How to start a one man bussiness

[Rusty]

I am a part 135 pilot that also moonlights as a contract pilot and flight instructor. Is there anyone out there that has started a small aviation bussiness and made it worth the effort? I am only worried that if I don't protect myself under a bussiness, and something happens, the lawyers will eat my family alive.

I have looked into the AOPA insurance and leagal protection as well as some other insurance companies. What is a cheap way to get a bussiness set up with minimal tax claims because all the work would be pilot service and non-taxable.

Thanks,
I don't know what I want to do when I grow up.

 

[minitour]

What kind of business? One man/one plane charter? Flight instruction? Outside of aviation?

Step 1: Do your homework - business plan.

Without that, you won't get anywhere...insurance is important, but without a plan you wont have a business to cover with insurance.

Good luck!

-mini

 

[Rusty]

The bussiness would not be a money making bussiness it would be a aviation bussiness! I have a primary job as a 135 pilot and am happy with that job for now. I would only do the bussiness thing to make my contract side gigs and flight instruction legal on paper. Does that make sense? Do I even need a formal company if I don't make that much $ on the side?

 

[minitour]

Oh I see what you mean... like "John Smith, LLC" kinda thing...

I'd do it.

-mini

 

[FlyingFisherman]

Just make yourself an LLC. Call it whatever you want and do all your business as "Flying Widget, LLC."

Actually...Dibbs on that name.

 

[erj-145mech]

What ever you do, a lawyer can go after you. He may not be sucessful, but he can sue you if you are involved in any sort of way. For instance, you, as an employee is flying an airplane, a passenger becomes injured, you, your employer, the aircraft manufacturer, an aircraft component manufacturer, may become plaintiffs in a law suit. Look at the former Governor of Missouri, Carnahan. His son was flying him in his C-340, and crashed. The families lawyer sued Parker-Hannifan, the manufacturers of the vacuum pumps on the aircraft in question, and won. The pumps didn't fail. There was expert testimony that the pumps only had impact damage as a result of the accident. Parker-Hannifan doesn't make pumps any longer.

When I had my maintenance shop, I incorporated myself as an IRS, subpart "S" corporation. I was the owner, but I also was an employee of the corporation. I paid myself a modest salary, $500/mo (taxable), and I leased my pickup truck, my tools, and my shop equipment back to the corporation (non-taxable), for what the market could bear.

 

[midlifeflyer]

Step 2. Sit down with an attorney who knows something about business law. Aviation knowledge would be helpful also.

Remember: creating a corporation or LLC does =not= protect you and your assets from things that =you= do that cause damage to other people and property. They are not and have never been designed for that purpose. Based on the number of people who I've heard say the opposite, that's probably one of the most misunderstood concepts of business law.

 

[A Squared]

What is a cheap way to get a bussiness set up with minimal tax claims because all the work would be pilot service and non-taxable.

WHy do you say that pilot services would be non-taxable?

 

[erj-145mech]

WHy do you say that pilot services would be non-taxable?

In Texas, services are not taxable as sales tax. My FBO repair shop mechanics services were not taxed on the invoice to the customer, same as auto garages according to my book keeper, who retired from the IRS.

 

[A Squared]

In Texas, services are not taxable as sales tax. My FBO repair shop mechanics services were not taxed on the invoice to the customer, same as auto garages according to my book keeper, who retired from the IRS.

Ahhh, ok, state sales tax. I was thinking fed income tax