Need advice on forming a glider partnership or LLC in Utah.

akite

akite

Pre-takeoff checklist
Joined
Jun 18, 2007
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293
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Ogden, UT
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A. Kite
Hello,
Three of us want to purchase a glider in a partnership and I am looking for information on how to do this or advice from any of you that have been through similar activities. I have read that an LLC is the way to go.
Thanks,
Adam
 
Do you not intend to buy insurance?

An LLC can serve as a liability shield against the actions of the other pilots, but will do nothing to shield you against liability for your own actions. An LLC will also allow you to sell portions of the ownership by selling shares, instead of part of the aircraft itself. That could be considered good.

There will be expense associated with setting up and maintaining an LLC, including tax filings. In addition, some states and localities operate under the presumption that an asset (such as an aircraft) owned in a corporate-type structure (such as an LLC) is a business asset and, therefore, subject to business taxes, including business property tax.

Ask a qualified lawyer in your state, and probably, a CPA.

And do not fall for the "if we incorporate in Nevada/Delaware/another state, we avoid tax in ours" trap.
 
Thanks to the both of you. Maybe a co-ownership agreement is the way to go. We are buying this glider purely for recreation with no profit motives. It looks like it would be less of a headache than the LLC.
 
Before you make any final decisions, consult a good aviation lawyer licensed in Utah for advice.
 
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