Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
Member Login
Posted: 10/24/2004 10:13:17 AM EST
Ok, who here has set up a LLC in Texas? I have a few questions, trying to figure out how much trouble this is going to be. From what I see its a $200 set up fee to begin. Are there any yearly fees/taxes, other? What about paperwork or records to be kept? I really wanna go this route but dont want to be suprised down the road with annoying yearly paperwork or taxes.
Thanks,
Chad
Link Posted: 10/24/2004 11:45:00 AM EST

Originally Posted By cconn:
Ok, who here has set up a LLC in Texas? I have a few questions, trying to figure out how much trouble this is going to be. From what I see its a $200 set up fee to begin. Are there any yearly fees/taxes, other? What about paperwork or records to be kept? I really wanna go this route but don’t want to be surprised down the road with annoying yearly paperwork or taxes.
Thanks,
Chad



Chad,

I have a LLC here is Texas. My advice is going to be pay somebody to do it for you. You can get hosed if you mess it up, which is easy. I used www.corporate.com, and it ran about $575.00, but now it looks like it will cost $600 for the full deal (recommended), and $400 for the economy package.

Learn taxes, but a good software TurboTax Platinum, and PAY a great tax accountant to review your taxes every year. Paperwork and records are a must, and can be time consuming if you are not careful. Example: If you do business as a corporation, and make money (which you need to) then all profits are taxable. You will have to keep track of any income and expenses for the corporation. The way to win here is to put assets in the corporation instead of your self. This protects your assets from personal liability (bankruptcy or repossession) to a great degree, but you have to manage the paperwork around this aspect of the LLC. If you plan to be an employee of the LLC and draw a salary from the LLC, then that payment becomes an expense for the LLC, and taxable income for you. Do you see what I mean here?

You can put your self in a situation where you and the LLC are taxed on the same dollar if you don't know what you are doing, and you will always have to do tax returns for the LLC and for yourself. You will also have to use a 1040-ES for estimated taxes, and pay taxes quarterly to the IRS (Treasury Dept. actually). If you fail to pay, or don't pay, you will incur penalties that can be stiff, but there are also ways around this.

Who will the officers of the LLC be, and how do you plan to arrange them? Never do business with family, and if you are married, and get divorced and have your wife as an officer of the LLC, I assure you that she will OWN you, and all of you LLC owned assets...Get it?

This is not for everybody, and if you do not have a legit need (buying NFA toys is not a good reason IMO) for a LLC, then I would recommend against it. I have probably saved myself $20K by having a LLC and a corporation (NO! I will not explain this to you) for the last 4 years.

If you still want this LLC, get the best tax accountant with corporate knowledge that is available ($1000+ per year). Uncle Joe knows shit about this, and will not work for your needs.

LLCs are a system to protect assets from an individual’s action, and for making money. If you are not prepared to commit to a LLC, it will eat your ass fast, and you will have nothing but tax debt to show for it.

Summary:

Learn
No family
Pay a corporate attorney to set it up
Keep records like your life depends on it
Pay taxes on time
Pay a tax attorney/accountant to help with your returns

I am by no means an expert, but my corporation is my life. Prepare for this also, as it is not for the amateur that wants a suppressor or a SBR.

This is MY OPINION ONLY, I do not offer services of any kind for this, I am not affiliated with anyone but me.


IO1
Link Posted: 10/25/2004 5:04:33 AM EST
Any other opinions? The LEO's in my area refuse to sign so this is my only option it seems.
Link Posted: 10/25/2004 6:28:22 AM EST

Originally Posted By cconn:
Any other opinions? The LEO's in my area refuse to sign so this is my only option it seems.



