Boat Partnership Agreement Form
By “ownership” I refer to the question of whether the owners will be partners or whether they will create a corporation or limited liability company (LLC) to own the boat. These companies would not have a real business purpose and, as such, will probably not protect owners from liability, but their structure may offer other advantages. I work with my brother. We rode together on my boat for a dozen years before deciding to climb the Ante a little. We have sketched out a fundamental breakdown of the cost agreement, BUT each year we have defined a “renewal” window and a “1 year” of redemption or sell, because you cannot expect to sell a boat in 1 month. There are other threads on this topic that you should go through. The points raised were: agreement on how to use/operate the boat, set expectations and define a clearly defined procedure to dissolve the partnership. Personally, I think you need to think about the most pessimistic scenarios. What will you do if a partner doesn`t want to buy sails, etc.? or decides they don`t want to sail much and not spend money on sails, etc.? Boats usually don`t sell out quickly and really don`t move when a partner has an unrealistic idea of value. What will you do when it`s time to sell the boat? There should be a mechanism for a third party (perhaps a broker) to set the price with the right of refusal pre-purchase for partners. I`ve been in two partnerships and I like it for the very reason Loco mentions – we can all sail a bigger and better boat than we could afford to do on our own. .