 molardog 
Member
Joined: Mar 2008  GA, USA
 Posts: 1493 Feedback: 100% (9) |
Posted: 1/10/2010 9:07:12 AM
THE IMAGE ABOVE IS A PAID ADVERTISEMENT I am contemplating a suppressor for a new ar10 build. This would be the first one I've ever purchased. I've done some reading around this forum and others regarding various ways of doing this. It seems to me the simplest way to do this would be to have one of my business entities make the purchase. I currently have an operating LLC and and an S-corp. Does anyone else here go this route? Or, is the trust approach better? |
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TheGunCollector
Member
Team Member
Joined: Aug 2009  ITA
Posts: 1027 Feedback: 0% (0) Link To This Post |
Posted: 1/10/2010 10:35:43 AM
Originally Posted By molardog:
Hi everyone, I am contemplating a suppressor for a new ar10 build. This would be the first one I've ever purchased. I've done some reading around this forum and others regarding various ways of doing this. It seems to me the simplest way to do this would be to have one of my business entities make the purchase. I currently have an operating LLC and and an S-corp. Does anyone else here go this route? Or, is the trust approach better? Trust IMHO. I wouldn't co-mingle your business entities with the ATF and buying suppressors. YMMV. |
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Posted: 1/10/2010 10:53:33 AM
[Last Edit: 1/10/2010 10:54:19 AM by Seb1]
I was in the same boat as you with two corporations (I am also a Dentist in Virginia). I ended up using my LLC to purchase my nfa toys. Been doing this for 5 years now with no problems.
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Posted: 1/10/2010 10:54:19 AM
Yeah....I was thinking that may be non-desirable for some reason. ATF...business....should be a no go.
I reckon I may just have to find a local atty that is familiar with gun trusts. |
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Posted: 1/10/2010 10:56:36 AM
Originally Posted By Seb1:
I was in the same boat as you with two corporations (I am also a Dentist in Virginia). I ended up using my LLC to purchase my nfa toys. Been doing this for 5 years now with no problems. My LLC owns my business real estate....you reckon that would be the way to go? Like the above poster said though, there's something un-appetizing about having the ATF linked up with your business. |
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Posted: 1/10/2010 10:57:57 AM
My LLC also owns my building only and nothing else so it is not a business in a sense. The wife and I set up the LLC for protection only.
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Posted: 1/10/2010 11:01:05 AM
[Last Edit: 1/10/2010 11:01:51 AM by molardog]
That's exactly what we did....we actually just own a piece of land with the LLC now, but will be building this year. The LLC is in the business of "real estate rental/leasing".
How has the Form 4 process worked for you so far? |
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Posted: 1/10/2010 9:53:59 PM
If it was in your LLC and somethign were to happen, someone could sue your LLC. Why even risk the liability of your LLC? Form a trust, it cost about $30 with willmaker and is as good if not better than LLC b/c it is easier to make people trustees than employees.
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CTbuilder1
R-CT
Team Member
Joined: Sep 2006 CT, USA
Posts: 8540 Feedback: 100% (29) Link To This Post |
Posted: 1/10/2010 9:56:16 PM
Originally Posted By bigcbass:
If it was in your LLC and somethign were to happen, someone could sue your LLC. Why even risk the liability of your LLC? Form a trust, it cost about $30 with willmaker and is as good if not better than LLC b/c it is easier to make people trustees than employees. I trust my LLC far more than a $30 quicken willmaker cookie cutter trust. |
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Posted: 1/11/2010 12:58:50 PM
Originally Posted By CTbuilder1:
Originally Posted By bigcbass:
If it was in your LLC and somethign were to happen, someone could sue your LLC. Why even risk the liability of your LLC? Form a trust, it cost about $30 with willmaker and is as good if not better than LLC b/c it is easier to make people trustees than employees. I trust my LLC far more than a $30 quicken willmaker cookie cutter trust. I can see his point to a degree....although I don't think I am too concerned about "something" happening. Plus, someone could always go after a "trustee" of the trust, couldn't they? |
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Posted: 1/11/2010 3:19:57 PM
The LLC has far more protection from someone sueing you. This is why many form a LLC with property so that if someone sue's most of your personal assets are safe. I also feel that if something happens with a firearm that they are going after the person shooting the gun in the first place and not who owns the gun.
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Posted: 1/11/2010 5:17:48 PM
Originally Posted By Seb1:
The LLC has far more protection from someone sueing you. This is why many form a LLC with property so that if someone sue's most of your personal assets are safe. I also feel that if something happens with a firearm that they are going after the person shooting the gun in the first place and not who owns the gun. They would go after everyone. But a LLC might offer more personal protection but the LLC would be liable if somethign happened, and if you are the one operating the gun, you would get sured anyway so do you also want your LLC that you do legitimate business in to also be at risk. Also people always say the $30 quicken trust is bad andtoo risky yet no one can point to one example of where it failed or where someone was prosocuted or had their gun taken away. The only ones that say that are lawyers who want you to use their services, they have no proof this has ever happened. |
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Posted: 1/11/2010 8:05:01 PM
[Last Edit: 1/11/2010 8:16:42 PM by molardog]
Originally Posted By bigcbass:
Originally Posted By Seb1:
The LLC has far more protection from someone sueing you. This is why many form a LLC with property so that if someone sue's most of your personal assets are safe. I also feel that if something happens with a firearm that they are going after the person shooting the gun in the first place and not who owns the gun. They would go after everyone. But a LLC might offer more personal protection but the LLC would be liable if somethign happened, and if you are the one operating the gun, you would get sured anyway so do you also want your LLC that you do legitimate business in to also be at risk. Also people always say the $30 quicken trust is bad andtoo risky yet no one can point to one example of where it failed or where someone was prosocuted or had their gun taken away. The only ones that say that are lawyers who want you to use their services, they have no proof this has ever happened. I've read some threads over on the SilencerTalk forum....alot of them say the lawyers come using scare tactics trying to get them to pay for something called an "gun trust". Seems like a lot of folks use Quicken to generate their own trust entities. As far as the liability goes....I don't believe there is an entity out there that can protect you from lawyers. My primary reason for even considering using an LLC would be for the convenience of it, but then again, the trust route seems to have the same benefits in that regard. |
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Posted: 1/12/2010 12:18:46 AM
The benefit of the corp route over trust is simply from an execution standpoint. A lot more people are familiar with the specifics of operating corps. You don't run into problems (if at all) with trusts until someone dies. Most people die once. So just from a common knowledge standpoint, you can find more people that can speak for corps. Granted for NFA, executing the trust isn't the point of it unless you want it to go smoothly after the fact. Most people just don't care about that.
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