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  #1  
Old 03-07-2007, 07:45 PM
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Quarterbore Quarterbore is offline
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First, it is not possible to build a new machinegun if you do not have a proper NFA Manufactures license since 1986. Before then, you could have submitted a Form 1 with your tax payments and build a MG but not anymore. Building one these days will cost you 10-years in jain and $100,000 in fines! In that perspective, a transfereable machinegun is rather cheap!

As for the Corp, I have all kinds of business activities and honestly doing the books and reporting is a real PITA! Unless you really need to go the Corp route, I would suggest looking at other options.

The big advantage with a corp for me is the guns that are on the Corp books stay with the Corp so I can pass it on to my kids regardless to what future laws may bring regarding x-fer of MGs. I can also draft a letter in the Corp name allowing some Corp officers to use the MGs but I don't let that happen so that is pretty much a moot atvantage at this point.

I have seen some people do these as part of a Trust and the paperwork for that might be a whole lot easier then a corp. Also, my Corp is a full c-corp so I have lots of stuff I need to report.
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  #2  
Old 03-07-2007, 10:53 PM
Orion Orion is offline
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I figured that construction of the MG would fall more under NFA gunsmithing/manufacturing.

With what I do I don't have need of an entity as of yet but most likely will in the future so I may have to go down that path anyway and the ownership of the MG's without CLEO's signatures is a surprise bonus.

I think that any type of corporate entity, be it S, C or LLC would be preferrable to the Trust unless you got a trustee that was trusworthy. There is something about having someone hold your assets in their name and have power over them that makes me nervous. But I wonder if you could be the trustee and name the beneficiaries as ones children. You have a valid point about the transfer to your children though, the corp has a distinct advantage there.

How come you chose a C corp instead of an S corp? Is there any benefit to you to justify the double taxation?

Did those people you know who used a trust have a lawyer prepare the trust docs and who did they use as trustee?
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  #3  
Old 05-11-2007, 08:12 PM
Orion Orion is offline
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Another thought

Quarterbore,
In preparation for my first AK build I was thinking about the fact that essentially I am building an unregistered firearm from a bunch of parts. As long as the firearm doesn't violate the NFA and other laws restricting firearms doing this is perfectly legal.

Is there anything prohibiting one to build, for ones own personal use, a firearm from a bunch of parts of different origins? For example if you bought a barrel and machined up a reciever to fit it, either bolt action or semi auto, and then added on a trigger group and stock of some type? Would this firearm require registration under the current system?

Thanks

Orion
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  #4  
Old 06-25-2007, 03:16 AM
my-rifle my-rifle is offline
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Quote:
Originally Posted by Orion
Quarterbore,
In preparation for my first AK build I was thinking about the fact that essentially I am building an unregistered firearm from a bunch of parts. As long as the firearm doesn't violate the NFA and other laws restricting firearms doing this is perfectly legal.

Is there anything prohibiting one to build, for ones own personal use, a firearm from a bunch of parts of different origins? For example if you bought a barrel and machined up a reciever to fit it, either bolt action or semi auto, and then added on a trigger group and stock of some type? Would this firearm require registration under the current system?

Thanks

Orion
Wow! Give the guy a break :-)

Here's a letter from the BATFE:

http://www.atf.gov/firearms/building_a_firearm.pdf


The firearm would not require anything until you try to transfer it to someone else. At that point you are required to imprint your name, address, and a serial number unique to you as a manufacturer on the receiver. If you do not have a manufacturer's license you may build and sell some guns, but if the number becomes excessive (deliberately ambiguous) you may get a visit from federal officials, and they may press charges. What's worse, if one of your builds (your name and address) turns up in a crime scene, the victims or their families can sue you as the manufacturer for damages, and these can hurt a lot.

The bottom line is that you can legally build firearms, but selling them is just not worth the difficulty and liability you will cause to yourself and your family.

As for building, crank em out! There's no need to worry. Just take care of them, and don't let them get stolen. You don't want them traced back to you in a civil suit.

Last edited by my-rifle; 06-25-2007 at 03:19 AM.
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