New Partnership advice

[cap41]

Looking at purchasing a 172, or PA28. There will be 4-5 owners.

How do you set up the operation to protect everyone.

I've heard corporation but does that shield everyone?

What about non-profit flying club?

Our goal is to fly and have fun. Not a money making venture. Want to make sure everyone is protected in case of an accident etc.

[dodgeram2500]

Also interested in this. The thread is a year old, did you end up buying a plane? I know copa has sample partnership agreements in their "guide to buying an aircraft" for members. I currently have a deposit on a Cherokee with two other guys so I'd love to hear how other partnerships in Canada are set up.

[Bede]

You have a solid agreement with liability insurance for all partners. The biggest threat is partners not getting along, someone not paying the bills, etc. You solve this by saying someone that is not paying the bills loses equity until they are eventually bought out and kicked out.

Best to have an annual fee and you just pay for gas. That encourages partners from flying lots which keeps the costs down.

[Kejidog]

Well I personally would not entertain a partnership on anything based on a apartment rental business i had with a family member. Partnership agreeements are best left to be written by lawyers and should contain every contingency imaginable. It is all fine when things are running smoothly but needs to be airtight when it goes to crap. Good luck