Does anyone have any suggestions as to what is the best way to title a new aircraft from a liability protection standpoint? Title in personal name vs. LLC vs Corporation?
When i asked the question to my Accts and lawyers…the simplest response was…“that’s why the call it a Limited Liability Corporation”!
Does anyone have any suggestions as to what is the best way to title a new aircraft from a liability protection standpoint? Title in personal name vs. LLC vs Corporation?
Does anyone have any suggestions as to what is the best way to title a new aircraft from a liability protection standpoint? Title in personal name vs. LLC vs Corporation?
I am not an attorney, (but I play one on TV - just kidding) but any of the following can be sued:
Owner
Pilot
Operator
Mechanic
Manufacturer
I presume that as a typical GA type you will fit the owner & pilot catagory(ies). If you are flying the plane, regardless of how it is titled (corp, LLC, LP, individual ownership) you can, and probably probably will, be sued.
If you title the plane in a corporate name and someone else is flying the plane, then the corporate ownership structure may shield you personally from liability.
If you are the sole owner & Pilot, you are basically a great target. I would concentrate on shielding your assets (as opposed to shielding yourself). Depending upon your state and its bankruptcy laws, ensuring everything is in joint title(presuming you are mairried) or owned by trusts, etc, you may fare far better.
Does anyone have any suggestions as to what is the best way to title a new aircraft from a liability protection standpoint? Title in personal name vs. LLC vs Corporation?
My lawyer advised me that it really only matters if you are in a partnership–then having a corporation own the aircraft would shelter you should your partner, acting as pilot, incur liability.
If you are a sole owner, operator, you’re screwed even if you are incorporated, as you could be sued in your capacity as pilot/individual should there be an incident, even if the airplane was owned by a corporation.
Who knows. I’m not a lawyer and do not offer this as legal advise, but simply as the information I received when asking the same question.
It depends on who will be flying the plane. If you will be the only pilot, then there’s no point taking title in the name of an LLC or corporation. You can be sued for your personal negligence, regardless of the entity that owns the plane. On the other hand, if someone else is going to be flying the plane as well, then titling the plane in an LLC or corporation may provide some protection from what is known as “vicarious liability.” (E.g, a phone company driver smashes into your car. The phone company is vicariously liable for the tort of its employee committed in the course of his employment.)
Does anyone have any suggestions as to what is the best way to title a new aircraft from a liability protection standpoint? Title in personal name vs. LLC vs Corporation?