Incorporating - Any views?

[Ken Coit]

Anyone out there care to share their views on having a boat owned by a corporation rather than directly? Seems as if it might limit liability somewhat, but there is still the problem of the need for the captain to be responsible.



ken-shelley.coit@worldnet.att.net

[Larry M]

Anyone out there care to share their views on having a boat owned by a corporation rather than directly? Seems as if it might limit liability somewhat, but there is still the problem of the need for the captain to be responsible.

It would appear to me that if the corporation had no activity (such as chartering or some business purpose)other the boat ownership the corporate status could be pierced and the owners held liable.



lmace@gt.com

[bill]

Anyone out there care to share their views on having a boat owned by a corporation rather than directly? Seems as if it might limit liability somewhat, but there is still the problem of the need for the captain to be responsible.

It (corp) would at least be open for litigation (sp) IMHO



cd25d@clnk.com

[Gary M]

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




garym@taxinvest.com

[Neil Gordon]

>>... my suggestion would be to use the money saved by not incorporating and buy the maximum amount of liability insurance you can.<<

The liability insurance is inexpensive. The liability portion of my policy costs $61 for $300,000 in coverage. The $2 million umbrella only costs a few $$ more because of the boat.

I've always thought incorporating was a scam way to avoid sales tax and the like.


Regards, Neil
s/v LIQUIDITY
Cape Dory 28 #167



neil@nrgordon.com

[Walt Bilofsky]

Anyone out there care to share their views on having a boat owned by a corporation rather than directly? Seems as if it might limit liability somewhat, but there is still the problem of the need for the captain to be responsible.

If the idea is to limit liability, it would seem like most of the things that could cause people to sue the boat owner would also be a cause of action against the captain. I agree that the best thing would be a big umbrella policy - and read the exclusions carefully. Some policies exclude boats over a certain size or engine horsepower.

If you are going to charter your boat and have employees, then there might be some advantages to a corporation being the employer. But at that point you are beyond the scope of my license to practise law without a license.

- Walt



bilofsky@toolworks.com

[Ken Coit]

Anyone out there care to share their views on having a boat owned by a corporation rather than directly? Seems as if it might limit liability somewhat, but there is still the problem of the need for the

captain to be responsible.

Thanks to everyone for their views. Bottom line seems to be that if there isn't some other reason for a corporation, don't incorporate the boat to reduce liability. The other side of the coin might be to protect your assets with trusts and/or insurance. Of course, none of us are providing advice, only views. Thanks again.



ken-shelley.coit@worldnet.att.net