April 23, 2014 – Newsletter
The only place success comes before work is in the dictionary.
We have devoted a number of issues to limited liability companies and still there is great confusion out there in the business world – even folks who are members of their own limited liability company and whose company is managed by, say, its members, still show their title as “President”.
The FAA is carefully scrutinizing LLCs for the following information:
…what is the name of the LLC?
…what is its effective date?
…who are the members?
…are the members U.S. citizens?
…can the members act independently?
…how is the LLC managed? By its members? By a manager? By officers?
This is generally spelled out in the operating agreement
…are the managers U.S. citizens?
…can the managers act independently?
(Acting independently means even though there are four or five members or managers, one member or manager can sign and bind the company).
Here it is in a nutshell: if the LLC is managed by its members, then all documents must be signed by a member with the title “Member”; if the LLC is managed by a manager or managers, then all documents must be signed by the manager, with the title “Manager”; if the LLC is managed by officers, then an officer needs to sign all documents showing the appropriate title: “President”, “Vice-President”, “Secretary”, “Treasurer”, etc.
The statement in support of registration of a United States Civil Aircraft in the name of a Limited Liability Company should be signed by someone who completely understands the organization – preferably by whoever manages it! The FAA will, however, accept statements by “persons in the know”: accountants, attorneys, title companies, etc. as long as they are completely identified (name, address, and phone).
Did you know? If a member of a limited liability company is another limited liability company, then the FAA wants to know all of the above about that member as well. The FAA will scrutinize until we are down to a single individual owner (or individual owners) or a single corporate owner (or corporate owners).
We have a general information sheet on our website about the information the FAA is looking for under “Forms”. However, if you want a template form, please just contact us and we will e-mail it to you!
It is frustrating for people to have their registration rejected because they have used the “wrong” title for themselves when signing the aircraft registration application or a bill of sale, or a security agreement!
We are always available to help you complete an LLC statement that will be acceptable to the FAA – all you have to do is call!
FAA and IR Update
And speaking of being frustrated when documents get rejected:
When completing an Aircraft Registration Application there are a few things to look out for:
…make sure the make, model, serial number and N-Number are accurate
Go to the FAA website: www.registry.FAA.gov and verify the description!
…show the “Type of Registration”
LLCs are required to register as a “corporation”
…show the name of the applicant in the applicant block
…show the mailing address – if mail is to a post office box, then you must also show a
physical address – the FAA requires this.
…TYPE OR PRINT THE NAME OF THE SIGNER beneath the signature.
…show the appropriate title
- For an individual you can show “individual” or “owner”;
- For an LLC show the appropriate title for the “Member” or “Manager” or “Officer”;
- If you are registering to a corporation, use a corporate title;
- If you are registering to a partnership – call us and we will make sure you are in compliance – there are a raft of requirements about registering to partnerships!
- If registering to co-owners, use the title “co-owner”;
The FAA will not accept an Aircraft Registration Application with any of the following:
Simply draw one line through any erroneous information (so FAA can still read it) and then make the correction.
Also be sure to retain the pink copy.
BATI POT POURRI