How to Transfer an Aircraft to an LLC: What Pilots Need to Know

Holding an aircraft in a Limited Liability Company (LLC) is a common strategy among aircraft owners for liability protection. If someone is injured in an incident involving your aircraft, an LLC structure can potentially shield your personal assets from claims. Many aviation attorneys recommend it for aircraft owners who carry passengers regularly.

But transferring an aircraft into an LLC — or from one LLC to another — involves specific FAA requirements that differ from a standard individual-to-individual transfer. Here's what you need to know.

Can an LLC Register an Aircraft with the FAA?

Yes, with conditions. Under FAA regulations, an aircraft may be registered to an LLC if the LLC is organized and existing under the laws of a US state and is doing business under the laws of the United States or a US state. In practice, this means:

• The LLC must be a US LLC (not a foreign entity)
• At least 75% of the voting interest in the LLC must be owned by US citizens
• The LLC must be the actual operator or owner, not a shell with no real operations

The citizenship requirement is the one that catches people off guard. If you have foreign partners or investors in your LLC, you need to verify that the ownership structure still meets FAA citizenship requirements before attempting to register an aircraft to the LLC.

Documents Required for an LLC Transfer

The FAA requires additional documentation for LLC registrations compared to individual registrations:

For the transfer itself:

• FAA Form 8050-2 (Aircraft Bill of Sale) — executed by the current registered owner, transferring the aircraft to the LLC. The LLC's full legal name must match exactly on all documents.
• FAA Form 8050-1 (Aircraft Registration Application) — completed by the LLC as the new owner

Supporting documents for LLC ownership:

• Statement in Support of Registration — a declaration confirming that the LLC meets FAA citizenship and organizational requirements
• Evidence of LLC formation — typically the Articles of Organization or Certificate of Formation
• In some cases: list of LLC members and their citizenship status

The Transfer Process

• Ensure the LLC is properly formed in a US state and meets citizenship requirements
• Execute a Bill of Sale (Form 8050-2) transferring the aircraft from the current owner to the LLC. The seller's name must match the current FAA registration exactly.
• Complete Form 8050-1 as the LLC, using the LLC's full legal name
• Prepare the Statement in Support of Registration
• Submit all documents to the FAA — either electronically via CARES or by mail to Oklahoma City
• Pay the $5 registration fee

Common Mistakes in LLC Transfers

Name mismatches: The LLC name on all documents must be identical. "Smith Aviation LLC" and "Smith Aviation, LLC" (with a comma) are technically different names. Check your LLC formation documents and use the exact legal name.

Missing Statement in Support: Many pilots completing their first LLC registration forget the supporting declaration. The FAA will reject the application without it.

Incomplete citizenship documentation: If the FAA questions whether the LLC meets citizenship requirements, having documentation ready prevents delays.

Not updating insurance: When you transfer an aircraft to an LLC, your existing insurance policy (written in your personal name) may not automatically cover the LLC. Contact your aviation insurance broker before or immediately after the transfer.

Using Aeradex for LLC Transfers

Aeradex's online title transfer service supports LLC registrations. The platform collects all required information including LLC name, state of formation, and supporting documentation. The White Glove service at $199 handles the FAA submission on your behalf, including the additional documentation required for LLC registrations. Pro subscribers ($175/year) get one White Glove transfer included.

Start an LLC transfer at aeradex.com.