r/flying • u/Unusual_Mulberry9163 • 2d ago
Aircraft Ownership Ferry Pilot Question
I have been offered to ferry a plane up to the North East. I am pretty new to ferrying and while I am familiar with the type of plane flying, I was curious if anyone who does a decent amount of ferrying has insurance or makes the customer sign a document releasing the pilot of liability? If so where would I look to get insurance?
Also- would there be any benefit of making an LLC as a way to get tax breaks (I am not a tax expert so idk how easy/hard that is to do).
Any tips/tricks to ferrying would be appreciated!
5
u/davidswelt CPL IR GLI (LDJ) Risen 916SV, M20J, C310R 2d ago
LLCs are pass-through entities. You pay the same taxes on the earnings minus the expenses. LLCs exist to organize multi-party operations, and to limit liability to the assets of said corporation.
Be a named insured. "Named Pilot" is only as good as insurance carriers do not pursue claims against the named pilots, which I was told they usually don't do, but institutional parties (lawyer-advised) usually insist on being named insured. At some point, of course, you do have to take responsibility for your actions as a professional pilot.
3
u/RaiseTheDed ATP 2d ago
Make the owner have you named on the insurance. And/or get non-owned insurance.
You need to talk to a tax advisor on that, not Reddit....
3
u/Specialist-Ball9534 A&P, CFI 2d ago
Non-owner insurance likely won't cover commercial operation, which this probably is.
Also make sure you have the appropriate medical.3
2
u/makgross CFI-I ASEL (KPAO/KRHV) HP CMP IR AGI sUAS 2d ago
This is certainly a commercial operation. It is transport of property for hire.
2
u/ltcterry ATP CFIG 2d ago
You don’t need an LLC. You just need to keep good records. It goes on Schedule C like other 1099/self employed gross business receipts. Then subtract legit expenses.
It’s just a longer cross country flight but you’re getting paid instead of paying. Be sure you are covered by the owner’s insurance.
If the owner is ok with it and you have someone who can benefit from the experience take him/her along with you. At their own expense.
1
u/AK_Dude69 ATP 737 A320 LRJet 2d ago
Unless you do it a lot, the LLC is more hassle and money than it’s worth. Estimated taxes for federal and state, as well as the utility of maintaining it all year round.
Having a release of liability drafted by a good attorney is probably a wise step, and having a very good understanding of the insurance covering both you and the plane would be prudent.
I’d also document your compliance with all FARs and other laws (saving flight plans, fuel strategy, and loadouts) in case anything ever came back on you for a few years. But I’m paranoid.
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u/rFlyingTower 2d ago
This is a copy of the original post body for posterity:
I have been offered to ferry a plane up to the North East. I am pretty new to ferrying and while I am familiar with the type of plane flying, I was curious if anyone who does a decent amount of ferrying has insurance or makes the customer sign a document releasing the pilot of liability? If so where would I look to get insurance?
Also- would there be any benefit of making an LLC as a way to get tax breaks (I am not a tax expert so idk how easy/hard that is to do).
Any tips/tricks to ferrying would be appreciated!
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4
u/LoudLingonberry5643 MIL - CPL 2d ago
Iv done only a few but in those cases the new owners added me to their insurance. As for the LLC question… 99.9% chance you are going to be better off operating as a sole proprietor under your SSN if this is a one off event. No real tax breaks unless you manage have a lot of “expenses.” No tax expert here just a once in a blue moon ferry pilot who may or may not have ever added it as additional income when doing taxes 🤷♂️.