The simple answer is that it provides asset protection to the boat owners with many choosing to form either a “Delaware Corporation” or “Delaware LLC” purchasing the vessel in the company’s name.
Registering a boat under Delaware also guarantees privacy as in Delaware information of the members is not required to be given to the state or to be put on the public record.
Forming a company to register assets is a common practice that protects both the owner and the assets themselves. Forming a Delaware company offers the following benefits:
In the case where more than one person decides to buy a vessel together, the title can be taken in the name of the corporation thus easing the process and designation of group ownership.
It is not required for corporate books to be kept in Delaware. One person can be the incorporator, only director, sole stockholder or if it is preferred theses titles and delegations can be spread among many in a group.
Delaware provides favourable tax with no sales tax, personal property tax, intangible property tax or stock transfer tax and no Delaware corporate income tax is assessed for income derived outside of the State of Delaware.
What documents are needed to register with Delaware?
- Boats/vessels are required to have a completed Delaware Department of Natural Resources (DNREC) boat registration application.
- New boats are required to have a copy of the Manufacturer’s Certificate of Origin (MCO) or Builder’s Certificate assigned to the purchaser(s) and Bill of Sale if Certificate of Origin or Builder’s Certificate is not assigned to the purchaser(s)
- Federal or State Issued ID
- For used boats, a copy of the title federal documentation (photocopy of seller’s most recent Certificate of Documentation)
Once all required documents are submitted the proof of registration can be emailed in 3 working days, with originals mailed. Fees for registration vary depending on the size of boat and length of registration ranging from a 1 year to 3 years term.