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-   -   URGENT Foreigner owns Aircraft but FAA "N" US registered through american citizen (https://www.pprune.org/private-flying/372428-urgent-foreigner-owns-aircraft-but-faa-n-us-registered-through-american-citizen.html)

Deegan 3rd May 2009 22:59

Dear I0540

I sent you a PM.

and at all. Here now in writing (if any NON US CITIZEN needs to register a Aircraft in USA and fly it at least 60% in USA


Aircraft Registration - Eligible Registrants
Note: A non-citizen corporation organized and doing business under the laws of the state of Delaware (or any other state) can own register an aircraft as long as they comply with the following rules as cited in § 47.9 Corporations not U.S. citizens.
An aircraft is eligible for U.S. Registration if it is owned by:
  • A U.S. citizen. A U.S. citizen by definition of FAR Section 47.2 can be an individual, or partnership where each individual is a U.S. citizen, or a corporation organized under the laws of the United States, State, Territory or possession of the United States of which the president and two-thirds of the board of directors are U.S. citizens and 75 percent of the voting interest is owned or controlled by U.S. citizens;
  • a Resident Alien (foreign individual lawfully admitted for permanent U.S. residence
  • a U.S. governmental unit or subdivision
  • a non-citizen corporation lawfully organized and doing business under the laws of the U.S. or one of the States as long as the aircraft is based and primarily used in the U.S. (60% of all flight hours must be from flights starting and ending within the U.S.) An address for all records or flight hours must me available for inspection.
The aircraft may not be registered in a foreign country during the period it is registered in the United States. You must provide the FAA with legal evidence of ownership e.g. Certificate of Incorporation. You must apply for a Certificate of Aircraft Registration from the Civil Aviation Registry before it may be operated. Do not depend on a bank, loan company, aircraft dealer, or anyone else to submit the application for registration. Do it yourself (in the name of the owner, not in the name of the bank or other mortgage holder). If you would like us to prepare the documents for your FAA registration Form 8050-1 our fee is $125.00. Click here and select Other Services Not listed.
You can help make sure your aircraft is properly registered by verifying that the aircraft description entered on the Aircraft Registration Application and Aircraft Bill of Sale (or equivalent) is identical to the data inscribed on the aircraft manufacturer's data plate. The data plate is permanently affixed to the aircraft fuselage by the manufacturer. This quick and simple check should help avoid delays in the issuance of the AC Form 8050-3, Certificate of Aircraft Registration. Aircraft Previously Registered in the United States You should immediately submit evidence of ownership, an Aircraft Registration Application, and a $5 registration fee to the Federal Aviation Administration, Civil Aviation Registry, AFS-750, Mike Monroney Aeronautical Center, P.O. Box 25504, Oklahoma City, OK 73125. Fees required for aircraft registration may be paid by check or money order made payable to the Treasury of the United States. A bill of sale form that meets the FAA's requirements for evidence of ownership is AC Form 8050-2, Aircraft Bill of Sale, which may be obtained from the nearest FSDO. The form includes an information and instruction sheet. If a conditional sales contract is the evidence of ownership, an additional $5 fee is required for recording. For FAA registration, the bill of sale need not be notarized. (Refer to figure 1)
A bill of sale form that meets the FAA's requirements for evidence of ownership is AC Form 8050-2, Aircraft Bill of Sale, which may be obtained from the nearest FSDO. The form includes an information and instruction sheet. If a c...


Source: Airplane registration in Delaware when you file a Delaware corportion or LLC.


Tim_CPL 4th May 2009 00:56

Just a word of caution about trusting a US citizen with this kind of transaction. I know of one guy near DFW who lost two C-150's and a Marchetti 260 when he had a serious falling out with the guy who he had legal title the the planes and he basically had to stand by as they were dismantled for part over a few years. He was not a USC or permanent resident at that point. You really have to trust someone to have any chance of success....

- Tim

flyingfemme 4th May 2009 08:05

You say that your friend has already bought the aircraft.....are you sure that the aircraft is still registered? Normal practice is for the seller to deliver a bill of sale to the FAA and the FAA will act on that. If the buyer is a non-US qualifier then the aircraft is deregistered. Getting it back on the register will require the action of somebody properly qualified. And a little money, of course.

