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?
Hi, Captain Rob! I own a charter company in Arkansas and I’m on a non navigable body of water. It has a dam on each end. Where can I get information to confirm a license isn’t needed in my state?
Hey there, I used to spend a lot of time in Cotter and love Arkansas! Based on what you said, you shouldn’t need a captain’s license since you operate on a non-navigable body of water. You can call the Coast Guard District 8th Enforcement Branch to double check (504) 671-2241). They might redirect you to a local CG unit but that is where I’d start. I hope this helps! More contact info for CG District 8 can be found on their website: https://www.atlanticarea.uscg.mil/Our-Organization/District-8/Contact-Information/
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!)
What license is required to take guests out for hire on Percy priest lake? I am reading conflicting info online …6 pack? Master ? Or no captain license?
I’m not too familiar with Percy Priest Lake, but here are my thoughts.
The question to answer is “Is Percy Priest Lake considered federal waters?” If yes, a license is required. If no, a license is not required by the federal government, but may be required TN.
Based on some quick googling, I believe a license is required. I say this because it looks like you can get to the Cumberland River from Percy Priest Lake. This is my opinion but it will be worth contacting the local Coast Guard to confirm. I also found this article that might be helpful.
If a license is required and you want to carry more than six passengers-for-hire then you will need a Master license. If you want to carry six or less passengers-for-hire then a six pack (OUPV) will be sufficient.
Does this all make sense? I hope it helps!
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?
Do you need a captain license when pulling waterskiing for hire.
Customer paying for waterski instructions and being pulled behind a boat in Florida?
Thanks
Bob
Hi Bob, in this instance you will need a license as the skier is providing economic benefit as a condition of voyage. There is a caveat that if the water where boat is operating is not regulated by the Coast Guard or the state of FL, a license may not be required. Since I’m unfamiliar with the specific area of operation, I recommend earning a license for this. You can always reach out to the local Coast Guard enforcement division to confirm whether or not a license is required on the specific lake. I hope this helps! Let me know if I can clarify anything.
https://www.atlanticarea.uscg.mil/Our-Organization/District-7/Divisions/
If I wanted to run a free “charter service” for disadvantaged kids/families where they did not have to pay to spend time on a boat, would a license be required?
If not required, would you recommend one?
Hi James! It sounds like you offer an awesome program for kids/families. Since they do not need to pay or provide any “economic benefit” as a condition of being on the boat, you will not need a captain’s license.
I’m a bit biased, but I’d recommend earning a license. If you were to ever auction a charter for a charity or something like that to support your cause that’s a gray area where having a license would be beneficial. I hope this helps!
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.
Question for ya! My husband and I recently purchased a pontoon, mainly for family purposes. However we’d also like to occasionally host mediation and wellness sessions out on the water using our pontoon. If we are charging guests for the wellness service and the boat ride is complimentary, do we need a captains license? We’re in FL.
Hi Jay! In my opinion the connection between the meditation session and the complimentary boat ride would be too strong and a captain’s license would be required. I always recommend asking the question “Would this person be on my boat if they didn’t buy something from me?” If you can truly say you’d take people on your boat even if they didn’t purchase a wellness session then a license would not be required.
A license would not be required if you are not on “navigable waters.” So if you’re on a small, isolated lake or something similar you would not need a license. To find out if you body of water is federally regulated you can reach out to the local Coast Guard enforcement division.
Thanks for all your responses, these have helped more me better understand my situation. It seems like I will need a captains license.
My question is if want to buy and charter (my self as captain) a 40-50 foot sailing catamaran near the coast of Miami and maybe in to Caribbean, what experience do you recommend I get? Do I need to sail on 22 foot day cruises (available at local yacht club) or can I use a deck boat of similar size? Additionally, I’m in Tennessee currently and have access to two large bodies of water, a navigable waterway leading to ocean (Cumberland river) and a non-navigable lake (Percy Priest Lake). Does the body of water matter regarding which license I can obtain?
I have a 17’ Hobie Getaway, which is a small sailing Catamaran with no auxiliary propulsion. Can I give people short rides for tips in a bay if the tips are not required, but accepted by me?
Hi Mark, great question! If there is zero requirement for compensation for the person to be aboard your vessel then a license is not required. However, you should be able to clearly articulate that direct or indirect benefit (i.e. compensation) is not required for passengers. In my opinion, I’d recommend earning a license for your scenario as accepting tips, even if they are not required, may have the optics of being required. At the very least I would explain your situation to your local Coast Guard enforcement branch and get their opinion in writing before accepting tips from passengers. Does this help?
