Michigan Watercraft Registration Bond - Business Entity Only

When Does a Business Need a Watercraft Registration Bond?

A business entity may need a Watercraft Registration Bond in Michigan if:

✔ A boat was acquired without a proper title – If a business purchases or receives a watercraft but lacks sufficient documentation to prove ownership.
✔ The title is lost or missing – If the previous owner cannot provide a valid title or proof of ownership.
✔ A boat was abandoned on business property – If a marina, storage facility, or repair shop receives an abandoned watercraft and wishes to claim ownership.
✔ A vessel was repossessed – If a financial institution, dealership, or leasing company repossesses a boat but lacks a proper title.
✔ Homemade boats or vessels with incomplete paperwork – If a business constructs, refurbishes, or modifies boats and needs to establish ownership for registration.

In my experience, boat dealers, repair shops, and storage businesses frequently encounter title issues, making bonded titles an essential solution for registering boats legally.

How Much is a Michigan Watercraft Registration Bond for Businesses?

The bond amount is determined by the Michigan Department of State and is typically double the vessel’s appraised value. However, the cost you pay (the bond premium) is only a small percentage of the total bond amount.

Example Cost Calculation for Businesses:

• If a boat is valued at $8,000, the required bond amount is $16,000.

• If the bond premium is 2.5%, the business pays $400 for the bond.

Several factors affect the premium cost:
✔ Business Credit Score – A higher business credit rating can result in lower bond rates.
✔ Financial Stability – Established businesses with a strong financial history often qualify for better rates.
✔ Bond Amount – Larger bond amounts may have lower percentage rates.

Businesses with credit challenges can still obtain a bond, though rates may be higher. We’ve helped many businesses navigate these situations efficiently.

How to Obtain a Michigan Watercraft Registration Bond as a Business Entity

For businesses, obtaining a Watercraft Registration Bond involves a few extra steps compared to individual applicants. Here’s what the process looks like:

Step 1: Determine the Required Bond Amount

• Contact the Michigan Department of State (MDOS) to confirm the necessary bond amount.

• You may need to provide an appraisal or details about how the boat was acquired.

Step 2: Gather Business Information

• Provide details about your company, including:

  • Business name and entity type (LLC, corporation, etc.)

  • Federal Employer Identification Number (FEIN)

  • Business address and contact information

  • Information on the watercraft in question

Step 3: Apply for the Bond

• Submit an application with your business details, vessel information, and requested bond amount.

• The surety company will review your business financials and credit history to determine the bond premium.

Step 4: Purchase the Bond

• Once approved, you’ll receive a quote.

• Pay the bond premium and receive your Michigan Watercraft Registration Bond certificate.

Step 5: Submit the Bond to the Michigan Department of State

• Provide the bond along with the Watercraft Registration Application to complete the registration process.

• Once approved, the business will receive official registration documents for the boat.

How Long Does the Bond Last?

A Michigan Watercraft Registration Bond for businesses typically lasts three (3) years from the date of issue.

• If no ownership disputes arise during this time, the bond expires, and the business retains full ownership of the vessel.

• If a rightful owner comes forward with valid proof of ownership, they may file a claim against the bond.