LLC to obtain Title II SBR??

General Firearms NFA
1

Stop number one on my quest for a SBR…M4C. I’ll pose my question to the forum in hopes of getting some real answers.

I currently live in a county where the Sheriff will not sign a request for a permit to purchase/build a SBR or suppressor. I desire a 10.5 inch barrel for my AR.

At a local gun show today, one of the more respected dealers informed me that there was a way around this. He suggested that I consult a lawyer and form an LLC. The dealer then went on to inform me that, with the proper paperwork and the $200 tax stamp, the LLC (ie, me) would be able to purchase and own Title II firearms and accessories such as suppressors.

Is this correct? If so, how might I find a lawyer who will help me form an LLC and qualify for the Title II permits? Any help is greatly appreciated, and especially from those who know what I’m talking about.

2

You can form a corporation or trust to hold the NFA items. The trust route is the easiest and IIRC, there are some pitfalls to the corporation route.

I’m no expert on either but I know we’ve discussed the formation of trusts here at M4C quite a bit so a search should turn up a lot of good info (especially in the NFA subforum).

Here, try this. :smiley:

3

Be cheaper and easier to form a Revocable Living Trust.

Filing as an LLC or Incorporating is a headache because you know bring the IRS into the whole mix (you now have to file business tax forms) as well as get a lawyer to fill out the various forms to become a Corporation (or LLC) as well as pay a filing fee that can range from a few hundred to up to a $1,000 USD.

4

You can form a Legal Trust, without a lawyer, if all you were wanting is to build an SBR by adding the shorter barrel. You could use Quicken Will Maker to draft one up, get it notarized, and you’re good to go. Most states don’t even require you to register it. Then you just send it, and your money, off to the BATFE and wait. No signatures / photos required.

As for the suppressor… not sure on that one. And not sure on the LLC process / gains. Sorry.

5

Suppressors can be obtained on the trust, as well.

6

Good to know. I was familiar with the Trust/SBR route, having done the process before, but never looked into using the Trust for suppressors as well. But stands to reason.

As I’ll being purchasing a suppressor soon, this info is helpful. :slight_smile:

7

Thanks for the info guys. I’ll be doing some research here in the next few days and will probably have a few more questions. Thanks again!

PS- I’ll be sure to post pics when I finally get my SBR!!

8

I purchased an M4-2000 suppressor (thanks markm) via a trust while on R/R. I highly recommend it as opposed to the LLC route.

9

my understanding was that its ONLY corporations and trusts- not LLCs- that could circumvent the CLEO, but i could be wrong.

i already have a corporation, so it’s no sweat for me… but even if i didnt- all you need in oregon is a $50 corporate registration fee and a phone call to the IRS to get an ERN.

my corporation is an active construction company, and I hired zero lawyers to set it up. the only time you need a lawyer is if there are multiple officers of the corporation sharing stock and other things that will require business agreements and contracts and so forth. since i’m the only officer and the sole share-holder, i didn’t have to worry about any of that. after that, it’s all taxes.

10

I am fairly certain that an LLC can as well. Though I prefer the trust for several reasons.

11

I know you have to file a form with the BATFE before taking suppressors and SBRs (or just one) across state lines. I thought there was a difference in LLC vs trust in being able to take them out of state, or am I remembering wrong. I looked for some answers and really couldn’t find it, but I thought I had read it on TOS. thought I could get some answers from people in the know.

12

I’m in NC as well. The easiest method is to do a Revocable Living Trust. A trust is easier to setup and manage than a LLC. No tax concerns in North Carolina…you don’t even have to register a trust here. You can set up a RLT with just a copy of Quicken WillMaker and some very easy HowTos on the net. Feel free to PM me if you need more info.

13

Way I read it is if you plan on taking it across state lines you need to submit Form 5320-20
for each stop along the way. Not sure if its final destination or just when you lay your head.

14

The trust is the easiest way and a lot harder to screw up than the LLC, If you forget to file your yearly paperwork and let your LLC lapse your toys are now illegal. I did a Quicken RLT for my cans, and the NFA branch didn’t have any problems with it, I’m probably going to pay a real lawyer to go over it before I put any more stuff on it though just to make sure.

15

You do not need to get approval or even tell them to take suppressors across state lines unless your permanently moving.

Not so sure about SBR’s but I know that you have to send in a form5 and get it approved before moving a Machine gun across state lines even if only temporarily.