Charter Question

[wrobinson]

I have been getting more and more requests to take folks out on fishing charters. I have always declined but now I'm thinking I may do it a bit this spring. I have an OUPV license and I know I will need the proper insurance and Boat markings, etc. Do any of you guys do this? Any advice?

Second question for the nautical accountants on the forum. If I do set up a charter company and I entertain business clients on fishing trips can I charge my company the full rate for charter? Historically I have only expensed the fuel, bait and ice.

I appreciate any advice.

 

[Hookup1]

Charter

If you do it the "right way" you protect yourself from law suits. Setup a LLC, the LLC must own the boat, pay the insurance with a charter endorsment and keep a set of books for the business. If your not real serious about running a charter operation the overhead of the insurance, paperwork and tax return are excessive.

I had an occasional charter endorsment on my last boat. It covered a dozen or so charters a year (depends on company). In this situation you really need to ask your insurance agent about liability coverage and consider who your taking fishing.

The state and your insurance company may require you to be/have a licensed captain on board too.

And YES you should charge your company a competitive rate for a charter. Unless you run a lot of trips you will never turn a profit. And you can depriciate the boat and equipment.

 

[gradyfish22]

If your not looking to make a big profit, look at comparable charters, or in your case guides since you can only take a small number out , not 6 due to your size likely and lack of a mate...2-3 will likely be the number so consider tht as well. YUou want to be competative, but maybe a hair lower then others since your new, also maybe offer one day a week for open boat tripos that you will fish anyways, anyone who comes pays a share of the trip, it my not pay ll of it on some days but you would be going anyways so it helps pay the bill...most by me charge $75 roughly for an inshore open boat trip, but I've seen some more expensive...it deoends on bait, how far yu run and species. Also, since your new in the game being a little cheaper may appeal....getting a small basis of clients and taking a small hit early may be needed to establish yourself until word gets out after you've had a few onboard. Also chck, many marinas charge more for a charter since you are "making" money so that might be a factor...see hos many trips it will take to pay for the added xpenses...also figure in te use of gear since it will need to be serviced/replaced from wer, many don't do this and take the hit hard.

Good luck!!