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State Titling vs. Federal Documentation

There are essentially two ways vessel ownership in the U.S. is evidenced:

• Through State Registration including a title component

• Through the Federal Documentation System

Although Federal law required both systems, the administration of state registration is left to the individual states, and so wide differences are noted among them.  Federal documentation, on the other hand, provides a nearly uniform means of vessel registration.

Frequently Asked Questions

What is Documentation ?

Documentation provides the means to establish a central registry for boats, in the same manner that, say a state Department of Motor Vehicles provides registry for automobiles. In a way, documentation is a way of showing a boat’s nationality.

Documentation is the federal registration of vessels (average of 27’ and over) with the U.S. Coast Guard.  Each vessel is assigned a number, which is permanently displayed on an interior part of the hull.  A certificate is issued which identifies the owner.

What are the Advantages ?

It can simplify the sale of a boat or yacht as it identifies current and previous owners of the vessel and has the ability to record mortgages and liens.

It is recognized in international waters and can help ease port clearances.  If you plan on doing foreign cruising, including the Bahamas and the Caribbean, it is recommended that you document the vessel.

Most states do not require you to display numbers on the bow if documented.  Most states will require you to register and to display the state decal.  Every state is different and it is recommended you check with the state where the boat will be kept.

Can Anyone Document a Boat ?

No. You must be a U.S. citizen or a naturalized citizen.  If the owner of the vessel is a corporation, the CEO must be a U.S. Citizen, the Chairman of the Board must be a citizen and no more than a minority of the directors are non-citizens than a minority of the number necessary to constitute a quorum.

Will I be Exempt from Sales Tax ?

No. In most states, it has no bearing if the boat is documented or not.

Who can do the Documentation Process for Me ?

Throughout the U.S. there are a number of Marine Documentation Agencies that can handle the transaction for you. Many times, your boat dealer/broker or banker has someone with whom they already have a relationship.  You can find a documentation agent by looking in the yellow pages in your area.

What does Documentation Cost ?

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