Corporations/Companys and class 3?

H

Heist

Moderator
I'm aware that a person may form a LLC to be able to own a NFA registry weapon without requiring the chief of police to approve the transfer. Since the LLC is a seperate entity, what are the requirements put on the person who stores and maintains the weapon?

Also, you can pay 40 grand for a full auto M2. Wouldn't it be more cost effective to spend that much getting registered as a class 2 manufacturer, and then make whatever you wanted for your own personal use- possibly even coming up with a design or model that is saleable?
 
The requirements are the same as an individual getting one on a Form 4. Basically, ATF can ask to review your paperwork. They cannot enter your home/business at will and search for other violations.

If you do the paperwork to get a manfacturing license and do not actually enter into manufacturing NFA items, which is the reason to get the licenses and SOTs, ATF will arrest you for lying on federal forms and for evading paying taxes on NFA items created for personal use. Not to mention, the license is $1,000/yr and if your license lapses, you cannot keep any machineguns you made.
 
I've got a concept for a small caliber machinepistol that would make an effective PDW. If I had a class II, that would be the first thing to be designed and created, and then marketed to LEO organizations. I'd probably want to have interested parties lined up first, though, and have a skilled designer on board.
 
A better course of action would be to get a patent on your design and submit it on an established manufacturer to produce a couple of prototypes. At that point, you could decide to create your own company to make them (manufacturer's SOT), pay a company to make them for you (under a dealer's SOT) or license a company to make and market them under their name and SOT.
 
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