Holding a personal aircraft in an LLC?

Brittney Inabnit: IF the LLC wants to deduct some expenses that may otherwise be non-deductable then certainly "renting" the aircraft would offer some possible deductions. However, many are simply put into an LLC to protect the assests of the owner. The the owner or even co-ownwers just fly it. Those who do operate a "lease/rental" operation do have to comply with the FAA rules and have 100 hour inpsections etc done on the aircraft. Find a tax accpountant / laywer who understands aircraft, not sure who has been "advising" you. You may be missing or mixing information.Add: There is no requirement that an LLC has to charge anyone for anything. Even an individual can just allow someone else to fly their plane. You can let another driver drive your car can't you? Does that mean you have to rent it to them? It's your plane, you can indeed let another pilot use it if you so choose, so can an LLC. The LLC is just an "owner" like anyone. Part 135 has nothing to do with ! rentals anyway, only "for hire transport", rentals don't supply the pilots and are not charters. Re-read 135.1 or even just the header to part 135. "Operating requirements: Commuter and on demand operations and rules governing persons on board such aircraft"...Show more

Derrick Smsith: I understand that owners of an aircraft place it & register it under an LLC for the purpose to limit liability. That is separate in how the FAA sees this set up. An LLC is considered a separate entity from the owners. How do the owners of the aircraft use the aircraft without paying the LLC to use it? To me, this seems like a for hire operation. IF there is an accident, the FAA could come in and say that the LLC was operating the aircraft for hire and required a 135 cert.