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Posted: 10/20/2005 6:48:33 AM EDT
Ok I was tired of worrying about all the stuff surrounding NFA stuff after I realized a lot of the stuff I like to collect would fall under NFA. For weapons sometimes it is cheaper to pay the tax than worry about parts count also.

I did a lot of research. I looked at business licenses and LLCs. Neither looked like what I was looking for. I then found a little thing on the criptic va guide to businesses called a Va nonstock corp. Va nonstock corporations are generally incorporated clubs or such that are not designed to make money. The nice thing about this is that it is only $25 a year to file instead of the $50 and in most cases it is tax exept.

I was worried about having to file so I spent a while on the phone with the va dept of taxation. I advised what I would be using it for and that I would make no money with the corporation. She went over the info with me and said she didnt know. She never got that question and that I probably did not need to file with them. She then said she would check and call back. I then got a call back 2 hours later and she said basically that they never had that issue before and to check with the IRS. She said that if they wanted me to file for federal that I would need to with them and if not dont worry about if for state. I then spent about an hour on the IRS's websight and found that non-profit organizations are not only tax exept but as long as they do not raise more than $25000 a year I do not need to file with them either.

I then surfed the web and spent about an hour or so reading and studying articles of incorporation for different places. All clubs and associations and such. I then sat down and wrote my articles of incorporation that basically told of the activities of my corporation and setup ground rules. The nice part is that I was able to add all the language required to be tax exempt and then added extra that covered the mandatory booting of members that committed any crimes or acts that would prevent handling of items involved in the process. Basically, this was two pages of cover my ass and I added other activities that I am into also as offical activites that the membership of the corporation permits. Looking at it I could probably have a pretty decent extreme sports club if I wanted.

I then mailed the form and the articles to the state corporation commission yesterday. I then took the cash that I got from selling my armalite, put it in the bank, and then used it to order one suppressor for my MP5.

NFA here I come.
Link Posted: 10/20/2005 8:00:04 AM EDT
Link Posted: 10/20/2005 9:47:46 AM EDT
very kewl.

Ive thought about this before but never acted on it.........guess im too lazy for action.
Link Posted: 10/20/2005 11:44:44 AM EDT
Can you PM me the information on the MP5 silenced. where, costs, etc

I have a 94 and I'm thinking the same route.

TIA,
Link Posted: 10/20/2005 1:42:32 PM EDT
You have a PM, KogaShuko.
Link Posted: 10/20/2005 1:44:15 PM EDT
The suppressor I orderd was a trinity from impact guns. I got two mounts for it, the trilug, and threaded model. I have heard of good things about the gemtech suppressors and this one is suppose to be small enough to allow a sig 226 to cycle reliably.

You might wait and see if my va business stuff comes back before everyone else starts filing. I would hate to tell everyone how I did it and then they say it is jacked up. Like I said I spent some time researching it so it should be fine but we will see. Got about 3 weeks to screw with it before the stuff even comes to the range.
Link Posted: 10/20/2005 1:59:18 PM EDT
You have given me a great idea, or rather pushed me to steal your idea. Great job mate, hope it works out. Keep us updated, cause if it works I am filing ASAP.

-Ben
Link Posted: 10/20/2005 3:23:15 PM EDT
Just so you know, you will not be exempt from paying the transfer tax.

Steve.
Link Posted: 10/20/2005 3:58:06 PM EDT
Yeh I already looked into that one. Basically, I am just not doing anything that I would have to pay taxes on except for that.
Link Posted: 12/19/2005 12:06:16 PM EDT
Any update on this?


Originally Posted By KogaShuko:
Yeh I already looked into that one. Basically, I am just not doing anything that I would have to pay taxes on except for that.

Link Posted: 12/19/2005 12:54:46 PM EDT

Originally Posted By kgraber:
Any update on this?


Originally Posted By KogaShuko:
Yeh I already looked into that one. Basically, I am just not doing anything that I would have to pay taxes on except for that.




