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  #1  
Old 04-01-2021, 08:11 AM
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rockitdoc rockitdoc is offline
 
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Default Aircraft ownership; personal v company

If an aircraft is not used for business, is there any reason one should be registered to a business instead of to a person?
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  #2  
Old 04-01-2021, 08:42 AM
lr172 lr172 is offline
 
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Quote:
Originally Posted by rockitdoc View Post
If an aircraft is not used for business, is there any reason one should be registered to a business instead of to a person?
Other than taxes, I can't think of one. Liability is on the pilot, not the aircraft, so don't see how it helps there.

Larry
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  #3  
Old 04-01-2021, 08:46 AM
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Quote:
Originally Posted by lr172 View Post
Other than taxes, I can't think of one. Liability is on the pilot, not the aircraft, so don't see how it helps there.

Larry
How does it affect taxes?
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  #4  
Old 04-01-2021, 08:52 AM
rocketman1988 rocketman1988 is offline
 
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Default info

I actually looked at setting up a Delaware LLC.

Long story short, it really did not make that much of a difference in my case...

I opted not to do it...
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  #5  
Old 04-01-2021, 09:05 AM
sailvi767 sailvi767 is offline
 
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Property Taxes for a aircraft are based on where it actually lives so setting up a LLC in another state is of little value from a property tax standpoint if you are honest. It does however allow some to make creative claims on where the aircraft is based.
Putting a aircraft in a business and actually using it for business purposes can allow tax deductions you can’t get as a individual. Section 179 deductions/depreciation can be very lucrative. I have no idea how that plays out with a aircraft registered as a experimental.
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  #6  
Old 04-01-2021, 09:19 AM
odens_14 odens_14 is offline
 
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Two benefits I can think of, if not used for a business purpose:
-easily transfer ownership without effecting registration, especially convenient if you want partner(s).

-another layer of anonymity from ADS-b/flight aware/etc. your personal info wouldn't be available just the business name and registered address.
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  #7  
Old 04-01-2021, 09:41 AM
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Check how your property taxes are handled. In Texas, at least Harris County, aircraft used for business are taxed. Aircraft registered to a business are presumed business use. You can refute it but they will hound you to death. A friend got tired of fighting them and moved his planes out of an LLC. Of course then he got hit for sales tax on the transfer. YMMV
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  #8  
Old 04-01-2021, 09:49 AM
pa38112 pa38112 is offline
 
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Quote:
Originally Posted by lr172 View Post
Other than taxes, I can't think of one. Liability is on the pilot, not the aircraft, so don't see how it helps there.

Larry
Not true ! If there is an issue that turns into litigation, the aircraft owner will be pulled into it especially if there are assts that could be obtained. Having a company that owns the plane limits your exposure to the company assets.
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  #9  
Old 04-01-2021, 10:01 AM
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In a previous life (before he retired), my CFI used to be my CPA. He owns three airplanes. He advised me that, in this state at least, there is zero advantage to forming an LLC to own the airplane.

(His billing rates as a CFI are a lot less than they were as a CPA)
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  #10  
Old 04-01-2021, 10:23 AM
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Quote:
Originally Posted by pa38112 View Post
Not true ! If there is an issue that turns into litigation, the aircraft owner will be pulled into it especially if there are assts that could be obtained. Having a company that owns the plane limits your exposure to the company assets.
Exactly, in my state the only assets at risk are those assets owned by the LLC.. If the owner formed the LLC, but then failed to run the LLC as a business (co-mingled funds, used property for non-business purposes) the liability protection may be non-existent. I own an LLC, but decided to buy my plane under my name. Didn't want the continual headache of keeping records and justifying why I flew somewhere for a $100 hamburger.
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