On Mon, 16 Mar 2009 17:05:04 +0000, tatermunk wrote:
I have a question about some of the legalities of what I am in the
process of doing. If anyone can point me in the right direction I
welcome and appreciate all opinions and advice.
I am in the process of purchasing a Cessna 210. I have 3 signed 1 year
lease agreements with pilots in my area. I have a $1200 deposit from
each pilot and when I reach 6 pilots I will purchase the aircraft. They
agree to $600 per month for a year for 10hrs per month. Any hours flown
over the 10hr allowance will be an additional $60 per hr. Insurance,
Maintenance, Hanger, etc. are all included.
For me, that covers the cost of the plane, hanger, insurance, and a
hefty maintenance reserve. However, I will/can still make a profit
depending on how I structure the maintenance reserve.
Is there any problem with the way I am structuring this? And other than
paying taxes and making sure my insurance is covered correctly... Is
there any problems with making a profit from this?
Thanks to anyone who can help.
When you move into a profit-making venture, and you distribute profits
to Member(s) (you), you will be viewed, in case somwething happens,
legally not as a club of folks sharing expenses but as a business with
the concurrent liabilities to your "public" (members).
If you retain profits in a reserve, ultimately you will have to spend or
distribute them (up to some amount can be retained and some length of
time depending on your corporate structure) but you will be functioning
more like a true club.
An LLC? A Sub S? A Sub C?
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