Setting up small business, want to be able to get Class III with it.

[kingofwylietx]

I am going to begin the process of setting up a wholesale distribution company in the next week. I will be visiting an attorney to help with tax implications and limiting liability.

I will also let him know that I would like to be able to get NFA items, using the company. Anyone know whether a DBA, LLC, LLP, corporation, or some other entity is best for also using it for NFA items? The primary function of the business will be wholesale, but it would be nice if I could also use it to get toys.

Thoughts from those who know? I'll defer to my attorney, but I would like to know a little about this before going in to see him.

 

[RetArmySgt]

Talk to Sean Cody on here hes a lawyer specializing in NFA

 

[ducksps]

Firearms, associated insurance, liability, and keeping up with paperwork are tricky issues. Talk to an attorney, Sean Cody is a good recommendation.

 

[Shorts]

I am going to begin the process of setting up a wholesale distribution company in the next week. I will be visiting an attorney to help with tax implications and limiting liability.

I will also let him know that I would like to be able to get NFA items, using the company. Anyone know whether a DBA, LLC, LLP, corporation, or some other entity is best for also using it for NFA items? The primary function of the business will be wholesale, but it would be nice if I could also use it to get toys.

Thoughts from those who know? I'll defer to my attorney, but I would like to know a little about this before going in to see him.

I 3rd talking to the lawyer - no brainer.

At minimum an LLC is a good first layer of protection. It completely separates your personal assets from those of the business. It doesn't cost much to file ($300). I'm setup under an LLC and it's been a fairly painless structure, at least it has been coming up on my first year.

Licensing FFL & NFA should be a fairly simple process once the business entity is setup. Dot your Is and cross your Ts and this portion should fall into place.

 

[kingofwylietx]

I don't want to get an ffl, I just want to be able to use it for NFA stuff. My first priorities are limiting personal liability and tax advantages. After that, I am hoping it will allow me and the wife to use it for suppressors and eventually full-auto toys.

Isn't Sean in Houston? I'm in the Dallas area.

 

[navyguy]

Do you want to get an FFL, or just have the corporate structure necessary for your business (non gun related) which will also allow for NFA without needing LE sign off? (you would still need stamps, paper work and all of the fees anytime you bought NFA items) If you just want to buy some NFA stuff and use your company, then I'm pretty sure that takes a corporation or trust, and that's about it. I'm not sure an LLC qualifies, but it very well may. The lawyer will be able to tell you. (at $250 per hour LOL)

 

[kingofwylietx]

Do you want to get an FFL, or just have the corporate structure necessary for your business (non gun related) which will also allow for NFA without needing LE sign off? (you would still need stamps, paper work and all of the fees anytime you bought NFA items) If you just want to buy some NFA stuff and use your company, then I'm pretty sure that takes a corporation or trust, and that's about it. I'm not sure an LLC qualifies, but it very well may. The lawyer will be able to tell you. (at $250 per hour LOL)

I just want to have the corporate structure necessary [for my non-gun related business] that will allow the purchase of NFA items without LE signoff. My understanding, is that with the right structure, Amy & I (as board members) would both be able to use the items. It would just be a nice thing to be able to do. I'm thinking that I'll need to incorporate to do it(?) It's one of those deals where I am hoping to kill 2 birds with 1 stone.

 

[ducksps]

I was thrown off when you mentioned "class III" in the subject line. A class III is one of the types of licenses one must have to transfer NFA items tax free for commercial purposes. A class III license is something added to an existing FFL. You're instead looking for the proper structure to transfer and legally own items so things are MUCH simpler. To posses an NFA item you do not need a class three license it only need to be approved to your Person, Corporation, or Trust. Paperwork still needs to be done and Sean Cody would be a good person to consult with on the issues relating to various structures and advantages.

 

[navyguy]

I just want to have the corporate structure necessary [for my non-gun related business] that will allow the purchase of NFA items without LE signoff. My understanding, is that with the right structure, Amy & I (as board members) would both be able to use the items. It would just be a nice thing to be able to do. I'm thinking that I'll need to incorporate to do it(?) It's one of those deals where I am hoping to kill 2 birds with 1 stone.

You're on the right track. Since you need a layer anyway, those questions will be answered.

Now tell this curios guy what business you thinking about. Not quiting your day job just yet I hope. If you need any down to earth business advice, I might add a different perspective if you need an ear.

 

[kingofwylietx]

You're on the right track. Since you need a layer anyway, those questions will be answered.

Now tell this curios guy what business you thinking about. Not quiting your day job just yet I hope. If you need any down to earth business advice, I might add a different perspective if you need an ear.

Navy, we should talk this weekend. As a business owner, your experience and advice is very welcome. I'm not quiting my day job unless the income exceeds my current salary by a multiplier of 2 and it is way too early to think about that. I do wish I knew someone who has set up a wholesale distribution company in Texas. And, don't worry, it's not Avon, Amway, or any multi-level type work-from-home thing.

 

[ZX9RCAM]

I was thrown off when you mentioned "class III" in the subject line. A class III is one of the types of licenses one must have to transfer NFA items tax free for commercial purposes. A class III license is something added to an existing FFL. You're instead looking for the proper structure to transfer and legally own items so things are MUCH simpler. To posses an NFA item you do not need a class three license it only need to be approved to your Person, Corporation, or Trust. Paperwork still needs to be done and Sean Cody would be a good person to consult with on the issues relating to various structures and advantages.

+1

Business not required for ownership & use of Class III items, you simply need a trust & Sean Cody is the man to talk to. He can take care of you even though you do not live in Houston.
Any person you include in the trust can possess & use the items listed in the trust..ie: you & your wife.

 

[kingofwylietx]

I was thrown off when you mentioned "class III" in the subject line. A class III is one of the types of licenses one must have to transfer NFA items tax free for commercial purposes. A class III license is something added to an existing FFL. You're instead looking for the proper structure to transfer and legally own items so things are MUCH simpler. To posses an NFA item you do not need a class three license it only need to be approved to your Person, Corporation, or Trust. Paperwork still needs to be done and Sean Cody would be a good person to consult with on the issues relating to various structures and advantages.

That's exactly why I would never attempt anything like this on my own. I'm already mesing up the terminology.

 

[kingofwylietx]

Okay, I let my guy know that I want to keep things open for future purchase of NFA items. He didn't blink and said that it won't be a problem. I'll have to trust him. I have not gotten my bill yet, so I don't want him going in too many directions yet.....I would like to keep him focused. It can get very expensive if you send a lawyer off to do research for you.

 

[kingofwylietx]

You're on the right track. Since you need a layer anyway, those questions will be answered.

Now tell this curios guy what business you thinking about. Not quiting your day job just yet I hope. If you need any down to earth business advice, I might add a different perspective if you need an ear.

I'd still like to chat with you, it's just been very hectic. I, as usual, have a lot on my plate.

 

[navyguy]

I'd still like to chat with you, it's just been very hectic. I, as usual, have a lot on my plate.

Anytime.

 

[Outbreak]

I'll throw my $0.02 in for Sean Cody. I just finished up the trust process with him, and I'm mailing my Form 4 this week. I can say for sure, I've gotten more than the fee's worth of service from him. I'm a Class III noob, so I had a lot of questions. Great guy to chat with, too. I hope I get the chance to shoot with him someday.

As for geography, I'm in Abilene, 6 hours from Houston. Wasn't a problem.