Titling in an LLC is the most common ownership structure in general aviation — and done right, it costs you nothing on rate.
If you form a single-purpose LLC, own it personally, and title the aircraft in it, lenders treat the loan exactly as if you titled it in your own name. Same rate, same down payment, same term. You will sign a personal guarantee — the LLC holds title, but the credit decision is made on you, the individual behind it.
This is the structure the overwhelming majority of owners use, and it is why the rate strip above shows no LLC premium. The paperwork adds a few documents to the closing package — articles of organization, operating agreement, a resolution authorizing the purchase — but nothing to the price of the money.
Where the rate does move is when the LLC is owned by another entity: an operating company, a holding company, or a trust. That structure shrinks the pool of lenders willing to underwrite the deal, and a smaller pool means a rate notch up. It is still very financeable — it just prices differently, and we will tell you exactly how before you commit to the structure.
The aircraft — and the liabilities that attach to operating it — sit in a legal entity separate from your home, investments, and business. It is not bulletproof (insurance is still your first line of defense), but it is a meaningful layer.
The FAA registry is public. An LLC keeps your personal name off the N-number lookup that anyone can run in ten seconds.
Two or three partners buying together? Membership interests in an LLC are far cleaner to buy, sell, and inherit than fractional title on the aircraft itself.
In some transactions the LLC itself is sold rather than the aircraft, which can simplify logistics — though it demands careful diligence on both sides.
*An LLC is a legal and tax decision first and a financing decision second. Talk to an aviation attorney and your tax advisor — this page describes lending mechanics, not legal advice.
Three things change at the closing table when an LLC holds title, and none of them are painful:
Watch the sales and use tax angle: some owners form the LLC in a low-tax state while basing the aircraft in another, and states have become aggressive about use-tax assessments on exactly that pattern. Where the aircraft lives usually controls, not where the LLC was born. Get state-specific advice before you copy a structure you read about in a forum.
| Structure | Rate impact | Why |
|---|---|---|
| Personal title | Baseline | Simplest file. Full lender pool. |
| Single-purpose LLC, individually owned | Neutral | Personal guarantee makes it credit-identical to personal title. Full lender pool. |
| LLC owned by operating / holding company | Notch up | Fewer lenders underwrite entity-owned-entity structures. Corporate financials enter the file. |
| Trust-owned (incl. non-citizen trusts) | Notch up | Specialized documentation; smaller pool. Standard route for non-U.S. citizens registering N-numbered aircraft. |
If you are still deciding between personal title and an LLC, our editorial team wrote a plain-English breakdown: Should you use an LLC or personal title for your aircraft? Pair it with our title & escrow guide so the closing goes as smoothly as the structuring.
Run the 60-second qualifier — it accounts for ownership structure, credit tier, and aircraft type, and shows a live rate.