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Questions About Nfa Transfer


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#1 catnipman

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Posted 12 November 2004 - 11:32 AM

Since it is not possible to own just *ONE* machinegun according to the FritoLay theory of machinegun ownership, I'm buying another MG (not a Thompson or C&R) and am concerned about the recent discussion of NFA transfer approval delays.

I have a type 01 FFL, so will that potentially speed my transfer if I note that in a cover letter?

Or should i consider corporate ownership instead, which I understand avoids fingerprint cards, photographs, and CLEO signoff. If I did this, what are the drawbacks, if any, of corporate ownership?

Also, does a Colorado Limited Liability Company (registered with the Colorado Secretary of State) qualify for corporate ownership?

Finally, if I go the personal ownership route, are two or four fingerprint cards required?

Thanks, catnipman
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#2 Merry Ploughboy

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Posted 12 November 2004 - 12:02 PM

Basically from a series of postings off the Subguns NFA discussion forum -

Pluses and Minuses of Corporate MG Ownership:

There are pros and cons to everything. For NFA corporate ownership here are the basics:
Pro's:
- No CLEO signoff, fingerprints or photos required
- Possibly faster transfer times due to no background/FP check
- More than 1 person can possess the guns - virtually any employee can possess
- Corps enjoy certain legal/financial protections that natural persons do not

Con's:
- Cost to incorporate can be from $25-$500, depending on state, type of corp, etc.
- Must typically file annual paperwork, including Federal income tax, state franchise and sales taxes, and other annual forms & fees as prescribed by state law.
- Corps do not have some rights that natural persons enjoy
- The corp owns the guns.

There may be other +/-'s. If you can get the CLEO signoff it's generally accepted that personal ownership is preferred over corporate ownership. If you can't get the CLEO and you just gotta have an NFA firearm, there's no other way than the corporate route at this time.

Note the ATF will generally accept Partnerships, LLC's, & Corporations alike.


Good luck.

MP
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#3 PK.

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Posted 12 November 2004 - 01:45 PM

If you have a 01 FFL the number will be recorded on the form 4, so they will know.

I never send a cover letter; they know what to do, I don’t want to confuse them with an extra piece of paper.

Yes, some cases of prolonged processing times still occur, but I think things have generally improved (by a good bit) in the last one to two years; 30-90 days to approval on average.

I wouldn’t worry about- send in the paper and relax.



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#4 Sgt

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Posted 12 November 2004 - 04:25 PM

Do you have to pay yearly dues to keep the corp. going? If the corp. is non-profit, do you still have to file taxes on it? Can the mission of the corp. be for the historical study, collection, and preservation of military weaponry? What happens to the goodies if you decide to dismantle the corporation?
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#5 catnipman

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Posted 12 November 2004 - 07:56 PM

Thanks for all of the information. I'm going to take PK's advice.

BTW, the Colorado LLC costs only $10.00 a year to keep it alive, and the renewal can be don on the web with a credit card.
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