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In most cases, it’s a good idea to seek the assistance of qualified legal and accounting professionals to help you establish a corporation or LLC. The club would have to file articles of incorporation with the state, and it is required to have by-laws and keep written minutes of director and member meetings.

Corporations must file tax returns and if annual revenues exceed expenses, the club will need to pay taxes on the profit.

Regular elections must be held and the participatory self-governance can require assistance from legal and accounting professionals, which creates an ongoing cost.

Limited liability companies (LLCs) generally provide limited liability protection for members like corporations but are more flexible in nature.

Clubs should carefully consider the advantages and disadvantages of incorporating (corporation), forming a limited liability company (LLC), or becoming an unincorporated association.

Requirements for corporations and LLCs vary from state to state.

Click through the articles on the left to dig deeper into different club styles and legal entities.A non-equity club is one in which the club, as an entity, either leases or owns the aircraft.The members don’t have a financial right to a portion of the asset if the aircraft is sold or the club is dissolved.Don’t forget to consider tax-exempt status; one of the great benefits of a flying club is the opportunity to become a not-for-profit and save your members a few bucks.There are two basic ownership structures that clubs may choose when acquiring an aircraft—equity or non-equity—and it’s not as simple as you might think.

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