Advice for starting a delivery boat business

[Palarran]

Originally Posted by fish53

I hope you like "chest thumping" because here's some more. I've been going to sea since I was fourteen and I'm sixty five now. That's going to sea not wandering leisurely up a coast or drinking martini's in some swank Caribbean harbor. I only did a handful of deliveries mostly just to try it and see what the "real sailors" do, and it turns out it's not much. I may not be well educated and I come from a poor background but I'll stack my seamanship skills and ability to work hard against anyone's. Thanks for letting me vent, I didn't care much for your post but I'm OK now.

I don't drink martini's in the Caribbean. Strictly beer or rum and cokes.

Fish, I'm glad you are able to make $2000 per day fishing. Crap, not many people can make $2000 per day unless it mean's they spend the next 6 making zero. Sorry that you didn't like my post and I'm glad your ok now that you got that off your mind.

[Palarran]

Originally Posted by boatpoker

I don't see anything about your daughter in this chest thumping rant

Ok, so the idea of chest thumping is when you talk about yourself. You see, you thump your own chest about how great or strong you are. What you quoted of mine is opinion. In general, that's why people put the IMO (in my opinion) in their opinions.

[fish53]

Originally Posted by Palarran

I don't drink martini's in the Caribbean. Strictly beer or rum and cokes.

Fish, I'm glad you are able to make $2000 per day fishing. Crap, not many people can make $2000 per day unless it mean's they spend the next 6 making zero. Sorry that you didn't like my post and I'm glad your ok now that you got that off your mind.

I apologize for my outburst if I had known how to delete it I would have. I started life with less than nothing and had to work hard for every scrap I could get so I guess I trained myself to get my hackles up in a hurry to survive. I know next to zero about you and you're undoubtedly a fine person as your daughter's success indicates and you didn't deserve my misplaced comment, consider it retracted.

[sanibel sailor]

Originally Posted by fish53

I apologize for my outburst if I had known how to delete it I would have. I started life with less than nothing and had to work hard for every scrap I could get so I guess I trained myself to get my hackles up in a hurry to survive. I know next to zero about you and you're undoubtedly a fine person as your daughter's success indicates and you didn't deserve my misplaced comment, consider it retracted.

Here's a man of good character

[KTP]

I think you would make more money doing sailboat surveys. $500 to $1000 a day and you don't even have to be right about anything. Maybe learn to tap a ping pong ball on the hull and be able to identify months and years on the fire extinguisher label would be good skills to learn first.

[boatpoker]

Originally Posted by KTP

I think you would make more money doing sailboat surveys. $500 to $1000 a day and you don't even have to be right about anything. Maybe learn to tap a ping pong ball on the hull and be able to identify months and years on the fire extinguisher label would be good skills to learn first.

$1,000 to $1200 is an average survey for me but damn it, ping pong balls are expensive and they don't last long.

[tp12]

Originally Posted by fish53

I apologize for my outburst if I had known how to delete it I would have. I started life with less than nothing and had to work hard for every scrap I could get so I guess I trained myself to get my hackles up in a hurry to survive. I know next to zero about you and you're undoubtedly a fine person as your daughter's success indicates and you didn't deserve my misplaced comment, consider it retracted.

Respect to you for that

[Captain Graham]

Originally Posted by Captain Graham

Thanks to everyone for your comments.

I will try to answer some of the questions

1. I will be doing this part time even after I retire.
I do not expect to earn a lot of money.
$4,000 to $8,000 per year before I retire
$20,000 to $30,000 per year after I retire.

2. I have talked with 6 Delivery Captains in the past few years.
They were located in Florida, NC, Maine and SC.
They all said about the same thing
Expect about $150 per day as a mate and about $300 per day as the Captain.
Plus a one way ticket home.

3. I have done 1 delivery as a mate last summer.
2 days was paid $150 per day.
The Captain used his own chart plotter and told me he always carried his own because he can trust it.

4. The way I figure it instead of spending $150 per day on vacation I will be earning $150 per day as a mate.

I say part time but I will be spending time finding the delivery work.
You know hanging out at yacht clubs and bars doing marketing.

Just to be clear I did not say I would treat working as a mate as a vacation.
I was just trying to say that I have 2 options with my vacation time.

Take a real vacation and spend money
or
Work a part time job and earn money.

[boatpoker]

Originally Posted by Captain Graham

Just to be clear I did not say I would treat working as a mate as a vacation.
I was just trying to say that I have 2 options with my vacation time.

Take a real vacation and spend money
or
Work a part time job and earn money.

Go for it ! Sharon and I make a lot less money doing deliveries but we get to run some pretty cool boats, that's the attraction for us.

