Airplane partnerships... .resources for a new co-owner?

[Immelman]

I'm considering buying into a partnership; actually I was planning on starting one of my own later this year but found one close to what I was looking for, not far away, and decided it might be worth pursuing.

I've been through the AOPA literature and suggestions, and am in the process of talking things over with all of the partners (not just the one guy selling his share) to feel things out. Its by no means a done deal because of some of the concerns that I have but I'm going to try to work those out with the other owners. So far, so good... but I'm wondering if anyone here has been through the same, has some overall words of wisdom, or better yet some reference/reading material.... I'd like to make sure I'm not missing anything.

Also, this thing is setup as a Delaware LLC, so if anyone has pointers on learning the basics of the law there I'd appreciate it. I'll likely hire an attorney to review paperwork if I proceed but I like to learn as much as I can...

Thanks

 

[midlifeflyer]

Keep an eye out for sloppy paperwork. This is not limited to aviation: far too many folks fill out the papers that set up the entity (whether corporation or LLC or whatever) so they can say that they have the entity but then do not follow up with the necessary paper and non-paper procedures. Heck, unless you folks are in Delaware, chances are that your potential "partners" filed in Delaware to begin with because some non-lawyer or website told them that's what to do rather than because it's what needed to be done.

The protections afforded by the entity are often dependent on that other papwerwork. But even more important, your relationship with the other "partners" (using the term generically not legally) is defined by those =other= documents far more than by the initial corporate filing - that's a lot of what the AOPA literature is about.

For the basics of Delaware corporation law, try Google, but my guess is that you'll likely find a combination of the bottom-line paperwork requirements and realizing that learning the "basics" of corporation law in any state and how it affects the relationship among the "partners" is about on the level of learning the "basics" of surgically removing an appendix.

Good luck. And definitely check with an attorney to review the requirements and paperwork.

 

[Swass]

Look up FNFAL on the other site, he knows the dark side of partnership well and what pitfalls you could possibly come across.

 

[Immelman]

Thanks guys will do. Their non-corporate paperwork is way too loose, actually, so I'm making a condition of my purhase that they adopt a certain rule-set to protect me/everyone if someone decides not to chip in for that next (expensive) overhaul... if the rest of the partners agree I'll probably buy in; if not, I'll pass. We'll see what happens.

 

[Lead Sled]

I've been involved in several partnerships - airplanes and gliders - in the past. Having the legal stuff is important, but don't understate the importance how the potiential partners "fit" together - their usage patterns vs yours, how scheduling conflicts are to be resolved, their maintenance standards vs your expectations, how certain costs will be divided (ie insurance) etc.

If the partnership is organized and structured properly and if the partners "fit" it is a great way to go. If not, it will be a source of irratation and frustration.

LS