This is by far our most popular and flexible, full-ownership program to suit most objectives. The Smart Yacht Business Program is designed for yachts owned and operated as active, small businesses engaged in the bareboat and crewed charter . Like any small business you can think of, this status enables the owner to take advantage of all the benefits that can be realized through owning and operating a small business. You are "the boss", and Florida Yacht Group serves as your yacht's management company to help take care of the many logistics of providing your yacht ready to use to charter clients.
In this program, the boat is typically owned through a Limited Liability Company ("LLC"). As the owner of your yacht's LLC, the net income or losses are passed directly through to the owner's personal 1040 income tax return in accordance with IRS regulations.
This program is popular because, as an active business entity, your LLC can:
Your LLC will, like millions of other on-going small business activities in the US, be focused on earning income with the objective of making a profit. The income earned from chartering will serve to pay your LLC’s expenses such as docking, insurance, maintenance, loan interest, and management fees. As few as 10 weeks of charters per year can substantially offset your basic ownership costs. You can use the boat as much as you want by being your own customer (i.e. by personally chartering your boat from the LLC whenever you want to use it).
As an active business owner, you will need to adhere to sound business practices including keeping track of income and expenses and supervise Florida Yacht Group’s Management activity. While enjoying support from Florida Yacht Group for the tools and information needed to get started and operate your business, owners in this program need to actively participate in their LLC’s operation; this both easy and rewarding. There are clear IRS “for profit” guidelines for ensuring that a small business is in compliance.
In this program, you are free to choose exactly the boat you want from our Unlimited Portfolio, then keep it in the program at a FYG Charter Base (or partner base) for as long as you want and depart the program in an orderly manner when you’re ready to go sailing fulltime or, perhaps, sell or upgrade your yacht.
Choose any stock yacht or specify any configuration of any yacht to your specs from our Smart Yacht Business. Yachts Available for Smart Yacht Business Use
Locate your yacht at one of the Florida Yacht Group CHARTER BASES in Miami, Key West, St. Petersburg, Palm Beach, and Marsh Harbor (relocation possible) OR choose an available base with one of our PARTNER FLEETS located throughout the Caribbean
Smart Yacht Business Program owners can enjoy unlimited use of their yacht consistent with the orderly operation of the small business. Please refer to our Smart Yacht Business Program OWNER USAGE POLICY AND PROCEDURES.
Florida Yacht Group will assist you to obtain the proper type of loan for the purchase of a yacht destined for charter service. Please see our FINANCING OPTIONS.
Florida Yacht Group provides economical insurance for the coverage of a yacht in charter service.Please refer to our FLEET INSURANCE POLICY AND PROCEDURES page for details.
To enjoy the benefits of this program, it is necessary to purchase a new yacht ready for charter service and put it into a charter fleet with a reliable management program. Please refer to our Smart Yacht Business Program PURCHASE AND CHARTER MANAGEMENT page for the details of two important operative steps.
Florida Yacht Group service department carefully follows well-defined procedures for commissioning and acquainting the owner with a new yacht. Please refer to NEW YACHT COMMISSIONING AND DELIVERY.
Florida Yacht Group’s Chartering operations team has procedures to screen charter customers to ensure that yachts in our care are always in competent hands. Please refer to our CHARTERING POLICY AND PROCEDURES.
Florida Yacht Group’s Service Department ensures that yachts receive meticulous attention throughout their time charter service. Please refer to our CHARTER YACHT MAINTENANCE POLICY AND PROCEDURES
As an active business, it is necessary to do planning and make projections. Please refer to our Smart Yacht Business Program PLANNING AND PROJECTIONS page for a discussion of anticipated cash flow and example projections
For a discussion of program exit options, please refer to our Smart Yacht Business Program EXIT OPTIONS.
In order to take full advantage of this program, it is necessary to understand how it can be used to reduce your taxes. Please see our Smart Yacht Business Program TAX INFORMATION
You may find answers to the most common questions about this program in our Smart Yacht Business Program FREQUENTLY ASKED QUESTIONS (FAQ) section.