Forming an aircraft LLC - one guy's experience

[jlunseth]

1. Every state has a web portal for the “Secretary of State” office. I put it in quotes because states call the function by different names but it is not an issue at all to find out where to look online for any state.

2. Every SOS portal has the ability to search based on the name of the corporation. You may have to pay a nominal sum for the search, or to get copies of corporate documents. The search will provide you with, at a minimum, the name and address of the registered agent, the names of the incorporators, and the address of the company. In most cases you can get a list of the officers and their names and addresses. You can get copies of the corporate documents filed with the state although you may have to pay in some states.  You can get the name of the corporation that owns the plane from the FAA database.  In short, it is going to take maybe a half hour of fingering on a computer, and perhaps an order for corporate documents placed over the Internet to find out who the individual owner is, but it is really simple. 

3. If you register the owner as a corporation (or LLC) under another state’s laws you have to be very careful about taxes and registrations and probably need legal advice. Your LLC is now a citizen of that state. The LLC is subject to service of process and to the jurisdiction of the Courts in that state.  Does their sales and use tax arguably apply? Probably their aircraft registration requirements. Have you helped that state make an argument that you are a resident of that state because you own and operate an LLC there, and are therefore subject to income tax, etc.? States are very greedy about taxes and the SCt. has made it easier for the states, unfortunately, and good lawyers will tell you that these days there are no clear answers about where taxes are owed. If the state you pick is one of the blue states, in particular, look out!