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Besides the liability aspect, some owners create an LLC to avoid property tax on the plane. In Kansas, there's annual property tax (about 5% of book value) on personal aircraft, but not business aircraft (Texas is just the opposite). Some aircraft owners at my airport created "Delaware Corporation" to avoid KS property tax, but from what I was told it wasn't worth it for a 150-152 (although I had to pay $1000/yr for my '80 152, book value $20K, before it was exempted when reaching 30 yrs old).

Hung,

Good point.

Also, in some states there is sales tax on an aircraft sale. If the airplane has multiple owners and is registered in each of their names - and one owner sells and another buys in, it causes a sales tax event. If the aircraft is owned by a corporation a change in partial ownership is considered a stock transaction and not a sale of a portion of the airplane. There's no need to reregister the airplane.

I am an aviation insurance broker here in Toronto. We seem to pay a lot more up here. Some of the above mentioned premiums are quite low compared to ours.

Tom I just got a quote for almost $1100 for my 150. $30K in motion/not in motion $2M liability. Does that sound reasonable?

Here's a photo of the last insurance policy for my plane before I sold it in January 2017. "Smooth" $1M liability coverage with no sub-limit.