Is it all right to set up a subsidiary, affiliated corporation or special purpose entity to own and operate the aircraft, for liability reasons?
Yes, this is a common ownership structure. However, the company created should be involved in a line of business separate from providing air transportation, such as consulting, logistics or asset and risk management in the same business as the parent, and/or its affiliates. Companies with no business purpose other than owning and operating aircraft are subject to regulation and certification by the FAA. In addition, if such an affiliate is reimbursed by its parent or affiliates, such as beyond its actual operating expenses, it may be deemed a de facto charter operation and be subject to FAA civil penalties.