It is as easy as it looks. As long as your LLC does not make any money, there is little paperwork to do. The state and the Feds send you forms, just fill them out and send them back. 15 minutes a year.
Link Posted: 10/25/2004 7:00:32 AM EST
Thanks Renegade, that is what I have been trying to find out. I dont plan on making any money with the LLC, just using it to purchase toys. I just didnt want to get suprised by tons of paperwork or fees/taxes. My wife is an attorney but she is useless it seems, no help with the LLC stuff. Now if I had asbestosis she might be able to help me out
Link Posted: 10/25/2004 7:08:15 AM EST
Link Posted: 10/25/2004 2:36:50 PM EST

Originally Posted By EricTheHun:
LLCs suck.

Corporations are the only way to go.

And that's all I am going to say on the subject.

Eric The(LegalBeagle)Hun



Corps. the fee is $300 and same easy paperwork, and as mentioned earlier if no income no worries.
Link Posted: 10/26/2004 4:12:11 AM EST
LLC's are no broblem. No need to seek professional assistance if you can complete a couple of short forms. The fee to the State of Texas is $200.00 for regular filing; you can request 2 day edpedited filing for an additional $25.00. The actual filing can be done bu mail or by fax.

I recommend LLC's to most customers for NFA purchases nowdays.

Here are links to the Secretary of State's Website and the forms you need:


Forms page: http://www.sos.state.tx.us/corp/forms.shtml (you need form 205)

Expedited filing: http://www.sos.state.tx.us/corp/expedited.shtml

Payment options: http://www.sos.state.tx.us/corp/payment.shtml

FAQ's: http://www.sos.state.tx.us/corp/generalfaqs.shtml

Filing guide: http://www.sos.state.tx.us/corp/forms/filingguide/index.shtml


Keith Norman


NFA Investments, A BATFE Licensed Firearms Manufacturer
Keith Norman, owner
Tel. (281) 639-0026
Type 07 FFL / Class 02 SOT
Web: www.NFAinvestments.com
Email: keith@NFAinvestments.com

Central Texas Investigative Services
Keith Norman, owner
Tel. (281) 639-0026
TCPS #A-08772
Web: www.ctis.cc
Email: knorman@ctis.cc
Link Posted: 10/26/2004 4:26:34 AM EST
[Last Edit: 10/26/2004 4:28:16 AM EST by EricTheHun]
Link Posted: 10/26/2004 5:35:59 AM EST

Originally Posted By EricTheHun:
Nevermind.



Eric The(Edited)Hun



It sounds like you have something to add, I for one would like to hear it.
Link Posted: 10/26/2004 2:11:04 PM EST
[Last Edit: 10/27/2004 11:44:34 AM EST by ph713]
On a related note - if you create a TX LLC which is wholly owned by yourself with only yourself as a manager/member, do you still have to file for an EIN, or does that become unneccesary?
Link Posted: 10/27/2004 5:11:58 AM EST
Still have to have an EIN. The Secretary of State will send you a letter about the EIN AFTER you are set up and running.


NFA Investments, A BATFE Licensed Firearms Manufacturer
Keith Norman, owner
Tel. (281) 639-0026
Type 07 FFL / Class 02 SOT
Web: www.NFAinvestments.com
Email: keith@NFAinvestments.com


Central Texas Investigative Services
Keith Norman, owner
Tel. (281) 639-0026
TCPS #A-08772
Web: www.ctis.cc
Email: knorman@ctis.cc
Link Posted: 10/27/2004 6:23:07 AM EST

Originally Posted By NFA_Investments:
Still have to have an EIN.



No you don't and this is why consulting an attorney (such as ErictheHun) may prove worthy. This would be my recommendation if you are not comfortable with what you are doing

To elaborate, with an LLC it depends on how you are setup.

From page 4, Instructions for IRS form SS-4:



By default, a domestic LLC with only one member is disregarded as an entity separate from its owner and must include all of its income and expenses on the owner’s tax return (e.g., Schedule C (Form 1040)).



Hence, no EIN required...your SSN becomes your EIN.


Also by default, a domestic LLC with two or more members is treated as a partnership. A domestic LLC may file Form 8832 to avoid either default classification and elect to be classified as an association taxable as a corporation. For more information on entity classifications (including the rules for foreign entities), see the instructions for Form 8832.


