Registration change to llc

luvflyin

luvflyin

Touchdown! Greaser!
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Luvflyin
Friend owns an airplane. She formed an llc and wants to transfer ownership to it. She's the sole member. What does she do?
 
she can call Dixie air in Oklahoma. Tell em what she wants done. Pay them small amount of us currency to help her fill out correct forms and walk the paperwork in to FAA. Love those guys.

(800) 366-3027

I recall there being extra stuff because my company bought the aircraft. It was no big deal. Sam from Dixie air called told me to check my email for forms we needed for llc. Print sign scan emailed back. And done. She had everything filled out. Just needed my signature. Cost less than $50 if memory serves me right. Sam took care of me there. Awesome lady. Highly recommend
 
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Transfer of ownership to a LLC is no different from a sale of the aircraft in the eyes of the state; sales tax revenue will be due.
 
Do it yourself, but there are a few gotchas.





So print the faa 8050-2 bill of sale and fill it out:

Sale price, $1 & OVC

Fill out aircraft info

Fill out the name of the company it's going to, mailing address up top, physical if different below that

And the "Her" "I" "My" and the date on the part below that.

Seller is her name, sign, title is owner


Now on the carbon 8050-1 that the FAA will mail to you for free

Aircraft info

Check corporation

Name of corp

Address of corp, if you use a PO Box fill out the physical address and just add your PO BOX in the PO box colum too

Now she signs it (PRINT HER NAME UNDER HER SIGNATURE) all in the signature block
Title should be member
Date it


She needs to send that with a letter she types up, something like this,

[see image]


be sure to have her N number in the top left corner of the letter, and take a sharpie and write it in the top left corner of the copy of the certificate of formation which gets sent with the letter too.

Send all that in with a check for the $5 for the FAA, keep your pink copy of the temp reg (good for 90 days minus international ops), and bobs your uncle.

Of course be sure to double check the states tax scheme where she is registering it, some states will try to steal your money through taxes, others are more constitutional.
 

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If you're in a state that will assess sales tax on fair market value, I'd check with a lawyer before lowballing that in any way. With my 0 legal training, that seems like a recipe for an insurance company later to discover that "fair value" you declared and total the plane. But maybe it couldn't be used that way; hopefully a lawyer would know.
 
FORANE said:
Transfer of ownership to a LLC is no different from a sale of the aircraft in the eyes of the state; sales tax revenue will be due.
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Sorry for the broken record.

It depends on the transaction. Depends on the state. Speak with an accountant, lawyer or other tax specialist about the tax laws applicable in your state.

For example, a transfer of property to an LLC in exchange for a membership interest in the LLC, a capital contribution, is treated by many states as a no sales tax event.


The FAA part is easy.
 
FORANE said:
Transfer of ownership to a LLC is no different from a sale of the aircraft in the eyes of the state; sales tax revenue will be due.
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That is not necessarily true. Talk to your accountant and let them advise you.
 
You have to include documentation that "proves" the LLC is controlled by American citizens as well.

I did all of this myself a few months back and the FAA accepted all my paperwork on the first swing.
 
When I bought my helicopter I put
$1 and other valuable considerations
I didn't lie and it's nobody's business what my helicopter cost.

As far as taxes that kind of Capitol investment gets reported on the companies tax return to the state and Feds. No hiding that from the tax man
 
I put my Cherokee in an LLC and I don't recall any problems. The only one I really have is when I put the Mooney in the LLC they didn't like that I put "Chair" as my role (that's what it is in the LLC paperwork). I believe they want "member". I honestly can't see the purpose of having a single owner one. It costs money, has upkeep, and won't protect you if you prang someone with the airplane.
 
I can't vouch for Oklahoma, but $1 isn't going to fly in most of the states I deal with. They'll impute the FMV of the aircraft if you don't submit a realistic sales price. The OVC is taxable, too.
 
I've never seen a 8050-2 with anything other than $1, or $1 & OVC written in.
 
I don't think I'd live in a state which felt entitled to my hard earned money, based on me owning a plane I paid for outright with more of my hard earned money.
 
James331 said:
I don't think I'd live in a state which felt entitled to my hard earned money, based on me owning a plane I paid for outright with more of my hard earned money.
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Agreed, but if you made a list of things where states felt entitled to your money, I don't know where you would live. You can't know everything about the place you end up until you live there and learn.
 
EppyGA said:
Exactly what I did twice with the Warrior. We pay property tax each year on the FMV
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Annual property tax and one time sales/use tax are two entirely different things and often collected by two completely different entities.

You are typically going to pay the property tax regardless.

Very generally speaking, if you paid the sales/use tax when you originally bought the aircraft, you shouldn't have to pay it again to simply transfer ownership from you to a simple LLC owned by you, but you really need to talk to a CPA familiar with the specific state to make sure.
 
Actually, going over the CD for my aircraft paperwork nearly every bill of sale DOES have a price entered. It's amusing my plane sold for $6000 in the 1960's. Again, most taxing authorities are not fooled by $1+OVC.

There's a story when Richard Feinman worked for the Manhattan Project. He had to sign an agreement that he'd transfer the rights to any patents to the government for $1. When he did so, he demanded his $1. The government employee told him those things don't really ever get paid, but Feinman insisted. The employee handed him a dollar out of his own wallet. Feinman went to the PX and bought all sorts of snacks and candy (remember this was 1945) with the money and came back to the lab saying "Look what I got for my patents."
All the other scientists went and demanded their dollar, too. The government had to set up a special fund to pay for this.
 
What is the benefit of moving to an LLC? Reduce personal liability? Keep someone from taking it if you have financial issues ?
 
Deprecation


And I think it helps if you have a bunch of owners of the aircraft, also is nice for privacy, when someone runs your N number it doesn't show your full name, imagine if anyone driving behind your car could pull your full name and possibly address as well as what certificates you hold, just with your plate number and 60 seconds on the Internet.

Don't think it helps much with liability if you reach screw the pooch on something.
 
flyingron said:
Actually, going over the CD for my aircraft paperwork nearly every bill of sale DOES have a price entered. It's amusing my plane sold for $6000 in the 1960's. Again, most taxing authorities are not fooled by $1+OVC.

There's a story when Richard Feinman worked for the Manhattan Project. He had to sign an agreement that he'd transfer the rights to any patents to the government for $1. When he did so, he demanded his $1. The government employee told him those things don't really ever get paid, but Feinman insisted. The employee handed him a dollar out of his own wallet. Feinman went to the PX and bought all sorts of snacks and candy (remember this was 1945) with the money and came back to the lab saying "Look what I got for my patents."
All the other scientists went and demanded their dollar, too. The government had to set up a special fund to pay for this.
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1+ovc is not a tax dodge

It's for when you're selling the aircraft so buyers can't look up what you payed. And generally keeps individuals from being in your business.
 
Tarheelpilot said:
1+ovc is not a tax dodge
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Agreed, but I mentioned this because someone brought it up in response to whether they needed to pay sales tax on a transfer implying that saying you bought it for $1 would avoid the tax.
 
flyingron said:
Agreed, but I mentioned this because someone brought it up in response to whether they needed to pay sales tax on a transfer implying that saying you bought it for $1 would avoid the tax.
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I see. Missed that in the conversation. I hope no one does it to dodge taxes. They would be disappointed in the outcome I think
 
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