How does one purchase a share in an LLC which owns an airplane?

[Shawn]

I am considering purchasing a 1/3rd share of an LLC which owns a
Cessna 206. The LLC is owned by three partners each with an equal
share. The only other asset of the LLC is a bank account with
maintenance reserve funds.

My question is this... How does one go about purchasing a 1/3rd share
of an LLC? There are no stock certificates as in a regular
corporation, no title, no deed, or any other document I can think of.
What proof does one have that the seller owns one third share, or has
not already transferred it to someone else? Would all three partners
have to sign in agreement that the one partner has the right to sell
his 1/3rd share and accept the new partner? Do voting rights
automatically come with the purchase? Are there any documents I should
ask to see or get copies of?

I do plan to speak with an attorney (general practice, not aviation)
about this later this week. I would just like some initial
understanding and perhaps advice on questions to raise.

[Aaron Coolidge]

Shawn > wrote:
: his 1/3rd share and accept the new partner? Do voting rights
: automatically come with the purchase? Are there any documents I should
: ask to see or get copies of?

I would attempt to find out from the attorney who set up the LLC to begin
with. At least in Massachusetts, these questions should be spelled out in
company bylaws. (My dirct experience is with my S-corp, but in MA LLC's
operate the same way).

You could also query the Secretary of State's office in the state the LLC
company is based in. Sometimes (at least in MA, again) the corporate
records and bylaws are available on the internet from the Sec. State's
office.

: I do plan to speak with an attorney (general practice, not aviation)
: about this later this week. I would just like some initial
: understanding and perhaps advice on questions to raise.

--
Aaron Coolidge (N9376J)

[Jim]

The LLC should make a corporate resolution showing the transfer, adding you
as a partner, and listing the amount and date of your investment. It may be
different in other states, but a LLC is still a corporation and should have
corporate records and a corporate charter, those will be the documents that
will show your investment and prove your ownership. The LLC should also
have a tax number and proper supporting documents that list the responsible
parties to any tax debt, your name will end up on that document also.

Like I said, state laws and state LLC structures will vary.
--
Jim Burns III

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"Shawn" > wrote in message
om...
> I am considering purchasing a 1/3rd share of an LLC which owns a
> Cessna 206. The LLC is owned by three partners each with an equal
> share. The only other asset of the LLC is a bank account with
> maintenance reserve funds.
>
> My question is this... How does one go about purchasing a 1/3rd share
> of an LLC? There are no stock certificates as in a regular
> corporation, no title, no deed, or any other document I can think of.
> What proof does one have that the seller owns one third share, or has
> not already transferred it to someone else? Would all three partners
> have to sign in agreement that the one partner has the right to sell
> his 1/3rd share and accept the new partner? Do voting rights
> automatically come with the purchase? Are there any documents I should
> ask to see or get copies of?
>
> I do plan to speak with an attorney (general practice, not aviation)
> about this later this week. I would just like some initial
> understanding and perhaps advice on questions to raise.