Informal Group, LTD Company or LLP?

[kevkdg]

Hi,

I appreciate there are some threads on this topic from a quick Google search, but nothing too recent.

I am wondering whether LAA Aircraft groups tend to set themselves up as Limited (LTD) Companies or Limited Liability Partnerships (LLP).

I am not concerned with securing assets etc as I trust the other two chaps I am in the group with, but am concerned with the liability afforded by law to myself as a co-owner should one of the others have an accident.

The Civil Aviation Act 1982 establishes a strict liability of owners of an aircraft for damage that the aircraft does to persons and property on the ground.

76 (2) Subject to subsection (3) below, where material loss or damage is caused to any person or property on land or water by, or by a person in, or an article, animal or person falling from, an aircraft while in flight, taking off or landing, then unless the loss or damage was caused or contributed to by the negligence of the person by whom it was suffered, damages in respect of the loss or damage shall be recoverable without proof of negligence or intention or other cause of action, as if the loss or damage had been caused by the wilful act, neglect, or default of the owner of the aircraft.

With this in mind what is the consensus, both pros and cons, on registering an aircraft as owners or via a LTD Co or LLP?

Would like to hear from those who have done this and what the associated annual costs and requirements are as well as any tax pitfalls etc.

Thanks