If I have a 17’ sailing catamaran with no auxiliary propulsion, do I need a captain’s license to take people on short sails around the bay for a fee? What about if it was only for tips but tipping isn’t required?
Hey there! If you require passengers to pay a fee then a license is definitely required. Tips are a gray area. Since offering a free voyage with an expectation of a tip may be seen as a requirement for voyage I’d recommend earning a license. At a minimum I’d explain your scenario to the the local Coast Guard enforcement division and get their response in writing, especially if they state a license is not required. Does this help?
Hi. I have a client that owns a 27’ recreational vessel. He wants to hire me to operate his boat while he entertains guests underway. I have a USCG 100gt license. Under these circumstances, where I never take over ownership of the vessel, is the owner limited to 6 passengers, himself and 5 guests?
If the owner is operating the vessel and none of the owner’s guest are paying passengers, i.e. passengers-for-hire, he is not limited to the number of passengers as its not a commercial voyage (obviously he may not have more passengers than is safe to carry on the vessel). If you are being paid to operate the vessel the number of passengers will be limited by your license. Since you have a 100GT Master you can carry the max number specified by the vessel. Does this make sense and answer your question?
Hi Captain Rob,
Would I need a captains licensee if I am a ski guide who uses my boat to access mountains, where there people then pay me to ski guide for them. Not for the boat travel. I know this is a gray area but I just want to start to grow my little ski guiding business this spring out of the prince william sound in AK.
Your ski business sounds awesome! Small world, but we have Prince William Sound Community College approved as one of our exam sites. Back to your question, since you are receiving “indirect economic benefit” by the people paying you for skiing, you would need a captain’s license. The question I go back to is, “would you take them on the boat if they weren’t paying you for skiing?” If the answer is “no” then you need a license. Does that logic make sense?
I work for a School Board, and we are currently purchasing two pontoon boats. Students will not pay to use the boats with our environmental educational program. The program is entirely free for the students and teachers.
Since we are not for hire, do we need a license to operate the boats with students on them? I’m sure the safe answer is yes, but if the boat’s placard says 14 passengers and I have a 6-pack license, then I’m only allowed to have 6 on the boat, even though we aren’t for hire.
Since you are not for hire and there is no direct or indirect economic benefit (at least from what I can tell), a captain’s license is not required. That said, the question of whether you need a Master license vs. an OUPV license is now irrelevant.
A quick note on vessel capacity for an OUPV license. An OUPV allows the holder to carry up to six passengers-for-hire plus crew. Although this is not relevant to your question I did want to mention it. If you were taking out the boat with six passengers and eight crew (including you), you’d be within the legal limits. Does this make sense? I hope it helps!
I work for a marina and am tasked with delivering a customer’s boat to its dock/mooring is a license required? Will launch tenders license surfice? If I tow the boat is a towing endorsement required? In all instances the boat owner is billed for the service.
Hi there! As always, marina and moving boats are a bit tricky. However, if you’re only moving boats and the owner is never onboard you should not need a license. If the boat owner is onboard then he/she could be considered a passenger-for-hire and a license is required. If you are simply moving unmanned vessels around the marina, a license is likely not required. However, per federal law if you ever tow a “disabled” vessel that needs assistance a license is required. Does this make sense?
Our club (on a federal waterway) runs a learn-to-sail program for members in which members pay to enroll. The program uses Idea 18 keelboats on moorings. Mostly sailors use the club launch to reach the moored boats (inspected vessel, USCG Master at the helm). Sometimes the Director of Sailing will take sailors to/from the moored boats on his RIB coach boat. Does the Director of Sailing need a USCG license to do so (OUP six-pack would suffice)? Thanks.
While giving someone a ride to their boat may seem small, I believe the Director of Sailing needs a captain’s license for two primary reasons. One is his/her position in the club – as the Director of Sail, it can be assumed he is acting on behalf of the club (and therefore getting the club some indirect economic benefit). Second, membership at the club is likely a condition of voyage. Would the Director give rides to non-members? In other words, are membership dues (i.e. economic benefit) a condition of voyage?
I could be convinced the Director would not need a license, if he/she provided rides outside normal office hours or outside normal job duties. In other words, if the Director provided rides on his behalf and not on behalf of the club, I’d argue there is not economic benefit to the club. Also, if non-club members are able to receive rides I’d argue there is no indirect or direct payment as a condition of voyage so the passenger is not a passenger-for-hire.
Do these thoughts make sense or could we clarify any of the above?