We have partnered with Global Corporate Services, Inc., registered agents in the state of Delaware for over 41 years to prepare and file your corporate charter. To get started with your new corporation or LLC and have it filed in only 24 hours just click here.
* NOTE: Please note that as an International Client the FAA will not accept and LLC as an entity to issue an"N" Number. You can only form a "C" Corporation to file an "N" Number with the FAA.
International Clients - NOTE: See how you can register your aircraft using an "N" number with the FAA and still meet the 75% ownership requirement. Aircraft Registration with Delaware Company & Trust Structure.
Non-citizen corporations are permitted to register their airplanes as long as they meet with the regulations as set forth by the FAA. A non-citizen corporation lawfully organized and doing business under the laws of the U.S. or one of the States can own an aircraft just as long as the aircraft is based and primarily used in the U.S. (60% of all flight hours must be from flights starting and ending within the U.S.)
An address for all records or flight hours must me available for inspection.
Even though, when purchasing the aircraft, there is always a possibility that a use tax may be assessed in the state you are actually keeping or using the aircraft, the true advantage of owning the aircraft as a corporation (besides protection of assets) truly comes into being when you opt to sell the aircraft.
DISCLAIMER: It is important to note that sales tax shelters are situational. Many states have a "use tax" and the like. One should consult with a legal or tax advisor to determine if a tax on a aircraft will be due in the State in question. Please see below for state of Idaho**
As another option, call us for a free consultation on arranging a Lease Agreement.
What are the advantages of selling the stock and assets of the corporation or LLC in lieu of the sale of the aircraft?
In most cases, the prospective owner will have to pay a sales tax on the purchase of the aircraft. With this in mind from the outset, not only will the prospective owner derive the advantages of ownership as a corporation, when the aircraft is subsequently put up for sale, the owner has the flexibility of selling the aircraft as an asset of the corporation or selling the entire corporation of which the aircraft is the only asset. The latter circumstance is accomplished by simply transferring the shares of stock in the corporation over to the new owners.
This arrangement can be very attractive to the prospective purchaser because title to the aircraft has not changed hands since it is still registered to the corporation. Therefore, no sales tax may be assessable on the transfer, and, no re-registration costs are incurred.
In fact, an additional savings occurs because the aircraft does not need to be re-registered with the FAA and avoids the hassle.
Why should I select the state of Delaware to Incorporate and protect my personal assets?
- Delaware is recognized as having a favorable tax climate. Delaware has
No sales tax **
No personal property tax
No intangible property tax or
No stock transfer tax
** Note: Idaho Residents
** Vehicles/vessels/aircraft purchased outside Idaho by an LLC 100% owned by an Idaho resident are subject to Idaho use tax at the time the vehicle first enters Idaho. Interest, and a penalty of up to an additional 50% of the tax due, will be added if use tax is not voluntarily paid by the owner when the vehicle first enters Idaho.
**An LLC formed in another state and owned 100% by an Idaho resident is not exempt from sales tax on purchases made in Idaho. Sales tax will be collected by the Idaho dealer at the time of sale.
Aircraft Registration - Eligible Registrants
Note: A non-citizen corporation organized and doing business under the laws of the state of Delaware (or any other state) can own register an aircraft as long as they comply with the following rules as cited in § 47.9 Corporations not U.S. citizens.
An aircraft is eligible for U.S. Registration if it is owned by:
- A U.S. citizen. A U.S. citizen by definition of FAR Section 47.2 can be an individual, or partnership where each individual is a U.S. citizen, or a corporation organized under the laws of the United States, State, Territory or possession of the United States of which the president and two-thirds of the board of directors are U.S. citizens and 75 percent of the voting interest is owned or controlled by U.S. citizens;
- a Resident Alien (foreign individual lawfully admitted for permanent U.S. residence
- a U.S. governmental unit or subdivision
- a non-citizen corporation lawfully organized and doing business under the laws of the U.S. or one of the States as long as the aircraft is based and primarily used in the U.S. (60% of all flight hours must be from flights starting and ending within the U.S.) An address for all records or flight hours must me available for inspection.
The aircraft may not be registered in a foreign country during the period it is registered in the United States. You must provide the FAA with legal evidence of ownership e.g. Certificate of Incorporation.
You must apply for a Certificate of Aircraft Registration from the Civil Aviation Registry before it may be operated. Do not depend on a bank, loan company, aircraft dealer, or anyone else to submit the application for registration. Do it yourself (in the name of the owner, not in the name of the bank or other mortgage holder).
If you would like us to prepare the documents for your FAA registration Form 8050-1 our fee is $215.00. To get started go to our Secure Web site.