Transferring ownership question

[Bearhawk'r]

Any thoughts or directions for transfer ownership of a partnership plane?

I’m in a partnership. Pretty bro deal so other than a signed co-ownership agreement there wasn’t new registration or new LLC or anything. But now the original owner wants out and I’m gonna take on finding new partners. My questions are these:

1. I presume I am going to keep it under a new LLC. Any thoughts on the contrary?
2. If I am just transferring ownership to a new LLC there should not be a taxable event right?
3. Is there a checklist or anything like that out there that I should follow. I’ve always been in flying clubs or just been the bottom of the barrel in a partnership that has never had to set up insurance, do LLCs and all the other less fun stuff of ownership. I have lots of dumb questions.
4. Should I get a lawyer or call AOPA? Any other ideas for resources?


thanks

 

[Lindberg]

If it's already in an LLC, why not just transfer the LLC ownership interest?

 

[thito01]

You have to be careful here.
Generally::
If he owned it under his own name, then sold you 50% afterward, then in many states you should have paid them sales/use taxes for that 50%.
If you paid that money, and are now buying it as the sole owner (even in an LLC), then your may owe the state the sales/use tax for this new 50%.
Then, when you sell this second half, the new person would also owe the sales/use tax for the same 50% you were also liable for.

My (non-cpa) suggestion is that you get the plane into an LLC now, before the old owner "gets out". Once that registration is finalized, the other guy can sell his 50% to a new guy. When the state comes after you due to the ownership change to the LLC, send them documents that is was just a legal name change and not a transfer of assets. And, make sure that the new guy quickly files his sales/use tax forms and pays the monies due on his purchase.
On the other hand, if you never paid your taxes, then just have the current owner set it to a new LLC that you and your new partner set up. Then, the LLC will pay the taxes on 100% of the money and you two pony up the cash to put into the LLC to cover it.

We don't like to pay taxes, but it's part of the legal system we are in.

 

[Bell206]

Is there a checklist or anything like that out there that I should follow.

FYI: While there is general guidance available on performing an aircraft registration change/transfer, a quick call to the Registry office in Oak City would be the preferred way to find out what you would need to do for the aircraft registration side. LLC to LLC, etc. transfers have specific requirements and sometime require a step that is not evident. The people at Oak City are very helpful. Your LLC/tax questions would be for someone familiar with your local/state laws.