As first-time purchases of business jets took off during the pandemic, many buyers formed limited liability companies (LLCs) for the sole purpose of owning their aircraft. Many did so in the belief that, as members/owners/managers of the LLC, the LLC would insulate them from personal liability for accidents or incidents involving the LLC’s aircraft.
Like these buyers, you too may assume that an LLC will take the hit for damages to third parties and shield you from the same fate. Unbeknownst to many LLC members, though, that assumption is based on an incomplete, if not a flawed, assessment of the potentially significant financial and legal exposure connected to managing their LLC and controlling their aircraft.
David G. Mayer is a member of the global Aviation Practice Group at Shackelford, McKinley & Norton in Dallas, which handles private aircraft matters, including regulatory compliance, tax planning, purchases, sales, leasing and financing, risk management, insurance, aircraft management and operations, hangar leasing, and related corporate work. Mayer frequently represents corporations and high- and ultra-high-net worth individuals and other aircraft owners, flight departments, lessees, borrowers, operators, sellers, purchasers, corporations and managers, as well as lessors and lenders. He can be contacted at [email protected].
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