The Huge Costs of Running a GA Maintenance Side Business | Essential Expenses Breakdown
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- เผยแพร่เมื่อ 7 ต.ค. 2024
- Thinking of starting a general aviation maintenance side business? In this follow-up video, we tackle the huge costs involved in running a GA maintenance operation. From the initial setup to ongoing expenses, we'll cover everything you need to know before diving in.
Key topics include:
1. **Making an Official LLC**: Understand the legal and financial implications of forming an LLC.
2. **Upfront Cost of Getting an A&P**: Explore the investment required to obtain your Airframe and Powerplant certification.
3. **Insurance**: Learn about the essential insurance policies and their costs to protect your business.
4. **Tools for Maintenance and Calibration**: Discover the significant expense of acquiring and maintaining professional-grade tools.
5. **Taxes**: Get insights into managing taxes for your side business.
Subscribe to our channel for more detailed breakdowns, expert advice, and practical tips on aviation maintenance. Hit the bell icon to stay updated with our latest content, and join us as we dive into the financial realities of turning your aviation skills into a thriving side hustle. Don't miss this comprehensive guide to understanding the costs of running a GA maintenance business!
Thanks. Seems like a part time gig becomes a 24/7 operation. One of my AP instructors was in the GA business with his own shop. I remember him telling us his biggest problem at times was people complaining about the cost of Maint and not paying bills. No pay, no airplane.
For several years in the '90s, I did some moonlighting by doing sheetmetal/structural repair work on GA aircraft. The shops I worked at during the day had tooling beyond my personal hand tools (brake, shear, roller, etc.) and didn't mind that I used them. The aircraft owner would have to provide the hangar and also pay for an IA to sign off the 337 forms. Eventually, I got a more lucrative day job with travel required and nearly unlimited overtime available, so I no longer took on any GA work. Aircraft owners kept approaching me for years afterward for help. The demand is there if one has the energy, skills, and access to the tools and data.
Well said!
I believe you can have all the protections in place like LLC’s, trust accounts, offshore accnts etc. But if someone really wants to sue and take someone to the cleaners, they can, all depends how aggressive an attorney is
At that point it depends on where you are in life and if its worth it ot move everything off shore and leave. Im not letting someone make me start life over at 40 or 50, I can go live in Mexico the rest of my life. This nation is just about done.
I don’t know if things have changed over the years but I think you can write off your losses for the first 3 yrs which maybe would give you time to decide whether it’s worth it or not
You can do the 30 month route on nights and weekends spread out over like 5 years. Thats how I got my 8610-2 done.
You can, that's how one of my friends did it. It's definitely not a bad way to go about it if your day job is a really good income and not extremely demanding on hours.
AP school in my area is upwards of $40K. That’s a lot!
Have you considered setting up a Part 145 repair station? You then will have an entity where a helper or apprentice can log practical experience under your supervision to obtain their certification.
In order to establish a 145 I would first need a fixed base for that 145. Not impossible just sign a lease for a hanger. The second part however, I can actually hire a non A&P and supervise all of their work. After 30 months they could then take their logbook and employment history with me to the FSDO and get signed off to test. I actually had a friend do this he worked for a fellow IA for a few years and then the FSDO signed him off. No need for a Repair station.
Really great content!! In reference to manuals. There is a very good discussion bout what the term current data means..
We hold the position that current data is the data that was published at the time of production.. Do you hold the same position?
I would like too lol. It is the opinion of my Airworthiness Inspector that it must be the latest revision. As much as I would love to argue it with the fed sometimes it's best to just do what they ask
Thanks!
LLC doesn't provide the protections most people think they do especially if it is a LLC ran as a sole proprietorship. Search "llc piercing the corporate veil" you need to understand what things make piercing it easier. Things like co mingling money, not paying yourself a salary, transferring personal property into the LLC (tools etc), transferring things out of the LLC to personal assets. Even with the LLC in the GA Maintenance, the LLC didn't sign the log book the IA did, and needs to have insurance coverage if things ever go bad.
A LLC is a good idea but it isn't just simply setting one up, you got to make sure to make it hard to pierce the veil.
