Bill of sales in my name but want to register the aircraft as a partnership. How?

[Oliver]

Seems like I messed up: I purchased the kit in my name, the bill of sale only lists my name but I want to register the aircraft as a partnership with my wife.

It didn't think anything of it but when I submitted all of our paperwork to the FAA. They however responded saying that there is a mismatch between the bill of sale and the names to which we're trying to register the aircraft to.

We could now create a bill of sales from me, as an individual, to my wife AND me, as a partnership.
I am however worried that we might have to pay sales tax on the approximate value of the kit.

Any advice?

 

[RV7A Flyer]

The question would be what are you trying to accomplish? Is this part of estate planning, or do you really have a separate, legally formed partnership/corporation to which you want to transfer the plane?

It shouldn't, depending on your state trigger a sales tax, but IANAL (or accountant), so you should check with one or both. It will probably take a sale to yourselves, as partners, for a nominal amount ($1) on a BOS form.

 

[rolivi]

I'm also curious what the intention is. Michigan is a community property state so you both have equal rights to / respobsibility for the plane regardless of the name on the title. [as per google]

 

[RV7A Flyer]

I'm also curious what the intention is. Michigan is a community property state so you both have equal rights to / respobsibility for the plane regardless of the name on the title. [as per google]

Actually, no, per the googles. It's an "equitable distribution" state. But the question still stands...

 

[georgemohr]

Call Vans, they will make that bill of sale say what you need it to.

 

[Oliver]

Thank you for your responses!

As for the intentions, it is a simples as that we are building it together, both of us will fly it, it would therefore be nice to have both of our names on the registration.
I don't know for sure but would guess that it might also make things easier if something happens to one of us.
The other thing is that we reserved the tail number in both of our names. I therefore don't think that I could now simply register it in my name alone.

I did some more reading, it seems like the Michigan taxman is only looking at use tax once it has been registered and doesn't care what happened before then.
This means that we could probably just create a bill of sales from me to the my wife and myself, without us having to pay use tax twice.

I've been trying to get a hold of the FAA for several months(!!) to discuss but they neither pick up the phone nor respond to emails.
I called our local FSDO this morning, they want to get back to me. Let's see.

@georgemohr Changing the name of the original bill of sales would be the easiest solution but I was under the impression that they have to state the name of the person who purchases the kit. Let me reach out to them to see if this would be a possibility.

 

[Desert Rat]

It wasn't a big

"Changing the name of the original bill of sales would be the easiest solution but I was under the impression that they have to state the name of the person who purchases the kit. Let me reach out to them to see if this would be a possibility."

I purchased my kits in my personal name, but when it came time for registration I just asked Vans to make out the bill of sale in the name of my LLC, which they had no problem with. I'm sure they would do the same in your situation if you just ask. Ezee peezee

 

[JDA_BTR]

What matters the most is that every piece of paperwork matches. So if you reserved the N number in both your names, then Vans can give you the bill of sale with both your names, and so forth. What I'm not sure of is how that affects you as the builder on the registration and your repairman's certificate for same. You might find it convenient to go the other route, fix the FAA side of the N-number to just one builder's name, and handle the property transfer in a will or trust for when that might matter.

I don't think you both can be repairmen on the build, maybe someone who knows more can weigh in. This would be my primary concern, not the ownership.

 

[TangoLima]

Seems like I messed up: I purchased the kit in my name, the bill of sale only lists my name but I want to register the aircraft as a partnership with my wife.

It didn't think anything of it but when I submitted all of our paperwork to the FAA. They however responded saying that there is a mismatch between the bill of sale and the names to which we're trying to register the aircraft to.

We could now create a bill of sales from me, as an individual, to my wife AND me, as a partnership.
I am however worried that we might have to pay sales tax on the approximate value of the kit.

Any adv

Seems like I messed up: I purchased the kit in my name, the bill of sale only lists my name but I want to register the aircraft as a partnership with my wife.

It didn't think anything of it but when I submitted all of our paperwork to the FAA. They however responded saying that there is a mismatch between the bill of sale and the names to which we're trying to register the aircraft to.

We could now create a bill of sales from me, as an individual, to my wife AND me, as a partnership.
I am however worried that we might have to pay sales tax on the approximate value of the kit.

Any advice?

Husband and wife owners are usually shown as Co-Owners rather than a Partnership. You might want to look into that.

 

[RV7A Flyer]

I don't know for sure but would guess that it might also make things easier if something happens to one of us.

You should talk to an attorney who specializes in estate planning for advice here.

 

[Desert Rat]

What matters the most is that every piece of paperwork matches. So if you reserved the N number in both your names, then Vans can give you the bill of sale with both your names, and so forth. What I'm not sure of is how that affects you as the builder on the registration and your repairman's certificate for same. You might find it convenient to go the other route, fix the FAA side of the N-number to just one builder's name, and handle the property transfer in a will or trust for when that might matter.

I don't think you both can be repairmen on the build, maybe someone who knows more can weigh in. This would be my primary concern, not the ownership.

It doesn't matter how you have the registration reserved. All it takes is a note included in the registration application to get it assigned to whatever entity you're going to have on the registration.

As far as who gets a repairman certificate, that's a completely different issue. When you fill out the application for the repairman certificate, that is a person who is considered the primary builder. That one person gets a repairman certificate. If that's you, you put your name on the application, regardless of how you have the airplane titled.

 

[Oliver]

Edit: A VERY nice lady from the local FSDO just called. While she said that she is not expert, she believes that I should be able to simply get a new bill of sale and to send that to the FAA in order to update my application.

Thank you very much again for all your help!

 

[ATC_RV8OR]

You only need a paper trail.
I reserved a Number in my name. I also got the Bill of Sale in my name. I later decided for privacy reasons (zero tax reasons) that I don’t want John Q Public knowing my every move.

After I created an LLC, (in a friendly anonymous owner state) I sent a request and $10 to the FAA to change the N number reservation from my name to the LLC. It took about 3 months.

I transferred ownership my name to the LLC with a Bill of sale. This is no different than selling a partial project to another builder.

The result. When I apply for AWC the manufacturer is the LLC (not my name), the registration is the LLC and the LLC address (not my address). No repairman cert because that has your name on it and N number which defeats everything else (no need I’m an A&P) No weirdo will come knocking on my door asking why I fly over their house. I know someone this happened to. I’m all for being a good neighbor and noise abatement but I can’t help you if you bought a house under the pattern.

 

[RV7A Flyer]

The result. When I apply for AWC the manufacturer is the LLC (not my name), the registration is the LLC and the LLC address (not my address).

Folks should remember this requirement, too, though:

If a P.O. box or mail drop location is used for mailing purposes, you must also provide your physical address or location on the application.

 

[ATC_RV8OR]

if a P.O. box or mail drop location is used for mailing purposes, you must also provide your physical address or location on the application.

My registered agent has a physical address and that address is on file with the state for the LLC. The LLC operates from that address. I receive email notification and a scanned copy if any mail is sent to my entity. If I need the original they will mail it for a fee.