Shared Ownership is an ideal solution for people or businesses who need an aircraft for a somewhat limited period – not enough to justify the full operating costs – but enough to require more agile air services than commercial or private charter services. In addition, in some cases, and with proper planning, it is possible to avoid the turnover tax and the state user tax for the purchase of an aircraft – in addition to a possible deduction of a portion of the operating costs of the aircraft. An LLC can offer aircraft co-owners unique benefits. But it is important to keep in mind that each situation is unique. Working with an experienced aviation lawyer is essential to ensure that the LLC is sufficiently structured to meet existing regulatory requirements and establish a corporate agreement that defines all the characteristics of ownership – from cost-sharing to tax management to the possibility that each member may leave the LLC if desired or necessary in the future. If you create an LLC for your aircraft club, all of your members must be U.S. citizens. To this end, you can submit a declaration of support for registration by an LLC to the Federal Aviation Association. Finally, if the management of the LLC changes at a later date, a written notification regarding the amendment must be submitted to the FAA. The notification may take the form of a written statement, a copy of the minutes of a meeting, a modified enterprise agreement, etc. However, the submitted document must explain all the changes and indicate the effective date of the changes. We urge you to seek competent advice to determine the best strategy for your co-owners` projects. This type of enterprise agreement generally determines how the members of the group should maintain and use the club`s aircraft.
This creates a sense of ownership and a positive experience for each member. However, the points that should be covered by the operating rules of the agreement are not limited to: sound operating rules mitigate problems through clear roles, responsibilities and written expectations. When developing the agreement, you take the members through the process to ensure that the rules are complete and that everyone feels ownership and camaraderie as part of the club.