Frequently Asked Questions
How do I register under the Delaware(USA) flag?
STEP 1 – WE SET-UP A DELAWARE LLC (LIMITED LIABILITY COMPANY) FOR YOU
A non-US citizen may own a Delaware LLC which in turn can own a vessel registered in Delaware. We setup this LLC for you but it is 100% owned by you. You then make a bill of sale selling your boat to your own new Delaware LLC. The Bill of sale has to be notarized which is easy since you are both the seller (person) as well as the buyer (your company) This LLC is used solely for the ownership of your boat and will therefor not need to pay any taxes. The setup of the LLC will only take about 3 days. You can use our sample Bill of Sale or use your own.
STEP 2 - WE REGISTER YOUR VESSEL UNDER DELAWARE FLAG
Once your LLC is formed and you have notarized the Bill of Sale we will apply for your Delaware yacht registration. This will take about 2 weeks. Once received your vessel will be flying the US flag in any international waters around the world.
How long does it take to register under the Delaware(USA) flag?
If all correct documentation is supplied, it will take 2 weeks to register.
What are my obligations under the Delaware(USA) Flag
- Fly the national flag of Delaware (USA)
- Fly the courtesy flag of the country where you are sailing
- Indicate the name of your ship and port of origin in letters on the back of the ship or on the sides if there is no space
- The registration of the flag of Delaware (USA) must be renewed every 3 years
I am not a US Resident?
We can setup an LLC and register your vessel for nearly every nationality around the world as long as they are not listed as one of the countries on the new US travel ban.
Where do I have to put the name of the boat?
You have to paint or paste the name of the boat and the homeport on the port side (back) of your boat. The minimum size for the letters of the name is 10cm, there is no minimum for the homeport name.
What is a LLC (Limited Liability Company)?
A Delaware Limited Liability Company (LLC) is a hybrid business entity, designed to combine the advantages of a corporation with the tax advantages of a partnership. Like a corporation, the owners of an LLC are not personally liable for the LLC's debts and obligations. Like a partnership, an LLC can be treated as a pass-through entity for tax purposes. This may be advantageous for those who cannot meet the IRS requirements for an "S" corporation and desire the tax pass-through treatment.
How much does it cost to renew my LLC?
The yearly fee for renewing your LLC is 350 USD. You will only need to pay the renewal fee but not do any paperwork as the LLC is only used to own your vessel. All renewals have to be done before June 1 of each calendar year.
Do I need to pay US taxes for my LLC?
Provided the company conducts no direct or indirect business in the USA and neither the managers, nominees and/or beneficial owners are US citizens or green card holders Delaware LLC can be free of all US taxes.
Do I need to send original documentation?
All documents can be a scan copy (better in colour), only if required, we need to present originals.
What documents are needed to register under the Delaware (USA) Flag
The documents required to register your boat vary depending on if the vessel was new OR used when you bought it.
FIRST TIME DELAWARE REGISTRATION OF USED BOAT
- Duly filled-out DELAWARE BOAT REGISTRATION FORM – CHOOSE FOR 3 YEARS OR 1 YEAR REGISTRATION
- OPTIONAL If you choose to protect your boat by transferring ownership into a INC or LLC fill in our COMPANY FORMATION APPLICATION FORM
- Notarized Bill of Sale between the previous owner (is you) and the new Delaware LLC that we setup for you – click here to use our Bill of Sale example
- If previously registered in DELAWARE please provide the deletion certificate.
FIRST TIME DELAWARE REGISTRATION OF NEW BOAT
- If the boat is new then you must also submit the ORIGINAL Certificate of Origin
ALREADY REGISTRED IN DELAWARE
- To transfer a boat already registered in Delaware we need a notarized Bill of Sale and the previous owner's registration certificate in order to keep the same Delaware License number