most, the reasons are what we call the list of "no's." They don't require names and addresses of officers or directors. No income tax on business done elsewhere. No sales tax on royalties and such. No inheritance tax on businesses. Cheap to start. Easy to do online. All the major incorporators and agents have online access to the state.

Reasons to incorporate elsewhere. Let's say you only do business in one state. Then why set up in Delaware plus as foreign corporation in that state, why not just incorporate there. Why a state like Nevada? Well, they protect the directors with very limited liability. Also enhanced privacy. Nevada copied Delaware and raised them one. lol. Delaware has low franchise taxes at $100 per year. Nevada has $0.

Glad you got an attorney involved. Now get a documentation agent involved with the boat.

I see mostly DE, NV, and WA, entities for single asset LLC title. Usually due to vessel owner’s particularly situation when established, then inherited by subsequent owners.

My only point was to do it right, which I would not characterize as playing games.

I don't think that's true at all in terms of having no idea what we pay. Sales and Use tax is actually very modest compared to VAT in most other countries. As to sales tax on a boat, I think Florida is quite fair and am fine paying the maximum of $18,000 along with no property tax on a boat. That's not to criticize someone incorporating in Delaware. The company I spent my career with was incorporated there. Now our businesses are incorporated in FL, GA, SC and NC. Plan was to only do business in FL so it was simple but then I strayed from the plan.

I laugh as I'm sure people in every country throughout history have said taxation was out of hand. As to the US, our total taxation is relatively moderate compared to other similar countries.

Boat ownership in OR is working well. No sales tax, no property tax, no excise/use tax. Just state registration and USCG documentation if desired.

My port name is not on a navigable water way, you can use Timbuktu if you like.

I like when folks put their hometown on the stern, more interesting than say Seattle or Portland or San Fran. I would rather strike up a conversation about Wenatchee than Seattle. Better apples, better skiing, just more interesting, Wenatchee that is.