Yes, all very true ( the purpose of this video is not business advice with Bryce. There are plenty of attorneys that do those videos). No LLC, no matter how well it's operated or separated will protect you in the event of negligence, fraud, or other personal statements/advice you make as an individual. An LLL is still useful for many reasons. However, before going out and creating one, it's best to speak with a financial advisor/ attorney.
@@brycebuildsit Yes still good advice, depending on the state/tax situation sometimes it cost more than its worth. There are all kinds of got ya's that seem we only learn the hard way when starting a business.
I was reading up on the regs for Belize and they adopted the FAA regs and certs (other than if its your own plane lol) but I dont think they have the litigation there. Could retire and work there on the side as a mechanic.
Not a comment, but thanks for the information.
The algorithm appreciates you as do I
I have been an A&P for 20 years primarily working on my own airplanes. I have been thinking about getting an IA, but to keep it current I would need to take on other non-owned planes as well. When signing ones name personally even when working for a FBO still carries personal liability. It helps if they are singing as a well insured part 145 and not personally, but they still can be sued if there is an issue. Company business insurance may not always cover an IA personally. They could settle and still leave the AP open to litigation. The AP/IA needs to be a named insured on the company policy with a waver of subrogation to be represented by the insurance company. I think everyone signing logbooks with their own name and AP number should have insurance. I'm not sure where to find a good carrier that will be interested in writing small policies. Anyone have suggestions on insurance carriers that will write policies for aircraft mechanics?
The best quote I got was for 15k it seems they really don't want to insure someone with less then 10 clients. As far as getting you IA goes do it. You can always attend the 8 hours of training each year and use that as your basis for renewals. That way is also much easier because you aren't having to compile a list of aircraft you did annuals on all year. Just enter the training in IACRA and wait for the renewal letter
@@brycebuildsit I have been doing some research. It looks like I may be able to get an aviation specific General Professional Liability insurance that would cover personally for signing off without covering an entire company. I have a broker looking into it. The cost may be around $2K/yr for a $1M policy. I will post if I find a policy.
👍🏼👍🏼👍🏼👍🏼👍🏼
Heads up. The plural is costs. No apostrophe.
Make 15K and have a 10K-15K ins policy? I think I’d rather invest in the stock market for passive income, but whatever, what ever floats your boat
Miata gang!!
It's the BEST, and you deserve the BEST!! You put on dark side at every party because it's the BEST!
Oh ya I am an office paper pusher, let me pick up a wrench at Home Depot and sign some aircraft logbooks.
Another great benefit of an insurance policy is duty to defend - meaning the insurance company will provide lawyers if something terrible happens.
I joke, but someone did assume I was saying to go become an aircraft mechanic just to have a side hustle.
@@brycebuildsit There's always that one genius out there )))
You know what would be nice, to sum up all expenses in the form of "this is how much you need to make to break even when running a proper business, if you charge $XX per hour then it'll take you this many hours before you make money"
That's actually a really good idea, I'll do that. I also want to make a video on going into business for yourself vs. Working for an FBO and pros and cons of both.
But if the insurance is cost prohibitive then its a non-starter, as Brice also stated. The FAA has created this sort of culture that cost is no object, but that is starting to break down which is affecting the entire industry.
Not a complaint, but your audio is almost always really low.
That's not a complaint at all sir, that's just good feedback. I'll have to look into to it because it always sounds ok on my side
0:38 How do you lose a stool?
Good question, I actually left it at an airport. I'm doing some work there and left a few of my tools there.
@@brycebuildsit Thanks for the reply, it certainly makes more sense now. Its amazing how the mind 'works' when it doesn't have all of the information.... :)
huge wake up call for a first year student at a community college...
Well, I'll say this the earnings potential for an A&P fresh out of school is incredibly high. I have students graduating and making 35+ and hour for an airline in less then a year.
@@brycebuildsit I just graduated and making just short of 35 at a regional because I don't want to move yet. Once I try to move that will go up 10 bucks easy at a major starting.
Are you going to college for something that requires college? Lawyer, engineering, medical doctor...?
If not, you are wasting your time and money. Get a trade and start gaining experience.
I used to work in the creative fields, advertising and graphic design, and 99 times out of a hundred, a strong portfolio of experience would beat put a fresh college graduate.
@@eiselbaywhere do you live? I know my old regional would take students straight out of Aviation High School then after a few years they'd go to delta.
Lfg mi mi