Delaware LLC Owned Aircraft California Based Aircraft

[ChrisEllis]

The plan. Register my soon to be purchased aircraft into a Delaware LLC.
The plane will be purchased out of state and be flown into and stored in
California.

I was told by the company that forms the Delaware LLC that getting an
LLC is better over a C type corporation because I would not have to
file corporate taxes separate each year. Also the LLC could roll over
the losses to my personal income taxes.

Looking for some help on the subject and if anyone else has registered
in Delaware and based the airplane in a different state.

Also California has use tax so is there anyway to rent the airplane
back to myself say at $100 an hour and then report that as income each
year and just pay taxes on the hours flown each year x $100.

One last thing I have to register a C type or an LLC because I am
Canadian citizen working in the usa. So I have to register the plane to
a corporation either way. Now I just have to decide to go C or LLC and
which one is better and has more tax advantages over the other.

Thanks All.


--
ChrisEllis
Posted at www.flight.org

[Jim Macklin]

You need to see a lawyer registered with the IRS and the
California IRS, whether the plan is legal depends on
California, Delaware and Federal law. Any advice you get on
the Internet [except being told to spend a few hundred
dollars with a good attorney] is worth just what it costs.


"ChrisEllis" > wrote in
message ...
|
| The plan. Register my soon to be purchased aircraft into a
Delaware LLC.
| The plane will be purchased out of state and be flown into
and stored in
| California.
|
| I was told by the company that forms the Delaware LLC that
getting an
| LLC is better over a C type corporation because I would
not have to
| file corporate taxes separate each year. Also the LLC
could roll over
| the losses to my personal income taxes.
|
| Looking for some help on the subject and if anyone else
has registered
| in Delaware and based the airplane in a different state.
|
| Also California has use tax so is there anyway to rent the
airplane
| back to myself say at $100 an hour and then report that as
income each
| year and just pay taxes on the hours flown each year x
$100.
|
| One last thing I have to register a C type or an LLC
because I am
| Canadian citizen working in the usa. So I have to register
the plane to
| a corporation either way. Now I just have to decide to go
C or LLC and
| which one is better and has more tax advantages over the
other.
|
| Thanks All.
|
|
| --
| ChrisEllis
| Posted at www.flight.org
|

[Flyingmonk]

This only works if you don't get auditted. Once you get auditted, the
auditor will say that you are using Delaware Corp only to circumvent
the law, and all the Delaware Corp will be null and void.

The Monk

[zatatime]

On Tue, 17 Jan 2006 07:21:16 +1100, ChrisEllis
> wrote:

>Looking for some help on the subject and if anyone else has registered
>in Delaware and based the airplane in a different state.


It really needs to look legit in case anyone comes a calling (like the
IRS). Last I checked which was about 10 years ago, you needed to base
the aircraft in Delaware for 60 days of the year for the corporation
to be recognized as a true Delaware business. I'm sure there are alot
more caveats than that so I'd be very careful in planning to do this.
The money spent to keep it in CA could be easily saved if you get
audited just once.

z

[Robert M. Gary]

You were told wrong. Any LLC that does business or has a location in
California owes (rather you owe) a minimum $800/yr franchise tax for
the priv of operating in the great state of California.

http://www.methvenlaw.com/Handout_Is_Setting_Up_an_out-of-state_entity_a_good_idea.html

"Finally, if you have an out-of-state corporation or LLC but have
headquarters or any office or "presence" (telephone number, home
office, P.O. Box, etc.) in California, you have to register that LLC or
corporation as an out-of-state entity with the State of California -
and the filing fees and minimum annual tax are the same as if you set
up the entity in California. Given the additional costs of setting up
an out-of-state entity, frequently going that route is more expensive
that simply using a California entity in the first place."



-Robert

[Brien K. Meehan]

All the advice you get here is wrong, including this advice.

[Flyingmonk]

>All the advice you get here is wrong, including this advice.

LOL