Trust or LLC

[patrick0685]

i looked but didnt see a tread on this. I see most people going trust these days but I kinda leaning LLC. I have done lots of googling just wanted to get some opinion of people i more or less know.

[SAnd]

You don't have to do anything to keep a trust alive in Colorado. No annual reports or anything. My understanding is that any of the business type entities require annual or occasional actions to keep them in existence. If your legal entity dies you will be in possession of high penalty contraband.

Having that hanging over my head is the key factor in my choosing a trust for my legal entity.

[asmo]

^^^ THIS^^^

With a trust you do it once and forget about it. With an LLC if you don't file your forms each year (or quarterly in some cases) on time - poof your a potential felon.

[O2HeN2]

+1 on the last 2.

Becoming a felon over missing a simple deadline is not acceptable, IMHO.

O2

[spqrzilla]

Some people use an LLC because they are cheaper.

And this attitude baffles me. If you are price sensitive, don't play NFA games. Period.

[Whistler]

Some people use an LLC because they are cheaper.

And this attitude baffles me. If you are price sensitive, don't play NFA games. Period.

This is the 2nd thread you've posted that particular opinion and I opted not to respond the 1st time but don't you perceive that just a bit elitist? Not everyone has access to unlimited resources so your opinion is they shouldn't "play NFA games"? At least we agree on being baffled.

While I think it's prudent to make the best investment possible especially with regard to legal entities I'm not too big a fan of the "if you have to ask you can't afford it" mindset.

[spqrzilla]

But that's really the issue with NFA stuff. When you buy them you are getting into an area of firearms law that really requires things be done correctly. Doing things cheaply is fraught with legal issues. We are not talking about things sold on the shelf at Walmart. Its not an area for a Walmart mentality.

Its like wanting to buy a Ferrari and asking which is the cheapest to maintain ...

[spqrzilla]

It is also related to why I quit offering to do NFA Trusts. After doing a handful, I was concerned about the cavalier attitude that too many of my clients and potential clients had toward the legal requirements of ownership of NFA items.

[Whistler]

But that's really the issue with NFA stuff. When you buy them you are getting into an area of firearms law that really requires things be done correctly. Doing things cheaply is fraught with legal issues. We are not talking about things sold on the shelf at Walmart. Its not an area for a Walmart mentality.

Its like wanting to buy a Ferrari and asking which is the cheapest to maintain ...

I consider that a perfectly valid query... [Poke]

Agreed no one should take a cavalier attitude in any legal process but bargain shopping (I like to call it demanding the best value for my money) shouldn't be disparaged. The most expensive is not always best or frequently not enough better to wholly justify the premium assuming the requirements are satisfied by less expensive alternatives.

I don't claim to know much about either approach but based on the knowledge shared in this and similar threads the choice appears obvious. Mostly I was picking at you about implying it was an arena reserved for those more financially capable.

[Gunoholic]

I'd like to know more about the trust route... can we post info here in this thread? If someone with NFA trust advice please pm me? maybe a phone number too....

[TriggerHappy]

It's really not that hard to keep your LLC in good standing (1 online transactions a year). When I started mine, trusts were still fairly new. I know several with LLC's. It's really up to the person who is setting it up. But to say that an LLC owner took the cheap way to get what they needed is retarded. They are both loopholes that work just as well. One requires more maintenance and less coin up front.

[spqrzilla]

It's really not that hard to keep your LLC in good standing (1 online transactions a year). When I started mine, trusts were still fairly new. I know several with LLC's. It's really up to the person who is setting it up. But to say that an LLC owner took the cheap way to get what they needed is retarded. They are both loopholes that work just as well. One requires more maintenance and less coin up front.
You are right. Its not hard at all.

Of all the people who consult with me on legal issues, and had created their own LLC for general business purposes, you want to guess how often I find that they've let the LLC be administratively suspended for failure to file an annual report?

[patrick0685]

I understand the trust is one and done type of thing but im still kinda leaning LLC. I feel like the flexibility is better, if you are responsible enough to have class 3 stuff then you should be able to file an annual report.

[spongejosh]

I don't have a trust yet but I look at it like this. Trust costs about $350 upfront and is good for my lifetime, hopefully another 50 years. LLC cost something like $25 a year. At current prices LLC is cheaper up until the 14th year then it starts costing me more in the long run.