On 5 Apr 2006 09:43:03 -0500, Dave wrote:

In that case, the answer is obvious. Federal documentation. A one-time cost
and no annual renewal fees. And if it's not in any state for more than about
60 days, no requirement to pay any state taxes or fees on the vessel.

Whatever state you document in will try to claim it. The local tax
folks have gotten very efficient at screening for "their" boats. If
you document in a "no tax" state like Delaware, it's like waving a red
flag everywhere you go. Even Delaware will want you to buy a sticker.

If a state or local tax authority makes a claim against your boat, it
is your obligation to prove that no tax is due. Otherwise they can
file a USCG lien against it, and go to auction if unpaid. I just got
out of a messy situation in South Carolina caused by the alleged
misdeeds of a previous owner. It took over 6 months to resolve and
some help from my son the law student. If I had documented through an
offshore corporation, the boat would have been virtually untraceable.

When the stakes are high, offshore has its merits. That's why so many
mega yachts are registerd in places like the Cayman Islands and the
BVI.