RV Build under LLC?

[KatanaPilot]

Originally Posted by Dreamin9

...but the cost of a successful defense can easily empty one?s pockets, shallow or deep.
The main benefit of insurance is the coverage for legal expenses.

So where would one buy insurance to cover themselves as the manufacturer of the airplane in the event you choose to sell the plane? I'm not sure that's available and if it is, probably not affordable.

I bet Van's spent a pretty penny defending themselves over several years on the RV-10 lawsuit. As you said, the cost of defending yourself, regardless of outcome, could bankrupt you.

[larrynew]

Originally Posted by huzilulu

...I had a question concerning the build/registration of an RV: in order to protect oneself/assets, a common route taken is to register the plane under an LLC...

For the new RV, I plan to register the owner as an LLC to potentially shield a future buyer from sales or use tax in his state. Hopefully any sale is after 20+ years of me flying it! Will be up to the purchaser to make an informed decision on his own taxes.

As an example, below is copied from the Florida Dept of Revenue, Sales and Use Tax on Aircraft Owners and Purchasers.

Aircraft bought and used outside Florida for more than six months are generally exempt when brought
into Florida, if both of these conditions are met:
? The owner has owned the aircraft for more than six months.
? The owner has used the aircraft in another state or states, U.S. territory, or District of Columbia
six months or longer before bringing the aircraft to Florida.

Ownership of the Aircraft won't change and will be more than six months but ownership of the LLC that owns the Aircraft will.

[Jpm757]

As previously mentioned my-7 has an LLC named as the manufacturer, this was done on the recommendation of my DAR. Additionally the FAA issued a Repairman Certificate for my aircraft. How this will protect me down the road is anybody's guess, however I do not see it as a detriment. I know of several people who have "scrapped" perfectly good airframes for liability reasons instead of selling their aircraft.

[huzilulu]

Thanks for all the replies.... While I intend to own the plane a long time, I would like to protect certain assets if/when the plane is handed down to its next owner/my kids/when they might sell it... an LLC that is the builder/repairman cert holder would certainly be helpful...

Thanks again guys!

[BobTurner]

Originally Posted by huzilulu

Thanks for all the replies..... an LLC that is the builder/repairman cert holder would certainly be helpful...

Thanks again guys!

As Gill mentioned above, the faa will not issue a repairman certificate to an LLC. Only to an individual, and it?s not transferable. Just like a pilot license.

[Latech15]

Originally Posted by Jpm757

As previously mentioned my-7 has an LLC named as the manufacturer, this was done on the recommendation of my DAR. Additionally the FAA issued a Repairman Certificate for my aircraft. How this will protect me down the road is anybody's guess, however I do not see it as a detriment. I know of several people who have "scrapped" perfectly good airframes for liability reasons instead of selling their aircraft.

Did they issue the repair mans certificate to you personally or to the llc?

[Ralph Inkster]

I think it goes to the 'built for recreation & education' thing that only a person or group of persons can be stated as the the manufacture of an EAB.

Canada also only allows people & not corporate entities to apply for a CofA for amateur builts.
But corporate entities can own & register them.

[Jpm757]

The Repairman Certificate is issued in my name.

[McStevens]

Registering your plane under an LLC when you're unsure of what protection that affords seems odd.

Same with the folks who scrapped whole planes from some nebulous concern about liability.

[BobTurner]

Originally Posted by McStevens

Same with the folks who scrapped whole planes from some nebulous concern about liability.

Probability low, but not zero. Ask the guy who built the long EZ, sold it to B, who sold it to John Denver. When the estate sued, he must have had legal bills before he was removed from the suit, not to mention the worry.