Quoted:
Quoted: OK If using a LLC makes it so much easier what reason is there not to form an LLC for this other than the $300 cost? (that doesnt bother me at all)
Surely there has to be some reason people do it in their name instead of a Corp when they could avoid so many headaches by doing it as a corp.
Thank you!
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Part of the problem is if you croak and there is no one else that is an owner of the corp. So that can be a problem. Other is divorce and your ex can make life difficult for you.
You also have stuff to keep up every year to keep the corp active if I am not mistaken.
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Just to be clear....
You can will your shares in an LLC just like you are able to will your personal NFA items to someone. In fact, you can avoid issues w/ probate by having the person you want to end up with the NFA items as an officer of your corp.
As far as divorce, I don't see a downside to a corp and can't say I've seen it mentioned before. Your spouse has just as much right to an NFA item you had transferred to you personally as one posessed by a corp you own.
Yes, there is additional paperwork to be filed each year. In MI, you have to send in a check for $25 to the state with a form saying the LLC is still active. If it is a single member LLC you can just file a schedule C on your regular 1040 but its going to be all zeros unless you are making or losing money. Most people tell you its not necessary to even file that part but you can if you wish.
As a side note, lots of people pose the question 'I already have an LLC for <blank> can I just use that one?' Sure, you technically can, but its a bad decision IMO. For the $300 or $50 that you pay to set up an LLC its worth getting one just for NFA and not risk any liability to your income earning LLC because someone gets hurt with your NFA, or something similar.