See our most common questions related to the Delaware flag registration.
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 24 hours. 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 5 days for the express service or 2/3 weeks for regular service. Once you received your registration your vessel can fly the US flag in any international waters around the world.
Delaware issues 2 types of registrations. For 1 year or 3 year.
However, they work with calendar years, meaning the 1 year register is valid until the end of the year, a register done 5 June 2022 will expire 31 December 2022.
For the 3 year register the register expires the running year +2, meaning registration done on 5 June 2022 will expire 31 December 2024.
However if you request the registration between 15 October and 31 December it will be valid for the full year or full 3 years, which applied.
If all correct documentation is supplied, it will take 5 days for our expedited service and about 2/3 weeks for regular service.
You do not need to be a resident of the US to be registered under Delaware, US flag.
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.
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.
The yearly fee for renewing your LLC is 400 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.
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.
To keep your company current and valid every year you need to pay the registered agent fee of 99 USD. Who is your official representative in the USA for your company. This is separate form the annual state tax due before 1 June every year.
All documents can be a scan copy (better in colour), only if required, we need to present originals.
We can deliver your documents worldwide. Important: UPS cannot delivery documents to PO Boxes.
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 FOR PRIVATE OWNER
FIRST TIME DELAWARE REGISTRATION OF USED BOAT FOR LLC – (IS COMPANY OWNERSHIP)
ALREADY REGISTRED IN DELAWARE
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