Blog: Plane Ownership 101: Legal & Paperwork Basics
Alex R. Flaten
INTRODUCTION
Owning an aircraft is a major milestone—but unlike buying a car, the legal and regulatory landscape is far more complex. Before you take to the skies, it’s critical to understand the paperwork and legal responsibilities that come with aircraft ownership.
AIRCRAFT REGISTRATION & TITLE
In the United States, aircraft must be registered with the Federal Aviation Administration (FAA). This involves submitting an Aircraft Registration Application (Form 8050-1) and proving ownership through a Bill of Sale (Form 8050-2). Equally important is conducting a title search through the FAA Registry to ensure there are no existing liens or ownership disputes. Many buyers also purchase title insurance for added protection.
AIRWORTHINESS CERTIFICATE
Every aircraft must have a valid Airworthiness Certificate issued by the FAA. This confirms the aircraft meets safety standards. Maintaining this status requires ongoing compliance with inspections, maintenance logs, and applicable Airworthiness Directives (ADs).
OPERATING RULES & COMPLIANCE
Ownership comes with regulatory obligations. Aircraft owners must comply with FAA rules, including:
Proper maintenance and inspections (e.g., annual inspections)
Accurate and complete logbooks
Adherence to operational regulations under FAR Part 91 (or other applicable parts)
Failure to comply can result in fines, grounding of the aircraft, or liability exposure.
INSURANCE CONSIDERATIONS
While not legally required in all cases, aviation insurance is strongly recommended—and often mandated by lenders or airports. Policies typically include:
Liability coverage
Hull (aircraft damage) coverage
Passenger liability
Understanding policy exclusions and coverage limits is essential.
OWNERSHIP STRUCTURES
How you hold the title matters. Common ownership structures include:
Individual ownership
Limited Liability Companies (LLCs)
Partnerships or co-ownership agreements
Each structure has implications for liability, taxes, and operational control. For example, LLCs can provide liability protection but must be carefully structured to comply with FAA rules.
TAXES & STATE REQUIREMENTS
Aircraft purchases may trigger sales or use taxes, depending on the state. Some states also impose registration fees or property taxes. Planning can help avoid unexpected costs or compliance issues.
HOW JENNRICH LAW CAN HELP
Navigating aircraft ownership requires more than just completing forms—it demands careful legal planning. Jennrich Law assists clients with aircraft purchases, title and lien searches, ownership structuring, regulatory compliance, and risk management. Whether you’re buying your first plane or expanding a fleet, having experienced counsel helps ensure your investment is protected from takeoff to touchdown.
