Hello, new member introduction and trust vs llc question

[NullusSonus]

Hello everyone,

I'm a brand new member, total neophyte where suppressors are concerned, and I am very impressed with the friendliness and the amazing pool of knowledge displayed here at Silencertalk. I am a physician and biomedical engineer. Practiced medicine for about a decade then went back to school to get my masters in BME. For the last 20 years or so I've been writing software but I now have an idea for a device that I may attempt to get patented (yes, I am an old fart). I really look forward to getting to know all of you.

Currently in my first AR build and originally intended to build an AR pistol in 300 BLK but I don't care that much for the SB15 so I'll probably start with a cheap 16" barrel to be used for R&D and then move on to file a Form 1 for my SBR. Since the wait is so long, I want to file my suppressor Form 1 ASAP to avoid any unnecessary delays. From my research thus far, I will either go the NFA Trust route or LLC. I already have an irrevocable trust and everything I own is in the trust (for my daughter) including my bank accounts. Elsewhere on the net I have seen recommendations for a separate NFA trust. Since I hope my idea has commercial possibilities I'm leaning toward an LLC.

Now for the interesting question. Since the US Supreme court, in all its incredible wisdom, indicates that a "corporation is a person", can the trust be a/the partner in the LLC? I am not asking for legal advice, I am simply extending my research in another direction and hoping someone here may have run into this option, if it is one.

Thanks,

- NS

[NullusSonus]

Decided it best to talk to my attorney about this and wanted to share his consultation.

Veeeerrry interesting! (remember that guy on Laugh-In, Henry Gibson, german helmet, cigarette holder, very funny guy).

A revocable trust can be: 1) the sole partner (owner) of an LLC, or 2) a partner along with other partners of an LLC.

He was not knowledgeable about NFA trusts but I might be able to modify my existing trust to include NFA provisions. This must be a rather new or narrow legal specialty as he is a pretty good general practice attorney.

[Armorer-at-Law]

For owning and estate planning, trusts and LLCs both have certain pros and cons. In many cases, an LLC is better, BUT some states require that you file a report and/or pay a fee every year to keep them in good standing. But, some states do not.

For example, if you have a trust for NFA items and your daughter is the beneficiary, when you die, the NFA items can be transferred to her tax free, but the trust then goes away. (There are a few states that are now allowing trusts that will extend for multiple generations.) If you have an LLC that owns NFA items, you can transfer ownership of the LLC interest at any time (including upon death), but there is no change in ownership of the NFA items. They are still owned by the LLC (even though the LLC now has a different owner).

[Kramer]

For owning and estate planning, trusts and LLCs both have certain pros and cons. In many cases, an LLC is better, BUT some states require that you file a report and/or pay a fee every year to keep them in good standing. But, some states do not.

For example, if you have a trust for NFA items and your daughter is the beneficiary, when you die, the NFA items can be transferred to her tax free, but the trust then goes away. (There are a few states that are now allowing trusts that will extend for multiple generations.) If you have an LLC that owns NFA items, you can transfer ownership of the LLC interest at any time (including upon death), but there is no change in ownership of the NFA items. They are still owned by the LLC (even though the LLC now has a different owner).

Thanks. A couple of points that I can keep in mind with my LLC/Corp that I use for NFA.