Attorney wanted to set up corporation

[mike-the-bike]

I'm looking for a lawyer to set up a corporation for me, probably in Ohio or Michigan. Purpose of the corp. is to allow me to register an airplane, since I'm not American.

I'm not having much luck finding a lawyer who has prior experience in this area (as opposed to chasing ambulances).

If you can recommend anyone, I'd appreciate it!

Mike-the-bike

 

[FN FAL]

I'm looking for a lawyer to set up a corporation for me, probably in Ohio or Michigan. Purpose of the corp. is to allow me to register an airplane, since I'm not American.

I'm not having much luck finding a lawyer who has prior experience in this area (as opposed to chasing ambulances).

If you can recommend anyone, I'd appreciate it!

Mike-the-bike

Hi mike, I'm not a legal expert nor am licensed in law...however I do have corporation, which means just about nothing.

I did a google search and I came up with some links...here's one:

http://www.mycorporation.com/llc.htm

If you look up in the tool bars by the upper right side, you'll see a link that says something like "live help"...they should be able to let you know if they can incorporate you in one of the two states you mentioned or any state.

I did a search on google for these key words, "incorporation" and "citizen" and it appears that states accept corporation filings from non-citizens. I don't know a thing about visas or green card status and how it would relate to a corporation, but I figure your best bet might be to contact someone on one of these sites. Good luck.

 

[midlifeflyer]

FN FAL,

It's not a "how to incorporate" issue. It's an FAA-specific one. A US-Registry aircraft must be owned by a US Citizen. Mike is not a US citizen, so he is looking into creating a corporation that is capable of owning and registering the aircraft in the US. There are some special rules.

Mike,

If you are an AOPA member, go over to the Legal Services Plan site. Even if you don't subscribe to the plan, you can get to the list of lawyers who are on it (the link is on the plan FAQ page). Prepare to make a couple of calls - although all do aviation work, not all do the =same= type of aviation work. Other than calling, you can limit the list a bit by looking up the lawyers on the Martindale site.
http://lawyers.martindale.com/xp/Martindale/home.xml
and maybe get to the firm web site. If the lawyer is part of a firm that does general business work, they will probably know (or at least have a good head start) on what to do what to do in this area.

 

[JeffSKDTW]

Mike -

I can get you a name of someone here in Michigan on Tuesday (May 31), if you don't find someone else in the mean time.

 

[satpak77]

also I am sure NBAA has a section that could assist in this

even if you were a US Citizen, I would register in an LLC name anyway, for privacy and asset protection

not a 100% fix, but a step

later

 

[midlifeflyer]

even if you were a US Citizen, I would register in an LLC name anyway, for privacy and asset protection

not a 100% fix, but a step

Perhaps you can explain exactly how setting up an LLC is even a step for what Mike needs. Or even how it protects his assets. I'd be curious about the analysis. You can start with FAR Part 47 and, particularly 47.2, 47.7 and 47.9.

 

[Corona]

FN FAL,

It's not a "how to incorporate" issue. It's an FAA-specific one. A US-Registry aircraft must be owned by a US Citizen.

This is not true, MLF. An airplane, like any other piece of property, can be solely owned by a corporation. I don't know about the non-US citizen part, but a US corporation is a US corporation. If he can incorporate here, the corporation can buy the airplane. Most of the airplanes I've flown have been owned by one corporation or another.

C

 

[midlifeflyer]

Try reading the regulations before you make things up off the top of your head. I gave the references above.

And understand that corporations have "citizenship" also. In order to hold title to a US registry airplane, a corporation must... Never mind. I'm sure you can read as well as I can.

Yes, there are exceptions to the US Citizen rule. Mike probably looked into the rules before asking and realized that the exceptions didn't apply to him, which is why his question was phrased as it was.

 

[mike-the-bike]

From the FAA site:


"An aircraft is eligible for U.S. Registration if it is not registered in another country and it is owned by:

1. a Citizen of the United States
2. a Resident Alien (foreign individual lawfully admitted for permanent U.S. residence)
3. a U.S. governmental unit or subdivision
4. a non-citizen corporation lawfully organized and doing business under the laws of the U.S. or one of the States as long as the aircraft is based and primarily used in the U.S. (60% of all flight hours must be from flights starting and ending within the U.S.).

US Citizen means one of the following:

1. an individual who is a citizen of the U.S. or one of its possessions,
2. a partnership of which each partner is such an individual,
3. a corporation or association created or organized under the laws of the United States or of any State, Territory, or possession of the United States; of which the president and two-thirds or more of the board of directors and other managing officers are such individuals and in which at least 75% of the voting interest is owned or controlled by persons who are citizens of the United States or of one of its possessions."


I've never heard of a "non-citizen" corporation, but it appears to be a corporation set up in the US with more than 25% foreign owners.

It appears that if I set up a corporation in the US and submit my flight logs to the FAA to show that 60% of my hours are in the US, I can register a plane here. So, I need to find someone with experience in this area, to be sure that I'm right, and to set up a corporation.

I don't know if a LLC is considered a corporation for this purpose. One thing I need to find out.

I don't believe owning the plane through a corporation will protect you very much, and the one lawyer I talked with told me insurance offered the best protection.

That lawyer wanted a sum which would make purchasing vs renting too expensive. If I can only get similar quotes, I'll rent and not bother with owning.

I'd like to hear about any attorneys who may have experience with this (I'll take that name on Tuesday, Jeff) or about any foreigners who have planes registered in the US.

Thanks for the suggestions - please keep them coming!

Mike-the-bike

PS. Does anyone know why do individuals have to be citizens to register a plane in the US? I think this rule preceded 9/11, and I can register a car or own a house in the US...

 

[midlifeflyer]

That lawyer wanted a sum which would make purchasing vs renting too expensive. If I can only get similar quotes, I'll rent and not bother with owning.
***
PS. Does anyone know why do individuals have to be citizens to register a plane in the US? I think this rule preceded 9/11, and I can register a car or own a house in the US...

It's a control issue. The government either wants control of =you= (citizen) or control of the aircraft (the 60% rule). They don't want a US-Registry aircraft based, say, in Germany unless it's owned by a citizen, and they don't want a "foreign" corporation owning one unless it's primarily based here. Cars are less highly regulated, stay pretty much around the same place, are more ubiquitous, so they are not regulated the same way.

Hove you looked into the possibility of group ownership? Get another three guys together who are citizens so that you meet the "corporate citizen" test? Something to talk about with Jeff's referral or someone off the AOPA list. Sorry I can't help you personally; you're a little outside my geographic area.

 

[FN FAL]

FN FAL,

It's not a "how to incorporate" issue. It's an FAA-specific one. A US-Registry aircraft must be owned by a US Citizen. Mike is not a US citizen, so he is looking into creating a corporation that is capable of owning and registering the aircraft in the US. There are some special rules.

Thanks, midlife...I kind of figured this one was going to be little harder than that.