Ok..help me out with a name here....

tdager

tdager

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LittleIronPilot
Some of you know I am in the process of purchasing a plane.

One thing in this process I have learned is that people wanting "small" amounts of money (~75K or less) are not well liked by the average aircraft finance companies.

I have found a local finance agent that is decent to work with, has good rates, and such, the only catch being that to get the best rates the plane must be sold to a business.

So I am incorporating a Delaware corporation for a couple of hundred:D bucks. Now the tough part begins....what the heck do I call it?

The wife did not want something that was purely aviation related....ok, no biggie, but damn thinking of a name is hard.

So help me out here...toss me some names!
 
How About:

"Take That, Financial Companies"
 
OK, help me out here... you are incorporating in a state other than your home state, the state in which the plane will be based, why?

And why Delaware?

Please, be specific, I need to learn here.
 
SCCutler said:
OK, help me out here... you are incorporating in a state other than your home state, the state in which the plane will be based, why?

And why Delaware?

Please, be specific, I need to learn here.
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Thank you Spike!!! Exactly Exactly what I was going to ask. Delaware Pfft!B)
 
OBTW, the GA Code (O.C.G.A. §14-2-1501) does require foreign corporations to register with the Georgia Secretary of State. There is a penalty of (I think) $500.00 for failing to register when required to do so. Of course, you will also have to file state tax reports and, as in most states, there can be penalties for failing to file (even if you owe no tax).

And, naturally, you'll still have to make periodic reports to the state of incorporation.

And buying the aircraft out of state and bringing it in does not allow create any exemption from Georgia sales & use tax of 4% (state), plus 1 % to 3 % (local); You may be able to get a credit against taxes you paid in the state of purchase, but that's not a savings, is it?

I am not giving you legal advice, as I am not licensed in Georgia- but if I were there, I'd sure as hell consult with a lawyer who actually knows the law, rather than reading some internet site and "... incorporating a Delaware corporation for a couple of hundred:D bucks..."; hey, it's just an asset worth a hundred grand or so, what could go wrong.

Sigh.
 
Hey Spike (or any other LLC experts for that matter),

I'm also considering starting down the LLC road for airplane partnership. I have never been an owner of a corporation before, have always had ridiculously simple income taxes that I've done myself, and am feeling a bit like a fish out of water. My partner has done the LLC thing before, but I never have. Is there anywhere an "Aircraft LLC's for Dummies" reference or something? I've been cruising around AOPA's web site a bit, but haven't found anything very helpful.

We've already got the name for the LLC, though. ;-)

No sales tax in Alaska! Yay!

--Kath
 
tdager said:
Some of you know I am in the process of purchasing a plane.

One thing in this process I have learned is that people wanting "small" amounts of money (~75K or less) are not well liked by the average aircraft finance companies.

I have found a local finance agent that is decent to work with, has good rates, and such, the only catch being that to get the best rates the plane must be sold to a business.

So I am incorporating a Delaware corporation for a couple of hundred:D bucks. Now the tough part begins....what the heck do I call it?

The wife did not want something that was purely aviation related....ok, no biggie, but damn thinking of a name is hard.

So help me out here...toss me some names!
Click to expand...
It's not important! Call it tdager LLC or whatever else works for you!
 
SCCutler said:
OBTW, the GA Code (O.C.G.A. §14-2-1501) does require foreign corporations to register with the Georgia Secretary of State. There is a penalty of (I think) $500.00 for failing to register when required to do so. Of course, you will also have to file state tax reports and, as in most states, there can be penalties for failing to file (even if you owe no tax).

And, naturally, you'll still have to make periodic reports to the state of incorporation.

And buying the aircraft out of state and bringing it in does not allow create any exemption from Georgia sales & use tax of 4% (state), plus 1 % to 3 % (local); You may be able to get a credit against taxes you paid in the state of purchase, but that's not a savings, is it?

I am not giving you legal advice, as I am not licensed in Georgia- but if I were there, I'd sure as hell consult with a lawyer who actually knows the law, rather than reading some internet site and "... incorporating a Delaware corporation for a couple of hundred:D bucks..."; hey, it's just an asset worth a hundred grand or so, what could go wrong.

Sigh.
Click to expand...

Spike...I am not doing for any special tax reasons or to circumnavigate any laws...I am simply getting a better interest rate on the loan by having it go to a "business".

