Incorporating Your Aircraft

[SJ]

What are the advantages of having your aircraft in a corp, say in a state like Deleware? I notice a few of you do that. Is there an organization that provides an address? Any one in particular to use?

I assume you get around the property tax this way, and what else?

Thanks!

sj

[Ken Grindlay]

Steve
Mines in an LLC. I still pay property tax, but am able to deduct certain expenses, as well as take depreciation on it. It should in theory shield your private assests should you happen to crash into a school bus full of lawyers kids.
Ken

[cubdrvr]

My attorney told me there were some tax/depreciation benefits of a corp.......he stopped short of saying it would protect your personal assests but said it would give them one more hoop to jump through.

I don't know about incorporation in another state. SD has a one time 4%excise tax ( on purchase price or blue book value) on any aircraft based in the state for a certain number of days per year no matter how it is registered.

[Cub Kid]

It should in theory shield your private assests should you happen to crash into a school bus full of lawyers kids.
Ken

However,
They can still sue you as the pilot because we all know that it is pilot error, no matter what the hell happens. (pilot failed to maintain control of aircraft...contributing factor, left wing parted company with aircraft, or pilot failed to predict catastrophic failure of crankshaft, etc) thats what I have always figured anyway. Besides it is best to stay away from lawyers daughters anyway.

Bill

[PA12driver]

To my knowledge Del, and NV are two states that don't 'disclose' corporate "stockholder/priciple information to "govt. organizaitons" (Diggler)??

I had an Asset protection manager tell me that if you Layer your assets behind not one but "several" corporate umbrella's then you can prevent many frivilus law suits cause Lawyers are not as willing to represent sue happy idiots when it will likely cost the plaintif "upfront" to get the necesary documents, Corporations have at least some built in requirements to follow guidelines before just bending over to attorneys.

Also If an asset is held by a corporation, then as send already you can schedule the depreciation, and expense the costs of ownership, IE: maintenance, and direct operating costs. All of which is deducted from income before figuring the "tax liablility".

Suggested reading: "Inc and Grow Rich--CW Allen and Rich Dad Poor Dad by Robert T. Kiyosaki

Tim

[SJ]

My planes are incorporated, but I was mostly wondering the benefits of Deleware, property tax, etc...

thanks!

sj

[PA-12 Super Cruiser]

If you are incroporating your aircraft don't you have to have a means of income?
Also, the talks I have had said the same thing about responsibility. The pilot (me) will end up getting the sued and the incorporation isn't really anything. Just my thoughts

Jeff

[Plemmons]

You need to be an employee of the corporation and performing your activity for the corporation.

[cubdrvr]

Funny story here. When I first incorporated my spraying service the state told me I must pay unemployment on myself. I said I was the only employee......they said no matter.....so I said being I have a seasonal business then can I lay myself off over the winter months? Got a wierd look and the guy left.

[jk]

:D :D funny

[SuperCub MD]

sj,

http://delreg.com

It's done this way all the time. (You probably know this site and stuff already, I find it hard to believe that I could give you info on confuser stuff)