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Post subject: Using an LLC for NFA Items
Post Posted: Tue Mar 29, 2016 12:03 pm
In Ken Hanson's newest book he says that he would use an LLC for holding NFA items, i.e. suppressors, SBR, etc. rather than a gun trust. He thinks the LLCs are easier to work with and less prone to a disaster.

I was wondering if any of you use them in Ohio and what your experience has been with them. In addition, I want to make sure I understand the process.

If I buy an NFA items than I would just do the paperwork in the name of the LLC and the LLC would technically be the "owner" of the item correct? Any members of the LLC could then carry and use said items as long as they carry a copy of the tax stamp with them correct? Is it any more complicated than that?

Any feedback would be appreciated. Thanks!

Fortune Hunter

"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." - Benjamin Franklin
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Post subject: Re: Using an LLC for NFA Items
Post Posted: Tue Mar 29, 2016 3:50 pm
Ken's a lawyer. You need to talk to a lawyer to understand the differences between going with a trust vs llc vs private ownership.

For example, according to http://www.nolo.com/legal-encyclopedia/ ... 32066.html you would have to file articles of organization with the Secretary of State. The information would include your name and address. An important consideration: Is that information a matter of public record?

You might need an EIC. You might need to file taxes on behalf of the LLC. Apparently Ohio doesn't require LLCs to file annual reports, but many states do. If you ever move to another state you may suddenly need to file annual reports for your LLC.

Again, my best advice is to talk to a lawyer before committing to this route.
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Post subject: Re: Using an LLC for NFA Items
Post Posted: Tue Mar 29, 2016 10:12 pm
There's also periodic renewal costs involved in being a registered corporation that have to be paid to the state. Been there, done that, many years ago. Don't ask, that's all I remember.

AlanM
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Post subject: Re: Using an LLC for NFA Items
Post Posted: Mon Apr 04, 2016 2:43 am
An Ohio domestic, for-profit LLC costs $99 to register Articles of Organization. The Articles don't actually have to be anything more that the Secretary of State application form (Form 533A).

The only name required to be on that form is the "statutory agent" if that person is also an "authorized representative" for the LLC. That's also the only person that needs to sign the form.

If the articles mention that the members of the LLC will be documented somewhere besides the Articles, there would be no "public information" out there.

There is no renewal anymore for an Ohio LLC.

My question would be, what would one need to carry to show you are a member of the LLC?

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Post subject: Re: Using an LLC for NFA Items
Post Posted: Tue Apr 05, 2016 6:20 am
MyWifeSaidYes wrote:
My question would be, what would one need to carry to show you are a member of the LLC?


I've always wondered that and would assume some sort of proof that one is part of the LLC, either the articles or a business card. I know if I ever did NFA items I would do them the LLC route over a trust. Partly because of the fact I feel it's much easier to add and remove people on an LLC than a trust.

Also, once I die, the LLC still lives. A trust, well, technically that dies after a set amount of time after my death. The issue is a new trust would then need to be set up. Now, how does one handle all of the engraving on the firearms? What if one wants to transfer that engraved item instead of holding onto it? At least in the LLC world, that could be quite easily done. Granted, the LLC would still need to maintain possession, but I can add people to the LLC as I wish FOREVER. Once the trustor dies, nobody can be added or modified. So whoever is the trustee would get all the NFA items and pretty much be stuck with them and I don't know how one could transfer them to another. Can you simply grind down the trust name? Create a new trust in the same name? I've never figured that part out.
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Post subject: Re: Using an LLC for NFA Items
Post Posted: Sat Apr 09, 2016 3:47 pm
Thank you everyone for the responses. I decided to go with an LLC. I have a few of them for both my business and investment purposes so at the end of the day I was pretty familiar with the structure and using them. I just wasn't sure about their use in terms of this, but as it turns out it is pretty simple to use and even easier to keep my name out of any public records.

Fortune Hunter

"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." - Benjamin Franklin
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Post subject: Re: Using an LLC for NFA Items
Post Posted: Sat Apr 09, 2016 9:09 pm
Trusts may continue after your death if you do it right and include other grantors and trustees. LLC's require meetings and notes as well as papers filed with the Secretary of State that incorporate your LLC. The benefits of having an LLC will disappear after the new law 41P takes effect this summer, as you will have to be fingerprinted and photographed, just like everyone else. This rule did eliminate the need for CLEO sign off. You will need to be photographed and fingerprinted every two years when/if you continue to purchase NFA regulated firearms.

for more info check out this link: https://www.atf.gov/file/100896/download

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