TItile II Firearms / Class 3 SOT

May 30, 2012

Buying a Silencer with a Gun Trust

We often get questions dealing with the purchase of silencers in other states. You or a co-trustee must be a resident of the state in which you want to purchase the silencer. For example if you are a resident of a state that does not permit the ownership of silencers like New York, California, or New Jersey it is possible to purchase silencers in other states where they are legal. Unfortunately if you are a resident of a state where they are not legal will not be able to complete the transaction. If you have a co-trustee who is a resident of a state where they are legal the silencer can be purchased in that state by that co-trustee.

While it is permissible to add co-trustees in other states there should be a legitimate reason to add them and they should not be added to facilitate the purchase as this would be considered a straw purchase and would be illegal.

Often people add adult relatives or friend who they will be shooting with, or who they want to have access to the firearms to a trust as a co-trustee. This would be a legitimate reason to add someone and would not create a straw purchase issue. On the other hand if you were to add someone to the trust simply to allow you to make the purchase, it could be considered a straw purchase.

May 16, 2012

Texas Legalizes Hunting with Silencers starting September 1 2012

by David M. Goldman

With Dove season just around the corner, Texas is becoming one of the growing list of states that allows the use of silencers when hunting.

A silencer is a Title II Firearms which is restricted by the National Firearms Act and can only be sold by dealers who have a Class 3 SOT license. (They can also be purchased second-hand from individuals using the same ATF Form 4). Because of their classification they require a $200 Tax stamp and approval from the ATF or BATFE before you can take possession of them.

Other states including Texas have previously allowed the use of silencers when shooting varmint but not on game. While the law was passed in March, Texas hunters have been patiently awaiting September 1st to legally use silencers while hunting.

April 20, 2012

Modernizing your M16: Starting With a Pre 86 Transferable Machine Gun

by David M. Goldman

A few weeks ago I purchased a fully transferable M16. Many of our clients have asked me to post some pictures of what this gun is being built into. Almost every replaceable part has been upgraded to the latest modern version while still keeping it legally transferable as a Pre 86 Machine Gun.

One of the first things we did was to replace the stock with a high-tech anti recoil Israeli Stock.

Next build a modern upper with a Side charger much like you would see on a AK47 so that you do not have to take your eye off the scope to load a bullet.

February 23, 2012

NFA Trust Question: I have heard about a one-time $500 Tax For Unlimited Silencer Transfers

by David M. Goldman

First let me say there is no $500 one-time tax for unlimited transfers. There is a $500 yearly fee for a FFL to obtain a Class 3 SOT which allows them unlimited transfers for that year from other dealers for items owned by their FFL. This fee needs to be paid yearly and may be in addition to other fees necessary depending on what the FFL will be doing. If you are interested in setting up a FFL, please Contact Us as we can put you in touch with someone to help you create your FFL and have the systems necessary to not create problems with the BATFE. You can buy cheap products out there that will help create the FFL, but just because you create n FFL does not mean it will be done correctly and you will understand what your duties and responsibilities. Our package helps you protect yourself from unintentional violations.

In regards to personal ownership, it is unfortunate but you, your company, or your trust will need to pay $200 for each silencer you purchase.

September 11, 2011

Benefits of Gun Trust over LLC in Most States

by David M. Goldman

We are often asked about the advantages of a Gun Trust by one of our Gun Trust Lawyers® over a LLC. I have compile a quick list of the most common advantages.

no federal or state tax or reporting requirements with a trust
no annual fees with a trust

July 22, 2011

Missouri (MO) What NFA Class 3 Firearms can I own?

by David M. Goldman

NFA Class 3 firearms There are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

In Missouri you can own the following items that are regulated the the National Firearms Act

May 18, 2011

Missouri Passes House Bill 294 Regarding NFA Firearms

by David M. Goldman

In Missouri, you have previously needed to be an FFL to purchase Title II firearms from a Class 3 dealer. This may change soon as a new bill which is proposed to be effective on 8/28/11 would remove the FFL restriction. This means, you could use a Gun Trust to purchase NFA firearms. To read the bill follow this link.

February 11, 2011

How to purchase a Title II Firearm from an out of state person.

by David M. Goldman

When you are purchasing a silencer, SBR, SBS, Machine Gun, AOW, or DD from an out of state resident there are two ways of accomplishing the transfer.

The first and slower way is to do a Form 4 transfer to a local Class 3 SOT dealer. Once this is approved a tax free transfer can be made from that dealer to one in the purchaser’s state and then a second Form 4 transfer can be done from the buyer’s dealer to the buyer. This will involved 2 transfer fees and generally each dealer will charge a fee for the paperwork and transfer.

The second method involves transferring it directly on a Form 4 to the buyers Class 3 dealer who is located in the same state as the buyer. Once this is approved a second Form 4 transfer can take place from the dealer to the buyer. This will involve 2 transfer fees and fees from the single dealer. This method should be quicker since the dealer to dealer transfer is eliminated.

January 22, 2011

CLEO Signature costs $150 in Anchorage Alaska

by David M. Goldman

Thanks to the Alaska Machine Gun Association for letting us know about this. The Municipality of Anchorage has just imposed at $150 fee, effective 1 Jan 11, to process BATFE forms for CLEO signature.

Many might think that this is a Tax on a Tax and would violate Alaska’s preemption statute.

While CLEO sign off is often the initial reason individuals begin to look at trusts, We have found that the other advantages of a NFA trust are the overriding reason most end up using a NFA Firearms trust over a revocable trust.

January 13, 2011

Purchase of Previously Manufactured NFA Firearm under a Form 1

by David M. Goldman

If you are purchasing a Firearm that was previously manufactured under a Form 1 it may contain the engraving of the previous owner. Since this item was previously manufactured, you will be using an ATF Form 4 and not an ATF Form 1 to transfer this item and as such it will require no engraving on your part.