Delaware LLC for plane?

Discussion in 'Flight Following' started by TimRF79, Feb 26, 2021.

  1. TimRF79

    TimRF79 Pre-takeoff checklist

    Joined:
    Dec 10, 2017
    Messages:
    263
    Location:
    Houston, TX
    Display Name:

    Display name:
    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?
     
  2. flyingron

    flyingron Touchdown! Greaser! PoA Supporter

    Joined:
    Jul 31, 2007
    Messages:
    20,122
    Location:
    Catawba, NC
    Display Name:

    Display name:
    FlyingRon
    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.
     
  3. Zeldman

    Zeldman Touchdown! Greaser!

    Joined:
    Jun 13, 2014
    Messages:
    13,589
    Location:
    high desert NM
    Display Name:

    Display name:
    Billy
    Or Wyoming. Use someone else as a registered agent and your name appears no where in public records.
     
  4. rsleeds

    rsleeds Pre-takeoff checklist

    Joined:
    Apr 8, 2005
    Messages:
    264
    Location:
    Spring, TX
    Display Name:

    Display name:
    RSLeeds
    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.......
     
  5. TimRF79

    TimRF79 Pre-takeoff checklist

    Joined:
    Dec 10, 2017
    Messages:
    263
    Location:
    Houston, TX
    Display Name:

    Display name:
    Tim
    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.
     
  6. midwestpa24

    midwestpa24 En-Route

    Joined:
    Mar 4, 2016
    Messages:
    3,124
    Display Name:

    Display name:
    midwestpa24
    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.
     
  7. schmookeeg

    schmookeeg Administrator Management Council Member

    Joined:
    Nov 6, 2008
    Messages:
    2,262
    Location:
    Hipsterdelphia PDX
    Display Name:

    Display name:
    Mike Brannigan
    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.
     
  8. bradg33

    bradg33 Pattern Altitude

    Joined:
    Aug 27, 2012
    Messages:
    1,702
    Display Name:

    Display name:
    Esquire99
    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).
     
  9. Jumpmaster

    Jumpmaster Line Up and Wait

    Joined:
    Jan 12, 2014
    Messages:
    513
    Display Name:

    Display name:
    AbnJag
    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.
     
  10. Let'sgoflying!

    Let'sgoflying! Touchdown! Greaser! PoA Supporter

    Joined:
    Feb 23, 2005
    Messages:
    18,414
    Location:
    west Texas
    Display Name:

    Display name:
    Dave Taylor
    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).
     
  11. IK04

    IK04 Pattern Altitude

    Joined:
    Nov 6, 2018
    Messages:
    2,282
    Location:
    Copperas Cove, Texas
    Display Name:

    Display name:
    LNXGUY
    Delaware has been run by criminals for a hundred years...
     
    Kynadog likes this.
  12. Jeff767

    Jeff767 Pre-takeoff checklist

    Joined:
    Jan 24, 2018
    Messages:
    312
    Display Name:

    Display name:
    Jeff767
    Property or use taxes are due where the aircraft is kept regardless of LLC status. There are no tax advantages from that standpoint.
     
  13. Zeldman

    Zeldman Touchdown! Greaser!

    Joined:
    Jun 13, 2014
    Messages:
    13,589
    Location:
    high desert NM
    Display Name:

    Display name:
    Billy
    Evasion is illegal, while avoisian is not... If avoisian was illegal, I think pretty much all of us would be jail....:lol::lol:

    Reference: