56% of US Small Private Jets Are Owned by LLCs, Under 3% by Individuals, FAA Registry Shows
Why It MattersSingle-purpose LLC ownership is now the default structure for US private jets, which shapes liability exposure, ownership transparency and the compliance burden around charter and foreign-owner registration.
An analysis of the FAA's downloadable registry database, released at the end of October 2026, counted every jet with 20 or fewer seats. Of 16,327 registered jets of that size, 9,198 (56%) are owned by a limited liability company (LLC) and 468 (under 3%) by an individual. Across the whole US register, which includes aircraft such as Cessna 172s and homebuilts, LLCs own 88,238 of 318,181 aircraft, or 28%. A 2018 GAO study found LLCs held 19% of registrations.
Liability is the main reason. A single-purpose LLC puts a legal wall between the aircraft and the owner's other assets, so a claim runs against the company rather than the owner's house, business or investments. Under 49 U.S.C. 44112, an owner, lessor or lender is liable for injury, death or damage caused by an aircraft only when it is in that party's actual possession or operational control. Privacy is the second reason: an LLC replaces the owner's name with the company and its registered agent's address, and Delaware's LLC Act requires a certificate of formation to list only the company name and the registered agent's name and address. The Corporation Trust Center at 1209 North Orange Street in Wilmington appears on the registration of Learjet 60 N722BD; in the current registry, 302 aircraft list that address, 80 of them jets.
A company that exists only to own and fly an aircraft and is paid by its owner or affiliates for trips may violate Federal Aviation Regulations, because Part 91 generally bars an operator from receiving payment for flights; carrying paying passengers requires a Part 135 certificate. In August 2021 the FAA proposed $1,228,671 in civil penalties against five companies for alleged illegal charter flights, including $344,672 against an Iowa company for 16 paid passenger flights without the required certificate.
Only US citizens, resident aliens and qualifying US companies can register an aircraft in the US. An LLC must have a US citizen as president, at least two-thirds of managers who are US citizens, and at least 75% of voting interest held by US citizens. A US company owned by foreigners can register a jet if at least 60% of its flight hours are in the US (14 CFR 47.9). Alternatively, a US trustee can hold title, with foreign beneficiaries holding no more than 25% of the power to direct the trustee (47.7).
Taxes are a minor factor: AOPA's legal team says registering an aircraft in another state is unlikely to produce sales or use tax savings, because use tax follows where the aircraft is based and flown. The GAO found in 2020 that the FAA generally relies on self-certification of registrants' eligibility and does not verify key information, and that shell companies and foreign-owned trusts can be used to own aircraft associated with money laundering. Of its 15 recommendations, four had been implemented by December 2025.
