A/C Training Under An LLC
04-15-2009, 04:49 PM
#1
A Second Past V1
Thread Starter
Joined APC: Feb 2007
Position: Assumed
Posts: 743
A/C Training Under An LLC
lets say that an llc has an asset that is an aircraft.
lets also say that people can buy into the llc based on some monthy/annual maintenance fee and nothing more.
now lets also say that not all those people have their certs (ie, no flight experience.)
considering that fuel is the only outside variable and the cfi would not be getting any kind of reimbursement...
if someone else is in the llc and has their cfi tickets, can they give flight training to those other people who are involved in an llc?
the only logic i could come up with is yes, seeing that both instructor and 'student' are members of the llc, and therefore are owners of the aircraft registered under the llc. this logic also negates the need for 100 hour inspection as per 91.409(b) since the cfi is not getting paid and there are no paying passengers on board.
any little insight helps cause for the time being ive hit a brick wall...
lets also say that people can buy into the llc based on some monthy/annual maintenance fee and nothing more.
now lets also say that not all those people have their certs (ie, no flight experience.)
considering that fuel is the only outside variable and the cfi would not be getting any kind of reimbursement...
if someone else is in the llc and has their cfi tickets, can they give flight training to those other people who are involved in an llc?
the only logic i could come up with is yes, seeing that both instructor and 'student' are members of the llc, and therefore are owners of the aircraft registered under the llc. this logic also negates the need for 100 hour inspection as per 91.409(b) since the cfi is not getting paid and there are no paying passengers on board.
any little insight helps cause for the time being ive hit a brick wall...
04-15-2009, 05:25 PM
#4
Gets Weekends Off
Joined APC: Mar 2008
Position: 135 FO
Posts: 148
Originally Posted by Outlaw2097
no need for 100 hours.
Now back to the topic, I'm not sure if this would be related or not, since you are both technically "employees" of the LLC, but I can tell you that when I'm paid to act as CFI for a private owner's aircraft, a 100hr is not required because my services do not constitute "operation for hire"
04-15-2009, 06:07 PM
#5
A Second Past V1
Thread Starter
Joined APC: Feb 2007
Position: Assumed
Posts: 743
Originally Posted by floridaCFII
That may well be, however I suspect you're going to run into quite a few people on this board (myself included) who take issue with people working for free.
Originally Posted by Outlaw2097
lets say that an llc has an asset that is an aircraft.
lets also say that people can buy into the llc based on some monthy/annual maintenance fee.
lets also say that people can buy into the llc based on some monthy/annual maintenance fee.
04-15-2009, 07:10 PM
#6
APC co-founder
Joined APC: Feb 2005
Position: B777
Posts: 5,853
Originally Posted by Outlaw2097
interpret what im saying however you wish, but it still doesnt solve my question...
04-15-2009, 07:14 PM
#7
A Second Past V1
Thread Starter
Joined APC: Feb 2007
Position: Assumed
Posts: 743
Originally Posted by HSLD
Best bet is to call the local FSDO and explain your plan. You may find a pleasant surprise in that the feds might agree, my experience says they'll call a flight school.
also do you or anyone else know by chance whats the faa/fsdo definition of a "flying club" ?
04-15-2009, 07:17 PM
#8
Gets Weekends Off
Joined APC: Mar 2008
Position: 135 FO
Posts: 148
Originally Posted by Outlaw2097
interpret what im saying however you wish, but it still doesnt solve my question...
04-15-2009, 07:49 PM
#9
A Second Past V1
Thread Starter
Joined APC: Feb 2007
Position: Assumed
Posts: 743
Originally Posted by floridaCFII
are you saying that you aren't personally paying the "fee", but you're collecting the "fee" from people who you are teaching to fly for free?
therefore wouldnt it be owned by the person(s) and instruction would be in 'their' aircraft...right?
04-15-2009, 08:02 PM
#10
Prime Minister/Moderator
Joined APC: Jan 2006
Position: Engines Turn Or People Swim
Posts: 39,269
DANGER! In some states you cannot use an LLC for purposes other than a legit business to generate profit!
Make sure your state allows you to use an LLC for purely asset protection purposes.
Also, I believe that activities which do not support the business model of the LLC (ie activities between LLC members) would not be considered to have anything to do with the LLC.
You could form an LLC to hold an airplane to conduct for-profit flight training, but I think any training between members who did not pay the going rate would
a) Not be considered to be under the legal veil of the LLC and
b) Might well be considered misuse of LLC assets.
A fundamental principle of LLC operation is to not mix LLC finances and assets with personal assets, doing so invalidates the legal protection of the LLC.
Make sure your state allows you to use an LLC for purely asset protection purposes.
Also, I believe that activities which do not support the business model of the LLC (ie activities between LLC members) would not be considered to have anything to do with the LLC.
You could form an LLC to hold an airplane to conduct for-profit flight training, but I think any training between members who did not pay the going rate would
a) Not be considered to be under the legal veil of the LLC and
b) Might well be considered misuse of LLC assets.
A fundamental principle of LLC operation is to not mix LLC finances and assets with personal assets, doing so invalidates the legal protection of the LLC.
Thread
Thread Starter
Forum
Replies
Last Post
