Why would you want to document your yacht? First, in some cases it may eliminate the need for state registration (though you’ll usually still have to pay the state the same taxes; this isn’t a “dodge”). More importantly for long-distance cruisers, if you travel to foreign waters, the Certificate of Documentation facilitates clearance with foreign governments and provides certain protection by the U.S. flag. Plus it may be easier to get a bank loan to finance your vessel if it’s documented. The bank is interested in recording a “First Preferred Ships Mortgage” to perfect their lien, and this document is enforceable throughout the U.S., its territories and some foreign countries. There may also be some tax savings, but you’ll need to check with your state to find out the preferred tax status for documented vessels. The one-time documentation charge is $133.00, versus recurring annual state fees which are often based on a sliding scale using boat length. Remember, however, that documentation doesn’t carry over to dinghies or tenders—these still need to be registered with the appropriate state.
Documentation can also make it easier to travel up and down the coast of the US. Most states allow boats registered in other states to “visit” their waters for a period of time without obtaining registration. But if you plan to take your boat to another state for more than a couple of months, the state you’re visiting may want you to register there; unless you stay long enough to be considered a resident, documented vessels may avoid this fineable situation.
Documentation can also make it easier to travel up and down the coast of the US. Most states allow boats registered in other states to “visit” their waters for a period of time without obtaining registration. But if you plan to take your boat to another state for more than a couple of months, the state you’re visiting may want you to register there; unless you stay long enough to be considered a resident, documented vessels may avoid this fineable situation.