However I am not sure I want to deal with the headaches so I may not....
 
tdager said:
Spike...I am not doing for any special tax reasons or to circumnavigate any laws...I am simply getting a better interest rate on the loan by having it go to a "business".

However I am not sure I want to deal with the headaches so I may not....
Click to expand...


My main point is, incorporating elsewhere is just an added layer of expense, an extra set of papers to file every year.

BTW, for potential aircraft loans in the past, I was pretty successful in getting good quotes from local banks. They usually get it, or they don't.

Ciao...
 
SCCutler said:
My main point is, incorporating elsewhere is just an added layer of expense, an extra set of papers to file every year.

BTW, for potential aircraft loans in the past, I was pretty successful in getting good quotes from local banks. They usually get it, or they don't.

Ciao...
Click to expand...

Oh...ok, thanks Spike. This has really made me think that this whole incorporation thing to save half a percentage point is just not worth it. I will be talking to the lender today to see what he can do or I will just have to go elsewhere.
 
kath said:
Hey Spike (or any other LLC experts for that matter),

I'm also considering starting down the LLC road for airplane partnership. I have never been an owner of a corporation before, have always had ridiculously simple income taxes that I've done myself, and am feeling a bit like a fish out of water. My partner has done the LLC thing before, but I never have. Is there anywhere an "Aircraft LLC's for Dummies" reference or something? I've been cruising around AOPA's web site a bit, but haven't found anything very helpful.

We've already got the name for the LLC, though. ;-)
Click to expand...
The best advice is to get a lawyer... sorry. Laws differ from state to state and unless someone responds with specific Alaska information, you are taking a huge and unnecessary risk by following that advice. Everything is different in Alaska, right?
No sales tax in Alaska! Yay!
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[ENVY MODE ON] OK, just go ahead and prove my point! [EMOFF]

-Skip
 
kath said:
Hey Spike (or any other LLC experts for that matter),

I'm also considering starting down the LLC road for airplane partnership. I have never been an owner of a corporation before, have always had ridiculously simple income taxes that I've done myself, and am feeling a bit like a fish out of water. My partner has done the LLC thing before, but I never have. Is there anywhere an "Aircraft LLC's for Dummies" reference or something? I've been cruising around AOPA's web site a bit, but haven't found anything very helpful.

We've already got the name for the LLC, though. ;-)

No sales tax in Alaska! Yay!

--Kath
Click to expand...

Kath:

There's been a lot of discussion of this on the Red Board. Seems the question comes up over and over.

I have several corps. LPs and couple LLCs. Don't practice the Loo (as Clouseau says) but have paid for a lot of advise.
If you don't have substantial assets to protect, you won't be the target of a collection action very long <g>
If you have substantial assets, you should be able to pay for expert counsel.
If you're in the middle, get good insurance coverage and it may be worth a general consultation--AOPA legal is pretty reasonable.

The LLC can protect you against acts of a fellow shareholder (if you have one), can allow transfer of ownership with the plane staying in the same entity--just like a C corp. All corp. affairs must be kept in order--different requirements in different states. This could also provide some protection against creditors like a C corp.

When I had the A-36 as the sole owner, I just bought it in my name and got good insurance coverage.

Where I am, putting a plane in a corp. name tripped a tax. Local tax Gustapo considers it business use if in a corporate name--period. Amount of taxes aren't worth a protracted fight, but are meaningful!

Lots of local considerations. Peruse the Red Board for LLC as a current topic. See where you fit.

Best,

Dave
 
Thanks for the advice everyone! The wife and I decided to NOT do the corporation thing for a "toy" that we are simply using to have fun.

So off to another lender....
 
tdager said:
Thanks for the advice everyone! The wife and I decided to NOT do the corporation thing for a "toy" that we are simply using to have fun.

So off to another lender....
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Wise choice. Or just pay the slightly higher rate.

Heck, I used to have an airplane in a Sub-S and my accountant wanted to charge me $650 a year to do the tax return on that simple "business."
 
Ken...there was no other option with this particular finance company since his secondary would not finance an aircraft older than a 1970.

No biggie, he was real helpful and even told me a few other places to go. I would certainly do business with him again in the future.
 
LOL...Ken, that is who I was using. David was a true champ and really tried to help me, and he is my "neighbor" to boot! (we live about a mile or so apart, I am good friends with a lot of people in the fly-in community he lives in).

He has helped me by getting me to another lender. Like I said, great guy, it just did not work for us.
 
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