Short Wave Sportfishing wrote:
On Mon, 25 Oct 2004 16:54:34 -0500, Tamaroak
wrote:


I've got a 50 ton master's license for the Great Lakes and would like to
try to make a few bucks to offset the cost of a new boat by giving boat
rides to people on the Great Lakes. The rides could be last from an hour
to a long weekend. One source is obviously those who are doing it already.


Yep - and you might want to look up a Captain's Association or similar
for the Great Lakes. Most Captains are very helpful. I know when I
got mine and was thinking of the same thing you are, several charter
guys in the area were more than helpful. Some weren't, but most were.
In CT we have a Charter Organization that tries very hard to share the
wealth.


I'm trying to find other sources in the way of publications, IRS data,
internet forums or any general advice about the idea. I'm wondering what
to charge, how to deal with the insurance, USCG unknowns, S-corp issues
and other tactics to set up a part-time business like this.


The business side is this. If you run for profit, you should put
yourself into an LLC. If this is not a run for profit, but as a break
even operation, be aware that the IRS wants to see a profit after
three years in any business situation - otherwise it's called a hobby
business and you can't take a loss - only up to the amount made, no
overages.

Insurance is somewhat problematic. I know here in CT, I've heard
everything from a minimum of $500K to $1,000,000 per passenger. I've
also heard it's hard to get. I can't speak to that because I didn't
persue it much further.

As to the USCG, you have a couple of options. With a 50 ton, you can
run OUPV which basically means that you can run with up to 6
passengers on an uninspected vessel. There is also a way, under the
OUPV rules, to actually take up to 12 passengers, but that's a loop
hole deal. If you really want to know the details, email me off list
and I'll clue you in.

Otherwise, if you want to run under your full license, you have to
have an inspected vessel approved for passenger service as detailed in
the Federal Regulations. All the life preservers, rafts, EPIRBs,
fire, sanitation, etc....

As to running a part-time business, just take a look in any of your
local boating magazines and look through the charter lists in your
marina for instance. I think you'll get the idea pretty quick - you
aren't gonna get rich at this unless you are very good or very lucky.


I still have to have a US laid keel or get the waiver, right? And it has
to be USCG documented.


Not necessarily. If you run OUPV, none is required beyond the basic
safety stuff required for SOLAS. And I don't believe you have to have
a US keel to do that either. I'm not sure about the other stuff.

In any case, good luck. I've thought about it from time-to-time, but
it's not really worth it from my perspective.

All the best,

Tom
--------------

"What the hell's the deal with this newsgroup...
is there a computer terminal in the day room of
some looney bin somewhere?"

Bilgeman - circa 2004

When I checked into this the insurance was quite expensive and was
technically based on the number of charters you did. I don't know how
they can verify it, but that's what I was told. The insurance on my 48
footer almost tripled for the short time that I carried it and it was
based on only doing a half dozen charters.

Eisboch