EIN required.
Link Posted: 10/27/2004 7:31:32 AM EST
You are correct about the single member LLC's. The Secretary of State, however, mails out notice to new LLC's advising them that they need to obtain an EIN.

The majority of persons I know who set up LLC's list themselves and their spouses as managing members, hence they will need to obtain an EIN. They do this for a variety of reasons including concerns that their spouse may operate their vehicle in which a forgotten NFA items is inside. Also, I can tell you from personal experience that it is much easier to liquidate a NFA weapon from a deceased person's LLC if there is another person who can still sign off on behalf of the LLC.

Personally, I think most people are generally wasting money by hiring an attorney to set up a LLC; corporations are a completely different matter. Sure, there are some circumstances where it is a good idea to seek professional assistance. If an individual is not comfortable reading the instructions and filling out the fill-in-the-blank document with the Secretary of State's office, or has questions that they can't find answers to, then professional assistance is definitely a good idea. Fortunately, most persons who are serious enough about acquiring NFA weapons to try and set up a LLC to assist in NFA weapons acquisition are probably "thinkers" and able to do it on their own - the same as filing their federal personal income tax return every year.

My comments are in no way intended to be derogatory towards attorneys. Several of my closest friends (and clients) are attorneys, and my regular job is in an extension of the legal field. My personal feelings are that most persons of reasonable intelligence can set up their own LLC without the unnecessary expense of legal assistance.

I disagree with advising everyone who wants to set up a LLC that they need the assistance of an attorney. If an individual can't complete the simple forms and filing requirements on their own has questions, or needs assistance, I agree that they should see such assistance from a knowledgeable attorney or CPA. However, if they are comfortable with completing the forms and meeting the annual filing requirements, then why should they throw their money away for unnecessary legal advice?

Keith

NFA Investments, A BATFE Licensed Firearms Manufacturer
Keith Norman, owner
Tel. (281) 639-0026
Type 07 FFL / Class 02 SOT
Web: www.NFAinvestments.com
Email: keith@NFAinvestments.com

Central Texas Investigative Services
Keith Norman, owner
Tel. (281) 639-0026
TCPS #A-08772
Web: www.ctis.cc
Email: knorman@ctis.cc

Link Posted: 10/27/2004 8:12:53 AM EST
Link Posted: 10/27/2004 8:29:42 AM EST

Originally Posted By EricTheHun:
[
With all due respect, I am extremely uncomfortable in discussing this subject matter on a public Internet website.

If you had seen what I have seen and been involved with in this subject area, you would also understand that this subject matter is NOT one that should be discussed with folks the identity of whom you have no earthly idea or basis to formulate an educated guess.

Not to alarm anyone, of course, but this simply is NOT a good idea to discuss openly.

If you wish to hear MY ideas, thoughts, and advice about it, then come to the Hun Farm, where I can look you eye-to-eye, and I will happily spill my guts.

Otherwise, 'Nevermind.'

Just remember that old criminal lawyers' saying, 'There's no such thing as a deaf mute in prison.'

Eric The(WiseBeyondHisEars)Hun



Are you saying this because of the potential liability of your comments being regarded as official legal advice to someone that you don't know the whole situation of?
Link Posted: 10/27/2004 8:38:39 AM EST

Originally Posted By ph713:
Are you saying this because of the potential liability of your comments being regarded as official legal advice to someone that you don't know the whole situation of?



BINGO!

Besides, I would add, if your coming to the internet to ask "how to do it", then you're better off consulting a professional in person.

As with any .gov, ignorance of the law is no excuse, especially with the IRS.

Link Posted: 10/27/2004 8:43:41 AM EST
Excellent point.
Link Posted: 10/27/2004 8:52:41 AM EST
[Last Edit: 10/27/2004 8:54:55 AM EST by EricTheHun]
Top Top