Summary: Who needs a Captain’s license? Anyone carrying passengers-for-hire on federal waters. If you are receiving direct or indirect compensation from your passengers you are required to hold a Captain’s license. Voluntary compensation, such as splitting fuel costs with friends, does not constitute a passenger-for-hire.
There are certainly many State and Federal nuances as to who needs a Captain’s license and what type, but the short-answer is that anyone who is carrying passengers-for-hire needs to have the appropriate Captain’s license. What does a passenger-for-hire mean though? According to the U.S. Code of Federal regulations, a passenger-for-hire is defined as “a passenger for whom consideration is contributed as a condition of carriage on the vessel, whether directly or indirectly flowing to the owner, charterer, operator, agent, or any other person having an interest in the vessel,” and consideration is defined as “economic benefit” (46 CFR 24.10-1). Simply put, a passenger-for-hire is someone who pays some form of economic benefit to a person or entity, for the privilege of being carried on a vessel.
It should be noted that voluntarily sharing in voyage expenses does not make someone a passenger-for-hire as it is voluntary and not a requirement for being on the boat.
When determining whether or not a license is needed, it is useful to ask, “Am I being compensated for carrying this passenger” and “Am I only carrying this person because I’m being compensated?” If the answer to both of these questions is “yes” then a license is required.
The below scenarios are a few common examples of whether or not a license is required.
There are countless scenarios to discuss, and the below are simply meant as conversation starters. *All scenarios assume the boat is operating on federal waters*
- Q: I run a boat dealership and I provide test rides to potential customers. Do I need a Captain’s license to take potential customers out on test rides?
- A: Assuming you are only carrying these potential customers because they might buy a boat and that people buy boats because of these test rides, you are receiving indirect, economic benefit. A license is required.
- Q: I’m taking a friend out fishing and we are voluntarily splitting the cost of fuel and bait. Do I need to have a Captain’s license?
- A: If your friend is voluntarily splitting costs with you and this is not a requirement for you to take them out, your friend is not a passenger-for-hire. A license is not required.
- Q: I often take my neighbors out on cocktail cruises on my pontoon. I never ask that they pay me, but sometimes they buy me dinner as a ‘thank you.’ Do I need a license?
- A: Since you do not require compensation for their time aboard your vessel, a license is not required.
- Q: I have a boat rental. I provide each renter with a 15 minute on-the-water training session. Do I need to have a license?
- A: Yes. Since the renters are providing economic benefit (rental fee) and you would not provide training unless they rented a boat (condition of voyage) a license is required.
Do I need a captain license if someone wants to hire me to coach/consult/show them how to fish in there personal boat in Alabama?
Hi Jonathan, the biggest concern here is whether your student is your passenger or not. If you are not acting as the operator or captain of the vessel, the student is not considered your passenger and you should not need a license. If you are solely teaching someone how to fish (cast, reel, read electronics, etc) this person should not be considered a “passenger-for-hire,” especially since its not your boat.
A quick disclaimer: these are my thoughts based on my knowledge of federal regulations, but it would be worthy to contact your local Coast Guard Enforcement branch to confirm. Since you are in Alabama, you will want to start with the CG’s 8th District Enforcement division (contact info in the link below). I hope this helps!
https://www.atlanticarea.uscg.mil/Our-Organization/District-8/Contact-Information/
If a run sightseeing and water skiing tours on a small lake,non-title waters. Do I need a Capt’s License?
Hey Matt, if your lake is on non-navigable waters (i.e. you can’t get to the ocean, a Great Lake, or cross state lines), federal regulations do not require a captain’s license. It will be worth checking with your state government to confirm there are no state regulations that require a license. Typically DNR, Fish and Wildlife, or similar agencies can assist with this question. Does this help?
My girlfriend runs a secluded event space. Sometimes a boat ride is useful. I don’t charge for the ride, she charges for the event space at the remote location. Again I do not charge for the ride or receive compensation from either party. Would I need a license.
