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RV in an LLC

Reaver

Well Known Member
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For those who own their RV in an LLC with multiple owners, how do you structure the payments for engine reserves? Do you tear them as a dry lease even though e pediment also can?t be rented, or do you somehow mark them as a non-capital contribution to the business, etc? I asked my accountant and he said he?s not sure, so I?m hoping to get advice from those who have done this successfully and legally already!
 
Dont have my RV in an LLC, but used to manage a flying club. We were set up as a non-profit. Goal was to break even

Monthly Dues = Yearly hangar/tie down + yearly Insurance + Any loan payment on aircraft + any avionics subscription costs, divided equally among members

Hourly rate = average fuel + oil + engine reserve + Mx reserve + avionics reserve. Engine reserve was the overhaul cost divided by 2000 hour TBO.
 
Dont have my RV in an LLC, but used to manage a flying club. We were set up as a non-profit. Goal was to break even

Monthly Dues = Yearly hangar/tie down + yearly Insurance + Any loan payment on aircraft + any avionics subscription costs, divided equally among members

Hourly rate = average fuel + oil + engine reserve + Mx reserve + avionics reserve. Engine reserve was the overhaul cost divided by 2000 hour TBO.

Doing exactly this with our RV-10, but it is in an LLC.

Fixed costs (Hangar, Insurance, GPS, etc) / # of members = Monthly dues.
(Engine cost / 2000) + Oil, tires, brakes, other consumables = Hourly rate (Dry).

Dry because I can fly the RV-10 at 8gph or 15gph.
 
For those who own their RV in an LLC with multiple owners, how do you structure the payments for engine reserves? Do you tear them as a dry lease even though e pediment also can?t be rented, or do you somehow mark them as a non-capital contribution to the business, etc? I asked my accountant and he said he?s not sure, so I?m hoping to get advice from those who have done this successfully and legally already!

As far as the experimental op-lims are concerned, my opinion is you're not really renting if they're owners; they are just paying their ownership expenses.

I'm currently thinking about taking partners on my -7 and will likely do a monthly fee for fixed costs and a wet rate, similar to the other suggestions. I agree dry rate would be better for fairness since there is a big discrepancy between LOP cruise and balls to the walls; but I think dry would be much more difficult to track. to those of you charging a dry rate how are you handling fuel left in the tanks?
 
Doing exactly this with our RV-10, but it is in an LLC.

Fixed costs (Hangar, Insurance, GPS, etc) / # of members = Monthly dues.
(Engine cost / 2000) + Oil, tires, brakes, other consumables = Hourly rate (Dry).

Dry because I can fly the RV-10 at 8gph or 15gph.

I agree with this, I'm moreso asking about how the LLC agreement is set up. Do you actually call it a "dry lease"? In which case you're just not worried about the no-renting-experimentals rule?

And to answer Odens_14: we're fixing that by having you fill the plane after flying it :cool:
 
s; but I think dry would be much more difficult to track. to those of you charging a dry rate how are you handling fuel left in the tanks?

When I was in a partnership, we used a spreadsheet to track the charges. The nominal rule was to leave the plane full. If a pilot re-fueled at the end of a flight, there was no fuel charge. If he did not, the spreadsheet calculated the missing fuel, using an assumed rate that was 1 gal/hr higher than 75% power fuel flow (to encourage people to re-fuel after landing), and the local av gas price. That money was charged to the pilot who didn?t re-fuel, and given to the next pilot (small premium to make up for the chance he?d need to re-fuel prior to departure). This worked well for us.
 
We (three of us) split the fixed costs and contribute a wet hourly rate that covers fuel, oil, estimated wear for parts like brakes and tires and such, and an overhaul reserve. We deduct anything we spend on gas and whatever else is needed. It?s not a lease or rental, it?s just an hourly rate the LLC members have agreed to pay into the aircraft operating fund for flying the airplane.
 
With our partnership in the Sling and the 172, we just pay for our fuel and split the other cost evenly among the 3/2 of us.
My brother & I own the 172. My brother, another friend, & I own the Sling. They both stay in the same my hangar at my house.
 
With my partnership in a C-172 we pay ourselves $60/per flight hour and that gives us a cushion after a while. For larger expenses we split the costs, but we will have a balance built up before long where that won't be necessary.

We found it convenient to open up a checking account with ATM cards to pay for fuel, and we can transfer $$$ into the account for flight time electronically. Honestly, I think the hourly amount should a little higher, but it works for us for now.

-Marc
 
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