NFA Gun Trust Lawyer Blog

February 9, 2012

FFL Formation Services with FFL Operating Agreement / Bylaws

We are regularly asked to help people setup their FFL properly. One of the biggest problems with many FFL’s is that they use regular operating agreements or corporate bylaws. There are some specific issues why using a canned or shell company documents may not be appropriate and why you should consider using agreements that are specifically drafted for FFLs.

If the business entity is used correctly, the business entity can stop the liability from going to the owners and managers. Many corporate and LLC docs can prohibit some of the activities that FFL, their owners, managers, and employees engage in. If you are violating the terms of your agreement, your business entity may not shield you from the actions or liability
Properly drafted agreements allow for growth including taking on new members or shareholders which could provide additional resources to the business. Today a prohibited person may not know they are prohibited and traditional operating agreement do not shield them from prohibited transactions or activities. Your agreement should help a person determine if they are prohibited as well as guide them in which activities they may and may not participate and who needs to be updated upon such a change.

February 7, 2012

Original Trust or Copy to ATF with Form 4 or Form 1

by David M. Goldman

We often get asked questions regarding sending the original trust to the ATF. You should never send your original trust. You should only send a copy. The ATF have been known to have lost applications in the past and they never send back your original trust.

If your Gun Trust was novelized with a raised seal, you should shade the seal with a pencil and then send a photocopy of the trust. This way the seal will show in the photo copy. Most jurisdictions have gone away from using raised seals because of the problems they create when copying.

February 3, 2012

Georgia Senate Passes legislation to legalize hunting with a silencer

by David M. Goldman

On Jan 31st the Georgia Senate passed a bill to authorize the use of silencers on hunting firearms under certain circumstances and repeal conflicting laws. On Feb 1st 2012 the bill was sent to the house. Here is a link to see the current status and the bill.

February 2, 2012

Indiana Senate passes bill regarding hunting with a silencer

by David M. Goldman

Looks like Indiana is about to legalize hunting with a silencer as long as used legally and with the permission of the owner of private property. Illegal use of a silencer would be either a Class C or Class B misdemeanor. For the text of the bill or current status follow this link.

February 1, 2012

Bonnie and Clyde Thompson Machine Gun Sold for over $150,000

by David M. Goldman

I knew this one would sell for a high price but had no idea that anyone would pay such a large amount of money for this Gun. While the gun sold for $130,000 there was a 17% buyers premium which brought the actual cost of the firearm to over $150,000.

January 20, 2012

Masterpiece Arms Suppressor announced at Shot Show

by David M. Goldman

Masterpiece Arms, manufacturer of Semi Automatic SMG Pistols and Carbines and Subcompact Conceal Carry Semi Auto Pistols, is expanding their product offering to include 3 new 22 LR Sound Suppressors starting at less $249.99.

These are low-cost suppressors but no data on sound suppression has been released intentionally They state:

As a relative newcomer to the suppressor market, one of the challenging decisions is whether or not to publish decibel reduction data. One of the things we have learned, as with many industries where technical data may tend to provide a false representation of the quality of a product, is that an appropriate level of skepticism to the reported db data provided by many suppressor manufacturers exists.

January 20, 2012

Can I own a pistol and a shoulder stock that can be attached or is this a violation of the NFA?

by David M. Goldman

Owning a pistol and a shoulder stock that can be attached where the barrel is less than 16 inches and the length of the firearm is less than 26 inches is a violation of the NFA without an approved Form 1.

There are certain exceptions for some items which have been removed from the NFA under C&R such as an original and unmodified Mauser “Broomhandle” and some Lugers. Remember that the NFA use to permit modification to C&R but no longer does. If you have a gun that was C&R and then modified, it most likely does not maintain the C&R status of the firearm.

This was common in California and if you are in possession of these items, it is our belief that you are no longer permitted to be in possession and you should check with the lawyers we work with in California understand your rights and obligations.

January 19, 2012

How Much Does it cost to be a Class III Dealer, Manufacture, or Importer?

by David M. Goldman

Besides complying with the other requirements for being a FFL, if you want to become a manufacture, seller, or importer of Title II firearms there are several licenses you may need. These include the following and the fees are yearly fees.

1. Importer of Title II Firearms $1000.00
2. Manufacturer of Title II Firearms $1000.00
3. Dealer of Title II Firearms $500.00 ( This is the Class III Special Occupational Tax)

If your gross revenues from the previous tax year were less than $500,000 then you may qualify for a reduced rate as follows.

January 18, 2012

Bonnie and Clyde Thompson Machine Gun up for Auction

by David M. Goldman

This historic Tommy Gun is believed to have been owned and used by the outlaws Clyde Barrow and Bonnie Parker. The seller’s great-grandfather, who was in law enforcement at the time, was given the gun by another peace officer who had seized the weapon after a raid on the pair in Joplin, Missouri in April of 1933.

Just months previous to the raid, Bonnie & Clyde kidnapped a police officer by the name of Thomas Persell. Persell recounted the events of the abduction for the Springfield Daily News and the Joplin Globe, mentioning each time the “Tommy Gun” Mrs. Parker proudly held.

The raid occurred at the height of the duo’s crime rampage that cut a wide swath across middle American during the Great Depression. The raid did not produce any arrests. The two had a knack for being one step ahead of law enforcement, but it did yield a cache of weapons, plus a camera. The guns have been in the family of Mark Lairmore and his sisters, the sellers, from Springfield, MO., ever since the unknown Depression-era police officer gave them to their great-grandfather.

January 18, 2012

May a private citizen who owns an NFA firearm which is not registered have the firearm registered?

by David M. Goldman

No. The NFA permits only manufacturers, makers, and importers to register firearms. Mere possessors may not register firearms. An unregistered NFA firearm is a contraband firearm,

and it is unlawful to possess, purchase, sell, or use the weapon. There are certain exceptions for items that were brought back from a war and where there is documentation showing that there was permission to bring the items back to the United States. While the ATF is under no obligation to do so, we have seen several cased where these items were presumed to have been registered and were put into the NFA registry. Otherwise, the possessor should contact the nearest ATF office to arrange for its disposition.

Violators may be fined not more than $250,000, and imprisoned not more than 10 years, or both. In addition, any vessel, vehicle or aircraft used to transport, conceal or possess an unregistered NFA firearm is subject to seizure and forfeiture, as is the weapon itself.