Partnership vs three guys???

[mhorowit]

Is a partnership a legal entity like a corporation?
If one of the three names on the registration incurs a repair bill, are all three liable for payment? - Mike

[mhorowit]

Re: Partnership vs three guys???

Just to clarify - How does one determine if a partnership exists vice three guys who elected to purchase an aircraft? - Mike

[Howard Wilson]

Re: Partnership vs three guys???

What does the paper they all signed say? Did they sign a paper?

[VictorBravo]

Re: Partnership vs three guys???

It is a gray area for the lawyers to figure out, unless there is a clear explanation on paper.

There used to be something called a "mechanic's lien", where the mechanic could place a lien on the vehicle for an unpaid bill. If this is still in force in whatever state this is, then the mechanic's lien would make all the owners responsible by default.

The mechanic could hold the airplane hostage until theowners sorted it out among themselves, or one of the owners paid it and then went after the other owners.

I have no idea if this concept is still on the books in any particular state.

One of the biggest problems in aviation is bad or no agreement between the owners on stuff like this. Partnerships go sour all the time.

[cpirrmann]

Re: Partnership vs three guys???

In most states, any partner is liable for the debts of the partnership no matter which partner incurs the liability. That helped the formation of the LLC entity which helped combine the informality of operating a partnership with the protections of a corporation. Taxes aside of course.

[mhorowit]

Re: Partnership vs three guys???

What does the paper they all signed say? Did they sign a paper?

They apparently signed a registration certificate, but I don't know that makes a partnership. I expect forming a partnership is a seperate action from jointly registering an aircraft- Mike

[mhorowit]

Re: Partnership vs three guys???

In most states, any partner is liable for the debts of the partnership no matter which partner incurs the liability. That helped the formation of the LLC entity which helped combine the informality of operating a partnership with the protections of a corporation. Taxes aside of course.

GOOGLING around I see that a partnership is a legal entity.
The question stands - how do I determine if I'm dealing with a partnership or three guys standing around? -= Mike

[NY86]

Re: Partnership vs three guys???

What is on the registration? If it says "Manny, Moe and Jack", it's 3 guys standing around. If it says "Three Guys Standing" it's a partnership.

[mhorowit]

Re: Partnership vs three guys???

What is on the registration? If it says "Manny, Moe and Jack", it's 3 guys standing around. If it says "Three Guys Standing" it's a partnership.

Registered to : Manny
Other owners: Moe and Jack

[NY86]

Re: Partnership vs three guys???

I'm more familiar with corporations, but I think that, unless the name of the partnership is "Manny" then it's not owned by the partnership, even if one exists.

So, what is the purpose of the question?

[mhorowit]

Re: Partnership vs three guys???

I'm more familiar with corporations, but I think that, unless the name of the partnership is "Manny" then it's not owned by the partnership, even if one exists.

So, what is the purpose of the question?

One of the three owes me for a landing gear and I didn't know whether to address him or the "partnership". First part was to determine if a partnership exists, which it apparently does not, so the action has to go to the individual.

[cpirrmann]

Re: Partnership vs three guys???

What is on the registration? If it says "Manny, Moe and Jack", it's 3 guys standing around. If it says "Three Guys Standing" it's a partnership.

What happened? Did Larry and Curly leave town?

[cpirrmann]

Re: Partnership vs three guys???

One of the three owes me for a landing gear and I didn't know whether to address him or the "partnership". First part was to determine if a partnership exists, which it apparently does not, so the action has to go to the individual.

If you've done your homework, I'm assuming they're not very forthcoming, and can find no paperwork indicating a partnership (a corporation would be on record with the state's Seceretary of State), then you need to start with one person. If there really is a legal partnership, you'll find out right away, but any of the partners would be liable if the other two can't fulfill their share.
So, unless there's a corporation, you're perfecly correct going to the person your targeting and he has to sort it out with the partners.

[Forrest Barber]

Re: Partnership vs three guys???

Actually the FAA does recognize, co-owners , partnerships , corps, LLC, even Delaware Corps . We have a lot of co-owners around here, up to four at one time. Consult your local State laws too.

[mhorowit]

Re: Partnership vs three guys???

Actually the FAA does recognize, co-owners , partnerships , corps, LLC, even Delaware Corps . We have a lot of co-owners around here, up to four at one time. Consult your local State laws too.

Good morning Forrest - I mostly concerned that if it's not a legal partnership then the owners are not jointly responsible for a debt incurred by one of the owners. - Mike