I formed an LLC years ago to purchase a couple NFA items.
My question is, is it possible to add employees to the LLC so that they can possess company equipment?

Seems to me employees possess company equipment all the time such as laptops and vehicles to name a few. Should be no different.
Nothing permanent just use for a little bit and return.

I know thats a big advantage of forming a trust, which I may do. But again, employees take home/possess company property all the time.

Can't I just put together a document that states the persons hire date and title?

Whataya think?

They don't have to be a member listed on the LLC documents to be an employee. ATF just says "bona fide employee". They do not have to be a RP for possession either. If they make management decisions with regard to business firearms policy and operations, then they're a RP, whether they possess any property or not.

It's the same for a corporation. Colt and FN don't add people to the corporate documents to possess assets; they just hand them an employee possessor letter and send them off with a crate of M4 carbines.

I would think, if investigated, you'd need to be able to show a W-2 for them.

I've never seen an employee possessor letter (on company letterhead) accompanied by a copy of the FFL/SOT ever get questioned, and I've travelled interstate with MGs and grenade launchers plenty of times.

EDIT: I see now that you're referring to a LLC without an FFL, so they'll only get the letter stating they are authorized to possess the firearm(s).

Since you're not a FFL/SOT or government agency, no interstate transport for MG, SBR, SBS, DD without an approved Form 5320.20 and those may only be submitted by the owner or a RP (but would still authorize any employee of the LLC to transport, once approved).

RP's can act with the same authority/power as the primary owner as far as ATF is concerned. They could sell/transfer all your NFA out from under you. They can add additional RP's on their own. Do not make people RP's unless they need that level of power to perform their job.

ATF has tweaked the wording of what they interpret as a RP since 41F, but essentially their definition is unchanged. Just being authorized to possess trust/LLC firearms doesn't make you a RP.

For further reading:

https://www.atf.gov/firearms/docs/newsletter/federal-firearms-licensees-newsletter-september-2013-volume-2/download


https://www.atf.gov/firearms/docs/form/form-7531012a-7cr531016-responsible-person-questionnaire-supplement-use/download
This is the RP form for FFL's, but notice #21 and #23. There is a difference in being a RP and being an employee.


https://www.fastboundbook.com/listing-responsible-persons-on-your-federal-firearms-license/

https://www.atf.gov/rules-and-regulations/final-rule-41f-background-checks-responsible-persons-effective-july-13#Who is a Responsible Person

https://johnpierceesq.com/who-is-a-responsible-person-under-41f/

https://www.atf.gov/firearms/docs/form/national-firearms-act-nfa-responsible-person-questionnaire-532023/download

I really appreciate the replies, thanks guys.

I really want everything to be bullet proof. I'm thinking I just need to go with a trust. Seems to me it would be more concrete as to who can have possession and offers a clearer path for my heirs after I'm gone. Definitely more expensive as I have to transfer the items in my LLC to my trust but thats ok for piece of mind.

I think you can totally do anything you want to do with a trust, via an LLC.

DISCLAIMER-  discuss with a NFA-saavy attorney, mainly to ensure that your LLC agreement has the proper language, whcih should be in any NFA trust (somethign to the end that anyone who is not legally entitled to own or possess firearms is not authorizsed to possess company property that is also a firearm or NFA item) - END DISCLAIMER


Barring future purchases (This is the real problem for switching from Single Member LLC to ANYTHING else) and assuming your NFA-owning LLC isn't also a currently operating business:

Assuming you have a member-managed LLC, you could make a person a member, however this typically means that they own an interest in the LLC.  Would probably work great for your kids, not so well for your shooting buddy.

You could revise your operating agreement to make the LLC a Manager-Managed LLC (note that this MAY require filing an amendment with your state's secretary of state office) and appoint a person as a manager, and describe in the LLC agreement that the Manager has the authority to possess company property, but can be removed at any time by a vote of X% of the Members.

OR, you could appoint someone as an authorized agent of the LLC for XYZ purposes, can be removed at any time by a vote of X% of the Members.

Or leave them in your LLC and put the whole LLC in a trust.

Damn, didn't think of it that way but it sounds genius.

I have an LLC for business and a trust for NFA stuff.  I'm going to dissolve my LLC next year (moving to a different state) so I just started looking into how to transfer assets.

Great info here.

Someone suggested Dangerlee here in CO, I contacted them and they are going to help set up a trust and get it all squared away.

I'll have to ask them about transferring the whole LLC into the trust. Might save some $$$ if I don't have to play with the 5320 form. Great idea.

LLC membership interests are personal property.  I’ve seen lots of folks make the sole member a person as trustee of a revocable trust, and make them self the manager.

Control and direction of the LLC lies with the manager, and the membership interest is controlled by the trustee as a member (who can hire and fire manager) for the benefit of the beneficiaries of the trust

I suppose you could convey the membership interest in the LLC from the single member to the single member as trustee of a trust.  Appoint yourself as Manager, Create a valid trust, and you have the benefit of the LLCs and the trust at the same time...