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Posted: 1/7/2006 1:53:04 AM EDT
I'm sure this is another question that's on all of our minds. If you can't get a CLEO to sign off on your form 4 (or whatever) should you incorporate to get that fancy machine gun? Well, I'm hoping that some of you with experience in this field can chime in and help.

Here's my situation. I want a machine gun like the rest of you. If my CLEO won't sign off, should I incorporate my side business to get around it? Currently, I run a graphics and signs business out of my house and hope to move into it as a full time career. Right now, I'm the sole proprietor. (sp?) Would it be an easy step to incorporate? What's it going to cost me? What kind of work is involved, and would it be a good move for my business?

Well?

Thanks for the help,
Kris
Link Posted: 1/7/2006 4:15:16 AM EDT

Originally Posted By shop_rat45:
I'm sure this is another question that's on all of our minds. If you can't get a CLEO to sign off on your form 4 (or whatever) should you incorporate to get that fancy machine gun? Well, I'm hoping that some of you with experience in this field can chime in and help.

Here's my situation. I want a machine gun like the rest of you. If my CLEO won't sign off, should I incorporate my side business to get around it? Currently, I run a graphics and signs business out of my house and hope to move into it as a full time career. Right now, I'm the sole proprietor. (sp?) Would it be an easy step to incorporate? What's it going to cost me? What kind of work is involved, and would it be a good move for my business?

Well?

Thanks for the help,
Kris



from my understanding, if you have a corp the MG`s you buy are for investment purpose which means that if you dis ban the corp you have to sell your collection, and if you pass on they dont become the property of your loved ones and have to be sold or turned in to the feds, theres been talk about a "trust fund" to get around the CLEO problems, also if the CELO wont sign you go to the next in command in your city all the way to the city clerk if you have to and if that fails you hire a laywer and 9 out of 10 times just before court, they sign, I may be wrong but I think the fourm the CELO has to sign just acknowledge`s that you have a MG, its not a "permission" slip
Link Posted: 1/8/2006 6:12:28 AM EDT
How would incorporating get around this CLEO problem?

Is a corporation subject to different laws for purchasing firearms as an investment?
Link Posted: 1/8/2006 7:08:50 AM EDT

Originally Posted By Nemesis_318:
How would incorporating get around this CLEO problem?

Is a corporation subject to different laws for purchasing firearms as an investment?



machine guns, yes
Link Posted: 1/8/2006 7:14:46 AM EDT
What are the laws for a corporation to buy a machine gun?

I own a corporation and would like it to own a machine gun
Link Posted: 1/8/2006 8:22:57 AM EDT

Originally Posted By Nemesis_318:
What are the laws for a corporation to buy a machine gun?

I own a corporation and would like it to own a machine gun



you can buy the MG as an investment in the corporate name, and you dont need the CLEO involved, you`ll have to check with the ATF for the exact process or contact a class III dealer, only draw back is if you disban the corp then you have to sell the gun or if you pass on, the guns have to be sold or turned in to the feds, theres been talk of a "trust" fund you can assign the weapons to and you can still bypass the CELO, but you guns now can be inherited
Link Posted: 1/8/2006 1:33:44 PM EDT
Link Posted: 1/8/2006 2:14:20 PM EDT

Originally Posted By roach46:

Originally Posted By Nemesis_318:
What are the laws for a corporation to buy a machine gun?

I own a corporation and would like it to own a machine gun



only draw back is if you disban the corp then you have to sell the gun or if you pass on, the guns have to be sold or turned in to the feds, theres been talk of a "trust" fund you can assign the weapons to and you can still bypass the CELO, but you guns now can be inherited



If you disband the corp you do have to sell the guns but that doesn't mean you can't sell them to yourself (if you find yourself with a CLEO willing to sign). If you never get a CLEO willing to sign, then you just don't disband the corp. Its not difficult to keep it current.

Also, if you pass away, you definitely do NOT have to sell them OR surrender them to the feds. Whoever told you that is dead wrong. You can will shares in a corporation to whomever you want, or you can add your children, wife, etc as officers in your corporation long before your death.

When you think about it, having a corp for NFA is quite nice. If they ever ban the transfer of NFA items you can always just sell the corp and its assets (MGs) to another person without filling out a single ATF form.

I would NOT use a corp you already have a regular business to also purchase NFA items. If your real operating corp is ever sued all your NFA toys are assets of the corp and you could lose them. For the $50 the state of MI charges to set up a corp its not really worth the risk IMO.

Transfers are also generally quicker with a corp because you don't need fingerprints, and pictures because a corp is 'faceless'. As a result, your transfer does not go to the FBI for a background check which is usually the longest part of the transfer process.
Link Posted: 1/8/2006 5:28:41 PM EDT
So if my corporation were to purchase an FFL item (not necessarily a machine gun, let's just say a common pistol) as in investment, what is the process to buy from an FFL holder? Do I need corporate documents for ID?
Link Posted: 1/9/2006 5:02:02 AM EDT
TAG
Link Posted: 1/10/2006 4:42:41 PM EDT
Do all these rules about machine guns and corporations apply to LLCs (Limited Liability Corporations)?
Link Posted: 1/10/2006 5:28:02 PM EDT

Originally Posted By heavily_armed:
Do all these rules about machine guns and corporations apply to LLCs (Limited Liability Corporations)?



Yes, an LLC would work the same as a corp for NFA transfers.
Link Posted: 1/22/2006 1:56:25 PM EDT
Must Tag...

LLC seems to be the way if you can add family members to the list..

Can anyone send me to a site that they have been treated well in doing this?

Thanks for any info..
Link Posted: 1/22/2006 4:17:32 PM EDT

Originally Posted By bump0x:

Originally Posted By roach46:

Originally Posted By Nemesis_318:
What are the laws for a corporation to buy a machine gun?

I own a corporation and would like it to own a machine gun



only draw back is if you disban the corp then you have to sell the gun or if you pass on, the guns have to be sold or turned in to the feds, theres been talk of a "trust" fund you can assign the weapons to and you can still bypass the CELO, but you guns now can be inherited



If you disband the corp you do have to sell the guns but that doesn't mean you can't sell them to yourself (if you find yourself with a CLEO willing to sign). If you never get a CLEO willing to sign, then you just don't disband the corp. Its not difficult to keep it current.

Also, if you pass away, you definitely do NOT have to sell them OR surrender them to the feds. Whoever told you that is dead wrong. You can will shares in a corporation to whomever you want, or you can add your children, wife, etc as officers in your corporation long before your death.You are possibly correct if you do this, but if one does not have any partners than the Corp will get dis banded!

When you think about it, having a corp for NFA is quite nice. If they ever ban the transfer of NFA items you can always just sell the corp and its assets (MGs) to another person without filling out a single ATF form.

I would NOT use a corp you already have a regular business to also purchase NFA items. If your real operating corp is ever sued all your NFA toys are assets of the corp and you could lose them. For the $50 the state of MI charges to set up a corp its not really worth the risk IMO.

Transfers are also generally quicker with a corp because you don't need fingerprints, and pictures because a corp is 'faceless'. As a result, your transfer does not go to the FBI for a background check which is usually the longest part of the transfer process.



Corp is the way to go, but you might want to have a partner that is a family member so that the Corp doesnt get disband on a surprise death!

Ant
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