[Captain Graham]

Originally Posted by boatpoker

Go for it ! Sharon and I make a lot less money doing deliveries but we get to run some pretty cool boats, that's the attraction for us.

Thank for all your posts.
They have been very helpful.

[Captain Graham]

Originally Posted by valhalla360

Make sure to talk to a tax adviser. Lots of potential complications.
- Money made overseas
- IRS Hobby Rules (assuming you are from the USA).
- Etc...

Thank you for the advice.
I have already reviewed my plan with my tax adviser.
He also setup the LLC for me.
Yes I am in the US.

[Fore and Aft]

KTP I am to busy writing the bill to worry about fire extinguishers thats the most importatnt thing when doing surveys. I also always watch a youtube instructional video before every survey.... just to make sure I sound like I know more than my customers!

I may as well put my two cents into this chest thumping. When the wife and I were 21 we flew to Canada from NZ purchased a Whitby Folkboat and spent two seasons sailing the great lakes. The closest we came to getting wrecked was by the friendly Canadian woman!
Cheers

[jmschmidt]

Some of misinformation and incomplete information here.
There is really no tax advantage to an LLC. In fact there may be disadvantages. Unless you directly manage the LLC and spend a certain amount of documented time (previously was 750 hours per year) doing so you normally cannot deducted any business losses. In this case net losses are accumulated and can only be taken when you sell or close the business, if at all. However, LLC net income is fully taxed by the IRS and your state if applicable. Your share (100% if you are the only member) of the business net income is shown on your IRS Form K-1 that every corporation, partnership and LLC must prepare and give to its owner/members.
If your LLC has a “single member” (you) and you are the manager and your business is primarily the providing of your personal services (delivering boats, training, etc.) you probably have no protection from personal liability with an LLC structure. And securing key-man liability insurance is very difficult and expensive for a small business.
Also, single member LLC’s can either have no charging order protection or very week protection depending on the state. A judgment secured by a creditor can result in a charging order being placed on the assets of your LLC and your personal assets.
Belizesailor is correct, “If you plan to remain a one man show, ask your accountant about designating the LLC as a "disregarded entity" for tax purposes...this eliminates the need to file a return for the LLC.”
Except that if you are a single member LLC the IRS most likely require you to file as a disregarded entity and include all the business financial information on your personal tax return rather than on IRS Form 1065.
And again you would have no personal liability protection as a disregarded entity.
And, I’m not sure what a “USCG Qualified Instructor” is? Does this mean that you already have a USCG authorized school set up to do the classroom part and give and process the official written exams?

[Captain Graham]

Originally Posted by jmschmidt

And, I’m not sure what a “USCG Qualified Instructor” is? Does this mean that you already have a USCG authorized school set up to do the classroom part and give and process the official written exams?

The short answer is yes.

The details
Everything involved with doing the 100 Ton USCG training class has to be approved by the USCG.
The school (company)
The program (training material- like the practice exams have to be approved)
The instructor (Me)
Even the Class Room has to be approved.

So I talked with an approved school (company) and they sponsored me to become an instructor for their program.

To become a USCG Qualitied Instructor you have to
1. Have a USCG Masters License
2. Take a USCG approved training class for teaching
3. Submit a resume explaining your training/teaching
4. Be sponsored my an approved school.

The school I am with also trained me on their program.

A warning about teaching an approved USCG training class.
Last month a difference school conducted a training class.
The USCG put a fake student in the class.
The instructor did something wrong and the instructor has been charged with a FELONY.

So if you want to become a qualified instructor you need to follow the rules.

[Captain Graham]

Originally Posted by Uricanejack

If it’s of interest and you enjoy doing this part time.
I think you are on to a good opertunity, working on a part time contract with a recognized USCG training company.

This will answer the why’s. Let the school have the headaches of marketing and organizing course.
Trying to set up on your own and establishing a reputation would be more a full time job.p
I believe the market is there and with recent changes coming from Manila 2010 and later IMO requirements. The ability to challenge commercial certificate exams is going to end sooner rather than later. The market will get stronger.
Student ussualy like to have a one stop shopping so a recognized school doing all the course required tends to have an advantage.

Fitting courses into work schedules is also a big attraction.

If you find you get opertunies for deliver trips. Looking at it as a pleasure or adventure for no cost or modest remuneration rather than a money making venture. Is the way to go.

I used to instruct for 100 bucks a day. I never did manage to convince my wife I was actually working.
She was right I was doing it because I enjoyed it.

What current rates are I wouldn’t know.

Instructing a commercial course. Pays quite well. Probably not quite as well as your day job. certainly worth your while.

I think you understand what I am doing.
Thank you.