So I am applying for a CCW permit (NY) and at the mandatory 4hr and 45min training course I over hear someone saying, to someone else. You should think about setting up an LLC. Not looking for legal advice just wondering why an LLC would be good? And if so where I can get more information.
Pain is fleeting quitting is forever
I don't have any info on an LLC but two friends in upstate NY, one around Downsville and the other near Binghamton both easily received their full carry permits. Going further south like Westchester well good luck.
BTW, all NY permits are full carry. Administrations in certain counties put the restrictions on them NOT the state so by chance if you were to carry with a permit designated "target" and found out you would of course lose that permit but there would be no legal issues. OF COURSE BY NO MEANS AM I RECOMMENDING THIS.
__________________Making Good People Helpless . . . Will Not Make Bad People Harmless!___________________
In a county with admin restrictions an LLC might get you "business carry". Less restrictive than "hunting/target" but more restrictive than "unrestricted". Erie County has been handing out unrestricted more and more lately but it used to be hunting/target until you had a permit 5 years.
Assuming they were suggesting that the LLC would protect you personally my opinion for what it's worth is that would do nothing for you... if you do something that others feel harmed them... the acting directors or any corporation are ultimately responsible for the actions of the corporation.. It's just that the corporation has to be sued and lose first then the 'directors' and then be sued for more damages....
You might also have overheard people talking about setting up for their FFL. For a state dealer's license we have to go through the same process as the NY pistol permit process every three years. We don't retake the course but the same application, same prints, same references every three years.
Perhaps that you put all your other stuff in an LLC and if you get into a shoot and sued then they cant go after your stuff? Only thing that comes to mind and I'm not sure its a real thing.
Agreed, I don't think that's a thing. Unless one could successfully claim, ' I didn't shoot the gun, this LLC did.'
Pretty sure that if you lose a lawsuit for something you personally do, any and all of your property is at risk, including business interests you own, like stock and partnership/LLC interests.
What LLCs might do is the other way around. If there are legal proceedings against an LLC, the theory is that it's the LLC's assets that are at risk, not the LLC's owners' assets. Thus, for someone opening a gun shop, for example, an LLC would help protect their personal assets outside the LLC if the gun shop got sued.
Again, that's the theory and there are ways for plaintiffs to try to 'pierce the corporate veil' and try to go after owner assets, if it comes to that.
My guess is that the OP overhead someone giving advice to someone who was thinking about opening an FFL business. Or, maybe, lusting after an "Any Other Weapon" where there are some practical advantages to having those full-auto beasties owned by an LLC.
I am not a lawyer but this sounds backwards.
Put your personal and business properties in trusts and LLCs and if you get sued personally your stuff is protected.
You don't own it, they can't take it.
Consult a real lawyer who specializes it asset protection to do it correctly in your state.
By all means, consult a lawyer for your legal advice.
LLC means Limited Liability Company, a simplified means for incorporating as a business entity. Typically one person may perform all corporate offices and functions.
Things to be very careful about:
1. There must be legitimate business activity
2. Personal assets must be kept entirely separate from business assets
3. If the LLC is incorporated at your home address your homeowners insurance policy may not provide any coverage for business assets or activities.
For those who et up LLC's for the sole purpose of avoiding legal claims, beware claimants and attorneys digging into your business records and accounts. It does not take much oversight to have a court rule that your LLC is a sham, a shell company, a personal holding company, or otherwise bogus, then all personal assets can become fair game.
Prior to retirement I owned a LLC and two Subchapter S corporations. The LLC was the primary business entity while the S-corps owned real estate, vehicles, tools, and equipment, all of which was leased to the LLC for business use. I drew a paycheck and stock dividends, all reported and subject to taxation. Never once did a business account pay any of my personal bills, never once did I take a company vehicle on a personal trip. More than once (over 43 years) I had to subsidize business expenses with personal funds, which required a written loan agreement with interest at market rates, etc, etc, etc.
There are lawyers, research firms, and private investigators who specialize in debunking phony business entities, tax dodges, asset concealment, etc.
Get your legal advice from a lawyer, not an internet forum.
Retired holster maker.
Retired police chief.
Formerly Sergeant, US Army Airborne Infantry, Pathfinders
years ago my lawyer explained to me why incorporating did nothing to protect me... for the simple reason I am a one man operation and on the assumption I do something wrong and 'my corporation is sued and wins' if the insurance does not cover the amount the wronged person thinks is enough they will just then sue the acting directors of the corporation... guess who that is...
So simply the lawyers get paid twice....
Besides that the corporate income tax statements take a over educated bean counter to figure out....
I would suggest to anyone that is going to carry the best insurance they can get is to get properly trained... and this is not going to be a 4 or 8 hour class but something serious that will take days and a good bit of investment. After say a four day defensive handgun class then I would next suggest doing the research into an actual force on force class where there are real life scenarios that require a split second decision ....
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