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Posted: 8/5/2014 10:31:42 PM EDT
So, i have the application all filled out and ready to go.  i just want to do transfers over the "kitchen table".  i dont want to keep a stock inventory and do the whole sales tax thing.  i dont need a business license from the city as long as i meet certain criteria which wont be a problem.  i was going to apply as an individual, but then thought i should apply as an LLC for some level of protection.  here's where i keep getting hung up.  the state of illinois wants 500 bucks for the LLC.  i would hate to spend the 500 on the LLC and then be denied the FFL license and being stuck with an LLC that does me no good.  i also would think the ATF would like to see the LLC applying for the FFL rather than an individual applying....more serious about the business aspect of the FFL.

so here's my ?,  should i apply as an individual first then get the LLC after approval for the FFL, or gamble 500 bucks and form the LLC first then apply for the FFL

thanks in advance
Link Posted: 8/5/2014 11:13:02 PM EDT
[#1]
First off, ATF does not care if you apply as an individual or an LLC. It makes no difference, that's a business decision. You just need to have proper zoning, that is the major hangup for most people. If you decide you do want to go the LLC route, do it before applying for the FFL. If you apply as an individual (and get the FFL as such) and then you decide you want to be an LLC - well ATF considers that a change of ownership and an entirely new FFL is required. Make sense?
Link Posted: 8/6/2014 12:02:48 AM EDT
[#2]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
First off, ATF does not care if you apply as an individual or an LLC. It makes no difference, that's a business decision. You just need to have proper zoning, that is the major hangup for most people. If you decide you do want to go the LLC route, do it before applying for the FFL. If you apply as an individual (and get the FFL as such) and then you decide you want to be an LLC - well ATF considers that a change of ownership and an entirely new FFL is required. Make sense?
View Quote



makes sense.  i think im going to get that LLC.  im not worried about a firearm that i transferred being used in a crime and the victim trying to sue me cause i'll do everything by the book.  what i am worried about is a joe blow coming over to pickup his firearm and he slips on my steps in the winter, cracks his head open on my concrete, and sues me for everything im worth
Link Posted: 8/6/2014 12:09:50 AM EDT
[#3]
here's my zoning regarding home businesses for my city.  due to home rule, state and county rules/regulations dont apply

(A) All home occupations shall comply with each and every one of the following standards and
requirements:
(1) The entrepreneur of the home occupation shall reside in the dwelling in which the
business operates.
(2) All home occupation activities conducted at the site of the home occupation shall be
conducted within a completely enclosed structure.
(3) The home occupation shall not interfere with the delivery of utilities or services to the
area.
(4) The activity should not generate any noise, vibrations, smoke, dust, odors, heat, glare, or
interference with radio or television transmission in the area that would exceed that normally produced
by a dwelling unit in a zoning district used solely for residential purposes.
(5) No toxic, explosive, flammable, radioactive, or other hazardous materials; as defined by
the BOCA Basic Fire Prevention Code as adopted in the Building Code of the Village of *******
shall be used, sold, or stored on the site.
(6) There shall be no alteration of the residential appearance of the premises, including the
creation of a separate or exclusive business entrance(s) or placement of a sign.
(7) No more than one vehicle shall be used in connection with a home occupation. The home
occupation vehicle must be a type ordinarily used for private passenger transportation, i.e., passenger
automobile, or vans and pickup trucks not exceeding a payload capacity of one (1) ton. Further, the
home occupation vehicle shall not, pursuant to the Illinois Vehicle Code, require more than a Class B
license or be a vehicle included in the definition of a Second Division Vehicle by said code ("Those
Vehicles which are designed for carrying more than 10 persons, those designed or used for living
quarters and those vehicles which are designed for pulling or carrying property, freight, or cargo, those
motor vehicles of the First Division remodeled for use and used as motor vehicles of the Second
Division used and registered as school buses.")
(8) No visitors in conjunction with the home occupation (clients, patrons, pupils, sales
persons, etc.) shall be permitted between the hours of 10:00 p.m. and 7:00 a.m.
(9) No outdoor display or storage of materials, goods, supplies, or equipment shall be
allowed.
(10) There shall be no advertising, signs, display, or other indications of a home occupation in
the yard, on the exterior of the dwelling unit or visible from the exterior of the dwelling unit.
(11) Direct sales and/or rentals of products off display shelves or racks is not permitted,
although a person may pick up an order previously made by telephone or at a sales meeting.
(12) The total area used for the home occupation shall not exceed 250 square feet of the
dwelling area.
(13) No person may be employed on the site in connection with the home occupation who is
not an actual resident of the dwelling unit.
(14) Deliveries from commercial suppliers shall not be made by any vehicle that exceeds a
gross weight in pounds for vehicle and maximum load of 20,000 pounds. Deliveries shall not restrict
traffic circulation and must occur between 9:00 a.m. and 5:00 p.m. Monday through Friday.
(15) Visitors in conjunction with the home occupation (clients, pupils, sales staff, etc.) shall
not exceed four during any 24-hour period. No more than two visitors may visit at one time.
(16) No more than one home occupation shall be permitted within any individual dwelling
unit.
Link Posted: 8/6/2014 7:07:40 AM EDT
[#4]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
what i am worried about is a joe blow coming over to pickup his firearm and he slips on my steps in the winter, cracks his head open on my concrete, and sues me for everything im worth
View Quote

An LLC will not protect you from this.  Even with an LLC or corporation, you are still personally liable for your own torts.  Since the house is yours (personally), and you (personally) make the decisions regarding any maintenance/cleaning/whatever, you'll still be named in the suit and be liable for any damages.  The only liability protection an LLC would give you in your scenario is against contract liability, and that only if you don't sign a personal guarantee for the contract.

The way you protect against this concern is with insurance.
Link Posted: 8/6/2014 11:42:33 AM EDT
[#5]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

An LLC will not protect you from this.  Even with an LLC or corporation, you are still personally liable for your own torts.  Since the house is yours (personally), and you (personally) make the decisions regarding any maintenance/cleaning/whatever, you'll still be named in the suit and be liable for any damages.  The only liability protection an LLC would give you in your scenario is against contract liability, and that only if you don't sign a personal guarantee for the contract.

The way you protect against this concern is with insurance.
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
what i am worried about is a joe blow coming over to pickup his firearm and he slips on my steps in the winter, cracks his head open on my concrete, and sues me for everything im worth

An LLC will not protect you from this.  Even with an LLC or corporation, you are still personally liable for your own torts.  Since the house is yours (personally), and you (personally) make the decisions regarding any maintenance/cleaning/whatever, you'll still be named in the suit and be liable for any damages.  The only liability protection an LLC would give you in your scenario is against contract liability, and that only if you don't sign a personal guarantee for the contract.

The way you protect against this concern is with insurance.

This.


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