Suggestions for partnership agreement

"GE" wrote in message ...
Getting a few steps closer to owning my first airplane. I have a friend who
will be my partner and we plan on setting up an LLC to actually own the
plane. I don't know anything about LLC's, but I do want to have a
partnership agreement that spells out our financial responsibilities. Any
suggestions? Does anyone have a sample that I could look at? Thanks.

Be careful. In some locations the LLC has a minimum franchise tax. In
CA you pay a minimum of $800/year in state tax for the right to have
the LLC. If you create the LLC out of state you pay a use tax of
$800/year (they get you either way). You can fill out a form to
request an exception as not-for-profit but it takes a very, very long
time to get a response and you need to pay the taxes in the meantime.
It may or may not be the same where you are.

However, if you don't do the LLC you will be regarded as "partners" in
the legal sense. Anything your partner does related to the airplane
can create liability for you. This includes things not covered by your
airplane insurance like driving to the airport.
Also, make sure you have good articles. Whether you are "partners" or
an LLC, the other guy can create debts against you unless you have
something written up otherwise.

I've owned my Mooney in a C-corp with a partner for several years now
and I can't imagine owning a plane myself ever. Between the two of us
we keep it flying enough. Unless you really think you will put more
than 100hr/year on a plane you really shouldn't own it yourself.
Now we're looking at adding an L-2 to our line.

-Robert