 |
AirTalk.org
Aviation discussions newsgroups
|
| View previous topic :: View next topic |
| Author |
Message |
Jeff
Guest
|
 Posted: Thu Jan 25, 2007 6:16 am Post subject: Aircraft Partnership & LLC |
 |
|
Hello everyone,
I'm about to purchase half a share of airplane with a friend. I've been
told the aircraft is better owned as an LLC rather than under your name.
I'm sure this is for liability reasons but can anyone explain to me the
benefits and drawbacks of this?
This plane will soley be used for pleasure and not in any way commercial or
for hire.
Thanks,
Jeff |
|
| Back to top |
|
 |
Keith Jones
Guest
|
| Posted: Fri Apr 13, 2007 6:11 am Post subject: Re: Aircraft Partnership & LLC |
|
|
Jeff wrote:
| Quote: | Hello everyone,
I'm about to purchase half a share of airplane with a friend. I've been
told the aircraft is better owned as an LLC rather than under your name.
I'm sure this is for liability reasons but can anyone explain to me the
benefits and drawbacks of this?
This plane will soley be used for pleasure and not in any way commercial
or for hire.
Thanks,
Jeff
|
The biggest reason to do the LLC is that you can have some liability
protection if your buddy, God forbid, has a massive coronary behind the
controls; in the process taking out a house and some of its occupants.
You, and his estate could have massive liabilities in this instance. You
could possibly lose your a*s. Done properly, an LLC, or an incorporation
can limit this personal responsibility.
I am going to now repeat the first two words in the closing sentence of the
above paragraph. "Done properly ......" I hope you are getting that
things like an LLC may make a person feel better, but not be worth the
paper on which they are written. The thing about either an incorporation
or an LLC is that there are certain formalities which must be followed, or
the whole thing can be rendered useless at trial. This is referred to
as "piercing the corporate veil."
The next bugaboo about a corporate entity can be the laws of the state in
which you reside. Some states require more than two people to incorporate
or form an LLC. In some states one must pay a fee and file forms to remain
a corporate entity. (This would be an example of one of the formalities
from the paragraph above.)
One could also run into some extra FAA regulations because of taking the
corporate route. I was a member of an LLC that absolutely had to change
the oil every 50 hours because of the way it was structured. Something to
do with the aircraft being technically rented by the members. Our aircraft
needed its oil changed every 50 hours anyway, but yours may not.
Having said all of that, I would not want to dissuade an individual, who has
done the proper due diligence, from entering into a corporate entity. It
is a very good way to set forth the terms of the partnership, and protect a
person's investment. It is a good way to limit the individual liability of
the partners; provided, it is, forgive me but I must once again reiterate,
done properly.
AOPA has done lots of research in this very area. I would suggest you start
there in gathering ideas and information. Then get yourselves good
aviation attorneys if you still find the idea of a coporate entity to be
worthwhile.
Compilerwriter |
|
| Back to top |
|
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
