I've been in half a dozen groups over 20ish years, but none have yet felt the need to become limited companies.
However, written agreements I'd consider an absolute necessity, along with some reasonably robust vetting of new members. This last will be very hard to achieve when somebody is very keen to sell their share later on.
Financially there are several models I know of, and all can work, or not, depending upon context:-
(1) Minimal monthlies, adequate hourlies, occasional cash call.
(2) Adequate monthly + fuel only.
(3) High monthly, covering (say) 12 hours per year also, hourlies after those 12 hours, no money back for unflown hours.
(4) Slightly enhanced monthlies to build up a reserve, ditto hourlies to build up an engine fun.
I've been in all of these except for (3), and for a higher value aeroplane if I was setting up a syndicate again I'd look seriously at (3) as the way ahead. (2) works very well on a syndicate I'm currently in on a very inexpensive to run aeroplane. (4) is however the most common and clearly works fine.
Cash calls are possible with all of them of-course as aeroplanes do have a nasty habit of attracting large unexpected bills.
Always have hull insurance.
G
Last edited by Genghis the Engineer; 13th Aug 2013 at 07:34.