Incorporation and Documentation

[SAMiller]

It has been suggested that to limit personal liability as a boat owner, it might be wise to incorporate. How does one go about this without hiring a corporate attorney? What would be the pros and cons of incorporation and how do you establish it as a business? Also, what are the pros and cons for documenting a boat, and how do you document a boat without hiring a documentation agent? Thanks in advance for any help you may be able to give us.



ShooseyQ@aol.com

[Ed Haley]

As far as documenting your boat, you can do it yourself and save about $500. Contact the US Coast Guard at the following address and ask for information and application materials.


Documentation Office
US Coast Guard
1240 East Ninth St., Room 2029
Cleveland, OH 44199-2060

If this is an application for a simplified pleasure documentation, you will need a Bill of Sale, in duplicate, from the last state titled/registered owner to the applicant for documentation (that's you) with your copy of your state title/registration. Addresses of the sellers and buyers must be shown and altered bills of sale are NOT acceptable. The seller must complete a form properly and has it notarized to prevent delay.

There are also the necessary citizenship documentations. There is a fee and 5 years ago the initial application fee was $133.

You can call the Documentation office at 216-522-3945.

This info is 5 years old. Hope it helps. I found the phone service helpful.



eghaley@twcny.rr.com

[Jerry Hammernik]

It has been suggested that to limit personal liability as a boat owner, it might be wise to incorporate. How does one go about this without hiring a corporate attorney? What would be the pros and cons of incorporation and how do you establish it as a business? Also, what are the pros and cons for documenting a boat, and how do you document a boat without hiring a documentation agent? Thanks in advance for any help you may be able to give us.

I transfered the documentation for my boat last year. The boat was documented by the previous owner. Contact the:
United States Coast Guard
National Vessel Documentation Center
2039 Stonewall Jackson Drive
Falling Waters, WV 25419-9502
phone 800-799-8362
FAX 304-271-2405

I found them very helpful. The only mistake I made was I didn't send them the original bill of sale. I didn't see why they should keep my original. They wouldn't finish the job until I sent them the original. Turns out they send it back to you. If they had told me that right away I would have sent it right off.
Jerry Hammernik
CD 28 Lion's Paw #341



dauntles@execpc.com

[CVaughan]

An even faster way of doing it is to download the necessary forms from the Coast Guard web site.

http://www.uscg.mil/hq/g-m/gmhome.htm

I did this myself last spring and had very quick turnaround on the paperwork.



cvaughan@blazenetme.net

[Bill Goldsmith]

There was a recent discussion on incorporation for small pleasure craft on this board. I agree with the following post by GaryM:

>>>In my opinion it's not worth it. Most states charge annual fees
>>>for corporations not to mention the incorporating fee. For example,
>>>here in Mass the initial fee is $200 to incorporate and
>>>in subsequent years they get an additional $541 in fees.
>>>Also, most states require that you get a minimum workman's comp.
>>>insurance policy even though you have no employees or are
>>>not transacting business. In summary, for these and a lot
>>>of other reasons that are too voluminous to mention, my
>>>>suggestion would be to use the money saved by not
>>>>incorporating and buy the maximum amount of liability insurance
>>>>you can.

>>>>Gary

So if limiting liability is the main reason to incorporate, perhaps the better way is to TRANSFER liability to the insurance company by buying primary and an Umbrella liability policy.

Bill

It has been suggested that to limit personal liability as a boat owner, it might be wise to incorporate. How does one go about this without hiring a corporate attorney? What would be the pros and cons of incorporation and how do you establish it as a business? Also, what are the pros and cons for documenting a boat, and how do you document a boat without hiring a documentation agent? Thanks in advance for any help you may be able to give us.

goldy@bestweb.net

[Ken Coit]

I agree with most of the comments thus far. Documenting is easy; much easier than earning the money to pay for a service. They need the original bill of sale so they can record it. It comes back stamped with the date and location of recording, much like a deed on a parcel of real property. It took about a month for mine to be processed. Fee is under $100 and instructions are close to clear.

As for incorporation, I had the same thoughts and was talked out of it by the renewal costs. The suggestion of an umbrella liability policy (roughly $100 for a million dollars worth) on top of your yacht and homeowners policies seems to be our best bet. You ought to get great legal representation in addition to the million dollar protection.

Ken Coit
S/V Parfait
CD-36



ken-shelley.coit@worldnet.att.net