BoatWiki - Definitions
A partnership in terms of boat ownership is an arrangement where two or more parties have formed a mutual operating or business agreement. Although not legal entities in themselves, partnerships are typically governed according to state regulations and may function under the partnership's name or an appointed partner.
There are three distinct types of partnerships including general, limited, and limited liability; each representing a different kind of arrangement. These may relate to managerial factors along with the exposure of each partner when it comes to taxes and liabilities. Requirements for forming a partnership may vary among various jurisdictions.
Most states will allow boat ownership to be stated under the partnership's name. This also applies to USCG documented vessels, except that a list of all partner's names must be provided along with their citizenship status.
Owning a boat in a partnership can have significant implications for the partners with respect to usage, liabilities and taxes. Boaters who are unfamiliar with these issues should seek professional assistance in making such choice.
Credits and References
8/28/2022 - Page initiated by Team BoatWiki.