February 9, 2012

Is it necessary to have a FFL to purchase Title II Firearms or so called Class III Firearms?

NO. While a FFL with a Class III SOT is licensed to purchase and sell TItle II firearms, you as an individual, through a Gun Trust - Available at Gun Trust Lawyers®, or as a business entity do not have to have a FFL(in most states). In the past some states like Missouri required a FFL or C&R license to purchase Title II firearms. Late last year Missouri changed the law and a FFL is not required. We are not aware of any other states that current have this requirement.

The Gun Trust is a specific trust created by David Goldman in 2008 and is only available through Gun Trust Lawyers®. While others may use the words Gun Trust, unless it contains out copyright, it is not our trust. To make sure your documents cover all of the NFA issues, check to see if they are copyrighted by David Goldman. If you would like to find out about becoming a Gun Trust Lawyer® please Contact Us.

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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.

  • A properly drafted business agreement can help you sell the entire business with the licensing already in place. Most FFL's when sold have to go through a new authorization process because they are not properly structured and/or do not allow for this type of transition.

  • Thinking about how the ownership of the business is structured and dealing with this in the business agreements can allow the business to pass down through the generations and keep it within the family.

  • Your Operating Agreement or By-Laws needs to deal with specific FFL related issues as well as issues that are common to the firearms industry. Prohibited Person issues must deal with not only the owners or manages as mentioned above, but also employees. These documents should mandate policies that need to be in place for issues regarding federal and state requirements and recommendations.

  • Part of the process included determining the proper licenses as we often see that FFLs are confused about what is manufacturing and what is gunsmithing and the requirements of each. Many FFLs sell parts and then assemble them for clients and are actually manufacturing firearms because of the way the transaction and work is structured. They often do not have the licences nor collect the required excise taxes.


In addition to the industry specific business agreements, it is important to properly prepare your FFL and/or SOT applications so that they are not rejected and they should be designed and incorporated into an overall plan to provide insulation from problems down the road.

FFL's are historically weak in business and the understanding of the complex rules and regulations regarding the firearms industry. Many have skated by in the past, but with the new 100% compliance audits, it is more important than ever to be setup correctly or modify your existing business rules and documents to comply with the industry.

If you would like to schedule a time to discuss your circumstances and goals, Contact Us by using the form on this page or by call us to discuss a review or creation of FFL specific business documents to comply with the regulations.

If you are already a FFL, you may consider using a service like FFLGuard for instant updates of what is going on in the industry and what you can do to help improve your policies and procedures. They are involved in FFL audits on a weekly basis and allow FFLs to be instantly updated by the trends and techniques used by the BATFE.

I felt that I should disclose that I do work for FFLGuard as an independent contractor in regards to NFA and Trust issues for their FFL's but do not receive any compensation from FFLGuard in regards to their FFL services which are included in the products and or services they offer to the FFL community.

February 7, 2012

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

EmbosserNB.jpgWe 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

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

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

Thumbnail image for thompson-auction.jpgI 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

masterpiece_suppressor1.jpgMasterpiece 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.

DB Equipment variances, lack of a unified testing procedure, and the inability for objective testing groups to be able to replicate the data provided by many manufacturers has led us to the decision not to publish db data as a method of evaluating our product.

As an educated buyer, in the case of suppressors, one should tend to look past the results of decibel reduction as the final say in determining which suppressor meets their needs. Factors such as quality of product, manufacturing techniques, customer service, ease of maintenance, materials used and most importantly, the quality of sound reduction as heard by the shooter are items that will serve the educated buyer well once they have made the decision to purchase a specific suppressor. Rely on your local Class III FFL to provide expert advice, listen to various suppressors and the quality of sound they produce on a similar weapon, and research the company behind the product.

Don't get me wrong, we do meter our products quite extensively. It's one of the many tools used to help quantify our products. It's a very handy tool to benchmark performance and to help us determine if design enhancements are taking us in the right direction. However, we feel its more important to focus on improving the overall performance of our product as compared to focusing exclusively on designing a suppressor that produces the lowest db reading on our testing equipment under the most ideal testing parameters.


January 20, 2012

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

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?

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.

1. Importer of Title II Firearms $500.00
2. Manufacturer of Title II Firearms $500.00

Note: Having a Class 3 SOT license will not permit you to have or use a non-transferable machine gun for personal use. The ATF takes a close look at these transactions and no one should attempt to do this as an inexpensive way to own a machine gun as it could be a very expensive lesson.

