Posted: 11/9/2010 7:52:22 AM EDT
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Hey all. I was planning on forming a living trust to both simplify the disposition of my assets in case of my death as well as make it easier for me to purchase NFA items. Well come to find out in MO you need an FFL of some type in order to purchase NFA's and supposedly you cannot have both a trust and an FFL according to this:
http://www.guntrustlawyer.com/states/missouri/ A trust may not obtain a C&R license. In some state like Missouri, to purchase Title II firearms you must have a FFL. Missouri considers a C&R a FFL for this purpose. A trust may not obtain a C&R or other FFL.
If you want to use a NFA Trust in Missouri, it must be done in conjunction with a Corporation or LLC. The Trust can be the member and the Manager of the LLC or Corporation which adds the ability to deal with incapacity, death, and easily changing the authorized users. So what would the pro's and cons be to starting my own LLC? I do plan on getting an actual FFL and offering gunsmithing services here in the near future when my wife is out of school, so I would probably use it in conjunction with that type of business once I start. I'm sure there's a lot more to this that I'm not realizing so I just want to hear your opinions. |
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PM sent....
The problem with forming an LLC is that you're inviting the state and local goverments into your business. There is paperwork, fees, possible taxes, and it's all registered to your house. Depending on your zoning and/or subdivision rules, you may not be able to or want run that "business" of your house. I don't like the idea of forming a business (that has no plans of doing business,) and having it all tied to my house. |
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Quoted:
Say, wasn't someone trying to see if they could get the ATF to issue their Trust a C&R License? I wonder how that's going. ETA: A Trust can "own" a LLC which can hold a FFL. +1 on that but you could get into some interesting issues if you start adding other parties to the trust, suddenly the ownership changes affect your LLC and FFL, i would definately talk to a lawyer on that one. |
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Quoted:
PM sent.... The problem with forming an LLC is that you're inviting the state and local goverments into your business. There is paperwork, fees, possible taxes, and it's all registered to your house. Depending on your zoning and/or subdivision rules, you may not be able to or want run that "business" of your house. I don't like the idea of forming a business (that has no plans of doing business,) and having it all tied to my house. Have you had any of these issues? |
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In MO, if you have an LLC to hold NFA assets and nothing else...other than the initial startup cost, there are no fees/taxes/annual filings/intrusion by the man in your life.
If you make money with the LLC then that's a different story. This isn't conjecture. I have an LLC for business purposes and an LLC for NFA items for years. I have had both types based in red-tape strewn STL county and in in a more conservative county where I currently live. |
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Quoted:
In MO, if you have an LLC to hold NFA assets and nothing else...other than the initial startup cost, there are no fees/taxes/annual filings/intrusion by the man in your life. If you make money with the LLC then that's a different story. This isn't conjecture. I have an LLC for business purposes and an LLC for NFA items for years. I have had both types based in red-tape strewn STL county and in in a more conservative county where I currently live. Thanks! Good to know. |
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That's kind of why I asked that question.
There was really no paperwork involved with either of my LLC's. Neither are tied to my house and I don't have any tax issues or intrusion by the state, city or feds into my NFA LLC. A few minutes online and it was done. Cheaper, and easier than a trust...I just don't see the down side. I was just wondering if I missed something and should be looking out for the "men in black"....I hate those guys. |
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Quoted:
In MO, if you have an LLC to hold NFA assets and nothing else...other than the initial startup cost, there are no fees/taxes/annual filings/intrusion by the man in your life. If you make money with the LLC then that's a different story. This isn't conjecture. I have an LLC for business purposes and an LLC for NFA items for years. I have had both types based in red-tape strewn STL county and in in a more conservative county where I currently live. Out of curiosity, do you have an EIN (tax ID number) for the LLC which owns your NFA items? I would think that might be necessary for certain things but would also introduce complications (like having to file a tax return for the LLC even though it had no income and no intention to make any income). Just wondering if that's really an issue. For the OP: I recall hearing the "Gun Trust Lawyer" guy on Tom Gresham's GunTalk podcast earlier this year. I don't recall the details, but he described some of the issues related to having a trust for NFA. Here are the here are the links to the podcasts. |