When you are the brand-new owner of a vessel, you will have two choices about how you record your boat in the eyes of the law. Firstly, you can document the boat with the state, which will ensure that you are taxed properly for use and ownership of the vessel, or you could submit an application to the US boat registry, which will allow you to protect your boat when sailing in international waters and will allow you to move from one dock to another across the US much more easily. There are several benefits you can experience by choosing to make use of the US Boat registration as the new owner of your vessel.
US Boat Registry – Remove State Registration
One of the main benefits of registering your boat with the USCG is that you will not have to submit an extra form to the state (except in some circumstances). You will, of course, still have to pay the state taxes, but if you have to move across the country, or to a different state, you won’t have to organize new documentation for your vessel. The documentation for the Coast Guard will also provide you added protection, as your boat will now be listed as a member of the US sailing authority. This makes it less difficult to take your pleasure boat out to international waters, and for commercial sailing, you will have the added protection of the US Coast Guard, keeping you safe as you trade.
Get A Better Mortgage
In most cases, if you need to take out a loan in order to buy the vessel, you will be obliged to register with the USCG. Having a certificate of registration can make it easier for you to get a particular form of mortgage known as a Preferred Ship’s Mortgage, or Preferred Vessel Mortgage. The registry protects the bank, as the Coast Guard will keep an eye on the vessel, which can make them more willing to grant you the mortgage in the first place – you may also be obliged to register the boat as a condition of obtaining the loan. Lastly, you may also benefit from financial savings, as you won’t have to register the boat every year, and you may be eligible for some tax rebates as a result of the vessel being registered nationally, rather than by state.
Improve Your Protections
If you have decided that you would prefer to have the US boat registry with the Coast Guard, then you will need to apply to register the vessel with them. Many boat owners find this the hardest part of the task, and you may choose to have a third party help you to complete your forms. This takes the stress out of the application, and may enhance your chances of approval at the first attempt. To find out how the Maritime Documentation Center can help you, reach out to us online, or call us at (800) 535-8570 now.