On Mar 16, 10:05*am, 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.

--
tatermunk

I can see some legal problems. What are they buying with the $1200
deposit against? Are they buying part of the plane or part of the LLC?
If they are buying the LLC then each member after the first would get
a portion of the money paid by additional members. One member
(yourself) cannot get a higher % of new member buy in money than
existing members get (using member in the LLC context).

-Robert