Buying into a Partnership

[michael Killacky]

I'm a soon-to-be proud 1/3 owner of a 1962 Cessna 172B. The plane is in a partnership of 3. Their contract is almost identical to the sample on the AOPA site. One owner s selling due to health, and I'm buying his 1/3.

The question came up last night as to how to fill out the FAA Registration. Considering only one name is changing, do we fill out a new bill of sale with all 3 new names or do just the selling party and I fill it out and specify 1/3 share?

Originally, these 3 guys bought it together from a dealer and paid sales tax then. With only one name changing, we were all a little confused. It seems that if all 3 fill out the Bill of Sale, they would be liable for sales tax again.
Anybody with words of wisdom?

Mike

 

[poadeleted20]

The answer depends on the form of organization of the partnership and your state's laws. Recommend checking with a lawyer who knows aviation law and your own state's laws on partnerships.

 

[sheldon957]

I was researching this very thing today, and listening to an aviation lawyer on the subject. The following is just my opinion, and in no way to be construed as legal advice. I am not an attorney, nor do I give legal advice, but I did stay at a Holiday Inn Express last night

Basically, get the word partnership & owner out of your vocabulary now, never to be uttered. It makes you JOINTLY & SEVERALLY LIABLE. (that means everything you own can be taken because of what someone else did)

Next, your attorney will probably tell you to form an LLC. You will be a shareholder or member of this LLC. This is the only way you will identify yourself in the future pertaining to any questions about the plane.

Then start an LLC bank account.

DO NOT co-mingle funds or assets.



Go immediately here, do not pass go, do not collect $200.00
http://airspeedonline.blogspot.com/2008/02/legal-aspects-of-aircraft-ownership.html


Then go here
http://www.aopa.org/members/pic/ac/flyingclubs/

Then go here
http://www.aopa.org/members/files/guides/multiple.html

 

[gprellwitz]

And this might be a good time to take advantage of that AOPA Legal Services Plan to get some advice directly from an aviation attorney!

3000th post!

 

[taters]

I was researching this very thing today, and listening to an aviation lawyer on the subject. The following is just my opinion, and in no way to be construed as legal advice. I am not an attorney, nor do I give legal advice, but I did stay at a Holiday Inn Express last night

Basically, get the word partnership & owner out of your vocabulary now, never to be uttered. It makes you JOINTLY & SEVERALLY LIABLE. (that means everything you own can be taken because of what someone else did)

Next, your attorney will probably tell you to form an LLC. You will be a shareholder or member of this LLC. This is the only way you will identify yourself in the future pertaining to any questions about the plane.

Then start an LLC bank account.

DO NOT co-mingle funds or assets.



Go immediately here, do not pass go, do not collect $200.00
http://airspeedonline.blogspot.com/2008/02/legal-aspects-of-aircraft-ownership.html


Then go here
http://www.aopa.org/members/pic/ac/flyingclubs/

Then go here
http://www.aopa.org/members/files/guides/multiple.html

You betcha...incorporate on that thing..plus you can depreciate the plane and write it off on your personal income taxes. nice little refund bonus