+1 that request
Link Posted: 12/19/2005 5:39:36 PM EDT
read the PDF file here on incorporating... Interesting.. a viable option..

however it appears that for a nonstock corp, it is a $75 filling fee? Form - SCC819

If you wouldn't mind.. can you email with information on your corp.

Longboat@gmail.com
Link Posted: 12/19/2005 10:35:06 PM EDT
Thats all I did was fill out the form and send it in. You can do an articles of incorporation like I originally did and sent with the form. However, it must contain everything that is in on the form and can not be sent with the form. I just saved myself some time and sent the form.
Link Posted: 12/19/2005 10:45:26 PM EDT
uh, ok.. you lost me.....
Link Posted: 12/19/2005 11:11:04 PM EDT
[Last Edit: 12/19/2005 11:13:33 PM EDT by KogaShuko]
I am sorry at what part?

Basically that form represents your articles of incorporation. Think of your articles as a charter in the old common law thing. The form is a quicky version of it. If you want to use it as a club or something or have more members you would probably want to do the more detailed articles to lay down ground rules. The other option is that you file the form and then take a copy of that form and keep it along with a series of bilaws. That works too and wouldnt have to be on file with the VCC.
Link Posted: 12/20/2005 12:02:02 AM EDT
So the "rules" of membership and officer elections and such can be dictated in bylaws and not specified on the Non-Stock Corp?

What was the end out result with the Feds and tax or tax forms for a not for profit?
Link Posted: 12/20/2005 9:34:58 PM EDT
I guess I will find out for sure at tax time. Bottom line is that if you dont make anything you are not able to be taxed on it. So I dont think the feds will be too teribly concerned if the $25000 exemption isnt completely layed out in my articles of incorporation. They can audit me if they want but since I dont have anything that is taxable what is the point. Worst case schenario I can amend them later.

If you talk to taxmonster he has a better grasp on filing but he also strikes fear into people. He means well but seems to take it personally that people can do theirselves what he has a degree in doing.
Link Posted: 12/21/2005 6:18:13 AM EDT

Originally Posted By KogaShuko:
The suppressor I orderd was a trinity from impact guns. I got two mounts for it, the trilug, and threaded model. I have heard of good things about the gemtech suppressors and this one is suppose to be small enough to allow a sig 226 to cycle reliably.

You might wait and see if my va business stuff comes back before everyone else starts filing. I would hate to tell everyone how I did it and then they say it is jacked up. Like I said I spent some time researching it so it should be fine but we will see. Got about 3 weeks to screw with it before the stuff even comes to the range.



I've got a trinity as well. Its a great little suppressor. It will work on both my 92fs and my Mac11. Its uncommon to find a supressor that will cycle on a pistol and withstand the heat from a SMG.

If it will cycle on a 226 reliably I may be selling my 92fs here shortly. Let me know how that turns out.
Link Posted: 12/21/2005 7:43:55 AM EDT
Next thing is going to be a m42000. I am having a hell of a time finding someone with one in stock in my state.
Link Posted: 12/22/2005 6:03:30 AM EDT
[Last Edit: 12/22/2005 6:04:03 AM EDT by Ker-Pow]
This sounds like a great idea. The only question that I have is, if you purchase a NFA article (suppressor, firearm, etc.) at cost X and then later sell it at cost Y (more than the purchase cost X) are you liable to pay tax at that time for the "profit" you made?
Link Posted: 12/22/2005 6:44:35 AM EDT
Just like when you sell any other property. I would be pocketing the money though not the corp. My original articles of incorporation stated that if anything was liquidated from the corp that it or it's resultant amount it was sold for would go to the original person that donated it to the corp.
Link Posted: 1/20/2006 6:58:55 AM EDT
For those of you wondering how this went well here goes. I got my Form 4 for the M42000 back on monday approved. That is a big heads up for anyone interested in going this route. I was telling someone else about this and the part that states "a corporation formed for purposes other than making money" really covers NFA transfers.
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