URGENT Foreigner owns Aircraft but FAA "N" US registered through american citizen

[Deegan]

Dear Pilots,

I know this Theme in common but I did a big research on this and haven't found a answer in this case.

A friend of mine bought a Aircraft, a few days ago.
And he would like to export this Aircraft end 2009 into his home country, outside USA.

But Meanwhile he would like to keep the Aircraft in United states for 6 to 9 month.
We fly a littlebit in the next three month in the USA, before he exports it.

As a NOT US Citizen he is not able to register the Aircraft officially under his name. So there a three possibility for him:

create a Thrust Company (5000 US), or
create share Copmany (up to 5000 US),
or register it meanwhile throug a US Citizen for 5 USD.

He knows a US Citizen who said, he could registere the plane temporary in his name. I checked on the Internet that quiet a few people did this. There are several planes outside US, for excample in switzerland who are registered through a american citizen. Yes it not correct, yes many people shacking the head now, but I ask you, please to give me a experience on this.


Wich Documents are required to register it through a US Citizen to make sure, that my friend is the Owner. Maybe a Lien?

Please let me know your thoughts and dont be angry with me that I ask such a question.

[Deegan]

I thought we could back it up with a Record of an Aircraft Claim of Lien.
So my friend is the Owner, till the registred person pays it off and in December, my friend exports the plane!?

[n5296s]

You can create a Delaware corporation for about $250 (and another $150 or so per year), for example through The Company Corporation. That is what I did when I bought my plane and did not yet have my green card.

n5296s

[IO540]

You can get a US Trust for far less than $5000. I use this firm.

However, all you really need is a US citizen who is willing to be the owner and who you can trust The difference between this and using a more established outfit like the one above is that the latter will have a contract which protects both parties, and one of the things it does is it prevents the owner from simply running off with the plane. This is why you need to be a bit careful who you use if you do it informally - the owner does fully own the plane and could run off with it.

[Mad (Flt) Scientist]

Even if you trust the person, what if they were to die? The plane is now part of their estate....

[mm_flynn]

Deegan,

It is not clear (to me at least) if your question is 'How does my friend register the aircraft for the rest of 2009 so we can fly it around the US before we export it to my friends own country and re-register it on the local register'

Or

'How does my friend (a non-US citizen) register and operate an N-reg aircraft which he intends to keep permanently on the N-Reg, based outside the US'

The second question is very standard, there are companies that specialise in this and are much more economical than indicated in your post.

The first one is a little trickier. In particular you will need to consider if any registration structure impairs your ability to get insurance (i.e. ownership by a non-pilot friend may not work).



With regard to the general process of having a 'US Friend' own the aircraft, they really are the owner with all of the rights, privileges, and risks associated with it. Unless you are reasonably careful in drafting an agreement, you have issues if they decide to walk off with the plane, if they die, and I have heard of the US taking a view in some cases that this is not a legal registration (I believe this involved a non-pilot 'owning' an aircraft, but clearly having nothing to do with its operation, maintenance, management, etc.)

[Deegan]

Thank you so much for all your answers.

The Aircraft should be flown during we prepare everything in Asia to import the Plane. So it should stay in USA for a few month.

I have never heard about a Delaware corporation!?
You mean this homepage here?
Get a Quote | Incorporate.com
The International Package for 550 USD? What State should I choose Delaware?
What Type of Entiity? Can I do that as a International, not US Citizen?

Sorry thats new to me.

[n5296s]

You mean this homepage here?

That's who I used (and still do use). I believe Delaware is the cheapest and simplest - which is no doubt why they are based there. I've also heard of people using Nevada for this kind of thing. Not sure what you get for the "international package", I remember that mine was cheaper than that but it was 7 years ago now. You only need something very simple, the corporation is never going to trade and has exactly one officer.

n5296s (which, you can easily establish, is actually owned by a Delaware corporation called Metavol Inc).

[Sam Rutherford]

I set up a company in Delaware, which owns my aircraft. The set up costs, and ongoing annual costs, are one of the dowinsides of keeping an aircraft FAA (hey, there had to be one disadvantage!).

Sam.

[Deegan]

I´m just wondering. because everybody says you have to open a trust Company.
I just received a offer from AGcorp for 2500 USD, plus, plus, plus.

Thank you so much. That helps me a lot. I gonna give them tomorrow a phonecall

Hopefully it works that I can put the plane in this company

[Deegan]

Helly Sam,

Thank you. But the Downside you mentioned,
I could cancel the delaware company after half a year and export the plane into asia?

[mm_flynn]

Deegan,

If you are going to do this you need to get professional advice (not PPRUNE advice!) as doing it yourself can go badly wrong.

By far the easiest approach is to use an N-reg trust company such as the one in the link IO540 provided. You haven't indicated if you are looking for a long term (ie. permanent ownership structure) or just looking to cover the gap in moving it to your home country registration. Note - at the moment the aircraft can not legally fly as it appears to have been sold (hence no longer registered to that owner) and your friend doesn't yet have a legal structure that can own an N-reg.

