Delaware yacht
registration is very popular among both domestic and foreign boat owners. It has
particular appeal for those looking to avoid the taxes and assessments which are
typically associated with yacht ownership. This, combined with the fact that
Delaware corporations are easily formed and relatively anonymous, makes Delaware
a popular choice with respect to registering a boat.
This summary presents a
general overview of what Delaware registration is all about, why it has become
so prevalent worldwide, and how it relates to other methods of boat
registration. You will also gain insight into some of the aspects of registering
a boat in the State of Delaware.
► REGISTRATION & TITLING
Visit our state, federal, and foreign pages for a wealth of information
regarding boat registration, titling, and vessel documentation.
► REGISTRATION SERVICES
State level boat registration, Coast Guard documentation and other boat titling
services. Check on our economical self-services kits or convenient
full-services.
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LEGAL FORMS PACKAGES
Boat owners can establish a corporation, limited liability company,
partnership, or trust arrangement.
BACKGROUND REPORTS
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True
Meaning - In order to understand the true
meaning of Delaware yacht registration, you will need to know about
the differences between registration, titling, and documentation
here in the United States. This is especially important for foreign
owners who are looking to establish an offshore yacht registration. A great deal of
misconception exists about Delaware
registration with regard to a vessel's nationality and tax
status.
State Registration Defined - Boat registration in
the usual sense is a process by which state jurisdictions grant
operational privileges for all types of watercraft. This is
evidenced by a certificate of registration which must be present on
the boat when underway. A registered boat may operate on that
particular state's waters and acquires visitation rights in other
states. Boat registration is also a means of revenue enhancement as
it is typically associated with the collection of fees and taxes.
State Titling Defined - State boat titling is often
equated to registration, but it serves an entirely different
purpose. This is a service provided in certain states that affords
an owner with a certificate of ownership for the subject boat.
Although boat titles are typically issued in conjunction with a
first time registration, this is not always the case. They may be
attained on a stand-alone basis under certain conditions. Boat
titling is mandatory in some jurisdictions, optional in others, and
not even offered by certain states.
Coast
Guard Documentation - Coast Guard vessel
documentation is a federal or national form of registry which takes
priority over state level registration and titling. In order for a
boat to become documented, it must be approximately 25' or greater
in length and the owners must all be U.S. citizens. A documented
vessel is said to be flagged which means it enjoys certain
protections afforded to vessels abroad which have national
registrations.
Delaware
Registrations - Delaware is known as a "non-title"
or "registration only state" because it does not offer boat titling
services. Such registrations are evidenced by a small registration
card which is issued by their Division of Fish and Wildlife. Foreign
applicants should be aware that this is not a title or national
certificate of documentation. It affords no rights of nationality
under the U.S. flag when used for vessels travelling abroad.
Taxes and Fees
- Most states utilize the boat registration process to collect
a substantial amount of fees and taxes. However, Delaware is a
"no-tax" state and boat registration fees are minimal. Combine this
with relaxed registration policies and it is easy to understand why
Delaware registration is so popular with foreign
boat owners. As for domestic owners, the tax advantages may not
apply because boats here in the states are taxed based on where they
operate rather than the state of registration.
Corporate Formation
- Boat owners can also establish legal holding entities such
as corporations and limited liability companies in Delaware. As with
boat registration, the rules are are relaxed and costs are quite
reasonable. Although not required for boat registration purposes,
this lends support to such activity and provides an owner with a
great deal of anonymity.
Registration Services - There are a number of
private business enterprises, both domestic and foreign, that offer
Delaware yacht registration services. At a substantial cost, they
will handle everything from start to finish with respect to both
entity and boat registrations. They will even generate an official
looking yacht registry certificate for foreign owners which affords
an impression that the subject vessel is U.S. flagged. Delaware is not
a sovereign state and can not produce certificates of registry on
behalf of the U.S. federal government.
Application Requirements - Procedures for
registration in Delaware are basically the same as those for any
other state. The applicant must produce sufficient evidence of
ownership, identify the vessel, and complete an application form.
Citizenship is not an issue and the owner does not have to be a
Delaware resident. However, an owner must indicate on the
application that Delaware will be the place of principal usage for
the subject vessel.
Implications - The registration or title status of
any boat can have serious implications with regard matters of law
enforcement and taxes. Given these circumstances, you may
wish to ensure that the appropriate conditions apply before
registering a boat in the State of Delaware. In making such
determination, it may be advisable to consult with a qualified
marine attorney or tax consultant.
► DELAWARE REGISTRATION
State level boat registration, Coast Guard documentation and other boat titling
services. Check on our economical self-services kits or convenient
full-services.