Hi Tyler, this is a tough one! The biggest concern here is whether or not you are acting as an “agent” of your girlfriend. In other words, when you are giving boat rides are you “authorized to act on behalf of” your girlfriend and her event space? While you are not receiving compensation, your girlfriend presumably is, and your rides may be linked to her. This is tricky, but I’d recommend getting a license.
Disclaimer: my thoughts are based on my understanding of federal regulations and should not be considered legal advice. I’d recommend reaching out to your local Coast Guard’s enforcement division and getting their thoughts (make sure you get them in writing!). Does this help?
I take people out for free. I have food and drinks onboard which I charge for. I am working towards getting my license. I live in Nashville. Is the U.S. Coast Guard present?
Hi! I’m not exactly sure where the CG has a presence in TN, but on all federally regulated waters, you’ll need a license to carry passengers-for-hire. Regarding food and drinks, these could be deemed voyage expenses, and you can split voyage expenses with your passengers without needing a license. As long as them buying food from you is not required for them to come aboard your boat they would not be considered passengers-for-hire, and a license is not needed.
Disclaimer: my thoughts are based on my understanding of federal regulations and should not be considered legal advice. I’d recommend reaching out to your local Coast Guard’s enforcement division and getting their thoughts (make sure you get them in writing!)
I work for a communications company that has a landing craft to move our trucks to remote islands to reach cell towers. Do I need a captains license to operate/ use this vessel?
I work for a company that has a landing craft. We use it to take generators and other communications cellular tower equipment to a barrier island. Do I need a captain’s license to operate the vessel?
Hi Jim, great question! I need a few more details to really help, but I suspect a license is required. According to 46 CFR 15.805, a Master license is required for:
(1) Every self-propelled, seagoing documented vessel of 200 GRT and over;
(2) Every self-propelled inspected vessel;
(3) Every inspected passenger vessel;
(4) Every inspected small passenger vessel;
(5) Every towing vessel of at least 8 meters (26 feet);
(6) Every uninspected passenger vessel of at least 100 GRT;
(7) Every uninspected passenger vessel engaged on an international voyage.
Does the landing craft meet any of the above criteria? If so, a license is required. Does this help?
Hello, does my bf need a captains license if he inherited a 40 ft sailboat that stays docked? Hes getting insurance on said boat in the meantime before he sells it and the insurance company is asking for a captains license..
If your boyfriend isn’t actively carrying passengers-for-hire he should not need a license, at least from a federal regulation perspective. Some insurance companies require proof of boater training or a boating safety course completions. See if your state offers boater safety training and ask the insurance company if that will suffice. If the insurance company wants proof of on-the-water training check out At the Helm Training (https://atthehelmtraining.com/) and see if this will meet the insurance company’s requirements. Does this help?
Thanks for your answers here. Any thoughts on the following…
I’m considering purchasing a boat through my small software company. We’re developing an app for use on-board, so the purchase is primarily for research and testing. Would I need a license to operate the vessel (30′ sailboat if that’s pertinent) for these purposes?
I’d also like to be able to treat potential and existing clients as well as individuals from other companies that we work with to trips out on the boat. Same question as above. If it matters, it would never be a requirement to do business with us to come out on the boat, but since it would be (presumably) to the benefit of the business, I’m unsure.
Thanks again for the information you’re providing to everyone.
Fair winds or following seas (because if you get both you’ll get spoiled to it!)
Joe, great questions, and I hope the app goes well. Let us know when it’s ready, we’d love to check it out!
Unless your conducting international voyages or the sail boat is over 100 gross tons, you shouldn’t need a license to operate it for app research/testing. It doesn’t sound like you’re either apply so you should be good to go.
As always, “indirect economic benefit” is a tough, but from what you describe I don’t believe a license is required. I would argue that app development is far enough removed from a boat ride that indirect benefit would be hard to justify. In situations like boat dealerships that use test rides to sell boats indirect benefit is easy to tie back to the voyage, and it doesn’t sound like that applies to you. Does that make sense?
While we’d love to convince you to buy a licensing course from us (or another training company), I don’t think you need one.
