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Posted: 8/6/2006 1:56:22 PM EDT
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So I've known about the option of having your corporation purchase your guns, to help cut down on some of the red tape relating to Class 3 transfers for some time. But I do not know the details or the particulars and I have a number of class 3 purchases that I'm gearing up for and I would like to have one of my "companies" purchase them rather than me personally. I searched the board, for info, but the most I found was what was talked about in the SBR FAQ which I have read top to bottom several times. So my question is, is there a good detailed source of information regarding the corporate ownership method? Thanks in advance. |
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What info are you looking for? With a corp transfer, you can ommit the CLEO sign off, photos and finger prints. You must send a copy of your articles of incorporation with the forms. Also, it would be best if your corp only did nfa and not other business. ETA--I live where my CLEO will sign but I chose to go LLC so other officers of my LLC could have possesion of the item. I have done a few individule transfers before forming a corp and the time is a little quicker with the LLC. |
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Do I still fill out the same form for a corporate transfer as I would for an individual transfer? What else do I need to send in with the form besides my articles of incorporation? As I understand it anyone who is a officer, member, manager, director of my LLC can possess these weapons and other transfered items. is this correct? Also as I understand it I can bypass the transfer tax and wait period when I want to pass these items down to future generations. Am I right on This? Where can I read about the other rules, requirements, stipulations and other info regarding the corporate method? Is there a section on the ATF website, that I have missed? One other question, can my LLC be an FFL instead of me directly/personally? |
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This was actually a seperate and unrelated question I added to my post. What I was asking is that if I want to get my FFL, do I have to do that as individual person, or can the FFL be my company? Thanks for the answers to my other questions. |
NFA stands for National Firearms Act. There is a FAQ at this site which is a good place to start learning about NFA stuff. |
BATF will issue FFLs to any legally recognized entity -- individuals, LLCs or corporations. |
This is a little misleading. With the corporate ownership route YOU do not own the guns, the corporation does, so there is nothing that can be "inherited" by your son or passed down from you to him. Corporate stock can be willed, but that does not mean the guns belong to him either. Yes, your son can be added as an officer, but again, this simply means he has legalized access privileges to those guns, it does not mean he owns them in any way or has any ownership privileges. Same thing with the transfer tax: Because the corp owns the guns as long as it continues to exist, there is no actual transfer when your son becomes an officer, so no tax is due. You're not really avoiding any tax, just creating a situation where no transfer occurs. This is the downside to corp ownership of NFA firearms, though maybe small. They are not really yours and hence cannot be claimed as personal financial assets for loans, etc. Corps require upkeep too and in some places this means expensive state business fees, quarterly corporate tax filings, etc. This route is really only beneficial if you either already have an existing corporation, like a small business, or you live in a jurisdiction where the CLEO will not sign. |
OTOH, corporate (or LLC or trust) is the only legal route if your family shares your NFA interests. Although I can get CLEO signoffs and have some items in my name only, I also set up a corporation specifically for NFA so my wife and sons (both are over 21), as corporate officers, can have legal access to and shoot the "corporate assets" when I'm not around. They can't do that with the items which are in my individual name. So we've got my NFA toys, our NFA toys and their bought-and-paid-for NFA toys. In addition, I really like corporate ownership after what happened in Canada: They banned all future MG sales to anyone other than individuals who already owned them -- and eliminated the legal right to inherit them, so when current owners die, MGs must either be sold to other (aging) pre-ban owners, or destroyed. A corporation, however, is an immortal legal entity, so corporate stock and thus assets can pass on to generation after generation forever. Not that I expect the U.S. to follow Canada's lead, but if the Dems retake Congress .... well, your kids wouldn't ever inherit your beloved NFA. 
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