LLC for NFA

**orionz06** · September 24th, 2010, 12:22 AM

Has anyone use an LLC to hold their NFA items? Any major cons?

**kcr121** · September 24th, 2010, 08:53 AM

Originally Posted by orionz06

Has anyone use an LLC to hold their NFA items? Any major cons?

Cost.

Once you've got an LLC set up properly, however, it saves a lot of hassle if you plan on acquiring a multitude of NFA items.

**orionz06** · September 24th, 2010, 08:57 AM

I was under the impression that the LLC was quite simple and cost under $100, relative to a trust it is much cheaper.

**bac0nfat** · September 24th, 2010, 08:58 AM

Why not just form a trust? Once it exists, it always exist. No cost, paperwork, or hassle involved. Also you can have multiple people that can have possession of the NFA item, and list your children as beneficiaries.

**bac0nfat** · September 24th, 2010, 08:58 AM

Originally Posted by orionz06

I was under the impression that the LLC was quite simple and cost under $100, relative to a trust it is much cheaper.

I believe you have to pay yearly dues and file a bunch of paperwork

**ungawa** · September 24th, 2010, 09:10 AM

If a trust or a LLC becomes invalid then you might be in sort of a pickle. For an LLC, suppose you are unaware of some tax filing and the state deregisters your corp. Never heard of something like this happening but who knows.

With an LLC there is an annual filing with the member's taxes. Even if the LLC has no profit or loss. There is also an annual tax on assets - however, I think that's after like $125K or something, and that's a lot of gear. So most people don't have to pay anything, not even an annual business fee. I think they are getting rid of that tax anyway. I believe there is also a decenial filing and the next one is 2011.

I am not an accountant or a lawyer and don't know how accurate this info is. Just throwing out there that I believe there are currently some filings but no fees, so anyone who has an LLC or is thinking of one can look into it themselves.

**orionz06** · September 24th, 2010, 09:14 AM

Originally Posted by bac0nfat

Why not just form a trust? Once it exists, it always exist. No cost, paperwork, or hassle involved. Also you can have multiple people that can have possession of the NFA item, and list your children as beneficiaries.

I was under the impression that the LLC was safer than a trust.

**mojo** · September 24th, 2010, 09:16 AM

Originally Posted by bac0nfat

I believe you have to pay yearly dues and file a bunch of paperwork

So far only yearly fees are for filing taxes. There are a few forms to send in when your setting up the LLC but after that just taxes.

**Andrew17019** · September 24th, 2010, 09:42 AM

I have this same question. Does anyone have the step by step for a trust or LLC? I've been wanting to acquire NFA items for a while, but have some constraints on how I can keep and store them (ie, leaving the country every other year).

**Kramer** · September 24th, 2010, 08:38 PM

Originally Posted by bac0nfat

Why not just form a trust? Once it exists, it always exist. No cost, paperwork, or hassle involved. Also you can have multiple people that can have possession of the NFA item, and list your children as beneficiaries.

Trusts and LLC/Corp have advantages and disadvantages. A LLC can exist for as long as a Trust even longer if you take care of some basic paperwork. Both have start up cost, either by paying a lawyer or doing it on line. You can have multiple people on a LLC, either multi member or single member. Even with single member you can list people as "associate members" and if anybody else is to take possesion of a NFA item it must be listed in the Articles of Incorporation. You can also transfer the corp and its holdings to your children later on if you want to. Agsin you need to do it officially.

Originally Posted by bac0nfat

I believe you have to pay yearly dues and file a bunch of paperwork

One time state filling fee of $125, no "yearly dues" and cureently no annual filing fee.

Originally Posted by ungawa

If a trust or a LLC becomes invalid then you might be in sort of a pickle. For an LLC, suppose you are unaware of some tax filing and the state deregisters your corp. Never heard of something like this happening but who knows.

With an LLC there is an annual filing with the member's taxes. Even if the LLC has no profit or loss. There is also an annual tax on assets - however, I think that's after like $125K or something, and that's a lot of gear. So most people don't have to pay anything, not even an annual business fee. I think they are getting rid of that tax anyway. I believe there is also a decenial filing and the next one is 2011.

I am not an accountant or a lawyer and don't know how accurate this info is. Just throwing out there that I believe there are currently some filings but no fees, so anyone who has an LLC or is thinking of one can look into it themselves.

For taxes my accountant said to go "S" corp and the profits or losses go through your regular taxes. Basic reports can be filed for fed and State to keep the corp current.

Originally Posted by orionz06

I was under the impression that the LLC was safer than a trust.

Yeah, that's what I heard six years ago and the reason why I went LLC/Corp. If they knock down that LLC/Corps are not valid then the whole legality of LLC.Corps is in jeopardy. Plus the ATF has been seriously checking each Trust for validity and errors.

So far things have been ok for Trusts so hopefuly they will hold up over time. If CLEOs would just do their job by doing the cursory background check, Trusts and LLC/Corps would not be as popular.

Originally Posted by Andrew17019

I've been wanting to acquire NFA items for a while, but have some constraints on how I can keep and store them (ie, leaving the country every other year).

Well your residence will most likely be your place of business/ office and you juet need to make sure that they are secured, like in a safe, and if you have a wife or family member that can make sure that they stay safe you could list them as a "Member or Associate member" while you are away.