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1/25/2018 7:38:29 AM
Posted: 7/31/2002 12:03:21 AM EST
So I am in the process of filling out my "Application to form a Nonprofit Corporation," in order to get around having to have my CLEO sign off on a Form 4 NFA transfer (I asked, he said no). This nonprofit corp. will be used [u]solely[/u] to acquire NFA firearms legally, and no other reason. There is one question they ask on the form that I am unsure how to correctly answer. It asks: "In the event of a voluntary dissolution (of the corp.) the net assets will be distributed as follows:" It is doubtful that this will happen. However, in the event it does, where should the assets (NFA firearms) go???
Link Posted: 7/31/2002 12:18:41 AM EST
Link Posted: 7/31/2002 10:57:42 AM EST
Why worry about a voluntary dissolution? You would have time to sell/transfer the weapon to another corporation or individual before the dissolution (you would set the time frame for dissolution). You should just name yourself and/or family members/shareholders as the individuals receiving the net assets. You would have to sell/transfer the NFA weapon before dissolution. There would be no actual assets besides the NFA weapon, so don't worry about it. The only reason to dissolve the corporation would be because you want to cease running the corp or you wouldn't want to pay the annual corporation fees to the State of California. One other possible reason to dissolve the corporation would be because of a lawsuit, but you aren't actually engaged in any business. BTW, I didn't know that you could use a non-profit type corp to purchase NFA items. Why not form a different corp. so you don't have to fill out the non-profit form? I live in Illinois and when I formed my corp. (home business even though I don't use it) it was easy and cost just 100 bucks. I pay a yearly fee of 50 dollars. P.S. I am not familiar with California laws regarding corps. and I am not a lawyer.
Link Posted: 7/31/2002 11:04:26 AM EST
WHOA!!! Danger danger!!! OK. Question one -- do you have any legal help in forming your corporation? Question Two -- (Answer to above question was no): Are you aware that if you form a NOT FOR PROFIT corporation you will not own the NFA items? A not for profit corporation is different than a corporation which you does not expect to make profits. A not for profit is a quasi-governmentally owned entity whose assets cannot benefit an individual except in a charitable manner. Technically, your state's attorney general could come in, sell the assets (machine guns), and use the money to benefit whoever hge thinks the NPC is set up to benefit. You want to form a convential for profit corporation, limited liability company or partnership or possibly trust for your purposes. Please, please seek some legal advice before you make a huge mistake.
Link Posted: 7/31/2002 11:08:16 AM EST
I did not know you could purchase class 3 weapons if you start a business. I am in the process of determining which business lisc to get...sole prop/or/inc. In any event I am in the pocessing of setting up this business as we speak. How can I purchase a class 3 with this, and if its possible can you get new class 3 weapons or do you still have to go with the preban stuff. Any advice would be most helpful. Thanks
Link Posted: 7/31/2002 12:49:37 PM EST
I did not know you could purchase class 3 weapons if you start a business. I am in the process of determining which business lisc to get...sole prop/or/inc. In any event I am in the pocessing of setting up this business as we speak. How can I purchase a class 3 with this, and if its possible can you get new class 3 weapons or do you still have to go with the preban stuff. Any advice would be most helpful. Thanks
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The short answer is that if you form a corporation, the corporation is, in the eyes of the law, another "person" existing differently from you. The corporation has the ability to purchase NFA firearms, which would then be owned by it. In many areas, this is used to circumvent an ATF requirement that you get a local law enforcement officer to sign off on your application to purchase an NFA weapon (Form 4). If you do form a corporation for your business, you could use it to own your NFA weapons. However, in the event your business was to go bankrupt or be sued by someone, the NFA weapons could be taken away from you as assets of the business. My wisdom is not to mix business and pleasure -- if you need a corporation for Class 3 purposes, form a separate corporation to do so.
Link Posted: 7/31/2002 1:46:39 PM EST
Phil_A_Steen, Thanks for your feedback. I assume that even if a purchase is done through the corporation it would still need to be a pre "86" model. Well thanks again, I dont have problems with my local CLEO, I just thought it was a way to purchase newer versions and not just the old stuff.
Link Posted: 7/31/2002 7:33:57 PM EST
Originally Posted By JoeMike98: Phil_A_Steen, I assume that even if a purchase is done through the corporation it would still need to be a pre "86" model. Well thanks again, I dont have problems with my local CLEO, I just thought it was a way to purchase newer versions and not just the old stuff.
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Unfortunately, all machine guns must be manufactured prior to 1986 (or imported prior to 1968) to be "transferable", as in capable of being owned by anyone. If you were to obtain an FFL, and then pay a $500 special occupational tax (SOT) to become a Class 3 dealer, you could also buy pre- and post- samples. (Presamples are imported between 68 and 86 and a dealer is allowed to keep these even if he gives up his license; postsamples can only be kept while a license is valid and require a letter from a police department requesting a demo of a weapon before one can be obtained.) Lately, the gap between transferable and presample prices is getting narrow, so it may not be worth the effort to get the FFL.
Link Posted: 8/1/2002 12:15:15 AM EST
A not for profit corporation is different than a corporation which you does not expect to make profits. A not for profit is a quasi-governmentally owned entity whose assets cannot benefit an individual except in a charitable manner. Technically, your state's attorney general could come in, sell the assets (machine guns), and use the money to benefit whoever he thinks the NPC is set up to benefit.
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Well, I am at the mercy of the government to authorize these NFA weapons to begin with, so if this DID happen, the sales of the NPC assets would have to go to me (the beneficiary of the NPC), right?? I would not "own" the weapons anyway as they would be assets of the corporation (NFP or FP) to begin with. Such is life without a CLEO signature... I guess that I am just following in the footsteps of some friends who have gone this route before and obtained their NFA stuff. If I did start a For-Profit corp., I would make it an LLC or an S-Corp to shield myself from harm in the event something ever went sideways. Any other suggestions?
Link Posted: 8/2/2002 8:26:01 AM EST
???
Link Posted: 8/2/2002 4:57:08 PM EST
The beauty of a corporation is that, unlike us, it never dies. Just name your heirs as corporate officers and let them bicker about who gets to play with the Class 3 toys!
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