Pt 91 Cproprate Partnership Question

[Choppy]

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[ksu_aviator]

You are not 135 unless you are "holding out" to the general public. So long as the only two entities to pay for the aircraft are the owners of the LLC it is not 135. That is very important. The two owners cannot take $1 to fly friends or family.

See AC120-12A and 119.21

There are literally hundreds of LLCs set up for the sole purpose of sharing an aircraft.

You will need an accountant, but the LLC should have an account to make payroll and pay expenses. How the owners contribute to the fund is up to them. Most split the salaries, pay an hourly for expected maintenance and pay for the fuel, hotels, meals and other trip related expenses outright.

 

[LJ45]

do some searches for LLC etc. here :

http://www.faa.gov/about/office_org.../agc/pol_adjudication/agc200/Interpretations/

It is not as cut and dry as some may make it appear.

 

[REINER]

After many hours of paid legal and accounting the best way around this is a lease. Owner A buys the aircraft under the LLC established has the holding company for the aircraft. That LLC then leases the aircraft back to the owner's company or to the owner personally. The leases are done in accordance with FAA leasing standards and regulations. The important point here is that the LLC holding the airplane cannot pay the pilots. The checks must come from the Lessee. This would also work in a joint ownership situation, where A and B both own the LLC and each have their own lease from that LLC. This scenario also helps greatly with sales and use tax implications.