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Thanks Marty. Yeah that sounds sensible. I had a helpful chat with my FBOs insurance agent who explained I'd also be foregoing my FBOs workers comp benefits too if I did any instructing on the outside - sounds like there are a couple reasons why it's just simpler and safer to bill everybody...

Marty - coming to this rather after-the-fact but read with interest and curious to know what you ended up doing? I am a CFI on the way to the airlines, willing to shell out a few $$$ over this next year-2 years of hour building for some reassurance that the career I am building all these hours...