Don't ever crystallise a deal without knowing your course of action. A stateless aircraft cannot be flown at all!

mm_flynn 4th May 2009 10:18

Deegan,


You are probably going to have to go the Delaware corporation route as described in your link. The trust solutions are more applicable to people who want to operate the aircraft outside the US for extended periods of time.

NOTE VERY IMPORTANT - as FF has indicated, if your description is accurate, the aircraft is almost surely unregistered at the moment. This means illegal to fly and uninsurable. The FAA and insurance companies both have a track record of prosecuting/not paying in the event they discover the owner has allowed an unregistered aircraft to be operated.

Also, you may find US insurance companies are a bit twitchy about insuring your particular situation. AVEMCO, while not the cheapest, does have quite a flexible approach. You may need to take an annual policy with quarterly payments (and the ability to cancel on a couple of months notice).

It is worth considering if it is more economic to set the Delaware Corp up, do your US flying ending at your hanger and then have the the engine 'winterised', move to ground only insurance and when you are ready have it crated and shipped rather than have it be periodically flown by someone else (who may be problematic to insure). IO's point regarding European VAT doesn't apply if you are shipping the aircraft (rather than ferrying).

Deegan 4th May 2009 11:51

I think the aircraft is still registered, but I am not sure. I check on it.

Thank you MM flynn. This makes sence to contact a flexible insurance company, choose quarerly payments - maybe AVEMCO and then winterise the plane and insure it with a gorund insurance. Thank you I really appreciate all your help.
I give the delaware guys a call now

englishal 4th May 2009 12:06


That, according to my insurer, is a problem which one cannot do anything about.
Can you not have some sort of contract drawn up? For example, I own my house - My wife is no where on the mortgage or deeds or anything (for the simple fact that when I bought it we were not married). Rather than pay to get her on the mortgage we saw a solicitor who drew up some sort of contact which basically said "I own the house, but it was bought for us both, so if I die then the house will get passed to mrs B"....

can't the same be done with aeroplanes - "XYZ Corp owns the aeroplane on behalf of Mr B. If the company should fold or die then the aeroplane still belongs to Mr B" ?

My wife has a US passport so anyone wants to give her their aeroplane, then that is fine! No charge, just free use :}

IO540 4th May 2009 19:11


"XYZ Corp owns the aeroplane on behalf of Mr B. If the company should fold or die then the aeroplane still belongs to Mr B" ?
The plane did not belong to B in the first place. It belonged to XYZ. B is just the beneficial owner (Trustor in US-speak).

But yes I guess you could have a clause under which the ownership reverts to the Trustor, upon the death of the Trustee. Then the plane would be grounded the instant he dies because it is no longer owned by a US citizen - presumably until another U.S. Trustee is found.

This, I guess, is why the Delaware Corporation route is used for most big iron. IIRC, the Trustor owns 25% and a bunch of U.S. citizens (lawyers etc) own the other 75%. The 75% is not likely to die all at the same time, and if one dies, they can sort out a replacement right away; the company shareholding structure then continues.

Your wife owns half the matrimonial assets regardless of whatever contract you have :)

mm_flynn 4th May 2009 20:04


Originally Posted by Deegan (Post 4903992)
I think the aircraft is still registered, but I am not sure. I check on it.

If the aircraft has actually been sold to your non-US Citizen friend, and the seller has completed the paperwork to indicate it has been sold, then the aircraft is NOT REGISTERED (because your friend, the owner, can not legally register it). If the paperwork has not been completed, then the original owner probably still owns it.

Once again, free advice (like just provided by me) is worth what you paid for it.

Sam Rutherford 5th May 2009 07:19

He has said that he plans to register it in Thailand.

I would advise, and have done so already, that he evaluates the pros/cons of keeping the aircraft N.

Safe flights, Sam.

IO540 5th May 2009 07:44

I am advised by a friend who lives there that Thailand does not allow long term N-reg parking there.

