Airplane Partnerships

[gevertex]

Hello fellow Mooniacs,

   I am potentially interested in finding 1-2 partners for my 1992 MSE. I currently have a loan on the airplane, and it it currently registered to me. I am interested in understanding the mechanics of what would have to happen in order to form a partnership. I get you need to form some kind of entity to own the airplane, but I have several questions about this. What kind of entity should it be? Do I need to refinance the airplane? What other financial considerations should I consider? I'd primarily be doing this to defray the costs of ownership + develop some permanent flying buddies. Any thoughts?

Thanks!

[MikeOH]

Warning: I am not a lawyer!

I think you want an LLC to protect you from the negligent acts of the others.  Further, you need to find out how your current finance company will want this handled.  Finally, make sure that this transaction won't subject you to another round of sales tax! Oh, and talk to your insurance broker!

That's all I got.

[toto]

AOPA has a few free resources on this - there is a summary page, checklist and FAQ from the link below, in addition to some members-only materials that would require you to log in.

https://www.aopa.org/go-fly/aircraft-and-ownership/buying-an-aircraft/pilots-guide-to-co-ownership

[midlifeflyer]

8 hours ago, MikeOH said:

Warning: I am not a lawyer!

I think you want an LLC to protect you from the negligent acts of the others.  Further, you need to find out how your current finance company will want this handled.  Finally, make sure that this transaction won't subject you to another round of sales tax! Oh, and talk to your insurance broker!

That's all I got.

You’ve pretty much covered it. Might be a corporation rather than an LLC, but that, as well as the devil in the details, is a reason to consult a professional.

[gevertex]

Thats helpful, thanks all!