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-   -   FFL--In my name or my LLC? Pros & Cons? (http://www.firearmstalk.com/forums/f47/ffl-my-name-my-llc-pros-cons-29051/)

CenterMass 07-07-2010 01:26 AM

FFL--In my name or my LLC? Pros & Cons?
 
I apologize in advance because this has already been asked and answered. I made an effort to find the thread but could not so here goes.

I'd like your opinions and your thoughts on getting an FFL in my own name and then setting up my LLC or Sub S corp to do business versus making my LLC / Sub S the FFL. What should I consider?

Also, does anyone have an opinion on LLC versus Sub S corp for my business entity? All I'm looking for is liability protection / shielding my assets with minimum drama and fuss.

Thanking you in advance.

Achillesarms 07-07-2010 06:57 PM

Man when You find out I would love to know!
I have been looking and looking for those answers!

I would think the FFL would be better in your name, but here is a link to better answer the lib on the LLC vs S CORP.
good luck!

LLC vs S Corp

cmhill 07-08-2010 02:32 AM

by putting the ffl in your name it could "pierce the corporate veil" im not sure if you are familiar with the term or not but its basically where you involve your personal name in with the business its a narrow line that can be debateable. from a business perspective you have made a good choice to set up an llc / s corp both for tax reasons as well as liability reasons. i suggest asking your lawyer/cpa or whoever assisted in the preparation of the llc/scorp as well. btw will you be opperating out of home or an actual store ?

CenterMass 07-08-2010 11:50 AM

FFL: My name or LLC
 
Thanks for the input. Yes, I understand piercing the veil--giving up the asset protection the business entity provides.

I also had some time and did some Googling on the S Corp vs. LLC issue. Seems for what I want to do, LLC is the way to go. I can draw up some simple Articles of Organization and file with the Sec. of State for $100. It meets my main criteria: asset protection with a minimum of drama and fuss.

I will be doing this on the kitchen table, not a store front.

Thanks again for your thoughts.

cmhill 07-08-2010 06:23 PM

ok home based is fine just thought id mention that if you do opperate out of home you can deduct a certian amount of your utilities mortage/rent etc (up to 20% i believe) off of your personal taxes for having a home based business / home office.

docpadds 07-08-2010 06:39 PM

Being that you are operating for profit then protection of assets is really a primary concern here. Yes it does add some tax complexity to things but liability wise i need the company to be the liable party in this litigious world.

When we buy a gun for ourself we have to do the 4473/NICS etc on ourselves but beyond that its no less convenient. It is nice as far as Title II stuff too, company can own the NFA item and officers can use it :)

ExTrooper 08-19-2011 12:56 AM

Hello,

Been lurking awhile and decided to join today so hello all.

Sorry to resurrect this but I have a related question.

I too am investigating a home based FFL and maybe SOT and struggling with the LLC or sole proprietor status. My accountant says if I am going to do under $100,000.00 in business per year to go the sole route, although he is not taking liability into account, just financial.

There is one more consideration though:

It seems that if you want to own class III pre May samples which as I understand can only be possessed by SOT dealers and can be kept (owned) after you give up the license.

The catch, as I understand it is that if you are not a sole proprietor and your FFL is under your LLC, then you would not be able to keep these pre May weapons and theoretically would have to sell/transfer them to another SOT or theoretically destroy them with the dissolved corporation...

Can any confirm or dispute? Any thoughts on pre-may's

Ron-O 08-19-2011 02:24 AM

Quote:

Originally Posted by ExTrooper (Post 565739)
Hello,

Been lurking awhile and decided to join today so hello all.

Sorry to resurrect this but I have a related question.

I too am investigating a home based FFL and maybe SOT and struggling with the LLC or sole proprietor status. My accountant says if I am going to do under $100,000.00 in business per year to go the sole route, although he is not taking liability into account, just financial.

There is one more consideration though:

It seems that if you want to own class III pre May samples which as I understand can only be possessed by SOT dealers and can be kept (owned) after you give up the license.

The catch, as I understand it is that if you are not a sole proprietor and your FFL is under your LLC, then you would not be able to keep these pre May weapons and theoretically would have to sell/transfer them to another SOT or theoretically destroy them with the dissolved corporation...

Can any confirm or dispute? Any thoughts on pre-may's

I have an FFL and SOT running out of my home for now. I went the LLC for liability reasons. From my understanding, if it's a sole propr. you keep the samples. If it's an LLC, the LLC keeps the samples until you kill the LLC, then they must be transfered to another dealer. Creating an LLC was super easy in my state. I did it online and paid the small fee. Also, having an LLC you can have multiple DBA's to create other businesses. Not that I'll ever do that..

Since my LLC is only me, the business profit/loss drops into my tax return just as a sole proprietorship would.

Ron

MrM4 08-20-2011 02:29 AM

When my partners and I start our shop we went the LLC route, liabilty reasons mostly.

sl0818 02-08-2012 09:14 PM

Quote:

Originally Posted by Ron-O (Post 565780)
I have an FFL and SOT running out of my home for now. I went the LLC for liability reasons. From my understanding, if it's a sole propr. you keep the samples. If it's an LLC, the LLC keeps the samples until you kill the LLC, then they must be transfered to another dealer. Creating an LLC was super easy in my state. I did it online and paid the small fee. Also, having an LLC you can have multiple DBA's to create other businesses. Not that I'll ever do that..

Since my LLC is only me, the business profit/loss drops into my tax return just as a sole proprietorship would.

Ron

what NAICS code did you use on your llc app ?


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