I offered the OP to put them in touch.

The Thai CAA was set up by the FAA and is run pretty tightly. A lot of details need to be done right.

Deegan 5th May 2009 12:15

Yes thats right. Thailand is his own world.

As I mentioned:
The plane stays in US for a while, therefore I need the Registration. Once the Plane raches Thailand it HAS the be Thai Registered. Even if I want to keep it N Registered.

@ SoCal App:
You are right. YOu should always prepare yourself. But, we never expected to buy a plane here in U.S. at this vacation. We just went lucky and find a awesome deal.
And all of yo helped me to get this done.

I really appreciate that.



Thank you so much, all of you.
I contacted yesterday Globe Inter
Airplane registration in Delaware when you file a Delaware corportion or LLC.
They even offer Foreigner to create a Delaw aware Company and trade it later into a Trust, if you need it.Wich I dont need

Deegan 6th May 2009 14:53

INSURANCE:


Hello Guys,

may I ask one more question. I tried now to get a Insurance.

Avemco said: They not insurance NON US Resident

mm_flynn 6th May 2009 20:33

When I used AVEMCO they didn't ask for proper US residence, but they did want a US address. Use your friend's hanger address. I believe the policy needs to be written in a specific state as state law applies to many aspects of insurance policies in the US.

Please note, I am a non-resident US citizen, however, I know of British citizens that have used this approach to arrange US insurance.

delawarecorp 28th Feb 2010 03:50

Can anyone tell me what are the advantages of using a delaware corp to get a N# for non US citizens?

Pilot DAR 28th Feb 2010 11:09

I am certainly not an expert at this, though I do own a Canadian aircraft on behalf of a non-Canadian, so it may remain Canadian registered, and fly in Canada pending its export to his country.

To asure that I don't run off with the plane, and it is his if I die, I signed a blank bill of sale, which he can produce at any time he pleases to take formal ownership of the aircraft.

I don't claim to know all the legal its and outs of this, but the law firm who did everything was hired by him, and seemed satisfied that he effectively retained ownership.

I hope that helps...

RatherBeFlying 28th Feb 2010 22:38

Delaware has no Personal Property Tax
 
US states, counties and cities may assess personal property tax on vehicles, boats, aircraft etc. against individuals and businesses.

mm_flynn 1st Mar 2010 08:37


Originally Posted by RatherBeFlying (Post 5542222)
US states, counties and cities may assess personal property tax on vehicles, boats, aircraft etc. against individuals and businesses.

Although many states have a 'visitors fee' which applies to long time visitors (i.e. if you act like you are based there) which is suspiciously similar to the level of tax you would have paid if a resident owned the mobile asset! I used to wonder why so many sailors from Delaware would summer on Long Island Sound!

With regard to the question. If it makes sense for there to be a corporate holder of the aircraft then Delaware would be the logical place (economical, flexible and home to something like half the corporations in America). HOWEVER, corporate ownership making sense for a non-US Citizen would depend quite heavily on the detailed facts. Most people go with a Trust (although the Trustee themselves might be a corporation and hence likely Delaware based).

freedomoftheair 12th Jul 2012 20:35

N Registration
 
It is against FAA regulations to register an aircraft in an American's individual name if he is not the owner. Ask the FAA, they will tell you. It is in fact a felony by American law.
It is against the FAA law if the benefical owner of a company that registers an aircraft is not American or if a non American controls the company.
The FAA has a legal avenue. You can register your aircraft with a FAA Trust company. There is only one company that registers your aircraft with your name and address on the registration, International Air Services Inc. It is also the cheapest company at under £200.00. Other companies include Southern, Aircraft Guaranty and Avcorp.

AdamFrisch 12th Jul 2012 22:46

A non-citizen can own the company which owns the aircraft as long as it's properly registered in any of the 50 states, has a tax ID, keeps flight records for inspection at a designated address and doesn't amass more than 40% of the flying hours outside of the US in a year.

freedomoftheair 21st Jul 2012 08:36

You are correct. I was referring to the aircraft based in the U.K. and Europe.


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