Delaware LLC for plane?

TimRF79

TimRF79

Pre-takeoff checklist
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Tim
Anyone here can share some insights on creating a Delware LLC to own the plane?
I have seen this a lot and try to understand the pro's and con's?
 
What do you think it's going to do for you?

The first question is why an LLC? If you are the sole owner and operator, an LLC likely will provide nothing for you.

The second question is why Delaware, if an LLC makes sense? Texas is a fairly friendly state for LLCs, low fees, no annual filings. You can use yourself as a registered agent in many cases.
 
flyingron said:
What do you think it's going to do for you?

The first question is why an LLC? If you are the sole owner and operator, an LLC likely will provide nothing for you.

The second question is why Delaware, if an LLC makes sense? Texas is a fairly friendly state for LLCs, low fees, no annual filings. You can use yourself as a registered agent in many cases.
Click to expand...

Not accurate - Texas has a franchise tax report that must be filed. No tax likely due since this is likely a no or low revenue situation, but an annual return must be filed online. 10-15 mins max, but still.......
 
It came up in a conversation with someone at Van Bortel, they noted most their customers have an LLC in Dellaware.

And given that I have seen this before... I thought I ask.
 
There are a lot of aircraft registered in Delaware under various LLCs, I would assume for tax purposes. For the average guy in an Avgas burner, probably not worth the effort. The ones you usually see are large companies with multiple expensive airplanes.
 
99% of those are attempting Tax Evasion. You can form a DE LLC anonymously via the registered agent, and for awhile, incorporators would lease you a person to act as your LLC's president so that you were technically resitant to subpoena for the ownership information of corporate assets. I assume this was some judgement-proof neighborhood hobo, so that your corporate crimes could be pinned on them.

In the age of social media and ADS-B, it's not really a great game (not that it ever was) -- I know the CA Franchise Tax Board is very adept at waiting their 3 years or so, then chasing your paper trail and presenting you a sales tax bill plus 3 years of penalties and interest -- by then usually a large chunk of the plane's value.
 
Do you want the LLC for (1) liability, (2) tax or (3) privacy purposes (or some combination)? If (1) or (2), you're likely to be disappointed after you speak with a professional. If you're just after (3), pretty easy to create at least a layer or two of privacy distance between you and the airplane if you're inclined. But a moderately-adept person can likely still find your identity, depending on the state you organize the LLC in (and what kind of pictures, etc. you post online).
 
I’ve done lots of DE LLC’s for businesses but I see no value for a personal use aircraft, even if you live in DE. Your personal liability is simply not shielded or limited. I would use an LLC and a very well written Operating Agreement in lieu of a partnership everyday of the week if there are multiple owners of an aircraft or if I intended it for business use. Otherwise, why create a legal entity that you need to take care of. Yes, many people create them (especially over the internet) and then forget them, and depending on where you live, that may not be a good idea.
 
put everything in your wife's name*,
don't work, don't assume any other assets
Leave the airplane in your name only
Crash into schoolgrounds to your heart's content!

*be sure she is understanding of what this is about (and never, ever **** her off again).
 
Property or use taxes are due where the aircraft is kept regardless of LLC status. There are no tax advantages from that standpoint.
 
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