Pennsylvania Firearm Owners Association
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  1. #1
    Join Date
    Dec 2006
    Location
    Bucks, Pennsylvania
    Posts
    13,577
    Rep Power
    21474866

    Default Feds now require registration of most state-created Corps & LLCs

    Most of you who care, are aware that ATF cracked down on NFA trusts a few years back, stripping away anonymity and requiring periodic disclosures of responsible persons. That was at the same time they eliminated the CLEO signature requirement.

    People could avoid that by registering individually, or by using Pennsylvania LLC's, which have had no annual filing requirement and no minimum annual tax if you didn't turn a profit. There's a decennial form to file every 10 years if your LLC had no other contact with the state.

    Congress enacted (over Trump's veto) a "money laundering" law, as part of the National Defense Authorization Act for Fiscal Year 2021, the "Corporate Transparency Act" (CTA), which goes into effect 1/1/2024 and may apply to some of you with NFA entities. You have to pay a fee (around $65 I heard), and file with the govt some info on beneficial owners.

    There are some exceptions, one of them is this:

    (xxiii) any corporation, limited liability company, or other similar entityŚ

    (I) in existence for over 1 year;

    (II) that is not engaged in active business;

    (III) that is not owned, directly or indirectly, by a foreign person;

    (IV) that has not, in the preceding 12-month period, experienced a change in ownership or sent or received funds in an amount greater than $1,000 (including all funds sent to or received from any source through a financial account or accounts in which the entity, or an affiliate of the entity, maintains an interest); and

    (V) that does not otherwise hold any kind or type of assets, including an ownership interest in any corporation, limited liability company, or
    other similar entity;


    Not sure what "otherwise hold" means, but if your LLC owns NFA firearms, you might look into filing. It could be argued on an individual basis that a few thousand in guns that aren't going anywhere is de minimus, not within the scope of the law's intent, but that's a gamble.

    This is a change in the law, it nullifies some of the benefits of owning NFA firearms via an entity, similar to how ATF gutted the benefits of NFA trusts by previously requiring reporting of responsible persons. Pennsylvania doesn't really care who owns your LLC, but now, in the name of combating Colombian drug lord money laundering, the Feds require you to name yourself, provide proof, and pay a filing fee for the privilege. You can still use entities to bypass probate if you have the proper Operating Agreement to do that, but the anonymity is gone with respect to govt agencies.

    Failure to file by 1/1/25 for covered entities existing prior to 1/1/24 can be punished by fines of up to $10,000, and prison for up to 2 years. I would not assume that AG Garland holds a soft spot for gun owners. And remember the ITAR nightmare, with kitchen table gunsmiths being nailed for thousands in fees in the name of "international arms trafficking control".

    It's likely to be clarified if small entities with a couple grand in assets are required to report. You wouldn't need to file if you fall within such an exception AND that exception is recognized and defined, but be very sure that you ARE exempt, if you decline to file. You could also pay the NFA Form 4 fees and transfer your toys to yourself individually and save future CTA filing fees, now that the CLEO requirement is gone. An inactive LLC with zero assets would be exempt, per the extract above.
    Attorney Phil Kline, AKA gunlawyer001@gmail.com
    Ce sac n'est pas un jouet.

  2. #2
    Join Date
    Oct 2008
    Location
    USN Retired, Pennsylvania
    (Monroe County)
    Posts
    4,062
    Rep Power
    21474856

    Default Re: Feds now require registration of most state-created Corps & LLCs

    Do you have any links to where this is coming from?


    Owner Trigger Time LLc 01 FFL/NFA Saylorsburg, PA. Sales/Service/Transfers/Training
    NRA CRSO/Pistol/Rifle/Shotgun inst. BSA Rifle/Shotgun Merit badge counselor. US Navy Marksmanship Team Staff

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