January 18, 2012

Bonnie and Clyde Thompson Machine Gun up for Auction

thompson-auction.jpgThis 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.

Mr. Melton Lairmore, Mark Lairmore's father, registered the Thompson Sub-machine Gun under the name of Lairmore Armored Car Inc. in 1968 inaccordance with the Gun Control Act of 1968.

In a photo available on our website, Melton Lairmore, operator of an armored car service in Springfield, presents two guns taken from the car of famed 1930's gangsters Bonnie Parker and Clyde Barrow to Springfield Police Chief Gordon Loveland.

Lairmore loaned the .45 Thompson sub-machine gun and the 12-guage Winchester shotgun to police for use in displays during Crime Prevention Month and in the future police museum in the old city jail.

The weapons were displayed in the Springfield Missouri Police Museum, also known as The Calaboose, from 1973 until 2011

To see the current price or try to buy it, Here is the link to the auction.

January 18, 2012

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

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.

[49 U.S.C. 781-788, 26 U.S.C. 5861 and 5872]

January 17, 2012

H & K Briefcase Machine Gun

H&Kbriefcasegmachine.jpg In the NFATCA booth, Jeff was showing one of his H&K Briefcase guns in full auto. Current price on these which are pre 86 transferable is around 20K. If you are looking for the briefcase alone to add a semi automatic, you will need a $5 AOW tax stamp and around $2000 for the case alone.

January 17, 2012

KelTec's new threaded 22 PMR-30

IMG_1312.jpgKelTec showed several new guns at the Shot Show Today. They included a new version of their PMR-30 which is a light weight, full size pistol chambered for the flat-shooting .22 Magnum cartridge (.22WMR). The PMR-30 operates on a unique hybrid blow back / locked-breech system. This operation system allows for the use of a wide variety of ammunition as it seamlessly adjusts between locked breach and blow back operation, depending on the pressure of the cartridge. It uses a double stack magazine of a new design that holds 30 rounds and fits completely in the grip of the pistol. The trigger is a crisp single action with an over-travel stop. The manual safety is a thumb activated ambidextrous safety lever (up for SAFE, down for FIRE). The slide locks back after the last shot and a manual slide lock lever is also provided. The light, crisp trigger pull and fiber optic sights make the PMR-30 ideal for target shooting and hunting small game.

January 17, 2012

ATF arrests 49 for Violations including possession of SBS

Several Atlanta residents were recently sentenced to serve time after being convicted on varying federal firearms and narcotic related charges, according to information received from agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). These sentences are a result of an ATF initiated undercover operation, called ATL Blaze. Undercover agents, placed themselves in positions ultimately putting the word out that they were interested in buying firearms and drugs from the criminal element. The case yielded 257 handguns, 60 rifles, 46 shotguns, and 10 short-barreled sawed-off shotguns taken off the streets of Atlanta. Forty-nine defendants were indicted on charges ranging from conspiring to commit a home robbery, possession of a firearm by a convicted felon, possession of an unregistered short-barreled rifle, possession of a stolen firearm, unlawful dealing in firearms without a license, possession of controlled substances with intent to distribute, and aggravated identity theft. The case was investigated by ATF Atlanta Field Division in conjunction with the Atlanta Police Department (APD).

January 17, 2012

May a FFL or an individual legally possess the parts to manufacture an SBR or SBS as long as no firearms are actually assembled?

It appears that ATF does not permit individuals to own the parts necessary to make a SBR or SBS prior to receiving their permission to manufacture / assemble the items. Because of this is it recommended that the same person should not purchase all of the items necessary to make a SBR or SBS and if they do, they should not take all of them home from the dealer. As a barrel can often be attached to several guns, it would be prudent to leave the barrel at your Class III dealer prior to receiving an approved ATF Form 1.

This information comes from a similar question and is found on the ATF website.

A FFL (Type-7 or Type-10) who pays the Special Occupational Tax (SOT) may possess the parts required to assemble NFA firearms (SBR or SBS). A non-licensee (individual, trust, corporation, or other business entity) or FFL who has not paid the SOT is
required to register any NFA firearm via an ATF Form 1 (5320.1) prior to acquisition of the
parts required to assemble such firearm.