LLC registration

[F8L_Funnel]

I am looking to register an ,LLC for personal liability protection and help expedite some of the legal processes we must go through when purchasing things such as Suppressors. After searching a few information sites it looks like the fees are about $225 to get it going then $300 per year when filing the Personal Property Return. This seems a bit high, especially the PPR filing fee. I am looking for some advice from anyone here who has been through this process. Also, any recommendations for a service that can help me get things going would be great too.

Thanks!

 

[Straightshooter]

Been covered many times. Just register a trade name with the state. $35 for five years. Google "MD trade name" its all right there. This will give zero help in purchasing NFA items

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[Straightshooter]

Been covered many times. Just register a trade name with the state. $35 for five years. Google "MD trade name" its all right there.

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Do t know where LLC or business names have anything to do with purchasing suppressors. Just go buy one if you're not prohibited. Or if you want to insulate yourself and plan for the future, wrote up a trust and buy it through the trust. Use the search function for NFA TRUST.

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[F8L_Funnel]

The first suppressor I bought took 14 months to clear. I have heard you can E-file for the tax stamp if you have the LLC/Trust and it takes about 2 months.

 

[erwos]

Dont know where LLC or business names have anything to do with purchasing suppressors.

LLCs/corps were the original way to bypass CLEO signatures on NFA items (amongst other benefits), long before trusts came into vogue. They've fallen out of favor due to the various annoying bits of running a corporation, including paying upkeep.

 

[Straightshooter]

Got ya. In my opinion trusts are the way to go. My supressors took 4mo on a trust. I'm not even going to get into how to write a trust or who to buy a trust from, that subject has been beat to death.

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[Sundazes]

The first suppressor I bought took 14 months to clear. I have heard you can E-file for the tax stamp if you have the LLC/Trust and it takes about 2 months.

Boy did you hear wrong. Eforms doesn't accept form 4's. I am going on 4 months now for paper form 4 trust.
My first one was not a trust and took 3 months for the MSP and 7 for the ATF.

 

[ericoak]

Boy did you hear wrong. Eforms does accept form 4's. I am going on 4 months now for paper form 4 trust.
My first one was not a trust and took 3 months for the MSP and 7 for the ATF.

No they don't, at least not right now.

 

[madchestermonkey]

Before you register check for county fees, Montgomery county charges you $300 a year to file your personal property forms, I believe Frederick is much less. You do not have to a resident of that county to have the llc registered there, you just need an address. Most post office po boxes now offer a physical address so you can use that.

 

[CypherPunk]

The $300 is the Personal Property Return filing fee for a corporation.

It is a State fee and does not vary by county AFAIK.

It is also a minimum filing fee. Think of it as an annual minimum tax on corporations or llc's.

Trade names have little or nothing to do with protecting you from liability, and absolutely nothing to do with NFA Trusts. Trade names have been useful to prove to the MSP's satisfaction that you are a business owner.

 

[Bean Guy]

Previous post is correct, the $300 is the annual filing fee that all corporations must pay when they file their annual Maryland Personal Property tax return. It doesn't stop there though - if you report that your corporation owns certain personal property, the state will assess it and whatever county you are in will send you a tax bill. Failure to comply with any of this will make your corporation to be NOT in good standing with the state, and not eligible for any kind of license renewals.

Fun and games with taxes.

 

[Bean Guy]

OP - My partner and I are CPA's and help businesses with this stuff all the time. Feel free to give me a call at 443-487-7733 during business hours.

 

[F8L_Funnel]

Thanks Bean. As I get closer to doing this I'll be in touch.

 

[Boom Boom]

LLC filing fee in MD is $300 per year now. I know. I pay it every year.

 

[Sundazes]

Boy did you hear wrong. Eforms doesn't accept form 4's. I am going on 4 months now for paper form 4 trust.
My first one was not a trust and took 3 months for the MSP and 7 for the ATF.

No they don't, at least not right now.

Correct, I fat fingered. OP corrected. Sorry

 

[awptickes]

They've fallen out of favor due to the various annoying bits of running a corporation, including paying upkeep.

Don't forget to mention that you have to itemize everything on your "personal property tax return" for the LLC, and then the county and state assess you a tax based on the value of those goods.

I wouldn't want to pay tax on a machine gun, especially with today's prices. For example, property in Harford county is taxed @2.6049%. That's $651.23/yr for a $25k gun.


ETA: Knowing maryland, they probably have a special category for firearms, so they depreciate at a rate greater than 1. (meaning that they appreciate.)

 

[fabsroman]

OP, along with being a CPA, I also happen to be an attorney. A lot of people are mistaken about how an LLC insulates them from personal liability. You are ALWAYS responsible for your own actions, as the owner of an LLC, the CEO of a corporation, the sole owner of a corporation, etc. An LLC or corporation can insulate you from debt/liabilities that are solely in the LLC's or corporation's name, but almost nobody is going to lend to a new entity that does not have an extremely healthy balance statement. Most lenders will require a personal guaranty by the LLC or corporation owner. Next, the LLC or corporation will insulate you from personal liability for any acts of your employees, for the most part.

I just do not see where a LLC or a corporation is going to help you in purchasing a NFA item. I mean, I see how it can help with the CLEO sign off, etc., but a trust can do that too and there is no $300 a year personal property return and no personal property tax on the property owned by the LLC/corporation. This has already been covered pretty well above.

Now, if you are looking at actually starting up a business, then that is a completely different matter.