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Friends and I have been buying a few guns here and there, and more importantly the local guy I use for transfers is getting ready to quit. Thinking of getting an FFL. Not looking to be a big box dealer, just do the occasional transfer (So not having a store front)
A few questions:
- As a dealer can you buy NFA items for personal use and "bypass" the form 4 process?
--- If yes, what happens when your dealers license expires?
For example, lets say you are a dealer and you personally buy a suppressor from SilencerCo. Does it immediately ship directly to you? Can you immediately use it/ If you let your license expire, do you need to transfer the suppressor from you as an FFL to you as an individual?
Obviously as a dealer if you buy a post ban MG that would need to be sold before your license expires, but curious how it works for stuff which is legal to own as an individual
- Does an FFL supersede local and state laws? Assuming it does, so if Wa passed a mag ban/"assault rifle" ban you would be exempt?
- For any transfers, how long do you need to keep the records? I throw away tax records after 3 years, how long to gun transfers need to be kept?
- I'm assuming its just the standard FFL to keep MGs? ($200 for 3 years)
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Your not bypassing the Form 4 process. Your putting the NFA item on your book for your business.
If your a Sole Proprietorship, I believe you can give up your license and keep the item for use. I'm talking about suppressors and such.
I have no idea if this would work for MG's (premay or post may) if you give up your license. Since WA state is not MG friendly I'm not sure what the outcome would be if you kept your FFL but gave up your SOT vs giving up your business. ATF has mentioned to contacting the Attorney General Office about the scenario of giving up SOT but keeping your FFL, but I haven't heard a response from them about it. I happen to ask a month ago..
BTW your comment about post ban MG.. they are not easy to get since you have to get a Chief of Police to give you a "love letter" which states that they want to demo a specific type of firearm through you. It's hard to get those letters. If your a FFL 07/SOT 02 you can build your own, but there's a debate if you have to pay ITAR if you don't export.. which cost $$$. Also as a FFL 07 your likely to get audited more often than a FFL 01. I've talked to FFL 07 and some have been audited every year. Note that audits can take a day or more depending on the throughput of your business, and # of errors they find. So if your a normal working guy with a 9-5 job, expect to take that day off to accommodate the ATF inspector.
Questions about how long to keep forms you cna find on the ATF website. ie:
https://www.atf.gov/firearms/qa/how-long-are-licensees-required-maintain-atf-forms-4473On top of FFL cost, you'll need to spend $500 each year for your SOT (if you do business under $500k). You need your SOT to receive or send NFA items.
Also your taxes.. They go back 3 years on a audit, but they might go back up to the last 6 years if they find a substation error.
Really if you have questions you can contact the ATF. They are really good at answering questions.
Regular FFL questions ask:
[email protected] NFA questions ask:
[email protected] Please don't ask them questions like "Is it legal to shoulder a pistol with a pistol brace?". We don't want to have Gemtech Tax occurring again or re-designation of items we currently hold as legal to do..