WA state law may soon grant us the use of suppressors. If all goes well I’d like to get one or more in the next year or so. I own my own company and it’s a corporation (s-corp to be exact) and if it makes things easier would like to register it under my corp instead of a trust. Aside from going out of business and having to transfer it to a trust(which may be a huge pain, I haven’t looked into it yet). Are there any downsides to using my existing Corp to list the suppressor under?
-mook
I’d use a Revocable Living Trust. A LLC/Corp/S-Corp might go bankrupt tomorrow…a RLT 99.9% less likely. YMMV.
I wouldn’t put the cart in front of the horse at this point.
I also have an S-corp for other reasons, but set up a trust for NFA. Lots of things can happen to my S-corp and its yearly costs are a lot higher than the zero cost to maintain the trust indefinitely. If you did ever dissolve your corporation, you would have to get a new stamp to transfer them out to yourself or the new entity. Expensive PITA.
I think the trust is the way to go. Once it is set up, it is done. Just add new items to the schedule as they are acquired.
Thanks guys, very helpful.
It was too easy - so I’ve used my existing ‘C’ corporation for each of my transfers. It required absolutely no additional time, effort or money on my part. After 10 years, I figure I’m in-it-to-win-it and here to stay. A business simply does not go bankrupt overnight or even tommorrow and banks don’t pull the plug on you unless it’s warranted. Not like you won’t see it coming!
Besides, I will have MUCH BIGGER issues to deal with if my entire operation goes bust than where/how to transfer the NFA items.
If you are not established or secure in your efforts, then there’s nothing wrong with a Trust. I felt comfortable doing without one.
How much does it cost to start and maintain a corporation in WA?
Here in MO it was a one time $50 fee for my LLC and no yearly maintenance fee’s.
So if its fairly cheap to start another corporation you could also go that route.