So I just bought a plane and have a flight instructor that wants to rent it from me for his some odd 12 students. Now, I already have a DBA for my real estate business, could i have my DBA own it or? I guess what i want to know is what is the best way to go about setting this plane up so that i can, in the future do a FBO that i plan to grow to more than one plane? I need to protect myself now but prepare for more business.
Talk to a lawyer. You need an airtight lease agreement
Do not tie it to an existing profitable business. If someone dies in your plane the family will sue everyone in sight and a jury will award them some serious cash.
Get the FBO's insurance to cover you and get a copy of the insurance document to that effect. Then go out and buy additional insurance. Not kidding. Talk to a broker.
Leasebacks are great when stuff goes well but it's still a business and when SHTF it gets downright nasty. Aviation is a great hobby but it's a dirty business.