Can the re-registration to your Asian registry happen without a physical inspection?

[Sam Rutherford]

You should perhaps analyse the pros/cons of keeping it on the N register...

It is an expensive route to go down if it's just about getting a few months flying in the US.

I went through AvCorp, very happy (although I would clearly prefer it to be cheaper!)

Sam.

[Deegan]

Thanky ous Sam, thank you mm_flynn,

I writhe you the plan:

we are here in the US for 3,4 more weeks.

In these 3 more weeks we want to fly the plane from the sales person, to our hangar in Florida.

Then we want to fly 30 hours within the next three weeks. Then we have somebody here who moves the plane every month a few hours. So we go back to Asia. Than we prepare the import into Asia. This means, we need to organize a Certificate of export and copy al the paperwork from the plane.

Then we hand this over into the Thailand goverment. As soon we have the greenlight, maybe 6 to 9 month) we fly back to US then, fly again 2 weeks with the plane for pleasure so that the flight to US is worth it, and then we put the plane in a box and send it to Thailand where we have import clearance.

So its much cheaper to fly this new plane during our vacation here, then renting a plane. Also the Plane can be flown a littlebit and its insured.

Thats why we are so curious about a delaware company for 500 USD.
But once the airplane leaves the country, (end of 2009) we have to cancel this company again.

[n5296s]

you cannot own the aircraft if you are not a US citizen

It's a long time since I did this, so things may have changed - although I don't think so.

If you keep your N-reg plane IN the US, then it can be owned by a US corporation of which the officers do not have to be US citizens or residents. It must not be out of the US for more than some fraction of the time - I forget exactly (since I never take my plane outside the US it doesn't matter to me).

If you want to KEEP an N-reg outisde the US, that's a different story. In that case it must be registered in the name of a US resident, and that's where you need the trust company.

So if you just want to fly legally in the US for a few months, then export the plane AND put it on a non-US registry, the Delaware corporation is the way to go - inexpensive (compared to the overall cost of owning a plane) and simple. (It took me maybe a couple of hours to create and an hour or so of form filling every year, plus payments of a few hundred dollars. The Company Corporation really take care of everything including paying bills when you forget to, as long as they have your credit card on file).

If you ultimately want to keep the plan outside the US but on the N-registry, then you may as well start with the trust company since that is where you will end up.

(Oh... re the quote above, you don't have to be CITIZEN, just a RESIDENT, i.e. green card holder (or citizen of course) ).

n5296s

[Deegan]

Ah I see, sorry for my missed explination and for my confusion.
Its all new to me:

After we import the Plane into Thailand, we have to swop the plane into a Thai Registration. So we have to cancel the N Reg Number and close down the company here in US. I hope you can close down a delaware company.


One more question:Are there any costs to add a plane into a company ?



EDIT:
Dear n5296s,

but I dont need to be a RESIDENT for open a Delaware C ?

[IO540]

Even if you trust the person, what if they were to die? The plane is now part of their estate....

That, according to my insurer, is a problem which one cannot do anything about.

The safeguard is the contract under which the trustee is unable to interfere with the trustor's (in English: beneficial owner's) enjoyment of the plane.

It might be a bit hard to sell the plane though...

Deegan - you may wish to EMAIL me your details because I know someone who went N-reg and then to Thailand, and he may be able to help you. As you say, you cannot keep an N-reg in Thailand long term. But there are other very important issues, if you are an EU citizen and transporting an N-reg across Europe - the VAT people can grab it and it has happened. Genuine foreigners can fly an N-reg anywhere in the EU but if you are an EU citizen the plane has to have its VAT status sorted. One rather crude solution is to fly it to Denmark first, chucking £5k+ at a certain lawyer, but that's pointless if it will remain in Thailand and never come back.

[tdbristol]

Trust company

You might consider looking at a company that provide trust agreements. I have my N-reg aircraft registered to Southern Aircraft Consultancy, with myself as the beneficial owner. The agreement covers control of the aircraft, death of the person etc: I had solicitors look at it and they were satisfied.
SAC have a few hundred N-reg aircraft registered to them. SAC are based in the UK, but run by an American citizen. Cost is much lower than the figures you have given (PM me and I will give you the details).
There may be other like companies but my experience with SAC has been very positive. (Plus got a discount off my insurance as a result.)

[n5296s]

but I dont need to be a RESIDENT for open a Delaware C ?

Correct.Correct.Correct.Correct.Correct.Correct.Correct.Corr ect.

[Deegan]

Thank you so much, all of you.

I really appreciate your help and your consideration. Seems that the Daleware Coop. might be the best for a temporary registration. I will contact them by tomorrow.

Thank you guys! Thanks you very much!