To shield yourself from
total financial disaster take advantage of the limited liability offered by
a Delaware Corporation or a Delaware Limited Liability Company. Owning an
aircraft in this manner can offer you asset protection, privacy and tax
savings. Once you have made the decision click
here for our secure credit card application.
Non-citizen corporations are permitted to register their airplanes as long
as they meet with the regulations as set forth by the FAA.
Even
though, when purchasing
the aircraft,
there is always a possibility that a use tax may be assessed in the state you are actually keeping or using the aircraft, the true advantage of owning
the aircraft as a corporation (besides protection of assets) truly comes into being when
you opt to sell
the aircraft.
DISCLAIMER: It is important to note that sales tax
shelters are situational. Many states have a "use tax" and the
like. One should consult with a legal or tax advisor to determine if a tax
on a aircraft will be due in the State in question. Please see below
for state of Idaho**
As
another option, call us for a free consultation on arranging a Lease
Agreement.
What are the advantages of selling the
stock and assets of the corporation or LLC in lieu of the sale of the
aircraft?
In most cases, the prospective owner
will have to pay a sales tax on the purchase of the aircraft. With
this in mind from the outset, not only will the prospective owner derive the
advantages of ownership as a corporation, when the aircraft is subsequently
put up for sale, the owner has the flexibility of selling the aircraft as
an asset of the corporation or selling the entire corporation of which
the aircraft is the only asset. The latter circumstance is accomplished by simply
transferring the shares of stock in the corporation over to the new owners.
This arrangement can be very attractive
to the prospective purchaser because title to the aircraft has not changed
hands since it is still registered to the corporation. Therefore, no sales
tax may be assessable on the transfer, and, no re-registration costs are
incurred.
In fact, an additional savings occurs
because the aircraft does not need to be registered with the FAA and avoids
the hassle.
Why should I select the state of
Delaware to Incorporate and protect my personal assets?
-
Delaware is recognized as having
a favorable tax climate. Delaware has
No sales tax **
No personal property tax
No intangible property tax
or
No stock transfer tax
** Note: Idaho Residents
-
** Vehicles/vessels/aircraft purchased outside Idaho by an LLC 100% owned by an Idaho resident are subject to Idaho use tax at the time the vehicle first enters Idaho. Interest, and a penalty of up to an additional 50% of the tax due, will be added if use tax is not voluntarily paid by the owner when the vehicle first enters Idaho.
-
**An LLC formed in another state and owned 100% by an Idaho resident is not exempt from sales tax on purchases made in Idaho. Sales tax
will be collected by the Idaho dealer at the time of sale.
Aircraft
Registration - Eligible Registrants
Note: A non-citizen corporation organized and doing business under
the laws of the state of Delaware (or any other state) can own register an
aircraft as long as they comply with the following rules as cited in § 47.9 Corporations not U.S. citizens.
An aircraft is eligible for U.S. Registration if it is owned by:
- A U.S. citizen. A U.S.
citizen by definition of FAR Section 47.2 can be an individual, or
partnership where each individual is a U.S. citizen, or a corporation
organized under the laws of the United States, State, Territory or
possession of the United States of which the president and two-thirds of the
board of directors are U.S. citizens and 75 percent of the voting interest
is owned or controlled by U.S. citizens;
- a Resident Alien (foreign individual lawfully admitted for permanent U.S. residence
- a U.S. governmental unit or subdivision
- 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.)
An address for all records or flight hours must me available for inspection.
The aircraft may not be
registered in a foreign country during the period it is registered in the
United States. You must provide the FAA with legal evidence of ownership
e.g. Certificate of Incorporation.
You must apply for a Certificate of Aircraft Registration from the
Civil Aviation Registry before it may be operated. Do not depend on a bank,
loan company, aircraft dealer, or anyone else to submit the application for
registration. Do it yourself (in the name of the owner, not in the name of
the bank or other mortgage holder).
FAA contact info
If you would like us to prepare the
documents for your FAA registration Form 8050-1 our fee is $215.00. Click
here and select Other Services Not listed.