Can you hide your guns using an LLC?

During the recent gun-control debate sponsored by KTTH, one host made the point that he has a plan to essentially hang onto his firearms forever.

“There’s a spider web of things being built up around us,” KTTH’s Todd Herman told the audience. “According to the law, when I die, my wife is supposed to report whatever firearms I own to the State of Washington. Now, funny thing is, there’s all these LLCs in Delaware and all these little trusts and stuff. So I don’t actually own any firearms. So it’s very convenient in that regard. I’m just saying, I don’t own any firearms.”

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Now, a little background on limited liability companies, or LLCs. They are a kind of corporate entity commonly used for tax purposes and liability limitation purposes. There have been a proliferation of LLCs in connection to real estate, former state Attorney General Rob McKenna points out. People want to avoid personal liability for real estate they own, especially for rentals. Small businesses use them to avoid being taxed too much.

People also use LLCs for more nefarious purposes, such as laundering money.

But can you effectively hide your arsenal by placing them in an LLC trust?

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Rob McKenna says it’s a tough question to answer. It depends on the type of firearms. Not all are traced in the same way. However, under the National Firearms Act, McKenna says gun owners are supposed to report any transfer of firearms. The Department of Justice, McKenna says, closed a loophole that used to allow people to purchase firearms without providing identification or having background checks.

Listen to the entire conversation here.