Incorporate/Trust?

[Eski2712]

I'm new to this site and i notice that most people go with a trust. I have numerous nfa items and i have incorporated. the paper work is 3 pages that i send in with my form 1. Can someone tell me why trust and not incorporate. Before you say about filing taxes every year that takes less than 5 minutes. so if there is other things that i should consider in favor for a trust please let me know.
thanks

 

[lorendhenry]

i would like to hear a answer

 

[biglucky]

For me it was honestly the convenience factor of not having to file taxes every year. You say "that takes less than 5 minutes" but that is 5 minutes more than I have to remember to do with my trust. My question to you is "Why incorporate?" when a trust gets you basically the same thing without the extra paperwork. Either is a viable option, I just don't think that the yearly paperwork with incorporating is worth it without actually having a profit making enterprise attached to it.

 

[M. Sage]

I'm new to this site and i notice that most people go with a trust. I have numerous nfa items and i have incorporated. the paper work is 3 pages that i send in with my form 1. Can someone tell me why trust and not incorporate. Before you say about filing taxes every year that takes less than 5 minutes. so if there is other things that i should consider in favor for a trust please let me know.
thanks

Well, filing taxes as far as I can tell. I don't think you even have to do that with a trust. I'm not sure what the tax situation is in this state, but I remember Michigan would tax corporations on what they owned.

 

[outdare]

There is no franchise tax for incorporation's that make under 150k I think. You can file your tax paperwork online here. It takes about five minutes as listed above.

 

[M. Sage]

Then for me when I get around to the NFA thing, the answer will be that I already know two lawyers that do trusts.

 

[Eski2712]

For me it was honestly the convenience factor of not having to file taxes every year. You say "that takes less than 5 minutes" but that is 5 minutes more than I have to remember to do with my trust. My question to you is "Why incorporate?" when a trust gets you basically the same thing without the extra paperwork. Either is a viable option, I just don't think that the yearly paperwork with incorporating is worth it without actually having a profit making enterprise attached to it.

well like you stated they get you the same thing but when i send my paper work in for a sbr/supressor it's only two sheets of paper stating my corporation. The last can i bought the guy sending my paperwork in said he's used to sending a mountain for paper work for the trust( i guess theres more papers to a trust) also i file no tax report since the corp is a holding corp and not a profit making business.
If i'm correct with my corp whoever is on the board of my corp ie.. pres/vice pres/sec, can have/use my nfa weapons without worrying about the atf or braking any laws.i don't know how it works with a trust. i'm not saying mine is better i was only trying to find out the difference and pros/cons of each. As long as it gets us our toys then it's all good.

 

[RetArmySgt]

well like you stated they get you the same thing but when i send my paper work in for a sbr/supressor it's only two sheets of paper stating my corporation. The last can i bought the guy sending my paperwork in said he's used to sending a mountain for paper work for the trust( i guess theres more papers to a trust) also i file no tax report since the corp is a holding corp and not a profit making business.
If i'm correct with my corp whoever is on the board of my corp ie.. pres/vice pres/sec, can have/use my nfa weapons without worrying about the atf or braking any laws.i don't know how it works with a trust. i'm not saying mine is better i was only trying to find out the difference and pros/cons of each. As long as it gets us our toys then it's all good.

You can put whoever you want on your trust as a trustee, and they can have access to/ use the NFA items as well.

 

[SC-Texas]

Generally you must file paperwork on a Texas Corp

 

[Eski2712]

when you say paper work i assume you mean taxes that is a yes it's two papers
one is a no tax owed and the other is a public informations thing since it's a corp.
It takes no time at all. i do a form on for an sbr and send in two paper showing my corp and walla my cx4 storm is now sbr.

 

[SC-Texas]

Eski,

WhenI say paperwork:
1. file the articles with teh state and pay the filing fee of $308.00.
2. Annually, you file the franchise tax report and the PIR.
3. If you want to make a change, you have to file amendments with the SOS and there is a filing fee.

The trust is private. The only people who get a look at your NFA trust is the BATFE.

The trust is private because it is not filed with the city, county or state governments.

The trust does not have annual filings to make with the city, county, state of Federal governments.

When you amend the trust, there may be a lawyer fee (I charge a nominal amount), but this change on;y gets sent to the BATFE.

Corp works, but you have extra annual maintenance that must be kept up with.

 

[Eski2712]

Eski,


WhenI say paperwork:
1. file the articles with teh state and pay the filing fee of $308.00.
2. Annually, you file the franchise tax report and the PIR.
3. If you want to make a change, you have to file amendments with the SOS and there is a filing fee.

The trust is private. The only people who get a look at your NFA trust is the BATFE.

The trust is private because it is not filed with the city, county or state governments.

The trust does not have annual filings to make with the city, county, state of Federal governments.

When you amend the trust, there may be a lawyer fee (I charge a nominal amount), but this change on;y gets sent to the BATFE.

Corp works, but you have extra annual maintenance that must be kept up with.

yes 1 and 2 is true and that takes just minutes because their is no income, 3 i'm not sure what kind of changes would need to be made. With my corp packet that i receive it comes with articles of incorp and a place to vote in officers of the corp.
Now i'm not clear on how that works but when i file the pir i list the officers of the corp ie pres/vice pres/sec. and because the corp owns the guns they are able to use them. At least that's what i understood. I hope that's right if not i need to get it right so if something happens to me my sons or wife can own the nfa weapons with no problem or sell them if they chose. Please correct me if i'm wrong.
Thanks

 

[Silenced America]

I think Sean is trying to not be persuasive to do a trust because he does them for business. I say go with a trust. IMHO they offer more protection to your NFA items. I like everything about a trust. Sean has done several trusts for friends, and they are damn good.

As far as the officers go, they can have access to the firearms as long as they are law abiding folks, which I am sure your family is. I would assume that kids have to be 18 for suppressors, MGs, SBS, and SBRs as they do with a trust. Sean may tell me I am wrong.

I just like the fact that a trust can be left completely alone (sans amendments) and it is good to go. No forgetting to file or filing late. It just is. It sounds like you are leaning toward the Corp, so good luck.

 

[Eski2712]

well i have a corp because that's what i was told to do not knowing all the aveunes i could take ie trust. a trust does sound good but i have alot of nfa weapons under the corp.
can sean tell me would i have to pay a transfer fee if i was to do a trust, for all my nfa weapons?

 

[Silenced America]

can sean tell me would i have to pay a transfer fee if i was to do a trust, for all my nfa weapons?

Yes, if you want to put everything from your Corp into your trust, you have to pay $200 transfer fee per item. Sorry

 

[SC-Texas]

Yes. The fee must be paid when a transfer takes place