Joint Venture Boat Ownership
BoatWiki - Definitions
Definition
Joint venture boat ownership can be defined as a collaboration among one or more parties to implement a specific project. It is similar to a partnership, but more narrow in scope and somewhat less regulated. Participants usually share equal benefits and liabilities.
Meaning
Although not always the case, most joint ventures are formed for business purposes. They are not typically intended as permanent arrangements and are dissolved upon completion of the respective project. Regulations for the formation of Joint Ventures vary widely among different jurisdictions.
Context
Joint ventures are not all that common with respect to boat ownership. State registration rules will vary as to whether the boat in titled in the participant's names or a company name. A vessel may be USCG documented under the joint venture's name, but this must be qualified by also listing the participant names. The participants citizenship status is also a matter of concern.
Conclusion
Boaters who are considering a joint venture type of ownership should be aware of the legal and taxation implications. Those who are unfamiliar with such issues may wish seek professional assistance.
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Credits and References
8/30/2022 - Page initiated by Team BoatWiki.
