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So, by popular demand, I have decided to write up my thoughts on using LLCs to hold suppressors and other NFA items.
WARNING! I am not accepting any clients for legal work! This post is only an accounting of the way I handle the BATFE, not legal advice! Use information at your own risk!
The Pros:
-You can sell an LLC without having to do transfer paperwork! (Corporations are people, thanks Citizens United)
-You can create a "NFA Club" with all members of the LLC being able to possess any of the registered NFA items.
-You can register multiple NFA items to your LLC and store them in separate places.
-You have total flexibility with who is included into your LLC.
-You can keep track of what members put into the pool with shares of the corporation.
-If you decide to sell one of your NFA items, you have the option of adding the buyer to the LLC and skipping the transfer process!
-Always good to have alibis.
The Cons:
-More expensive than a living trust
-More time consuming, must hold semi-annual meetings (they can be on paper only)
-Members must be trustworthy...
-Possible liability (you must choose your members responsibly)
Much like a living trust, a LLC (Limited Liability Corporation) provides a strawman to own your items. The difference is how flexible a LLC is with adding and removing members. I structured my LLC so that a simple vote by shareholders can add or remove members. This means that everyone who is a member has every legal right to possess one of the registered NFA items. It becomes sort of a NFA club, if you will.
When you create the LLC, you issue shares. I use shares as a crude accounting system. Every time one of the members buys a NFA item, they receive one share. So if I have three shares, Billy has two and Bob has none, I have the ability to carry a vote since I have three voting shares. However, Bob can possess all five suppressors, since he is a member. He just doesn't OWN any part of the corporation.
Adding members is easy. Call the Secretary of State office, and ask for the paperwork, fill it out and throw in $15 and you have a new member! Removal of members is the same. Just remember, have a meeting with all owning parties prior to adding or removing members!
There are several companies that do registered agent services which can help you make an LLC. I would warn you that choosing your location is important! For instance, a Nevada LLC would be a bad place to have your LLC if you reside in Washington! You would have to buy all your NFA from Nevada! However, owning a Oregon LLC even though you reside in Washington makes cross border deals a snap ;-)
Another consideration is what county to locate your LLC in. I chose Douglas county, since Wenatchee is a great little community that is gun friendly. On a side note, I also register my vehicles to the LLC, which means that I do not need emissions though I live in Spokane!
Please ask if you all have any questions.
WARNING! I am not accepting any clients for legal work! This post is only an accounting of the way I handle the BATFE, not legal advice! Use information at your own risk!
The Pros:
-You can sell an LLC without having to do transfer paperwork! (Corporations are people, thanks Citizens United)
-You can create a "NFA Club" with all members of the LLC being able to possess any of the registered NFA items.
-You can register multiple NFA items to your LLC and store them in separate places.
-You have total flexibility with who is included into your LLC.
-You can keep track of what members put into the pool with shares of the corporation.
-If you decide to sell one of your NFA items, you have the option of adding the buyer to the LLC and skipping the transfer process!
-Always good to have alibis.
The Cons:
-More expensive than a living trust
-More time consuming, must hold semi-annual meetings (they can be on paper only)
-Members must be trustworthy...
-Possible liability (you must choose your members responsibly)
Much like a living trust, a LLC (Limited Liability Corporation) provides a strawman to own your items. The difference is how flexible a LLC is with adding and removing members. I structured my LLC so that a simple vote by shareholders can add or remove members. This means that everyone who is a member has every legal right to possess one of the registered NFA items. It becomes sort of a NFA club, if you will.
When you create the LLC, you issue shares. I use shares as a crude accounting system. Every time one of the members buys a NFA item, they receive one share. So if I have three shares, Billy has two and Bob has none, I have the ability to carry a vote since I have three voting shares. However, Bob can possess all five suppressors, since he is a member. He just doesn't OWN any part of the corporation.
Adding members is easy. Call the Secretary of State office, and ask for the paperwork, fill it out and throw in $15 and you have a new member! Removal of members is the same. Just remember, have a meeting with all owning parties prior to adding or removing members!
There are several companies that do registered agent services which can help you make an LLC. I would warn you that choosing your location is important! For instance, a Nevada LLC would be a bad place to have your LLC if you reside in Washington! You would have to buy all your NFA from Nevada! However, owning a Oregon LLC even though you reside in Washington makes cross border deals a snap ;-)
Another consideration is what county to locate your LLC in. I chose Douglas county, since Wenatchee is a great little community that is gun friendly. On a side note, I also register my vehicles to the LLC, which means that I do not need emissions though I live in Spokane!
Please ask if you all have any questions.
