FFL class 3 with Suppressor question

S

snobile

Inactive
I posses a FFL in the state of Florida and I also have a class 3 SOT.
General, I only purchase and sell suppressors.
I have an LLC and my firearms business is a DBA under the LLC.
I am a Managing Member of the LLC. In order for me to use and posses one of the suppressors I order requires what paperwork, if any.
My LLC already owns the suppressor and has paid the tax - but I want to store the suppressor at the headquarters not the FFL premises.
 
I would write BATFE and ask them those questions, but here is my $.02.

A question - Is the suppressor owned by the corporation or by you? Whose name is on the transfer paper?

If the item is owned by the corporation, and you, as a corporation officer want to buy it, it is my understanding that any time a corporation owns an NFA firearm (which includes suppressors), and an officer/director of the corporation wants to buy that item, it is a new transfer from the corporation to the officer as an individual, requiring a Form 4 and tax stamp. The corporation does not have to be a dealer; it is a "corporate person" and (local law permitting) one person can transfer the item to another person within a state without going through a dealer, as long as the Form 4 is approved and the tax paid.

If the above is correct, and you want a suppressor for personal use, it might be better just to buy one from the supplier directly in your own name and save $200.

As to where an NFA item can be stored, another question for BATFE, IMHO. If a corporation which is not a dealer owns NFA items, AFAIK they can be stored in any location owned by or under control of the corporation. But your LLC is a licensed dealer so, again IMHO, the suppressor has to be stored on the licensed premises so as to be available in case of an audit.

Jim
 
I follow you completely, but what do you mean by this statement "If the above is correct, and you want a suppressor for personal use, it might be better just to buy one from the supplier directly in your own name and save $200."
 
It depends on where the suppressor came/will come from to your corporation/dealer. If from a manufacturer/dealer the transfer to your corporation/dealer would be tax free, but still would involve paperwork and a wait. Then the transfer to you would involve the $200 tax and another set of paperwork and another wait.

If the suppressor came/will come to your corporation/dealer from an individual, then not only will the paperwork be required but also the $200 tax, so the transfer to you would be another $200 and another set of paperwork.

Buying directly from the supplier as an individual would involve one tax and one set of paperwork, but might cost more unless you can get dealer cost.

Jim
 
To add to the op's question. Is it possible to use/posses the said silencer purchased by the LLC without out a transfer because he is the owner/manager of the LLC?
 
I know of no law, rule or regulation that prevents a Class 3 dealer from doing demos or T&E's of a product. Every trip to the rangeivan be a demo.
 
I know of no law, rule or regulation that prevents a Class 3 dealer from doing demos or T&E's of a product. Every trip to the rangei can be a demo.
 
Not to mention if your building machineguns, silencers,SBR,etc you have to make sure they run at some point...
 
Too many questions, too little information.

Write a letter to BATFE HQ giving ALL the pertinent information, and ask the questions.

JIm
 
We use suppressors daily that belong to the company but are used by employees. Just today we had multiple machine guns and suppressors out, all of which are in the companies book. Some of them live at my house because they are test beds and we cannot shoot at the office. Our book has notations for each one and we keep any form 3s and 2s to hand.
 
If your company owns the suppressor then it is fine for you to take it to the range for "demonstration purposes". Make sure you take a copy of your form 3 showing that the suppressor is registered to your business, and your FFL/SOT with you to the range and you should have no problems.
 
You must log in or register to reply here.
Back
Top