Safe Boating: The Delaware LLC Way

When cruising or sailing the waterways of America and the world, it is quite common to see many vessels which are registered in Delaware. The reason our state has attained such a vast number of boat registrations is due to a very secure option which exists for those boat owners.  A Delaware Limited Liability Company protects an individual fom personal liability for damage which can be created by the vessel or its activities. Also, the members or owners of the LLC are not typically personally liable for the LLCs debts and obligations. Sheltering the vessel under a DE LLC will generally also give privacy and tax benefits as well. We assist many clients with their LLC formations specifically for the holding of boats and yachts and many inquire as to the procedure to register the vessel in Delaware.

After some research and a phone call to the Delaware Dept. of Natural Resources (DNREC); I have compiled some basic facts which will hopefully assist those who wish to pursue such registrations in Delaware.

1.) DNREC – this is the place to start – Delaware Dept. of Natural Resources – they can be reached at 302-739-9916 or by web at: http://www.dnrec.state.de.us/fw/boatregs.htm
They are very friendly and professional and will be happy to assist with any questions or issues.

2.) State of Delaware Boat Registration Application – this is necessary to renew a boat registration in DE and can be accessed online at the DNREC site. For those registering a new vessel; typically the registration is handled by the sales agent or directly with the DNREC office. The information required to renew or register an existing vessel will include: Proper Bill of Sale and or title or certificate of origin, boat type, description of the vessel including length, hull construction, type of use, sanitation devices, method of propulsion, type of fuel and manufacturer – factory or home built.

3.) The vessel must be kept in Delaware or Delaware waters for a minimum of 60 days per year in order to maintain a valid DE registration.  The DNREC officers will check the data of existing registrations and inspect dock slips and marinas to verify. Enforcement of those who are not in proper standing can result in fines and loss of registration. Obviously, all Delaware registered vessels must adhere to both Delaware Maritime Laws and U.S. Coast Guard rules and regulations as well.

4.) Fees are based on vessel size and any additional requested permits or certificates and can be reviewed online.

The Delaware LLC provides a very safe and secure shelter for boats and many other assets. If you are considering such a registration call Harvard Business Services, Inc. to file your LLC and contact DNREC for the details on the registration of the vessel. Safe boating to all!