Please ensure Javascript is enabled for purposes of website accessibility

Blog

Is it all right to set up a subsidiary, affiliated corporation, or special purpose entity to own and operate the aircraft for liability reasons?


 

Transcript:

It’s very common for businesses that are owning and operating aircraft to set up a special purpose entity or a subsidiary specifically to own and operate the aircraft, to separate those operations from the main business for liability purposes. It is important to remember that there can be tax consequences of doing so, and for FAA purposes you want to make sure that there is some separation between ownership of the aircraft and operation of the aircraft so as not to run afoul of Part 91 operation rules. Yes, a subsidiary or a special purpose entity can and often should be used for aircraft ownership and operation, but you want to be careful about the way you separate those costs and structure that operation to make sure you’re FAA compliant.

Advocate Covers:

Our Results

Service Agreements

Small Piston Comprehensive Service Agreement

For Piston Aircraft with a gross takeoff weight of less than 6,000 lbs and costing less than $500,000 – $3,000 per year

Large Piston Comprehensive Service Agreement

For Piston Aircraft with a gross takeoff weight of more than 6,000 lbs or costing more than $500,000 – $5,000 per year

Small Turboprop Comprehensive Service Agreement

For Turboprop Aircraft with a gross takeoff weight of less than 12,500 lbs, and not subject to “truth in leasing” – $7,500 per year

Our Team

Meet the Attorneys

Jonathan Levy

Shareholder

Suzanne Meiners-Levy

Shareholder

Joseph Quackenbush

Managing Attorney

Letisha Bivins

Managing Attorney

Do you love aircraft? Work with our team of professionals!

Contact Us

Get in Touch
With Us

Get in Touch