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PsychGuy274
08-17-2011, 8:31 PM
MODS: Sorry if this is in the wrong forum.

So I'm going to be setting up my NFA Trust soon (I'm in CO) and I posted on CO Gun Owners (http://www.cogunowners.com/showthread.php?tid=452) a question about lawyer recommendations.

Someone asked me why I was going for a Trust vs. an LLC?

My question is: What's the difference? I've always heard it referred to as a trust.

What are the benefits of one over the other?

And the reason I'm posting it here is because the other forum doesn't see much activity.

FXR
08-17-2011, 8:41 PM
I believe both a trust or a LLC can both own property. If you're thinking of doing one or the other just for NFA stuff, a trust has no yearly upkeep cost and is likely cheaper from the start. If you have a corporation (your company) already it can save you the trouble and cost of setting up a trust, but you'd have to keep it current (with associated yearly fees) even if your company is no longer active. Also, it might not be a great idea to have unnecessary assets owned by your company in case of a lawsuit against the company.

PsychGuy274
08-17-2011, 8:51 PM
Well, I don't own my own company or anything - this is strictly for NFA items and skipping CLEO sign-offs and finger printing.

Seems like a trust is the way to go for me then.

OCArmory
08-18-2011, 11:02 AM
California has a minimum tax on LLC's that is why it is not worth doing here just for NFA items. You might want to talk with a tax attorney as you can setup an LLC based on investing and there might be better tax incentives for you to keep your NFA stuff in a LLC. It might change your taxes.
Mike

Curtis
08-18-2011, 11:12 AM
I agree with FXR. There are no annual costs or paperwork required for a trust. California has an $800/yr business tax and an additional $900/year tax for LLC's.

I would recommend you talk with Oaklander. He has a network of attorneys that can help.

6172crew
08-18-2011, 11:44 AM
I own all 6 of my Stamps, I was able to get get a NV LEO sign off (24-48 hour turn around) and the big deal with this way is my kids/family can't shoot any of these without me being there. It isnt a big deal now but when they get older I might re-do the Stamps under a trust that has more than just my name on them.

If I pass on they can apply for a tax-free Stamp at that time.

oaklander
08-19-2011, 8:57 AM
I agree with FXR. There are no annual costs or paperwork required for a trust. California has an $800/yr business tax and an additional $900/year tax for LLC's.

I would recommend you talk with Oaklander. He has a network of attorneys that can help.

Yes, I work with attorney David Goldman, who is the author of the "master trust" that is recognized as one of the best ones (if not "the" best one). A Quicken trust is about one page long, a Goldman/"Oaklander" trust is about 15 pages long - the reason is that operation of law can make a trust beneficiary into a felon, unless the trust "anticipates" certain outcomes.

An example is a beneficiary who later becomes prohibited. Under the Quicken model, they still get the gun, automatically - creating an NFA violation by operation of law.

I am SUPER behind on day job and other 2A stuff. I have been slacking on getting back to people - will try and do this weekend.