Sauna Boat Business Viability

Summary

Starting a sauna boat business in Washington involves navigating USCG regulations, especially if carrying passengers for hire. For moored use, liability waivers should be enforceable, and insurance implications must be considered. For underway use, ensure customers have necessary qualifications and clearly define liability in charter agreements. Check local business permits and health regulations.

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I need legal analysis to to determine whether or not my small business idea is viable
Hi ****! To help you better, could you describe your business idea in more detail? This will allow me to provide relevant legal information for your situation in Washington.
My business is a sauna boat, where customers can use the sauna and cool off by jumping into the Puget Sound. The boat will be *' in length with a 50HP engine. I have two main use cases. *) the boat remains moored and customers pay-by-seat to use the sauna. *) the boat can be taken underway if rented to a charterer--the party must remain private. It is infeasible for us to employ USCG captains to have a proper passenger-for-hire model. To work around this, I have come up with two potential solutions.
Hi ****! Here are some points to consider for your sauna boat business:
*. USCG Regulations:
- Boats carrying passengers for hire must comply with USCG requirements.
- If your boat remains moored, it might not be classified as a vessel carrying passengers for hire.
*. Private Charter Model:
- Ensure the charter agreement specifies that the renter is responsible for vessel operation.
- Confirm renters meet any necessary qualifications or licenses.
*. Local Business Regulations:
- Check with Washington state and local authorities for business permits and health regulations.
Could you specify your two potential solutions for further analysis?
For moored use, the Owning LLC rents the boat to the Operating LLC as a time charter. Six people split the Operating LLC’s cost to rent the boat by direct reimbursement (pay) to the Operating LLC. The Operating LLC still owns all of the liability associated with the boat, but since the boat remains moored, there is little to no actual risk. To participate in the time charter, the six people would be required to sign away their personal injury liability to the Operating LLC. For underway use, the Owning LLC rents the boat directly to the customer as a voyage charter, provided s/he has the necessary qualification (Boater’s Safety). The “voyage” can be defined as sailing to the park *.5mi away and back, done in the agreed upon timeframe. No cost-sharing would occur and the customer would own all of the liability associated with the voyage.
Hi ****! Here are some points to consider for your sauna boat business in Washington:
*. Moored Use:
- Ensure the liability waivers for personal injury are well-drafted and enforceable.
- Verify if operating as a time charter affects your insurance coverage.
*. Underway Use:
- Confirm that the customer's qualifications (Boater’s Safety) are adequate under Washington law.
- Clearly outline liability responsibilities in the voyage charter agreement.
Would you like more information on drafting liability waivers or charter agreements?