Disclaimer: my thoughts are based on my understanding of federal regulations and should not be considered legal advice. I’d recommend reaching out to your local Coast Guard’s enforcement division and getting their thoughts (make sure you get them in writing!)
Thanks for the clarifying information in the article. This was very helpful so far. I live along the coastal waters of Lake Michigan – presumably all Federal Waters. I have a pontoon sauna business that I would like to take passengers on. Assuming that 1: The vessel is under 16ft. 2: a motor is not utilized for the excursions, can I take paying customers out for a sauna session.
Alternatively, if the vessel is 25ft and motorized, can passengers only be taken out on a “voluntary basis” choosing to compensate at will? What if the vessel is towed out as a raft?
Hey there! For the most part, licensing requirements are independent of vessel length and propulsion type. From the info you provided, a license will be required to take passengers-for-hire out on your 16ft vessel. For your other scenario (25ft motorized), if payment (direct or indirect) is not required as part of the voyage then a license is not required. This is always a gray area so ask “If this person will not voluntary contribute, will I still take them out?” If the answer is “no” then a license is needed. Boat dealers who provide “free test rides” should have a license since these test rides often result in economic benefit, i.e. a boat sale. If this logic applies to your business a license is needed.
The tow question is tricky as well. If the person is staying on the sauna but the sauna remains anchored or moored, it is not technically underway so a license isn’t required. If you’re towing the sauna while people are onboard a license will be needed and a towing endorsement may be needed as well. Does that make sense?
Disclaimer: my thoughts are based on my understanding of federal regulations and should not be considered legal advice. I’d recommend reaching out to your local Coast Guard’s enforcement division and getting their thoughts (make sure you get them in writing!)
My employer requires that I use a company boat for parts of my job. When using a company boat, we must have a second employee in the boat at all times. I am being paid to use the boat and have a passenger, but that passenger is not the one paying me. Am I required to have a license?
Hi Paul, great question! Since your co-worker is acting as a crew-member and not a passenger-for-hire you will not need a license to have them aboard in this scenario. This assumes the vessel is not a type that requires a master license – see previous replies for this info. I hope this helps!
If I am paid as a delivery captain for yacht owner do I need a license?
Hey Frank, as long as the yacht is under 100 Gross Tons and not inspected, a license isn’t required for delivery. For your other question regarding sailing endorsements. As long as the vessel is operated under power, i.e. machinery propulsion, and not sail, you will not need a sailing endorsement. I hope this helps!
In reference to previous question, as a delivery captain without a sailing endorsement, is it legal to deliver a sailboat if not operated under sail?
(Power only}
Hey Frank, good question. As long as you only use machinery propulsion, i.e. engines, a sailing endorsement will not be required. I hope this helps!
I’m an experienced sailor with a 35′ sailboat. I’ve been asked to offer a harbor cruise on my boat as a raffle prize to raise money for a charity. There are many other prizes being given away. I am completely comfortable doing this, however I do not have a USCG license. This seems to be a gray area. I am not being compensated directly or indirectly, however each raffle entrant is giving some “consideration” (to a charity) for the chance to go on the boat. I think most people entering have no expectation of winning, and really just want to give money to the charity. Thanks for any insight you may provide.
Hi Mike, Love the volunteering for non-profit fundraising! Since the passenger you’d be carrying won the ride by paying for a raffle I’d categorize this as indirect “economic consideration” so a license would be needed (assuming you are operating on navigable waters where federal regulations apply). Although you’re doing this for charity someone is receiving economic benefit. I’d also lean on the question of “If your passenger didn’t pay for a raffle ticket would you still take them on your boat?” My guess is the answer to this is no so a license would be needed. Does this help?
Hi, I have a question. If I were to start a weekend business where I delivery food, beverages, ice, goods in general to people who may have run out while on the water, would I need a captains license? They would be paying for the goods and me carrying the goods to them but would never be a passenger on the boat. Thanks for the help!
Hey Brett, from your description you will not need a captain’s license to deliver food, etc to people out on the water. It wouldn’t hurt to get a license so you could take passengers from the dock to their boat, friend’s boat, sandbar, etc though.