Anyone know of a good cheep place in town that can setup an LLC properly to deal with class 3 toys here in Tucson?
I want to make sure it's done right, also was thinking LLC was the way to go since it offers the "owners" more protection over a standard corp. (well that's my understanding anyways)
The reason I want to go this route is that if ever anything happens to me my father would be able to take ownership of any class 3 items in the company, as he would be a officer in the company. Also, he'd be able to take the "toys" out on his own without any issues.
I've gone through this process- I'll tell you what I did and how I did it.
I AM NOT A LAWYER AND MY WORDS WILL NOT HOLD UP IN COURT.
1. I did it myself. It took me 30 minutes to fill out the LLC paperwork. This saved me $300-$500. I AM NOT A LAWYER AND MY WORDS WILL NOT HOLD UP IN COURT.
2. A LLC and an incorporation have different requirements. Both protest your assets in the event of a lawsuit, but you're not doing business-- this is for NFA. So the lawsuit protection isn't all that necessary. Next point- cost to set up and maintain. The incorporation is less expensive to set up than the LLC but it requires yearly filings and yearly fees to keep it alive. The LLC is more expensive in the front but doesn't have yearly filings and yearly fees. Thus, I went with the LLC. I AM NOT A LAWYER AND MY WORDS WILL NOT HOLD UP IN COURT.
3. You'll need to get your entity an EIN to handle the NFA excise tax. I AM NOT A LAWYER AND MY WORDS WILL NOT HOLD UP IN COURT.
4. You can have more owners with a incorporation than a LLC. If you want to be able to legalize multiple users, the incorporation has definite benefits here. I AM NOT A LAWYER AND MY WORDS WILL NOT HOLD UP IN COURT.
5. You'll need to do profits and losses for any business on your taxes. If you're not in business, you still need to mention something like you're not doing anything with it, etc. I AM NOT A LAWYER AND MY WORDS WILL NOT HOLD UP IN COURT.
6. Pick your name carefully. Corporations of all stripes don't have tax privacy like a living person does. If you attracvt attention, you'll get it-- and then some. I AM NOT A LAWYER AND MY WORDS WILL NOT HOLD UP IN COURT.
That's about it! Remember, I AM NOT A LAWYER AND MY WORDS WILL NOT HOLD UP IN COURT.
Paranoid about being seen as giving legal advice when I AM NOT A LAWYER AND MY WORDS WILL NOT HOLD UP IN COURT,
The whole process is real easy. Give this guy a call:
Dale Smith 602-494-0644
Make sure he includes words to the effect that "Any member who is not a prohibited person may maintain custody of any of the Company's assets" in the LLC agreement.
The limitation on the number of LLC participants should not really matter except under the most bizarre of circumstances.
One of the grandest benefits of this form of Class III ownership is when you want to aquire a new toy: No LE sign off, no fingerprints, and consequently much faster processing by ATF.
And the requirement to transfer those items again, including paying all appropriate taxes (again), to an individual if you ever decide to dissolve the LLC.
So with an LLC you still have to pay the $200 tax and use a Form 4?
you do reguardless of individual transfer or corp. Nice thing about corp is that you don't get printed or go for leo sign off -- you also can have listed "officers" of the corporation who can use the said NFA items without the head of the corp present -- not something exactly doable with a personal transfer.
Not to mention if something ever happens to the corp owner, the officers can still keep the class 3 items without further transfers, long as they stay in the company.