No need for a LODA?

Another item to consider is insurance.

From my last conversation with Andrew Dodge of Evolution Insurance. They will not cover a Flying club per-say. Each member will have to apply for their own insurance. Depending on experience I assume different members might be quoted a different price.

Falcon Insurance will not cover a Gyroplane used for instruction.
 
Another item to consider is insurance.

From my last conversation with Andrew Dodge of Evolution Insurance. They will not cover a Flying club per-say. Each member will have to apply for their own insurance. Depending on experience I assume different members might be quoted a different price.

Falcon Insurance will not cover a Gyroplane used for instruction.

I've done the least amount of investigation here and insurance may the the weakest link in the entire plan.
Going to try the back door. Get Rental Insurance for the Cessna 150, and Cherokee 180 with our insurance carrier and then ask them to insure the gyro. Only after giving him a ride in one!
All he can say is NO!

Anyone with information on this would be of great help!!!
 
What is being discussed here, as I understand it, basically is a Flying Club. The FAA has sanctioned Flying clubs for quite a while now. The airport in my town has 2 Flying clubs that have been in existence before I moved here. That's over 24 years ago.

Any of those Flying clubs include Experimental Amateur Built aircraft (no approved kit builds, type rated, etc. just pure made their own type of stuff, like our 51% gyros)?
 
Another item to consider is insurance.

From my last conversation with Andrew Dodge of Evolution Insurance. They will not cover a Flying club per-say. Each member will have to apply for their own insurance. Depending on experience I assume different members might be quoted a different price.

Falcon Insurance will not cover a Gyroplane used for instruction.

Isn't Liability Insurance tied to each pilot and not the aircraft? Pilots have different ratings/hours, etc.?
 
Isn't Liability Insurance tied to each pilot and not the aircraft? Pilots have different ratings/hours, etc.?
For private insurance yes it is. For Rental insurance it isn't.
We would be looking at this as non-rental and as private insurance for each of the owners.
 
Another advantage of a Flying club is the 100 hour inspection rule does not apply.

Tom Milton is quite versed in Flying clubs. Maybe he will chime in here.

It's been 30 years since I have been involved with flying clubs. I can't remember what I had for breakfast.

I do know that flying clubs and partnerships are two different things.
 
This is all well and good and hope what is presented here will 'fly' past any FAA scrutiny. Will it?

A better question is will it meet IRS rules?

You either have an ownership position or you don't. The statement that " when you are no longer a student, you are no longer an owner" doesn't seem to pass the smell test to me.
 
A better question is will it meet IRS rules?

You either have an ownership position or you don't. The statement that " when you are no longer a student, you are no longer an owner" doesn't seem to pass the smell test to me.

A LLC member can be any "person". A person being one that is free to contract (being 18yrs and older) and meets the requirements to become a member of an LLC that happens to own a gyro. That person then can get instruction from a CFI in the machine they are part owner.

When there is no longer a need for ownership in the LLC gyro, that person may relinquish ownership in the LLC via prearranged terms.

Being a student has nothing to do with ownership in the gyro LLC.

The CFI and Gyro LLC are distinct separate entities.
 
Any of those Flying clubs include Experimental Amateur Built aircraft (no approved kit builds, type rated, etc. just pure made their own type of stuff, like our 51% gyros)?

No, they only have F/W certificated aircraft.
 
Isn't Liability Insurance tied to each pilot and not the aircraft? Pilots have different ratings/hours, etc.?

For my Gyro the insurance is only effective if I am in the gyro. If I solo a student then there is no insurance unless the student wishes to purchase their own policy. Insurance is available for students thru Evolution Insurance.
 
A customer of ours in the past leased his aircraft to an FBO for rental purposes. After several years he took the aircraft off of the leaseback.

As the aircraft is owed by a corporation he sold shares in the corporation. As a shareholder in the company these owners could use the aircraft for their own purposes whether it was for flight instruction, which this arrangement was primarily set up for, or they could rent the aircraft for there business or personal use. For there use they would pay a fee to the corporation.

He ran this arrangement past his accountant and no problems were seen. He then ran the idea past the local FSDO office and they had no problems with the concept. He last the concept past his insurance carrier had they had no problems and was not required to have rental insurance.

Maintenance requirements were as any individual aircraft, only annuals and Airworthiness Directives required. Fifth hour, one hundred hour inspection were optional, but encouraged. Obviously any item that would make the aircraft unairworthy would require repair before flight.

I would think with this type of arrangement would work whether the aircraft were to be a part 23 certificated machine, a ASTM compliant, or even an Experimental Amateur Built. Insurance would probably be a problem on an Experimental Amateur Built and the instructor probably should be a share holder to help reduce liability concerns and make sure who is operating the aircraft.
 
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