Starting your own Pilot Services company

[HMR]

Since my business acumen peaked with my paper route in Jr. High I'd like to hear some advice from you pilot/business gurus:

Anyone have experience setting up a one-man "Pilot Services" company? I've been getting an unusual # of requests lately to do flying outside of my regular corp job. After reading up on the tax advantages of starting my own business, it looks like it could be a good financial move and fairly easy to do.

I have the boss' permission to do the extra-curricular flying.

Thanks,
HMR

 

[Fortunately 100]

Maybe these guys can offer advice

Check out this company in West Palm Beach.

http://www.palmbeachairlines.com/4436/index.html

I'll run your Dallas office once you figure it out! I'm in the middle of 15 days off in a row and need a hobby.

F100

 

[some_dude]

If you have an attorney, call him up and tell him you want to set up a single member LLC (if you can do that in your state). The cost should only be a couple hundred bucks, and you should be able to use your social security number as an EIN unless you are planning to have employees.

I don't know that there is really all that much tax advantage in having an actual company vs. a sole proprietorship, but it can be easier for your clients (no 1099s) and it makes organization simpler.

Because of various issues with independent contractors and the IRS, I have found some companies will not do business with you unless you are a corporation or LLC. Then there is no possible issue on their part with you being considered an employee instead of an independent contractor.

Since my business acumen peaked with my paper route in Jr. High I'd like to hear some advice from you pilot/business gurus:

Anyone have experience setting up a one-man "Pilot Services" company? I've been getting an unusual # of requests lately to do flying outside of my regular corp job. After reading up on the tax advantages of starting my own business, it looks like it could be a good financial move and fairly easy to do.

I have the boss' permission to do the extra-curricular flying.

Thanks,
HMR

 

[HMR]

Some Dude- Thanks for the good advice (as usual).

 

[psysicx]

Whats the difference between a pilot service company and just doing contract work?

 

[PC12Cowboy]

asking stupid questions!!!!!!........LOL

 

[501261]

H,

One of the biggest problems with contract flying that no one ever talks about is the liability issue.

Imagine if you will, you get contracted to ferry an airplane (lets call it a GII) that you have minimal experience in. You're flying the airplane with "Billy-Bob." "Billy-Bob"'s an idiot, but he's PIC, and for some reason he thinks cruise ITT is about 100'C hotter, than max allowed ITT. Before long you fry an engine. The insurance company says "no way are we going are we going to cover that kind of pilot stupidity." The owner decides to sue to cover the cost of the engine, well "Billy-Bob's" livin in a single wide with no assets, you on the other hand have a couple $100K built into the equity of your California house. Who do you think is going to end up buying a new engine?

Or another example, let's say you're contracted to fly as PIC of an airplane you have tons of experience in. After landing the "friendly's" decide to give you a ramp check, and low and behold a mandatory service bulletin hasn't been complied with! The Fed's say "well that's an honest mistake, but you've been flying this airplane for 4 flights in an unairworthy condition, and my supervisor is requiring that we suspend your license for 60 days (15 days per flight)." Can you really afford to take a two month vacation?

A good contract written by a lawyer will protect you in the first scenario, the second one will always be an issue, hell our airplane was unairworthy for 18 days due to a paperwork error that wasn't caught by me, our DOM, 2 IA's, and 2 factory service centers.

 

[G4G5]

I have a good buddy of mine doing it. He formed an S corp, then went and got his own insurance. From what he tells me the insurance it's not all that expensive. His insurance allows him to hire outside pilots and have them contract under his corporation. He has been a bit reluctant to do this unless he knows you very well.

He negotiates the training through simuflight on a space available basis. They call him when they have a canalization and if he free he jumps in the spot. This saves him quite a few dollars over the FSI posted price.

In all honesty this only works if you have a few reliable clients that can consistantly feed you work. Otherwise it's seems that going through a JPI type agency is a better deal.

 

[G100driver]

I have a god buddy of mine doing it.

I know you G guys THINK you walk on water, but shhess, (not that i ever make typos)

 

[G4G5]

I know you G guys THINK you walk on water, but shhess, (not that i ever make typos)

LMAO!!!!!!!!