Transcript:

One of the most common misconceptions of business aircraft ownership is that by purchasing or owning the aircraft in a Delaware corporation or LLC, you can avoid sales or use tax on your aircraft, or fly under the radar, so to speak, and not attract the attention of any taxing authorities. This process, or this procedure, does not absolve you of either sales or use tax obligations on your aircraft and is a poor planning strategy that states are relatively aware of, and they do have other ways to find out that your aircraft is based in their state. Some states, in fact, when they see a Delaware LLC, become largely suspicious that perhaps you do have an outstanding tax obligation owed to them.