Why will the boat be owned by a corporation with limited liability?
The purpose of the corporation is to provide a limit incurred by the members. If a member were involved in a serious accident involving major damages the insurance policy would pay up to $500,000.00 in claims. At that point the assets of the company would be extended and the company would be bankrupt. It is reassuring to know that there is a limit to the liability one is facing and that is the amount the insurance policy would pay out.
