Armory Sponsor
Posted: 11/3/2007 4:30:36 PM EDT
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What kind of taxes do you have to pay on your trust or LLC if it only used for NFA things Thanks |
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A lot depends on your state. A LLC can be "single member" or "multi member." A single member LLC is taxed as a sole proprieotorship. A multi member LLC is taxed as a partnership. A single member LLC with zero income activities is not required to file a schedule C with their federal return. If your single member LLC does nothing other than invest in NFA items, it has no income activities until it sells its investments. Technically, a multi member LLC is required to file a partnership return for federal and state income tax purposes... but it can be all zeros on the form. What you need to look into is if there are any annual filing requirements with the state. In Ohio, there are no annual business filings for any LLC (other than income taxes IF you have income). Other states may require annual filings and filing fees. I prefer the LLC route over the trust route for 2 reasons: 1) not all trusts will allow you to move from one state to another and keep the trust in the new state. It depends on state law in the state in which the trust is made. However, every state allows a foreign (started in a diff state) LLC to exist and become registered in a new state. 2) if congress would ever enact a new law prohibiling further transfers of NFA items, you could sell your LLC. That would transfer ownership of teh company that already owns and has lawful posession of the NFA items. |
Armory Sponsor