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Transfer of NFA item to C&R licensee workflow


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Simple question (aaaahhhhh, I've already jinxed my post!)

 

What is the workflow to transfer an NFA item classified as a Curio and Relic from an out of state FFL to me? I have an 03-collector of curio and relics license.

 

Does the out of state FFL transfer to me on a Form 3 since I have the C&R? Or does it From 3 to my local FFL with SOT and then I wait months for the Form 4 approval?

 

 

 

 

And just to make sure it gets complicated, here's the 2nd part of the question. If I hold an NFA item as an individual with a C&R license, what would be the workflow if I wanted to transfer the items into an LLC in which I am the managing member? Could I donate/sell the gun to the LLC and file a transfer Form 4 to the LLC entity and pay the additional tax stamp? Or is there more involved?

 

Thanks in advance for members advise.

 

 

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It will transfer to you after the form4 is approved and you do not mind the seller holding onto it. If you want it near you, you can form3 it to a nearby SOT. Either way, I would get ahold of everything that are parts, in other words the internals of the upper, the wood and the trigger housing.especially if it isa colt.
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Thanks Gents. Turned out to be a simple answer after all . . . that is, if you know the right people to ask.

 

To continue my NFA education . . .

 

What would be the workflow if an individual owns the NFA item and they are not an SOT and it was out of state. Guessing they would need to transfer it to an SOT in their state (with $200 tax stamp) and wait for the approval, then the out of state SOT would ship to my state SOT tax free who would hold it until I was approved on my Form 4 with a 2nd tax stamp payment?

 

Does that workflow change if the private owner and I are located in the same state? Guess we could eliminate the Form 3 SOT to SOT transfer process but everything else would be the same?

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Thanks Gents. Turned out to be a simple answer after all . . . that is, if you know the right people to ask.

 

To continue my NFA education . . .

 

What would be the workflow if an individual owns the NFA item and they are not an SOT and it was out of state. Guessing they would need to transfer it to an SOT in their state (with $200 tax stamp) and wait for the approval, then the out of state SOT would ship to my state SOT tax free who would hold it until I was approved on my Form 4 with a 2nd tax stamp payment?

 

Does that workflow change if the private owner and I are located in the same state? Guess we could eliminate the Form 3 SOT to SOT transfer process but everything else would be the same?

Case #1: Individual seller who owns the NFA item transfers it DIRECTLY to an SOT in the buyer's state via Form 4 with $200 tax stamp. SOT in buyer's state then transfers the NFA item to the buyer via another Form 4 with $200 tax stamp.

 

Case #2: If individual seller and buyer of the NFA item reside within the same state, the transfer of the NFA item is done DIRECTLY to the buyer via Form 4 with $200 tax stamp -- no SOT/dealer middleman required.

Edited by maxfaxdude
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The following addresses one of you first questions:

 

>Does the out of state FFL transfer to me on a Form 3 since I have the C&R? Or does it From 3 to my local FFL with SOT and then I wait months for the Form 4 approval?<

The C+R FFL03 is by law not a "business" license so under no circumstances would you ever receive or transfer an NFA Item by F3 which is the tax exempt transfer application used by "business" FFLs paying the SOT to transfer NFA tax exempt.

An FFL03 is restricted to taxed F4 transfers, and the unique tax exempt F5 transfers for registered DEWAT MGs.
All transfers to an FFL03 are direct from the seller to the licensee for C+R eligible firearms regardless of whether the weapon is Title I or II or from which state the gun is coming.

FWIW

Edited by BRMCII
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This is not complicated. A C&R licensee can receive ANY C&R firearm from anyone in any state, provided it meets the laws of his own state. An NFA weapon will transfer using Form4 as stated above.

If an out-of-state individual has the NFA weapon, The C&R licensee can still transfer the NFA weapon directly to himself using Form4. No dealer is required to be involved.

 

Some individuals get nervous about transferring a machinegun directly to an individual C&R licensee. They may insist on transferring to a dealer. This is their right, and should be discussed before agreeing to a purchase as that will add an extra $200 tax and Form4 transfer to the wait time.

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You may be confused with trusts...that are not human, nor registered public documented entities. LLC's and other types of business entities can hold C+R licenses. I've had/have 2 so far.

FWIW, Feds and State might be okay with an LLC having a C & R license registered at ones home, but the city I reside in is not. Okay as an individual in a residential area; not as a business unless at a location zoned, taxed, and insured accordingly.

MHO, YMMV, etc. Be well.

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  • 6 months later...

Just a confirmation--please correct me if I'm wrong:

 

I'm a C&R and buying a NFA Thompson from an out-of-state Class III dealer. The dealer (or I) applies for a stamp on a Form 4; and once approved, the out-of-state dealer can ship directly to me / C&R.

 

If I choose to get it shipped quicker and closer to me, I can have the dealer ship (on a Form 3?) to my local Class III. Once stamp is approved, I can pick-up the Thompson.

 

Do I have this right? Thanks in advance!

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You can't form 3 as a C&R. That's between two FFL who both hold SOT.

 

Just form 4 your already own NFA item to a LLC. I don't see why you need to do this unless your trying to get another member to be able to take the NFA around.

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