What are the pros and cons of a Gun Trust vs. an LLC for NFA items? One of my local dealers will not accept a Trust from anyone...had quite a few issues getting items through ATF because of them. Probably badly written by a not so knowledgable attorney. He only accepts LLC's to transfer NFA items and many attorneys he has as clients also have their own LLC instead of a trust. Curious as to why, one better than the other?
---------- “Nobody can ever take your integrity away from you. Only you can give up your integrity.” H. Norman Schwarzkopf
I'd find a new dealer, then. I would say that 75% of my NFA sales are trust sales and I have never had a rejected form. I funnel most of my customers to NFA Lawyers (SF member owned).
Using an LLC would require registration of the entity with the state (may not be required for a trust - check state laws) or filing of biennial reports like an LLC. The LLC's documents are also generally available to the public and may include your address (unless you are paying somebody to serve as registered agent.
Posts: 5164 | Location: Iowa | Registered: February 24, 2011
Dump that dealer and tell him why. I have an LLC for my side business but still used a trust. The LLC does cost money to renew annually. It's not much, but the trust seemed simpler for firearms.
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-- Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when it has gone past me I will turn the inner eye to see its path. Where the fear has gone there will be nothing. Only I will remain. --
Posts: 17278 | Location: New Mexico | Registered: October 14, 2005
Trust > LLC because the NFA is designed to work with trusts and there are no annual filing requirements.
Sounds like a solution looking for a non-existent problem (besides that one dealer).
Please support the SF "Help Mike!" campaign to raise legal fees for a 72 year old Texas teacher and hobby rancher who had 6 forgotten 9mm rounds in his checked luggage leaving T&C and faced 12 years in prison and $50k legal fees at https://fundrazr.com/b2KZgc.
Posts: 2023 | Location: New Mexico | Registered: April 24, 2008
