Forming or joining a syndicate

[Guest rocketdriver]

Over the past little while, I have noticed a several comments and questions about syndicates, so I’ve put together a guide for would be syndicate members. I hope you find it interesting and useful.

 

The information comes in part from my own experience and also from comments and ideas from, in no particular order, DarkSarcasm, Flyinghigh and DJPAcro. Thanks for your input guys and girls. :thumb_up:

 

If you are starting a syndicate, you might find that editing a word document is easier than rewriting a pdf. PM me and I will send you a copy in MSWord, but you will need to provide me with your email address as you can’t attach documents to a PM for some reason.

 

I plan to periodically update the document so, if you have some constructive criticism that will help improve the document, then please let me know.

 

Happy syndicipation!!

 

So you want to form a syndicate.pdf

 

So you want to form a syndicate.pdf

 

So you want to form a syndicate.pdf

[winsor68]

Thanks Rocket... I hope one day this will come in handy.

 

 

[Guest basscheffers]

Great document, thanks!

 

I have heard of other syndicates using a P/L company as entity. Does anyone know if there are any other structures worth considering, like a partnership or an incorporated club?

 

 

[Bidgee]

Excellent. Thanks for putting the time into it.

 

Scott

 

 

[shags_j]

Other types have other problems associated with them.

 

Partnerships have legal ramifications on asset protection. Also every time the syndicate changes you will have to change the names on all bills, owners papers etc.

 

Incorporated clubs have audit requirements depending on income etc. (EDIT: I also think that the members of a club are liable for all damages etc. caused by club members, but don't quote me on this).

 

P/L company I feel is the best way. But I am not a legal professional, just an accountant.

 

Companies allow you to keep the same owner on all documents (ie. the company) and then when people come and go you can just change the shareholder information (all internal and with asic).

 

Also asset protection as the company is a seperate entity for assets and debt and unless certain situations exist, the directors can't be attacked seperately.

 

Great doc Rocketdriver. I hope to use it in the future.

 

OUt of interest, RAAus allows an aircraft to be registered by a company doesn't it?

 

Cheers,

 

Shags

 

 

[Guest basscheffers]

OUt of interest, RAAus allows an aircraft to be registered by a company doesn't it?

Yes it does, mine is!

 

 

[shags_j]

Also forgot to add the downpoints of company ownership:

 

Expensive to setup. I haven't looked at prices elsewhere but you can pay upto $1,000. Given that this is a special use company I would also suggest that the company constitution has some very definite clauses depending on the rules of the syndicate.

 

Also companies have a ongoing annual fee of about $220.

 

 

[dazza 38]

That was a fantastic document.Thanks rocket.

 

 

[Guest rocketdriver]

Hhope it gets used!

 

 

[flie43]

Bloody hell Rocket,

 

That was a fantastic job-where were you 12 months ago.

 

We went down the company track- is working really well. All set up on MYOB. Took in another syndicate member and it's all cool

 

We don't have an official agreement though--we should do it.

 

Terry

 

 

[shags_j]

No flie but you do have a constitution that should help out with any disagreements...

 

Rocket, got nothing to worry about. I am positive this will be used.

 

 

[sfGnome]

Hhope it gets used!

I'm not at a stage of using it (yet! ), but it is a really good read - clear and very useful. Well done. :thumb_up:

 

 

[Guest drizzt1978]

Well I am in the process of HOPEFULLY!! joining a syndicate....

 

So it most definetly is helping me!

 

Thanks Mr RocketDriver

 

 

[shags_j]

well I may look at making a syndicate next year. Am very grateful for this doc.

 

 

[Guest Andys@coffs]

Guys

 

What is the story with maintenance? Does everything need to be done by a L2, or are all the part owners L1's. If all L1's, is that something RAA has specifically allowed, or just an assumed position? I pressume in most cases the aircraft are 24 registered. What about 19 registered Aircraft?

 

Andy

 

 

[shags_j]

Awwwww, so 2 L1's don't make a L2?

 

Damn.

 

 

[flie43]

Ours is factory built and VH so all maintenance is done by our Lame with us helping where we can

 

Terry