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3/2/2017 12:56:33 PM EDT
Is there any real advantage to using my LLC on a form 1 as opposed to individual?
3/2/2017 1:04:49 PM EDT
[#1]
You can sell the LLC and its assets without incurring another transfer tax on the item, and multiple responsible parties under the LLC can use/possess.

Be aware that an LLC with no assets other than NFA firearms that you sold might be interpreted as tax evasion, though.
3/2/2017 2:24:17 PM EDT
[#2]
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Quoted:
You can sell the LLC and its assets without incurring another transfer tax on the item, and multiple responsible parties under the LLC can use/possess.

Be aware that an LLC with no assets other than NFA firearms that you sold might be interpreted as tax evasion, though.
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This Exactly.

Although you didn't ask about Trusts,my LLC was cheaper than a trust and is perpetual. One $50 to the Secretary of State and I am good forever. Also less paperwork to submit compared to a trust as only a one page article of incorporation is needed and I can add and delete Directors at will without a notary.
3/2/2017 2:34:04 PM EDT
[#3]
Quoted:
Is there any real advantage to using my LLC on a form 1 as opposed to individual?
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Well the obvious is multiple owners.

Bu even a single owner LLC, there is no paperwork when folks pass away, LLC can get an FFL, etc.
3/3/2017 12:10:04 AM EDT
[#4]
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Quoted:
my LLC was cheaper than a trust and is perpetual. One $50 to the Secretary of State and I am good forever. Also less paperwork to submit compared to a trust as only a one page article of incorporation is needed and I can add and delete Directors at will without a notary.
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Who did your LLC for you?
3/3/2017 9:07:51 AM EDT
[#5]
I did it myself. Filed online with the state. Downloaded an operating agreement online for free. Easy as could be.
3/3/2017 4:13:28 PM EDT
[#6]
Most states require an annual licensing fee to the secretary of state.  In Arkansas, it's $150 franchise fee annually.  Forget that payment or make it late and the LLC's status can be revoked, and then you're in possession of an unregistered NFA item.
3/3/2017 4:16:45 PM EDT
[#7]
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Quoted:
Forget that payment or make it late and the LLC's status can be revoked, and then you're in possession of an unregistered NFA item.
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No, it is no different than an individual dying or a trust being invoked. ATF has procedures for this.
3/3/2017 4:18:39 PM EDT
[#8]
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Quoted:


No, it is no different than an individual dying or a trust being invoked. ATF has procedures for this.
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Did not know that.  Is it a tax free or tax paid transfer, and to whom would it be transferred to?
3/3/2017 4:30:19 PM EDT
[#9]
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Did not know that.  Is it a tax free or tax paid transfer, and to whom would it be transferred to?
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In most cases you would just pay the fee to get your LLC in order. In Texas there is no annual fee, but there is an annual filing. So if you are late you just file late, pay I think $50, and your LLC is GTG.

If however you cannot get your LLC back in order, you could do a $taxpaid xfer to anyone legal. The point being, nobody is going to jail for a LLC that lapses.
3/3/2017 5:19:20 PM EDT
[#10]
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...........................The point being, nobody is going to jail for a LLC that lapses.
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Thank you for the education.  I know I read it on the internet somewhere and am glad I will no longer be perpetuating that myth.  It does make sense that a lapsed LLC or corp could cause such an issue based on some state laws. Glad to know that the ATF is seemingly pretty generous in such situations.
3/3/2017 6:11:35 PM EDT
[#11]
Thanks! Seems like the LLC could be interesting, but as with all this, should involve a lawyer... the nice thing about trusts is they've gotten to be almost off-the-shelf.
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