Armory Sponsor
Posted: 7/1/2008 12:57:01 PM EDT
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So I was at the fun show two weeks ago and a guy had a gemtech halo at his booth. Naturally I was curious as to why he would be selling something that needed a sheriff's signature and two months paperwork at a two day show so I asked. He said that if I had an LLC I could buy it there and not need to do any fingerprinting or get my sheriff's signature. My friend just so happens to have an LLC he is willing to me on so we could get our hands on some cans. So my questions are: 1) Can you really and legally register a suppressor to an LLC? 2) How difficult is the process to register it to an LLC and have any of y'all done this? 3) Can I buy out of state? ( I'm in LA, a legal state but want to buy in FL, another legal state) My search didn't bring up any topics about this so I hope I'm not beating a dead horse. Thanks guys. |
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1) Yes, Trusts and Corporations can own NFA items with no signature, photos, or fingerprints. 2) Dunno. 3) Anyone can buy NFA items from out of state, but you always have to have it transferred on a Form 3 to a dealer in your state before it can be transferred on a Form 4 to you or your trust/corporation. Honestly, it's far better and easier to use a trust than to use a corporation. Corporations require annual paperwork and fees to maintain, whereas in most states a trust can be set up in under an hour and is perpetual with no maintenance. |
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No fingerprint card & CLEO signature needed. What other info is required? It's pretty straight forward. Fill out forms, get stuff in mail, Fill out NFA Form, etc Go to your local Secretary of State website and read instructions then file (cheaper online than in person). You could probably search most gun forums for "trust" "llc" "corp" and find enough bs to last years. |
The advantage is that you do not need CLEO signoff, fingerprints, or photographs. There could also be advantages as far as ensuring the items never have to be transferred again -- will the LLC to your kids so even if there were a law prohibiting future transfers you'd be good in that area. I am not a lawyer and this is my layman understanding of it. Another advantage is that both you and your wife could access the NFA items legally; you wouldn't have to be present. There are disadvantages too; if your LLC were to incur liability, your NFA toys registered to the company could be lost as part of a settlement. For that reason some people recommend forming an LLC just for owning NFA toys. But if you were going to do that, you could instead form a trust which is less hassle and you get a lot of the same advantages. You'd also have to keep the corporation active for as long as you own the weapons, unless you want to transfer them to another entity (and pay tax on the transfers.) |
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If you dont file your taxes every year showing no income on your LLC the state can take your LLC and your NFA items become contraband. A trust still allows the benefits of the LLC like no fingerprints or LE sign off and multpil trustees just like multiple corporate officers but you dont need to file anything with the state to change officers and those trustees poweres are more easily regualted. If you are considering using an LLC use a trust instead as its a private document and it needs no annual care. It does not matter if its a 2 day show... its a way to get customers to start the NFA process... you still have to receive the item at his actual place of business and if thats in another state you should just use a dealer in your home state. |
In some, but certainly not all states, LLCs are no longer required to file annual reports. Single Member LLCs can (if the organizer chooses) be disregarded fr federal income tax purposes. Its worth calling a reputable tax attorney in your area, explaining your desire, and asking how much they would charge to organize an LLC for you, if your state requires annual filings, and how your non-income producing LLC would be taxed. You may be surprised. You as the single member can transfer your membership interest via your will, and you can by an executed Company Resolution, also authorize someone to act as an authorized agent and carry on all company business on behalf of the LLC, which would enable them to possess, transport, etc. Trusts are not bad, and they are certainly cheaper to set up, but at some point, the Trust is going to terminate, and someone that you name as a beneficiary is going to have to deal with the NFA item, not so with a perpetual LLC. |
| I have both and here in Texas you have to file an annual franchise tax as well as inform the state everytime you change officers. Its also a $300 fee to set up. My Willmaker was $15 off Ebay and the state does not "estimate" me a tax every year if I dont file taxes on time. |
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